Best 1-Year CD Rates for October 2024

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A one-year CD might be the perfect place to stash your savings. Although the funds will be locked up for a full year, you will have the chance to earn a worthwhile amount of interest on your savings.

After the recent rate cut from the Federal Reserve, interest rates on one-year CDs are averaging 1.88% as of September 16, 2024. However, some banks offer much higher yields. Here are the best 1-year CD rates that we found.

Best 1-Year CD Rates

Here is a glance at some of the best one-year CD rates:

• BMO Bank: APY for 13-month CD
• Bread Savings: APY
• First Internet Bank: APY
• North American Savings Bank: APY for 11-month CD
• Popular Direct: APY
• Bask Bank: APY
• Live Oak Bank: APY
• Capital One: APY*
• Discover® Bank, Member FDIC: APY
• Quontic Bank: APY
• Synchrony Bank: APY
• Barclays Bank: APY
• Sallie Mae Bank: APY

BMO Bank

• % APY for the 13-month CD
• Term: 13 months
• Account minimum: $1,000

BMO Bank offers CD term lengths that range from three to 60 months, as well as offerings from BMO Alto. You’ll need a minimum deposit of $1,000 to lock in the high rate. The CD must be funded within 10 business days of account opening if you open it by phone.

If you’re looking to lock in a high yield for the longer term, BMO also offers CD specials with term lengths that range from 25 months to 59 months. But make sure you are comfortable with the term length. If you need to withdraw the funds from a BMO CD before maturity, you’ll face an early withdrawal penalty. The penalty for the 13-month CD is worth 180 days of interest.

Bread Savings

• APY
• Term: 12 months
• $1,500

Bread Savings, formerly known as Comenity Direct, offers 12-month CDs with a APY. It has multiple CD term lengths to choose from, ranging from one to five years. You’ll need to deposit at least $1,500 into each account to get started.

First Internet Bank

• APY
• Term: 12 months
• Account minimum: $1,000

First Internet Bank offers a 12-month CD at APY. The bank offers CD term lengths ranging from three months to 60 months. But the highest APY offered is through its 12-month CD option. If you want to work with this bank, you’ll need to be comfortable opening your CD online. However, make sure you won’t need access to your funds — the early withdrawal penalty is 180 days’ interest.

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North American Savings Bank

• APY
• Term: 11 months
• Account minimum: $5,000

In addition to standard CDs, North American Savings Bank also offers special CD term lengths of 7 and 13 months. You’ll need at least $5,000 to open a special CD through this bank. If you live in Missouri, you might find a branch nearby. Otherwise, you can open a CD online. Shorter- and longer-term CDs are available in-branch.

Popular Direct

• APY
• Term: 12 months
• Account minimum: $10,000

Popular Direct offers CD term lengths ranging from three months to 60 months. The 12-month CD comes with an APY of . However, the minimum deposit requirement is relatively high. You’ll need to deposit at least $10,000 to lock in this attractive APY. Keep the early withdrawal penalty of 270 days of simple interest in mind.

Bask Bank

• APY
• Term: 12 months
• Account minimum: $1,000

Bask Bank offers six CD term lengths that range from three to 24 months. In order to open a CD through Bask Bank, you’ll need a minimum deposit of $1,000. If you need to withdraw the funds early, you will face a fee worth 90 days of interest.

Live Oak Bank

• APY
• Term: 12 months
• Account minimum: $2,500

Live Oak Bank offers nine different CD term lengths ranging from three months to five years. The highest APY available is , tied to the 12-month CD option. You’ll need to deposit $2,500 to open a CD through Live Oak Bank, there is a maximum of $250,000 per account. Once you open the CD, you can let your interest accrue or have it disbursed to you monthly. If you need to withdraw your funds early, you’ll be charged a fee equal to 90 days of simple interest. That’s relatively lenient compared to some of the other early withdrawal penalties on this list.

Capital One

• APY
• Term: 12 months
• Account minimum: None

Capital One 360 CD accounts offer terms ranging from six to 60 months. The 12-month CD comes with a APY. The lack of a minimum deposit requirement is especially enticing for depositors who want to start small. You can start building your savings through a CD even if you don’t have thousands of dollars to tuck into it. The early withdrawal penalty attached to this account is three months’ worth of interest.

*Capital One interest rates accurate as of Sept. 26, 2024. See website for all current rates.

Discover Bank

• APY
• Term: 12 months
• Account minimum: $2,500

Discover offers CD accounts with terms that range from three months to 10 years. But the higher rates are reserved for CDs with terms that range from 12 to 18 months. If you have $2,500 or more to tuck away, it could be a good fit. Before you jump in, keep in mind that the early withdrawal penalty is equal to six months of simple interest.

Quontic Bank

• APY
• Term: 12 months
• Account minimum: $500

Quontic Bank offers a 12-month CD that pays APY. You’ll only need to make a minimum deposit of $500. The catch is that withdrawing the funds early involves forfeiting 12 months of interest. Essentially, withdrawing the funds early means you’ll walk away without any interest earnings.

Synchrony Bank

• APY
• Term: 12 months
• Account minimum: None

Synchrony Bank offers a 12-month CD that pays APY. You don’t have to make a minimum deposit to qualify for this above-average interest rate. If you need to withdraw your funds early, you’ll pay a fee equal to 90 days of simple interest.

Barclays Bank

• APY
• Term: 12 months
• Account minimum: None

Barclays Bank offers a 12-month CD with a APY. If you open an account, you won’t need a minimum deposit, but you must transfer the funds into the account within 14 days.

Sallie Mae Bank

• APY
• Term: 12 months
• Account minimum: $2,500

Sallie Mae Bank offers a 12-month CD that pays APY. You’ll need at least $2,500 to open this account. The early deposit penalty is equal to 90 days of simple interest.

How To Find the Best 1-Year CD Rates

An easy way to find the best CD rates is to look at a roundup like the one GOBankingRates has put together. It’s also a good idea to search rates yourself online as well as through your own bank.

How To Choose a 1-Year CD Rate

You might be wondering: Can you get 6% on a CD? It might be possible, but rates aren’t the only thing to look at when you’re shopping for one. You might have to compromise between a high rate and the following considerations:

• Minimum to open: Your money will be tied up for a year, so it’s a good idea to select a CD with a minimum you’re confident you can do without until the CD matures. Otherwise, the amount you earn could be shortchanged.
• Withdrawal penalty: Banks charge early withdrawal penalties for closing out the CD before it matures. A typical penalty for 12-month CDs is three months’ interest, but some banks charge much more.
• Compound interest: Compound interest is interest earned on the principal balance and any interest that has accrued. Your balance will grow fastest if the interest compounds daily, even if it’s only credited to your account once per month.
• Fees: Fees eat away at the appreciation you earn on your CD. Select one with no fees — and if you keep checking and savings accounts with the same bank, avoid fees on those accounts as well.
• FDIC or NCUA insurance: The FDIC insures bank deposits up to $250,000 per depositor, so if your bank goes under, that much of your money is protected. The National Credit Union Association serves the same purpose for accounts held by credit unions. However, CDs that you purchase through a broker may not be insured.

How To Compare 1-Year CD Rates

A good strategy for comparing rates is to research the best CD rates first and then factor in the considerations described above. High rates are great, but if the CD ties up too much of your money or charges you fees, the rate might not be worth it.

Should I Open a 1-Year CD?

A 12-month CD is a great solution for savers who want to lock in a relatively high rate for the short term. If you are confident you won’t need access to the funds, then a one-year CD could be the right choice.

But if you might need access to the funds, then the inflexible nature of a CD might make it a less-than-ideal choice for your situation. If you might need the money in the next year, consider a high-yield savings account. One option is to withhold your emergency fund in an accessible savings account and pour extra savings into a CD to tap into higher rates.

Alternatives to 1-Year CDs

CDs aren’t your only choice for earning good returns on your money with little or no risk. Here are some alternatives to consider:

• High-yield savings account: National average savings account rates are much lower than average CD rates — just 0.46%. But whereas high-yield CDs offer double or triple the national average CD rate, the best high-yield savings account rates can be more than 10 times the national average — even matching high-yield CD rates, and without tying up your funds.
• Money market account: Money market accounts are a type of bank and credit union account that combines features of checking and savings accounts. They have a higher average interest rate than savings accounts, and high-yielding money-market rates are competitive with high-yield savings accounts and CDs. While minimum deposits can be high, money-market accounts offer check-writing privileges and debit cards to make it easy to access your funds.
• Treasury bills: Treasury bills are U.S. Treasury-issued bonds with maturities of up to one year. Whereas a typical bond grows your money by accruing interest, you earn a return on T-bills by purchasing them at a discounted price and selling them at maturity for full face value. While not completely risk-free like a CD or savings account, they’re about the safest security you can purchase because they’re backed by the full faith and credit of the U.S. government.

Final Take

CD rates are likely to decline as overall interest rates decline, so now is a good time to lock in a rate. If you are looking for a CD now, take the time to shop around. Doing research can lead you to much higher CD rates. If you prefer more flexibility than a CD can offer, consider a high-yield savings account, a money market account or a T-bill instead.

Compare CD Rates

• Best 3-Month CD Rates
• Best 6-Month CD Rates
• Best 1-Year CD Rates
• Best 5-Year CD Rates
• Best No-Penalty CD Rates
• Best Jumbo CD Rates
• Best No-Penalty CD Rates
• Best CDs With No Minimum Deposit Requirement
• Best CD Accounts

Karen Doyle, Sarah Sharkey and Cynthia Measom contributed to the reporting for this article.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Sept. 26, 2024.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

GOBankingRates is a personal finance and consumer interest rate website and an online marketing company serving top-tier banks, credit unions and other financial services organizations. Some companies mentioned in this article might be clients of GOBankingRates, which serves more than 100 national, local and online financial institutions. Rankings and roundups are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by the companies included in the article. All fees and rates are subject to change at the issuers’ discretion. Some interest rates might be short-term or promotional offers only, and it is possible additional terms and conditions must be met to obtain the interest rates listed. Rates and availability might vary by region. Verify terms and conditions before opening an account.

GOBankingRates bases its assessment of “best” and “top” products on the above-stated parameters to create a baseline for comparison. This assessment is an approximation of “best” and “top” designed to help consumers find products that might be appropriate for them. There could be other options available as well. Consumers should consider various options appropriate for their circumstances.

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