Best 1-Year CD Rates of September 2023 (Earn up to 6.00%)

Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

The average rate for a 1-year CD in the US is 1.76% APY (Annual Percentage Yield). However, the best online banks pay well over 5% APY on a 1-year CD.

The best CD rate on a 1-year CD is 6.00% APY from City Credit Union. If you are looking for additional CD options, there are other financial institutions with high 1-year CD rates, too.

We check rates daily to find the best rates for 1-year terms. Here are our recommendations for the best 1-year CDs. 

Best 1-Year CD Rates

Market Leader

City Credit Union 12 Month CD: 6.00% APY

Membership at City Credit Union is open to anyone who lives, works, worships, or attends school in an eligible county in Texas (Cooke, Grayson, Wise, Denton, Collin, Hunt, Rockwall, Dallas, Tarrant, Parker, Johnson, Ellis or Kaufman County).

Compare the Best 1-Year CDs

1-Year CD FAQs

1-Year CD Reviews

These are our picks for the best 1-year CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. Although Silicon Valley Bank, Signature Bank, and First Republic Bank have recently been shut down, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.

City Credit Union 12 Month CD

City Credit Union is a great choice for getting a CD if you live in North Texas and prioritize banking with a credit union. The credit union is offering 6.00% APY on a 1-year CD.

To join City Credit Union, you must live, work, worship, or attends school in an eligible county in Texas (Cooke, Grayson, Wise, Denton, Collin, Hunt, Rockwall, Dallas, Tarrant, Parker, Johnson, Ellis or Kaufman County).

APY for 1-year CD: 6.00% APY

1-year CD early withdrawal penalty: 90 days of interest

What to look out for: The credit union’s CD has a $1,000 minimum opening deposit. Other banks on our list may allow you to open a CD with less money upfront.

Credit Human 12 Month Share Certificate

A Credit Human Share Certificate may be a good choice if you value banking with a credit union over a bank. Credit Human Federal Credit Union has a high interest rate for a 1-year term, and you only need $500 to open an account. 

APY for a 1-year CD: 5.80% APY

1-year CD early withdrawal penalty: 270 days of interest

What to look out for: To open a Credit Human Share Certificate, you’ll have to qualify for membership. The easiest way to become a member regardless of where you live in the US is to join the American Consumer Council. Credit Human also has other ways to become a member. For example, you’ll be eligible to join if you live in a service area in San Antonio, Texas, or New Orleans, Louisiana, or if you work for a partner employer or organization.

CFG Bank 1 Year CD

CFG Bank CDs have a low minimum opening deposit of $500 and pretty good rate for a 1-year term.

APY for a 1-year CD: 5.67% APY

1-year CD early withdrawal penalty: 90 days of interest

What to look out for: CFG Bank only offers 1-year, 18-month, 3-year, and 5-year terms. Other banks may have a greater variety of terms to choose from.

CFG Bank Review

Forbright 1 Year Online CD

The Forbright Bank Online CD may be worthwhile if you value banking with an eco-friendly financial institution that has nationwide online CDs. The 1-year CD offers a high interest rate. You might like Forbright if you value banking with a financial institution that aligns with your values — Forbright Bank has received a Fossil Free Certification, which means that it will not lend to fossil fuel companies or projects.

APY for 1-year CD: 5.65% APY

1-year CD early withdrawal penalty: 3 months of interest

What to look out for: If you’d like to open a checking, savings, or money market account, you’ll have to open an account at a branch in Maryland. Forbright Bank also has limited online CD terms. You’ll find more variety at other online banks.

Forbright Bank Review

Latino Community Credit Union 1 Year Share Certificate

A Latino Community Credit Union Share Certificate may be appealing if you value banking with a financial institution that’s dedicated to serving Hispanic American communities.

You also might like to join this credit union if you live in North Carolina. Latino Community Credit Union has locations in Charlotte, Piedmont Triad, and Triangle areas. You can still open a CD online if you don’t live near a branch, though.

APY for 1-year CD: 5.65% APY

1-year CD early withdrawal penalty: 90 days of interest

What to look out for: To open a Latino Community Credit Union Share Certificate, you must become a member first. The easiest way to become a member regardless of where you live in the US is to join the Latino Community Development Center and pay a one-time $8 membership fee. 

Latino Community Credit Union Review

TotalDirectBank 1 Year CD

The TotalDirect Bank 1 Year CD offers a competitive interest rate on a 1-year term. TotalDirectBank also pays high rates on 3-month and 6-month terms.

TotalDirectBank is the online-only division of City National Bank of Florida.  

APY for 1-year CD: 5.65% APY

1-year CD early withdrawal penalty: 90 days of interest

What to look out for: TotalDirectBank CDs have a steep minimum opening deposit of $25,000 and a maximum deposit of $1 million. The online institution also doesn’t operate in Florida, Somoa, Guam, the Northern Mariana Islands, or US Virgin Islands.

CIBC Agility 1 Year CD

CIBC Agility CDs may be worthwhile if you would like to open an online CD with low early withdrawal penalties. CIBC Bank USA is the US division of the Toronto-based bank Canadian Imperial Bank of Commerce and has a competitive CD rate for a 1-year term.

APY for a 1-year CD: 5.62% APY

1-year CD early withdrawal penalty: 30 days of interest

What to look out for: CIBC USA also has a CIBC Agility Online Savings Account, a few checking account options, and a money market account. The savings account can also be opened from anywhere in the US, but the checking and money market accounts are only available to residents who live near banking centers. Banking centers are available in select cities in California, Florida, Illinois, Michigan, Missouri, and Wisconsin.

CIBC Bank USA Review

Connexus Credit Union 1 Year Share Certificate

The Connexus Credit Union 1 Year Share Certificate offers the highest rate at Connexus. 

To join Connexus Credit Union, you must meet one of the membership eligibility requirements. The easiest way to join regardless of where you live is to become a member of the Connexus Association by making an initial $5 donation.

APY for 1-year CD: 5.61% APY

1-year CD early withdrawal penalty: 180 days of interest

What to look out for: Connexus Share Certificates have a $5,000 minimum opening deposit. Other banks may require less upfront.

Connexus Credit Union Review

Popular Direct 1 Year CD

Popular Direct CDs pay competitive rates, and compound interest daily.

APY for 1-year CD: 5.60% APY

1-year CD early withdrawal penalty: 270 days of simple interest

What to look out for: You’ll need at least $10,000 to open a Popular Direct CD. The early withdrawal penalty is also pretty steep.

Popular Direct Review

Western Alliance Bank 1 Year CD

The Western Alliance Bank 1 Year CD is one of the highest CD rates on Raisin.

Raisin is an online platform that lets you open and manage high-yield savings accounts and CDs from a variety of financial institutions. Raisin also has other CD terms that pay 5.00% APY or more. 

APY for 1-year CD: 5.51% APY

1-year CD early withdrawal penalty: 90 days of simple interest

What to look out for: You may prefer one of our other top picks if you would rather open a bank account directly with a bank. You also can’t get a checking account with Raisin, so it may not be the best option if you want to do all your banking with one company.

Raisin Review

Other 1-Year CDs We Considered

We looked at the following 1-year CDs as well. These CDs ultimately weren’t chosen among our top picks because they may have lower rates than our winners, higher minimum opening deposits, or more substantial early withdrawal penalties. You might find some of these options appealing though, depending on your preferences.

• Limelight Bank Online CD: Limelight Bank has high interest rates on 1-year and 18-month terms, but its 1-year CD rate is just short of the ones mentioned in our list.
• Edward Jones CD: Edward Jones has brokered CDs with interest rates much higher than the national average. However, you must have a brokerage account or bank account to open a CD. Our top picks also currently offer more competitive 1-year CD rates.
• Rising Bank CD: Rising Bank has a 1-year CD with a competitive rate, but our top picks offer even higher rates right now. 
• LendingClub CD: LendingClub has a high 1-year CD rate, but our top picks are more competitive.
• Bread Savings High-Yield CD: Bread Savings has a 1-year CD paying 5.50% APY. However, you’ll need a minimum of $1,500 to open an CD, and other banks offer even higher 1-year CD rates right now. 
• Santander Bank, N.A. CD: Santander Bank has a 1-year CD paying 5.50% APY but it’s only available for residents in CT, DE, MA, NH, NJ, NY, PA, RI, or select areas in FL (Miami-Date, Monroe, and Broward counties, and select areas in Collier County).
• Sterling United Federal Credit Union 1 Year Share Certificate: Sterling Federal Credit Union has a 1-year CD that pays above 5% APY, but it’s only eligible to people who live, work, worship, volunteer, or go to school in an eligible county in Kentucky (Henderson County) or Indiana (Posey, Vanderburgh, or Warrick Counties).
• Sallie Mae CD: Sallie Mae CD rates recently dropped. The 1-year term pays 5.10% APY, which is lower than our top picks.
• Crescent Bank CD: Crescent Bank’s 1-year CD pays 5.35% APY, which is just short of the top rates on our list. 
• USALLIANCE Financial 12 Month Certificate: A 1-year USAlliance Financial Certificate pays 5.20% APY, but our top picks offer more competitive interest rates right now. 
• BrioDirect High-Yield CD: BrioDirect has a 1-year CD that pays 5.35%, but our top picks offer higher rates right now. 
• First Internet Bank of Indiana CD: First Internet Bank of Indiana has a 1-year CD paying 5.35% APY, but its rate is just short of the rates on our list.
• Quontic CD: Quontic Bank has a good rate, just not quite as high as what you’ll find on our list.
• America First Credit Union Certificate: AFCU pays a high rate on its 1-year term, but the rates at our top picks are slightly higher.
• Barclays Online CD: Barclays CDs can be opened with $0, but our top picks offer higher interest rates.
• Vio Bank CD: Vio Bank’s 1-year term pays a lower interest rate than our top picks
• Air Force Federal Credit Union Certificate Account: Air Force Federal Credit Union pays high CD rates for a 1-year term but you’ll need a minimum of $100,000 to qualify for the highest interest rate.
• Pentagon Federal Credit Union Money Market Certificate: PenFed pays a good interest rate on a 1-year CD, but our top picks have even higher rates right now. 
• Alliant Certificate: Alliant offers competitive interest rates for short-term CDs. However, our top picks have even higher interest rates with lower minimum opening deposits. 
• Bask Bank CD: Bask Bank pays a solid rate on a 1-year CD, but our top picks have even higher rates right now. 
• American Express® CD: American Express lets you open a CD with $0, but our top picks offer more competitive interest rates right now.
• Marcus High-Yield CD: Marcus has high-yield CDs with solid interest rates, but our top picks have more competitive rates for a 1-year CD.
• Capital One 360 CD: Capital One 360 might be worth considering if you’d like to open a CD with a low minimum opening deposit. But, its CD rates aren’t as competitive as our top picks.
• Citi Fixed Rate CD: Citi Fixed Rate CDs have a low $500 minimum opening deposit. Still, our top picks pay higher interest rates right now.
• Bank5 Connect High-Yield CD: Bank5 Connect has a strong interest rate on a 6-month CDs, but its other CD terms aren’t as strong.
• Nationwide CD: Nationwide’s 1-year CDs and 18-month CDs are its most appealing options, but other online banks offer even higher rates right now.
• Ally High Yield CD: Ally CDs might be a good choice if you’d like to get a CD with a $0 minimum opening deposit or low early withdrawal penalties. But its CD rates are currently lower than any of the banks on our list.
• Discover CD: The initial opening deposit for a Discover CD is $2,500. Our top picks have lower minimum opening deposits.
• Citizens Access Online CD: You’ll need at least $5,000 to open an account, which is a bit steep compared to other online banks.
• Amerant CD: Amerant has solid interest rates, but our top picks offer more competitive rates right now. 
• NBKC CD: NBKC offers competitive interest rates on long-term CDs, but its short-term CDs aren’t as strong. 
• Live Oak Bank CD: Live Oak Bank offers a competitive interest rate, but you’ll need at least $2,500 to open an account.

Bank Trustworthiness and BBB Ratings

We’ve compared each banks Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. Here is each company’s score:

Credit Human received an A- rating from the BBB because it has not resolved several customer complaints.

The BBB gave CIBC Bank USA an A+ rating. However, its parent company CIBC has an F rating because the BBB has received numerous complaints and hasn’t responded to or resolved some complaints. 

Latino Community Credit Union has a B- rating from the BBB because it hasn’t responded to one customer complaint. 

The BBB gives Raisin an A- grade because there it has received 32 customer complaints on the BBB website.

CFG Bank currently doesn’t have a BBB rating because its profile is being updated.

A BBB rating isn’t necessarily the be-all and end-all. If you’d like to see if a company is a good fit, talk to current customers or read online customer reviews.

In 2021, CIBC agreed to pay $125 million in a settlement when accused of misrepresenting financial information regarding CIBC investments and US residential mortgage-backed securities. 

In 2021, a San Antonio resident filed a lawsuit against Credit Human Federal Credit Union. According to the San Antonio Express News, the Texas resident claims the credit union has unfair overdraft practices and has charged fees when it shouldn’t have. The case is currently ongoing.

Why You Should Trust Us: Expert Advice on Choosing the Best CD

To learn more about what makes a good CD and how to choose the best fit, four experts weighed in:

Insider

How can you be sure you’re picking the right bank?

Tania Brown, certified financial planner at SaverLife, says the most important thing is FDIC insurance, which protects your money if the bank were to collapse. For credit unions, the equivalent is NCUA insurance. Next, she says, consider the experience you want to have with your bank: Do you want to walk in and talk to a person? Then you need a bank with a local branch. Are you fine never speaking to someone in person? Then an online bank will work for you. Do you write checks (or not)? Then you need an account that comes with checks.

Sophia Acevedo, a certified educator in personal finance and banking reporter for Personal Finance Insider, adds that it’s a good idea to include costs in your list of priorities. For instance, is there a monthly fee for the account you want? If so, what are the requirements to waive it — and can you meet them? If it’s important that you earn interest, you’ll want to choose a bank and an account that pays a higher interest rate than the average bank account.

How do you choose between all the available CD terms?

Roger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”, says you should start by deciding when you need the money, then looking at available rates for CDs with similar timing.

Knowing how you’ll use the money you plan to put in a CD is central to the one you choose, says Mykail James, MBA, certified financial education instructor at BoujieBudgets.com. Perhaps it’s a house fund — in that case, if you know that you want to buy a house in two years, you’ll need to make sure your CD term ends by then.

When do you use a CD instead of a high-yield savings account or money market account?

Brown says you should know two things to help make this decision: how much money you’ll be putting in, and how much you plan to interact with that money. If you’re going to need to make transactions before the term of a CD ends, you’ll have to choose a high-yield savings or money market account.

Acevedo adds that both the high-yield savings account and money market account can be good options for an emergency fund or short-term savings goals. The savings accounts tend to offer strong interest rates, while money market accounts typically offer more access to your money, like paper checks or debit cards.

Our Methodology

Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.

First, we researched to find over 20 banks and credit unions that offered 1-year CDs. Then, we reviewed each institution using our CD rates methodology to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.

Sophia Acevedo, CEPF

Banking Reporter

Evelyn He

Compliance Associate

Evelyn He is a compliance associate at Insider who supports the Personal Finance Insider team. Personal Finance Insider is Insider’s personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Insider readers already know and love.
The compliance team’s mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
Before joining Insider, she served in various legal and compliance roles in different industries, including the legal and pharmaceutical industries.   
Evelyn obtained her M.S. degree in Marketing at Boston University in 2022. Prior to combining and consolidating her knowledge of law and business, she spent one year finishing 1L courses at Suffolk University Law School to further her legal knowledge. She has also completed MBA business law courses while working on her Bachelor of Business Administration in Management at the University of Massachusetts, Amherst. 
Outside of work, she enjoys spending time with her 14-year-old Shih Tzu named Money, and her 5-year-old Bichon named Tibber.

Read more
Read less