Best 1 year cd rates right now

Top Banks and Credit Unions With the Best Rates and Terms for a 1-Year CD

Updated on November 4, 2022

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We review more than 150 banks and credit unions to find the best rates available nationwide for 1-year CDs. We track annual percentage yields and re-evaluate the list every weekday. All accounts are available to the public and are insured by either the Federal Deposit Insurance Corp or the National Credit Union Administration. One-year CDs are an easy way to earn some extra interest on a chunk of your savings, while also safeguarding against you withdrawing it on a whim. 

For this list, we considered products that lock in deposits for 11 to 14 months. Our rankings are based primarily on the best APY. In the case of a tie, we then look at the CD with the shortest term, then with the lowest minimum deposit required to earn the APY. From there, we compare the penalties for early withdrawal. These factors allow us to ultimately decide which banks earn their spots in our rankings. Here are the top 1-year CD rates as of Nov. 4, 2022.

Best 1-Year CD Rates

Superior Choice Credit Union

Superior Choice Credit Union (SCCU)—based in Superior, Wisconsin—has been serving the financial needs of its member/owners since 1932. Although this cooperative primarily serves residents and employees of more than 15 counties adjacent to Superior, anyone can join by becoming a member of the American Consumer Council, which costs as little as $8. You’ll also need to establish and maintain a savings account with a minimum balance of $5.

Superior Choice Credit Union boasts a full range of financial services including checking, savings, money market, and health savings accounts; bank loans and mortgages; credit cards; and more. SCCU offers CDs with terms ranging from three months to five years. It even has a “Next Gen” or “youth certificate” with a $25 minimum deposit.

Merchants Bank of Indiana

Founded in 1923 as Greensfork Township State Bank, Merchants Bank has six locations in central and eastern Indiana. It acquired Symphony Bank in 2009 and took its current name a few months later. The bank is a subsidiary of Merchants Bancorp, headquartered in Carmel, Indiana, which also includes Merchants Capital Corp., Farmers-Merchants Bank of Illinois, and Merchants Capital Servicing LLC.

In addition to CDs, Merchants Bank offers an array of personal and business banking products. It offers home loans through its Merchants Mortgage division. Those who don’t live near one of its branches can open and manage accounts online or via an app available for Android and Apple devices.

Banesco USA

Banesco USA, founded in 2006, is part of Banesco International, which operates in 15 countries. You can get CDs with 6-month to 3-year terms. The bank also offers checking, savings, and money market accounts, along with loans. Through an automated voice system, you even can make payments by phone.

North American Savings Bank

With a name like “North American Savings Bank,” you’d expect this Kansas City, Missouri-based bank to offer good rates on CDs, and it does. This bank has been around since the 1920s and today it has over $2 billion in assets. If you’re looking for a full-service bank that can also provide you with checking accounts, savings accounts, and other products, North American Savings Bank might be a good choice for you. You may want to skip it though if you want easy ATM access and are not local to the bank—it only operates 50 ATMs scattered near its headquarters. You must keep at least $50 in savings, too.

Sallie Mae Bank

Sallie Mae made its name in the student loan business, but it also operates an online bank as well. It’s quite impressive in size, actually, with more than $31 billion in assets as of August 2020. Its online bank offers only savings and CD accounts, however, so you’ll still need to get your everyday checking account elsewhere.

Crescent Bank

Crescent Bank opened in New Orleans in 1991 as City Bank & Trust before changing its name to Crescent Bank & Trust before eventually dropping the "& Trust." The bank focused heavily on auto loans during its early years, but it also offers a full menu of banking options including CDs, checking accounts, savings accounts, money market accounts, and more.

The bank has three branches in Louisiana, including its main location in New Orleans. Those who don't live near a branch can open and manage their accounts online.

Rising Bank

Rising Bank is the online banking division of Midwest BankCentre, based in St. Louis. Its history dates back to 1906 when Midwest was known as Lemay Ferry Bank. In 2000, it changed its name to Midwest Bank Centre, and Rising Bank was launched in 2018. Rising Bank specializes in checking and savings accounts and CDs of varying terms. Checking and savings accounts require $1,000 to open and aim to offer interest rates competitive with other online banks.

First Internet Bank

As its name implies, First Internet Bank was the firstFDIC-insured institution to operate entirely online, beginning in 1999. Its corporate headquarters are in Indiana.

First Internet Bank offers CDs in a variety of terms up to five years. In addition to CDs, there is a full suite of banking products and services including checking, savings, money markets, HSAs, and child accounts, as well as loans, credit cards, and business banking services.

Justice Federal Credit Union

Justice Federal Credit Union was founded in 1935 to serve the law enforcement community. In addition to CDs, it offers standard banking products such as checking and savings accounts, auto loans, and more. Headquartered in Chantilly, Virginia, it has 22 additional locations elsewhere in Virginia, and in California, Florida, Georgia, Illinois, New York, Texas, West Virginia, and Washington, D.C. It is part of the CO-OP Network of shared branches and ATMs, and accounts can be managed online or through its app for Android and Apple devices.

Membership is available to numerous law enforcement agencies and groups nationwide, including the National Native American Law Enforcement Association, which anyone can join for $15.

CIT Bank

CIT Bank is a top-50 U.S. bank that’s been in business for more than 100 years. Personal banking customers can choose from online savings, money markets, and CDs. CIT Bank also offers home loans, business banking, and commercial services.

Certificates are available in terms ranging from six months to five years.

What Is a 1-Year CD?

A certificate of deposit (CD), offered by banks and credit unions, provides a fixed interest rate (typically higher than other account types) in return for the account holder agreeing to leave the deposit for a set amount of time. Because the rate is fixed, the account holder knows exactly how much the CD will earn when it matures.

For a 1-year CD, the account holder agrees not to touch the deposit for one year. At the end of the term, the full interest will be added to the deposit amount. The customer then has the option to withdraw the full amount or renew or change the CD.

Who Is a 1-year CD Best For?

A 1-year CD is appropriate for someone who wants to earn more interest than a typical savings account would offer, although occasionally there are savings accounts with even better rates than 1-year CDs. However, savings rates are variable, so if you think rates are likely to fall and you want to lock in a good one today, go with a CD.

A common reason to consider a 1-year CD might be if you’re saving for a trip or big event to take place next year. The idea is that it’s a short-term investment. Opening a CD helps you avoid the temptation of spending the money, and lets you earn a bit of interest while you wait for it to mature.

Typically, the longer the term, the higher the rate you’ll receive. A 1-year CD can be especially helpful with longer-term savings goals if you’re building a CD ladder. With a CD ladder, you buy CDs of varying lengths to mitigate the risks of locking all your money into one long-term CD.

You need to be comfortable with tying up the money for one year. That’s because there usually are early withdrawal penalties, and the last thing you want to do is lose out on those earnings.

What Are the Alternatives to a 1-Year CD?

If you’re looking for a savings option, a 1-year CD is just one of them. When choosing the best approach for you, the key is to think about your current financial situation, your goals, and your saving/spending habits. Beyond a 1-year CD, there are some other options to consider.

If you know you want to go the CD route, you may decide to go with a shorter or longer term, depending on your needs. Shorter-term CDs allow you access to your money sooner but probably will have a lower APY. Longer terms likely will earn more but will separate you from your money for a bigger stretch of time.

If you’d rather not tie up your money, you might consider an online savings account. Some APYs are comparable to or even higher than 1-year CD APYs. The difference is that savings account rates can change at any time. Also, if you lack self control when it comes to spending, the easier access that a savings account affords you might not work in your favor.

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