Are CDs FDIC insured?

Yes, certificates of deposit (CDs) are protected by the Federal Deposit Insurance Corporation (FDIC). This federal agency insures all types of bank accounts held by its members, such as savings accounts, money market accounts, and CDs, up to $250,000 per customer per bank. This insurance secures your funds in the unlikely event of a bank failure. If you opt for a CD from a credit union, verify that it is insured by the National Credit Union Administration (NCUA), which functions similarly to the FDIC but specifically insures credit unions.

Are 1-month CDs a good idea?

If you want a safe, short-term way to park your money while earning slightly more interest than you would on a savings account, a 1-month CD might be a good choice. However, what you'll earn is modest compared to what you might get in a high-yield savings account, and you'll have a penalty if you take your money out early.

How much does a 1-month CD pay?

The APY on a 1-month CD is relatively low and varies by bank and current market rates. These rates are often below 0.05% APY and will vary by the amount invested.

Should I buy a CD now or wait?

In a high-interest rate environment like we’re in now, you’ll find some of the highest rates on CDs compared to a low-interest rate environment. Whether you should buy a CD now or wait depends on your individual circumstances. However, if interest rates are a main concern, now is a great time.

Best 1-month CD rates of January 15, 2025

Why we picked Bank of America's 1-month CD

Bank of America offers fixed-term CDs with $1,000 minimum opening balances. You won’t pay any annual fees although, like most CDs, you will pay an early withdrawal penalty if you take your money out early.

You can access your account via a mobile app, where you can see the interest you've accrued and your account balances wherever you are. If you have more than $20,000 in combined accounts at Bank of America, you can qualify for Preferred Rewards. This gives you benefits such as better rates on savings, foreign currency exchanges, and loans.

Learn more: Read our Bank of America review

BrioDirect 1-month CD

APY	-%
Minimum Deposit	$500
Early withdrawal penalty	1 month of interest, even if it hasn’t been earned

Why we picked BrioDirect's 1-month CD

When you get a high-yield CD from BrioDirect, your interest compounds daily and will be added at maturity. Its 1-month CD rate is -%, and it has one of the lowest minimum deposits offered, at $500.

Even though it's an online bank, you get the same protections you'd find in a brick-and-mortar bank: FDIC deposit insurance. Because BrioDirect is an online bank, you'll need a smartphone to get started. However, opening an account takes only minutes and, from there, you can fund your CD via automated clearing house (ACH), check, or wire.

Learn more: Read our BrioDirect review

PNC 1-month CD

APY	0.03%
Minimum Deposit	$1,000
Early withdrawal penalty	Equal to the interest you would've earned if held to term

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