Rates on 1-year CDs are sky-high, even with all the talk of potential Fed rate cuts later this year—some offering annual percentage yield (APYs) of over 5%. And while a CD requires you to commit money for one full year, many have low to no investment minimums. Whatever you’re comfortable committing, you can start earning some of the best CD rates available in years.

Best 1-year CD rates of January 15, 2025

*APYs are current as of January 15, 2025 and are subject to change. Read our complete methodology here.

Discover	Barclays	Marcus by Goldman Sachs
Minimum opening despoit	Minimum opening despoit	Minimum opening despoit
$0	$0	$500
APY on a 1-year CD	APY on a 1-year CD	APY on a 1-year CD
4.00%	4.10%	4.25%
Range of terms	Range of terms	Range of terms
3 months - 10 years	3 months - 5 years	6 months - 6 years
View offer at Discover	View offer at Barclays	View offer at Bankrate

See our advertiser disclosure.

The best 1-year CD rates: editors' picks*

While the banks above may be offering excellent rates, our team may not have vetted the institutions or their products. In contrast, we’ve conducted extensive research on the banks below and ranked them based on overall rates, minimum deposit requirements, and the ability to open and manage the account from anywhere.

*APYs are updated daily but are subject to change.

Institution	APY	Minimum deposit	See details
Featured partner Alliant Credit Union	4.10%	$1,000	View offer at Alliant
Quontic Bank	4.00%	$500	View offer at Bankrate
First Internet Bank	4.42%	$1,000	View offer at Bankrate
Prime Alliance Bank	4.50%	$500	View offer at Bankrate
MYSB Direct	4.25%	$500	View offer at Bankrate
TAB Bank	4.52%	$1,000	View offer at Bankrate
Ally Bank	3.90%	$0	View offer at Bankrate
Capital One 360	4.00%	$0	View offer at Bankrate
Newtek Bank	4.25%	$2,500	Learn more
First National Bank of America	4.26%	$1,000	Learn more

Best 1-year CDs: Our top picks

Alliant Credit Union 1-year CD

APY	4.10%
Minimum Deposit	$1,000
Early withdrawal penalty	Number of days the certificate is open, up to 90 days’ interest

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at Alliant

About

Alliant Credit Union is a not-for-profit credit union offering a variety of high-yield accounts, as well as lending products such as auto loans and mortgages. If you don’t qualify to join Alliant under its field of membership, you have the option to become an Alliant Credit Union Foundation digital inclusion advocate, which makes you eligible to join the credit union.

See more CD rates

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at Alliant

Why we picked Alliant Credit Union's 1-year CD

Alliant offers one of the highest APYs on our list at4.10%, and dividends compound monthly. As a digital credit union, if you choose Alliant as your financial home, you won’t have access to physical branch locations. You will, however, be able to contact customer service via email, chat, or phone.

Learn more: Read our Alliant Credit Union review.

Quontic Bank 1-year CD

APY	4.00%
Minimum Deposit	$500
Early withdrawal penalty	Equal to the interest for the entire length of the stated term

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at Quontic

About

Quontic is a digital bank that started as a community bank in New York City in 2009. It’s one of the 3% of banks that are designated a Community Development Financial Institution (CDFI), meaning deposits are used to help make homeownership possible for low-income families, immigrants, people of color, and small business owners. It offers several checking and savings accounts, CDs, and mortgage products.

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at Quontic

Why we picked Quontic's 1-year CD

Quontic’s 1-year CD made our list because it had one of the highest APYs of the banks we evaluated. Plus, it has a modest opening deposit requirement and interest that compounds daily.

Learn more: Read our Quontic Bank review

First Internet Bank 1-year CD

APY	4.42%
Minimum Deposit	$1,000
Early withdrawal penalty	180 days’ interest

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at Bankrate

About

Founded in 1999, First Internet Bank was one of the first financial institutions to operate solely online. It offers a wide range of financial products and services.

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at Bankrate

Why we picked First Internet Bank's 1-year CD

With a 4.42% APY, First Internet Bank’s 1-year CD offers one of the best rates around. Keep in mind that to open an account, you’ll need at least $1,000, which could be steep for those who don’t have a lot saved.

Learn more: Read our First Internet Bank review

Prime Alliance Bank 1-year CD

Key numbers
APY	4.50%
Minimum opening deposit	$500
Early withdrawal penalty	30 days’ interest

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at Bankrate

About

Headquartered in Woods Cross, Utah, Prime Alliance Bank offers checking, savings, money market accounts, and more.

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View offer

at Bankrate

Why we picked Prime Alliance Bank's 1-year CD

Whether you want to invest your money for 6 months or 5 years, Prime Alliance has you covered. Currently, you can get a 4.50 % APY on a 12-month CD. That means if you invested just $5,000 in a 12-month CD, you would earn $247.50 in a year.

Learn more: Read our Prime Alliance Bank review

MYSB Direct 1-year CD

Minimum Deposit	$500
APY	4.25%
Early withdrawal penalty	All interest earned

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at Bankrate

About

MYSB Direct is the online-only banking division of New York-based M.Y. Safra Bank.

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at Bankrate

Why we picked MYSB Direct's 1-year CD

MYSB Direct is the online-only banking division of New York-based M.Y. Safra Bank. Its 1-year CD comes with a competitive 4.25% APY and modest opening deposit requirement of $500. However, customers who need to withdraw their funds early could be subject to a hefty early withdrawal penalty of all interest earned.

Learn more: Read our MYSB Direct review.

TAB Bank 1-year CD

Key numbers
APY	4.52%
Minimum opening deposit	$1,000
Early withdrawal penalty	90 days’ interest

View offer

at Bankrate

About

Established in 1998, Transportation Alliance Bank, Inc. (TAB Bank) is a tech-driven online bank that offers products and services designed to serve the needs of the underserved. Today, it provides a wide variety of services to individuals, families, and businesses.

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at Bankrate

Why we picked TAB Bank's 1-year CD

While you’ll need to have a bit of a nest egg built up to invest in a TAB Bank CD, you can receive a whopping 4.52% APY on a 1-year CD.

For customer service you can reach out via phone call (6 a.m. to 7 p.m. MT Monday through Friday and 9 a.m. to 3 p.m. on Saturday) or a secure form on their site.

Learn more: Read our TAB Bank review

Ally Bank 1-year CD

Key numbers
APY	3.90%
Minimum opening deposit	$0
Early withdrawal penalty	150 days’ interest

View offer

at Bankrate

About

Ally Bank is an online-only bank that offers a wide range of products and services like checking and savings accounts, credit cards, personal loans, and robo-advisors. Bonus: Ally Bank offers customers 24/7 phone, chat, and email support.

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View offer

at Bankrate

Why we picked Ally Bank's 1-year CD

Ally’s 1-year CD rate is 4.10%, which is high but still not the best rate on our list. So why is it in our top 10? Well, it has a $0 minimum deposit, which allows new savers to lock in a great rate for the long haul.

Bonus: Ally Bank offers customers 24/7 phone, chat, and email support.

Learn more: Read our Ally Bank review

Capital One 360 1-year CD

APY
Early withdrawal penalty	3 months of interest

About

Capital One is one of the largest banks in the country, headquartered in Virginia with a strong online presence as well as some physical branches across the country.

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Why we picked Capital One 360's 1-year CD

With Capital One 360 CDs, there’s no minimum opening deposit, so you can score a solid APY regardless of how much you have to save. The 1-year CD offers a solid 4.00% APY. Plus, if you choose to tap your money early, you’ll only give up three months of interest, which is a modest penalty compared to some other banks on our list.

Learn more: Read our Capital One 360 review

Newtek Bank 1-year CD

APY	4.25%
Minimum opening deposit	$2,500
Early withdrawal penalty	180 days’ of interest

About

Newtek Bank is a division of the company NewtekOne. It offers various personal and business banking products, such as checking and savings accounts.

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Why we picked Newtek Bank's 1-year CD

While Newtek Bank had one of the highest minimum opening deposits, clocking in at $2,500, it may be worth the investment. Their 1-year CD boasts a 4.25% APY. However, if you need your money before the CD matures, you’ll have to give up around six months’ of interest.

Learn more: Read our Newtek Bank review

First National Bank of America 1-year CD

APY	4.26%
Minimum Deposit	$1,000
Early withdrawal penalty	180 days’ interest

About

First National Bank of America (FNBA) was founded in 1955 and is headquartered in Michigan.

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We we picked First National Bank of America's 1-year CD

Though First National Bank of America’s minimum opening deposit requirement may be steep for some, it provides a generous 4.26% APY.

The early withdrawal penalties on FNBA’s CDs are pretty hefty, though, so if you opt for this CD, make sure you’re comfortable locking up your funds. Customers can opt for a partial withdrawal of their funds—though this could mean incurring an early withdrawal penalty and missing out on some compound interest.

Customer service is available via phone or through their online form.

Learn more: Read our FNBA review

What is a 1-year CD?

Banks and credit unions typically offer a wide range of CD terms. One-year CDs require account holders to deposit their money in one lump sum and leave their funds untouched for 12 months. After that, the CD officially reaches maturity, and the account holder can withdraw funds, plus any interest accrued, or roll over those funds into a new CD.

CDs with shorter terms of one year can be a flexible option for savers who are not playing the long game and don’t want to tie up their funds for years.

1-year CD calculator: how to determine your earnings potential

To calculate your earnings from a CD, you’ll need to use the following formula: P(1+R/N)(NT) = A. Where “A” represents the value of your CD, including interest. "P" is equal to your principal balance or initial deposit. "R" represents your yearly interest rate―in this case, it would be your APY. "N" represents the compound frequency of your CD in a given year, and "T" represents the number of years until your CD’s maturity date.

Here’s an example:

Initial deposit “P” = $1,000
APY “R” = 5.00%
Monthly compound frequency “N” = 12
Number of years until maturity “T” = 1

Our equation would turn out like this:

1,000 x ((1+(5.00/12)) x (12 x 1)) = $1,050.00

So, if you deposit $1,000 into a 12-month CD with an interest rate of 5.00% that compounds monthly, you could expect to withdraw $1,050 at the end of the term.

Best CD rates for other terms

A one-year CD offers a great mix of higher rates with a shorter term. However, you might want to consider other CD term lengths, depending on your savings goals.

More CDs to consider:

Best CD rates for other terms

Our methodology

The Fortune Recommends^TM team partnered with industry leader Curinos to track the top CD rates from around the country. For our editors' picks, we compared one-year certificates of deposit (CDs) from more than 50 major banks, credit unions, and online-only banks. Our top picks are available across the U.S., so you can sign up for an account no matter where you live.

The rates, fees, and minimum deposit requirements for CDs are available for a limited time, and APYs are subject to fluctuation, which could impact how much interest you earn. All the banks and credit unions on this list are insured by the FDIC and NCUA, respectively. Should you choose to terminate your CD before it matures, you could be subject to a penalty, which varies by bank.

Dig deeper: learn more about our banking methodology.

Best 1-year CD rates of January 15, 2025

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The best 1-year CD rates: editors' picks*

Alliant Credit Union 1-year CD

Why we picked Alliant Credit Union's 1-year CD

Quontic Bank 1-year CD

Why we picked Quontic's 1-year CD

First Internet Bank 1-year CD

Why we picked First Internet Bank's 1-year CD

Prime Alliance Bank 1-year CD

Why we picked Prime Alliance Bank's 1-year CD

MYSB Direct 1-year CD

Why we picked MYSB Direct's 1-year CD

TAB Bank 1-year CD

Why we picked TAB Bank's 1-year CD

Ally Bank 1-year CD

Why we picked Ally Bank's 1-year CD

Capital One 360 1-year CD

Why we picked Capital One 360's 1-year CD

Newtek Bank 1-year CD

Why we picked Newtek Bank's 1-year CD

First National Bank of America 1-year CD

We we picked First National Bank of America's 1-year CD

Pro tip

What is a 1-year CD?

1-year CD calculator: how to determine your earnings potential

Best CD rates for other terms

More CDs to consider:

Best CD rates for other terms

Our methodology

Read more