Best 1-Year CD Rates Of June 2024 (2024)

Best 1-Year CD Rates

We’ve compared 142 CD accounts at 84 nationally available banks and credit unions to find some of the best one-year certificates available. See below to learn more about why we picked each account, the pros and cons, and to access individual bank reviews.

Annual percentage yields (APYs) and account details are accurate as of June 17, 2024.

CommunityWide Federal Credit Union CW Certificate Account

Best 1-Year CD Rates Of June 2024 (1)

4.8

Best 1-Year CD Rates Of June 2024 (2)

Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.

CD APY 12-month

5.15%

Minimum Deposit Requirement

$1,000

Interest Compounding Frequency

Monthly

Best 1-Year CD Rates Of June 2024 (3)

Learn More Best 1-Year CD Rates Of June 2024 (4)

On Bankrate.com's Website

5.15%

$1,000

Monthly

Editor's Take

The 12-month CW Certificate Account pays a very competitive APY, and it also requires a reasonably modest minimum deposit. Overall, CommunityWide Federal Credit Union offers certificate accounts with terms ranging from six months to five years.

You must be a member of the credit union to open a certificate account. Membership is open to U.S. citizens who open a savings account with a $10 minimum deposit, $5 of which goes to an organization of your choice—the Marine Corps, Habitat for Humanity or Goodwill.

In contrast to other credit union certificates and bank CDs, your CommunityWide certificate does not automatically renew at maturity. Instead, you choose whether to renew it for another term or to deposit the principal and interest into another account at CommunityWide or another institution.

Pros & Cons

  • Competitive dividend rates across terms
  • Wide variety of terms
  • Doesn’t automatically renew certificate accounts
  • Membership is required
  • Requires a savings account to open a certificate account
  • Dividends compounded monthly

Expert's Take

Competitive short-term interest rates at CommunityWide may attract investors, and the absence of an auto-renewal option allows depositors to have full control over their funds at maturity.

—Wenyao Hu, CFA and Ph.D. Candidate

CommunityWide Federal Credit Union CD Rates

TERMAPY

6 Months

5.30%

12 Months

5.15%

18 Months

4.85%

24 Months

4.50%

36 Months

4.25%

48 Months

4.10%

60 Months

4.00%

Compounding schedule

The yields earned on credit union accounts are referred to as dividends rather than interest. Dividends are compounded and credited to your certificate account monthly.

Maturity options

Unlike many other credit unions and banks, CommunityWide won’t automatically renew your certificate account upon maturity. Instead, you can choose to renew it for another term or to deposit the principal and interest into another account at CommunityWide or another institution.

Membership

Membership is open to U.S. citizens who open a savings account with a $10 minimum deposit, $5 of which goes to an organization of your choice—the Marine Corps, Habitat for Humanity or Goodwill.

Sallie Mae Bank Certificates of Deposit

4.7

Best 1-Year CD Rates Of June 2024 (6)

Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.

CD APY 12-month

5.15%

Minimum Deposit Requirement

$2,500

Interest Compounding Frequency

Daily

Learn More

Read Our Full Review

Editor's Take

Sallie Mae Bank knows savings: Its popular SmartyPig online savings account offers tools to help account holders create and track savings goals, along with a competitive interest rates and low-to-no fees.

If you’d prefer to do your saving in the form of a time deposit account, Sallie Mae’s CDs are worth a look. The one-year CD pays 5.15% APY. However, the account does require a slightly larger deposit than some of the accounts on this list: $2,500.

As is true with all CDs, the stated APY assumes that the interest earned by your CD stays on deposit until maturity. Withdrawals of interest from your CD will reduce earnings.

Pros & Cons

  • Competitive interest rate
  • Easy online and mobile access
  • Deep experience in both savings and loan services
  • Other banks and credit unions offer higher interest rates
  • Low ratings on App Store and Google Play for Sallie Mae Banking app
  • Customer service available only Monday through Friday

Details

Interest earnings on the three-year CD are compounded daily and credited to your account monthly. If you withdraw principal prior to the maturity date, you will pay an early withdrawal penalty equal to 180 days’ simple interest on the amount withdrawn subject to penalty. If the amount required to be forfeited is greater than the interest earned or paid, the difference will be deducted from the principal.

At the end of the three-year CD term, your CD automatically renews unless you withdraw your funds for another purpose or notify Sallie Mae Bank—at maturity or within the 10-day grace period—by phone or by secure online message.

Bethpage Federal Credit Union Certificate Account

Best 1-Year CD Rates Of June 2024 (9)

4.7

Best 1-Year CD Rates Of June 2024 (10)

Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.

CD APY 12-month

4.00%

Minimum Deposit Requirement

$50

Interest Compounding Frequency

Daily

Best 1-Year CD Rates Of June 2024 (11)

Learn More Best 1-Year CD Rates Of June 2024 (12)

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4.00%

$50

Daily

Editor's Take

The Bethpage one-year certificate pays a competitive 4.00% APY. And its very low minimum deposit requirement makes it quite accessible.

If you decide to lock up your savings for a year, be sure that the APY you’ll receive is sufficient. If you’re looking for a safe place to stow some savings for a medium-term goal, this certificate is one to consider.

Generally, you’ll find that Bethpage Federal Credit Union’s Certificate Accounts offer competitive dividends. These certificates require a $50 minimum deposit to open and a $50 minimum balance to earn the APY. The credit union provides nine standard certificates, ranging from three months to five years.

You can manage your certificate account online or via mobile app. You can become a Bethpage Federal Credit Union member by making a $5 deposit into a Bethpage savings account.

Pros & Cons

  • Competitive dividend yields across terms
  • Wide range of terms
  • Very low $50 minimum deposit requirement
  • Fairly easy to join
  • It’s possible to find higher rates at other banks and credit unions
  • Must open a savings account to access certificates
  • Requires membership

Details

Compounding schedule

The yields earned on credit union accounts are referred to as dividends rather than interest. For certificates opened online, dividends are compounded daily and credited monthly. Members who open a six-, 12-, 24-, 36- or 39-month certificate in a branch can select a dividend period and crediting frequency of monthly or quarterly.

Maturity options

There’s a seven-day grace period after your certificate matures to renew or change the account.

Early withdrawal penalty

Early withdrawal penalties equal either 90 or 180 days’ dividends, depending on term length.

PenFed Credit Union Money Market Certificates

Best 1-Year CD Rates Of June 2024 (13)

4.6

Best 1-Year CD Rates Of June 2024 (14)

Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.

CD APY 12-month

4.00%

Minimum Deposit Requirement

$1,000

Interest Compounding Frequency

Daily

Best 1-Year CD Rates Of June 2024 (15)

Learn More Best 1-Year CD Rates Of June 2024 (16)

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4.00%

$1,000

Daily

Editor's Take

PenFed Credit Union’s one-year Money Market Certificate pays a highly competitive 4.00% APY, with a reasonably low $1,000 minimum deposit required to open a certificate. Dividends compound daily, allowing you to get the most for your money. And don’t let the “money market” in this certificate’s name confuse you; this is a share certificate, not a money market account.

Overall, PenFed offers competitive yields on nine different certificate terms, ranging from six months to five years. The credit union gets excellent customer satisfaction scores, and it offers a highly rated mobile app for iOS and Android.

With PenFed, you choose your maturity option—whether or not to have the certificate automatically renew—when you open your certificate account and can change it at any time before maturity. This gives you additional flexibility to decide what you’ll do with the funds in your account when it matures. You can use the funds to renew your certificate, transfer the funds into another PenFed account or have a check mailed to you.

You can join PenFed Credit Union by opening a savings account with an initial deposit of $5.

Pros & Cons

  • Competitive dividend rates across terms
  • Wide range of certificate terms
  • Change your maturity option at any time prior to maturity
  • Dividends compounded daily on certificate terms greater than six months
  • Highly rated mobile app
  • Membership is required to open a certificate
  • Early withdrawal penalties can be steep
  • Must open a savings account to access certificates

Expert's Take

PenFed certificates have significantly lower rates across the maturity spectrum than others. In addition, their early withdrawal penalties are pretty onerous compared to what is standard. They’re about the most severe I have heard.

—Jill Fopiano, CEO at O’Brien Wealth Partners

PenFed Credit Union CD Rates

TERMAPY

6 Months

3.00%

12 Months

4.00%

15 Months

4.00%

18 Months

4.00%

24 Months

4.00%

36 Months

3.40%

48 Months

3.20%

60 Months

3.20%

84 Months

3.00%

Compounding schedule

The yields earned on credit union accounts are referred to as dividends rather than interest. Dividends on six-month certificates are earned on a simple (not compound) interest basis and are paid when the certificate matures. Dividends on all other CDs are compounded daily and credited monthly.

Maturity options

With PenFed, you choose your maturity option when you open your certificate and can change it anytime prior to maturity. This gives you some flexibility, and extra time, to decide what you’d like to do with the funds in your account when it matures. You can transfer the funds into another PenFed account, roll it into a new certificate, get a mailed check or transfer it via ACH.

Connexus Credit Union Share Certificate

Best 1-Year CD Rates Of June 2024 (17)

4.5

Best 1-Year CD Rates Of June 2024 (18)

Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.

CD APY 12-month

4.91%

Minimum Deposit Requirement

$5,000

Interest Compounding Frequency

Quarterly

Best 1-Year CD Rates Of June 2024 (19)

Learn More Best 1-Year CD Rates Of June 2024 (20)

On Bankrate.com's Website

4.91%

$5,000

Quarterly

Editor's Take

Connexus Credit Union offers competitive yields on its share certificates. Connexus also provides a mobile app that receives high ratings on both the App Store and Google Play for savers interested in mobile banking.

The one-year share certificate earns an impressive 4.91% APY but requires a $5,000 minimum deposit.

To be eligible for the share certificate, Connexus does require membership. If you do not meet other group or geographic requirements, you can become a member of the credit union by making a one-time $5 donation to the Connexus Association. You also are asked to open a Connexus savings account, with a minimum deposit of $5.

Pros & Cons

  • Competitive rates on its share certificates
  • Highly rated mobile app
  • No checking or savings account required to open a share certificate
  • $5,000 minimum deposit required to open
  • Dividends compounded quarterly

Expert's Take

The biggest difference with Connexus is that it’s a credit union, not a for-profit bank. It offers certificates with competitive rates, but the higher minimum could exclude those with less cash. The interest on longer time frames drops off quite a bit, but it compares to some others on the list. This credit union’s emphasis on member service and community involvement may resonate with individuals seeking a personalized banking experience.

—Gloria Garcia, CFP®

Connexus Credit Union CD Rates

TERMAPY

12 Months

4.91% or 4.96% APY*

24 Months

4.53% or 4.58% APY*

36 Months

4.11% or 4.16% APY*

48 Months

3.81% or 3.86% APY*

60 Months

3.41% or 3.46% APY*

*Higher rates are for deposits of $100,000 or more.

Membership

You must become a credit union member to open a certificate with Connexus Credit Union. If you don’t qualify under the regular group and geographic categories of membership, you can join the credit union by making a one-time $5 donation to the Connexus Association.

Compounding schedule

Yields earned on credit union accounts are referred to as dividends rather than interest. At Connexus, dividends are compounded and credited to your account quarterly. Many other banks compound interest daily and pay it into your account quarterly, allowing your funds to grow faster than if they were held at Connexus.

Early withdrawal penalties and grace period

Early withdrawal penalties range from 90 to 365 days’ worth of dividends on the amount withdrawn. Share certificates automatically renew at maturity, following a 10-day grace period during which you can withdraw funds. All members are required to open a Connexus Credit Union Member Share Savings Account with a minimum deposit of $5.

Summary: Best 1-Year CD Rates

CertificateCompany - LogoForbes Advisor RatingForbes Advisor RatingAnnual Percentage Yield Minimum Deposit RequirementCompounding FrequencyLearn More CTA textLearn more CTA below textLearn More
CommunityWide Federal Credit Union CW Certificate AccountBest 1-Year CD Rates Of June 2024 (21)4.8Best 1-Year CD Rates Of June 2024 (22)5.15%$1,000MonthlyLearn MoreOn Bankrate.com's Website
Sallie Mae Bank Certificates of DepositBest 1-Year CD Rates Of June 2024 (23)4.7Best 1-Year CD Rates Of June 2024 (24)5.15%$2,500DailyRead MoreRead Our Full Review
Bethpage Federal Credit Union Certificate AccountBest 1-Year CD Rates Of June 2024 (25)4.7Best 1-Year CD Rates Of June 2024 (26)4.00%$50DailyLearn MoreOn Bankrate.com's Website
PenFed Credit Union Money Market CertificatesBest 1-Year CD Rates Of June 2024 (27)4.6Best 1-Year CD Rates Of June 2024 (28)4.00%$1,000DailyLearn MoreOn Bankrate.com's Website
Connexus Credit Union Share CertificateBest 1-Year CD Rates Of June 2024 (29)4.5Best 1-Year CD Rates Of June 2024 (30)4.91%$5,000QuarterlyLearn MoreOn Bankrate.com's Website

Methodology

To create this list, Forbes Advisor analyzed 142 CD accounts across 84 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. For the star rating, we ranked each institution on 11 data points within the categories of APY, minimums, compound interest schedule, customer experience, digital experience, available terms and overall availability. We also analyzed and ranked each institution by individual term.

The following is the weighting assigned to each category:

  • APY: 50%
  • Customer and digital experience: 20%
  • Minimum deposit requirement: 12.5%
  • Compound interest schedule: 7.5%
  • Availability: 5%
  • Available terms: 5%

CD accounts with higher APYs rose to the top of the list. Minimum deposit requirements of $10,000 or higher affected scores negatively. Accounts with daily compounding interest schedules were scored higher than those with monthly or quarterly schedules. To appear on this list, the account must be nationally available.

To learn more about our rating and review methodology and editorial process, check out our guide onHow Forbes Advisor Reviews Banks.

Complete Guide to 1-Year CD Rates

  • Current 1-Year CD Rates
  • How To Find the Best 1-Year CD Rates
  • What Is a 1-Year CD?
  • How Does a 1-Year CD Work?
  • Pros and Cons of 1-Year CDs
  • How To Choose a 1-Year CD
  • How To Open a 1-Year CD
  • Alternatives to 1-Year CDs
  • Is a 12-Month CD Worth It?
  • Banks We Monitor

Current 1-Year CD Rates

One-year CD rates are still high. According to data from the St. Louis Federal Reserve, the average interest rate paid on CDs went up six-fold in 2022 and stayed high throughout 2023, with competition among banks pushing them even higher. Currently, the national average rate on a 12-month CD, according to data from the FDIC, is 1.86% as of June 2024, but the best one-year CD rates today top 5.00% APY.

Some experts believe that CD rates have topped out, but this largely depends on what action the Federal Reserve takes with regard to the federal funds rate in the coming months.

How To Find the Best 1-Year CD Rates

If you take the time to shop around, you’ll realize that many financial institutions offer rates far above the national average rate.

Our article on the 10 best CD rates can be an excellent place to start if you’re looking for banks and credit unions offering the highest APYs. The aforementioned CD accounts are options worth considering as well.

When comparison shopping, don’t forget to consider fees and penalties associated with the CD account, as they may eat into your earnings over the term of your investment.

Pro Tip

Brokered CDs may offer higher rates than traditional bank CDs. These CDs are purchased through a brokerage and can be bought and sold on a secondary market, offering greater liquidity on top of highly competitive rates. However, depending on demand, you may end up having to sell your CD for less than it’s worth, in some cases.

What Is a 1-Year CD?

A certificate of deposit (CD) is a savings product that offers investors a guaranteed interest rate on a fixed amount of money over a specified amount of time, known as a “term.” A one-year CD is simply a certificate of deposit with a one-year term. Typically, you cannot withdraw your money before this term is complete without incurring an early withdrawal penalty. You invest your money for one year, and the bank guarantees you a fixed interest rate for one year.

How Does a 1-Year CD Work?

When you invest your money in a one-year CD, you make a deposit, known as the principal, into an account and agree to keep that money in the account for one year. In exchange, your bank promises to pay you a fixed APY for the entire year. Most CDs have a minimum deposit amount, and some banks offer higher interest rates to investors who deposit more money.

During the course of the year, your bank pays interest on your principal. If a bank pays compound interest—most banks do—the amount of money you earn each month grows exponentially. If you decide to withdraw your money early, most banks will require you to pay an early withdrawal penalty.

At the end of your one-year term, you can withdraw the principal and interest earned from your CD. Sometimes your bank will send you a check or deposit the money from the CD into a linked checking or savings account. Many CD contracts roll over, meaning your principal and interest may be automatically invested into a new CD. Your bank is required to send you a notice before your CD’s term ends and tell you whether it will renew automatically.

Pros and Cons of 1-Year CDs

Before you open a one-year CD, it helps to know the pros and cons so you can choose the CD term that best fits your savings goals.

Pros

  • Offers higher interest rates than some other CD terms. A one-year CD typically offers a higher interest rate than shorter-term CDs, such as three-month CDs and six-month CDs.
  • Offers higher interest rates than traditional savings accounts. By committing your funds for a year, you can potentially earn more interest than you would if you left the money in a traditional savings account at a brick-and-mortar bank.

Cons

  • You could miss out on higher rates. If interest rates are rising during your CD term, you could miss out on higher savings rates. A shorter-term CD could help you take advantage of interest rate hikes.
  • You could get hit with an early withdrawal penalty. Unless you have enough in liquid savings to fund emergencies, tapping your one-year CD before the term is up could cost you an early withdrawal penalty.

How To Choose a 1-Year CD

A one-year CD is one of the most popular term length options: It’s a finite enough period of time to be asked not to touch your money and yet it’s long enough for you to earn some decent returns. With any CD, consider carefully whether you can afford to lock up your savings for the specified period of time:

  • APY. Obviously, the interest or dividend rate you earn matters. What APY will you receive on your CD or certificate? You’re essentially locking up this money for a one-year period, so you’re risking having interest rates rise while you’re locked in to a lower rate.
  • Compounding schedule. To receive the best return on your investment, look for interest or dividends to be compounded on a daily basis, rather than monthly or even quarterly.
  • Safety. Look for financial institutions that are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). In the event of a bank or credit union failure, your deposits would be insured for up to $250,000 per account for each account ownership category.
  • Early withdrawal. Another important issue is the CD’s early withdrawal penalty. An early withdrawal penalty could decrease your interest or dividend earnings if you need to access your principal before the one-year maturity date. Some banks impose withdrawal penalties that could not only reclaim any interest earned but also reduce your principal balance.
  • Term. Be sure you won’t need access to the funds during those 12 months. If you believe you could need to withdraw funds before the CD’s maturity date, a savings account or money market account may be your better savings option.

Pro Tip

Many banks offer no-penalty CDs for terms of 11 or 12 months. Although these CDs often carry lower APYs than standard accounts, they give you the option to withdraw funds before maturity without incurring fees. If you think there’s a chance you might need to access your cash before it matures—and you’re flexible on the exact term length—this option might be a good fit for you.

How To Open a 1-Year CD

The process to open a one-year CD is fairly straightforward.

First, you’ll need to open an account at the financial institution where you want to get a CD. If it’s a credit union, you’ll need to become a member before you can access any of its products.

After your account is open, fund the account with the amount you want to invest. You can generally do this via check, ACH transfer or wire transfer.

Finally, you’ll need to sign the CD account agreement. Once you do, your CD term begins and your account begins accruing interest.

Alternatives to 1-Year CDs

One-year CDs aren’t always going to be a good fit for your savings goals and spending habits. Consider the following alternatives to one-year CDs if you want to explore more options for earning.

1-Year CDs vs. Other CD Terms

If you like the idea of earning a competitive interest rate on your savings but don’t want to lock your money up for a year, you might consider shorter-term CDs instead. Many banks offer six-month CDs or even three-month CDs for people who want access to funds sooner rather than later. However, shorter terms may earn lower rates.

If one year isn’t enough time and you’d prefer to earn a guaranteed interest rate for longer, explore long-term CDs for two, three, five or 10 years. Also, 18-month CD rates are often comparable to one-year rates.

1-Year CDs vs. High-Yield Savings Accounts

If you’re looking to earn interest on your savings and want the security of FDIC insurance, you could also consider a high-yield savings account. High-yield savings accounts have variable interest rates that track market rates and allow you to access your cash anytime. Some high-yield savings accounts have transaction limits, so if you need to access your cash more than a few times a month, be sure to check the terms and conditions to ensure you won’t pay a fee.

1-Year CDs vs. High-Yield Checking Accounts

High-yield checking accounts are also an option if you need to access your money regularly, but those typically pay less interest than a high-yield savings account. Some high-yield checking accounts have requirements to earn interest, such as a certain number of debit card purchases each month, or they only pay the highest interest rate on a portion of your balance, so be sure to check the details before going this route.

1-Year CDs vs. I-Bonds

If you’re looking for secure returns on your savings and want protection from inflation, take a look at series I bonds. Series I bonds offer both a fixed interest rate and a rate that changes with inflation and is adjusted twice a year. There’s no option to cash out your series I bonds until one year after purchase. If you cash out an I bond before five years, you’ll pay a penalty of three months of interest. Series I bond purchases are limited to $15,000 per person, per year.

Is a 12-Month CD Worth It?

A 12-month CD can be a worthwhile investment if you’re seeking guaranteed growth and are able to keep your money invested for a year. Before investing, be sure you’re getting the best one-year CD rates by shopping around and comparing rates from different banks.

If there’s a good chance you’ll need to access your cash within a year, a high-yield savings account is probably a better option. If you can afford to keep your money tied up for longer, longer-term CDs may offer higher rates.

Banks We Monitor

These financial institutions were included in our research for the best CD rates: ableBanking, Affinity Federal Credit Union, Ally Bank, American Express, Axos Bank, Apple Federal Credit Union, Bank of America, Bank5 Connect, BankDirect, BankPurely, BankUnitedDirect, Barclays, Bethpage Federal Credit Union, BrioDirect Banking, Capital One, Charles Schwab Bank, Chase, Chevron Federal Credit Union, CIT Bank, Citibank, Citizens Access, Colorado Federal Savings Bank, Comenity Direct, Comerica, CommunityWide Federal Credit Union, Connexus Credit Union, Consumers Credit Union, Credit Union of Denver, Discover, Dollar Savings Direct, EmigrantDirect, Financial Partners Credit Union, Financial Resources Federal Credit Union, First National Bank of America, Georgia’s Own Credit Union, Golden1 Credit Union, Greenwood Credit Union, HSBC Direct, Hughes Federal Credit Union, Ideal Credit Union, iGoBanking, Investors eAccess, Keybank, Kinecta Federal Credit Union, Limelight, Live Oak Bank, MAC Federal Credit Union, Marcus by Goldman Sachs, Michigan State University Federal Credit Union, My eBanc, MySavingsDirect, Navy Federal Credit Union, nbkc Bank, Northern Bank Direct, Northpointe Bank, Nuvision Federal Credit Union, Pacific National Bank, Pen Air Federal Credit Union, PenFed, PNC Bank, Popular Direct, Purepoint Financial, Quontic, Quorum Federal Credit Union, Radius Bank, Rising Bank, SalemFiveDirect, Sallie Mae Bank, Spectrum Federal Credit Union, State Bank of Texas, State Department Federal Credit Union, Superior Choice Credit Union, Synchrony Bank, TAB Bank, TD Bank, EverBank, TotalDirect Bank, U.S. Bank, USAA, USAlliance Federal Credit Union, Vio Bank, Virtual Bank, Wells Fargo and Truist.

Frequently Asked Questions (FAQs)

What are the best 1-year CD rates?

We found one-year CDs offering a rate more than three times the national average, which is 1.86% APY as of June 17, 2024, according to the FDIC.

How is a 1-year CD compounded?

It depends on the financial institution. Some financial institutions compound interest daily and then credit your account on a monthly basis. Other banks or credit unions compound your interest monthly and credit the interest to your account monthly. It’s important to review the terms before opening a CD so you understand how interest is compounded.

Who should open a 1-year CD?

A one-year CD could be a good choice for someone saving for a goal that’s a year away—and wants to resist the temptation to tap into those savings during that time frame. You’ll earn a higher interest rate than you would with a traditional savings account, but keep in mind that you’ll face an early withdrawal penalty if you’re tempted to tap your balance.

How do I compare 1-year CD rates with 2-year CD rates?

Two-year CDs used to offer higher rates than one-year CDs, but one-year CDs have been offering higher rates on average as of late. Which term to choose comes down to how long you’re willing to commit your money and the current interest rate environment. You’re better off investing in a shorter term one-year CD if you’re in a rising interest rate environment. If you’re in a falling interest rate environment, you may be better off investing in two-year CD.

Can a 1-Year CD lose value?

You won’t lose money on a one-year CD because CDs issued by banks are covered by FDIC insurance limits. As long as your total deposits with the bank are under $250,000, the entirety of your investment will be covered by the FDIC even if the bank fails. The only way to lose money on a CD is if you withdraw your money before the end of the term and are subject to a withdrawal penalty that exceeds the amount of interest you have earned.

Who has the highest 12-month CD rate?

Banks change CD interest rates all the time, so the bank with the highest 12-month CD rate may be different in any given month. The best way to find a bank offering the highest 12-month CD rate is to review the table above, which is updated daily.

Next Up In CDs

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Best 1-Year CD Rates Of June 2024 (2024)
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