Certificates of deposit (CD) are a type of deposit account, typically offered by banks and credit unions, that usually offer higher interest rates than your average savings account. That’s because CDs hold savers accountable to a certain term (usually anywhere between seven days and 10 years) during which time the account holder is unable to touch the funds. Most, though not all, accounts charge a penalty for withdrawing that money before the end of your CD’s term, also known as its maturity date.
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*Rates below were last updated April 5, 2023
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| Bank/Institution | Current 1-year CD APY* | Minimum Deposit |
| BrioDirect | 5.25% | $500 |
| CFG Bank | 5.20% | $500 |
| VIO Bank | 4.65% | $500 |
| Bread Savings | 5.05% | $1,500 |
| Barclays Bank | 5.00% | No minimum deposit |
| Quontic Bank | 4.75% | $500 |
| PenFed Credit Union | 4.60% | $1,000 |
| BMO Harris | 4.75% | $1,000 |
| Bask Bank | 4.70% | $1,000 |
| TIAA Bank | 4.65% | $1,000 |
The 10 best 1-year CD rates
Here is our list of the best one-year CDs according to Fortune Recommends editors. Note: Minimum deposit requirements, APYs, and other numbers in our list are up to date as of April 5, 2023, but are subject to change.
1. BrioDirect: For savers on the hunt for the highest APY
Key numbers
Minimum opening deposit: $500
1-year APY: 5.25%
Penalty: 90 days worth of interest.
Why we picked it
BrioDirect is an online bank that is a sub-brand of Webster Bank. It offers just one type of product: high-yield CDs with terms ranging from 30 days to 60 months. BrioDirect’s 1-year CD made our list for having the highest APY for 1-year terms. At 5.25%, this CD boasts an APY that’s over three times the national average. Interest on these accounts compounds daily. Brio customer service representatives can be reached via phone Monday through Friday from 8:00 a.m. until 8:00 p.m. ET. They can also be reached on Saturdays between 8:30 a.m. ET and 3 p.m. ET. The bank can also be reached via mail at its Jericho, N.Y., business address.
2. CFG Bank: For savers who want a high APY and a wider product selection
Key numbers
Minimum opening deposit: $500
1-year APY: 5.20%
Penalty: 90 days worth of simple interest.
Why we picked it:
CFG Bank, a Maryland-based bank, took a top spot on our list for its 1-year CD which offers a 5.20% APY, over three times the national average for one-year CDs. The minimum opening deposit for this account is on the lower end compared to other CDs in the space, and interest is compounded daily. Customer service representatives can be reached by telephone, Monday through Friday, 8:30 a.m. to 5 p.m. EST and customers can also contact CFG 24/7 via email or its online and mobile banking platforms.
3. Vio Bank: For the saver who prefers a more lenient withdrawal penalty—just in case
Key numbers
Minimum opening deposit: $500
1-year APY: 4.65%
Penalty: The penalty for making an early withdrawal is equal to 1% of the amount withdrawn, plus a $25 fee.
Why we picked it
Vio Bank’s one-year CD boasts an APY of 4.65% for a minimum opening deposit of $500. While we have other accounts on our list with similar APYs and opening deposits, Vio Bank’s early withdrawal penalty is more lenient than others: just 1% of the amount withdrawn and a $25 fee. Vio’s customer service representatives are available via phone from 7:00 a.m. through 9:00 p.m. CST Monday through Friday; 8:00 a.m. until 6:00 p.m. CST on Saturday; and 12 p.m. until 4 p.m. CST on Sunday. Representatives can also be reached via chat on the bank’s website.
4. Bread Savings: For savers with a little more bread
Key numbers
Minimum opening deposit: $1,500
1-year APY: 5.05%
Penalty: 180 days worth of simple interest.
Why we picked it
Bread Savings is an online-only bank that’s part of the Ohio-based financial services company Bread Financial. The bank offers just two types of deposit accounts: high-yield savings accounts and CDs. Bread’s 1-year CD made our list for its competitive APY and daily compounding frequency. Although, this account does require a minimum opening deposit of $1,500, which could be more than some savers are able to contribute. Bread Savings does not have any brick-and-mortar locations, but its customer service hours for phone inquiries are weekdays from 7 a.m. CST to 9 p.m. CST. Representatives can also be reached on weekends between 9 a.m. CST and 5 p.m. CST.
5. Barclays Bank: For the saver who has never seen the inside of their bank’s branch
Key numbers
Minimum opening deposit: $0
1-year APY: 5.00%
Penalty: For one-year terms, the penalty is 90 days’ simple interest.
Why we picked it
Barclays is a U.K.-based bank that operates its U.S. accounts solely online; U.S.-based account holders will need to do all of their banking on the Barclays website or through the mobile app. Interest on Barclays’ 1-year CDs is compounded daily, and there is no minimum opening deposit, which leaves it up to the account holder to decide how much to put away. The good news: Customers can contact representatives for support 24/7.
6. Quontic Bank: For the saver who wants all of the customer service options
Key numbers
Minimum opening deposit: $500
1-year APY: 4.75%
Penalty: The penalty will be equal to the interest for the full length of the stated term.
Why we picked it
Quontic Bank is a digital bank that first started as a community bank in New York City in 2009. It offers a number of checking accounts, savings accounts, and mortgage products. Quontic’s 1-year CD made our list for its competitive APY, medium-range opening deposit, and daily compounding frequency. Customers can contact a customer service representative via live chat, email, and telephone Monday through Friday between 9:00 a.m. and 6:00 p.m. ET.
7. PenFed Credit Union: For the saver who is serious about locking up their funds
Key numbers
Minimum opening deposit: $1,000
1-year APY: 4.60%
Penalty: If you make a withdrawal within the first year of opening your account, you’ll forfeit all dividends.
Why we picked it
Pentagon Federal Credit Union (PenFed) is a Virginia-based credit union that offers online banking options in addition to a few brick-and-mortar locations across the U.S. and a mobile app. Dividends are compounded daily, but posted to accounts on a monthly basis. PenFed’s 1-year CD APY is on the higher end, but customers should beware that making an early withdrawal could cost them all their dividends. For any questions, customers can reach PenFed by email, chat, or phone Monday to Friday, 7:00 a.m. to 11:00 p.m. EST, 8:00 a.m. to 11:00 p.m. EST on Saturday, and 9:00 a.m. to 5:30 p.m. EST on Sunday.
8. BMO Harris: For savers who want a high APY and have more than $1,000 available to lock up in a CD
Key numbers
Minimum opening deposit: $1,000
1-year APY: 4.75%
Penalty: One-year CD accounts are subject to an early withdrawal penalty equal to 180 days’ worth of simple interest.
Why we picked it
BMO Harris’ one-year CD had one of the highest APYs on our list at 4.75%—more than three times the national average. This account came in at #8 for its higher minimum opening deposit. At $1,000 to start, this CD is likely better suited for more established savers. Interest on this account compounds daily, and BMO offers a wide range of other CD terms, from three months to 60 months. BMO Harris representatives are available to assist you via telephone from 7:00 a.m. to 10:00 p.m. CT on weekdays and 8 a.m. to 8 p.m. on Saturdays and Sundays. The bank also offers a contact form for email support on its website.
9. Bask Bank: For savers who want an online-only bank
Key numbers
Minimum opening deposit: $1,000
1-year APY: 4.70%
Penalty: 90 days of interest based on the principal amount withdrawn.
Why we picked it
Bask Bank is an online-only bank backed by Texas Capital Bank, based in Dallas. It offers a mix of savings products, including a high-yield savings account and certificate of deposit (CD), as well as a mileage earning savings account through a partnership with American Airlines. Bask’s 1-year CD offers a 4.70% APY—over three times the national average. And, interest on this account compounds daily. Customers can reach a Bask Bank representative by email at customersupport@baskbank.com, or by phone—Monday through Friday from 7:00 a.m. to 7:00 p.m. CST as well as Saturdays between the hours of 9:00 a.m. and 4:00 CST.
10. TIAA Bank: For savers who want to keep their personal and business accounts all under one roof
Key numbers
Minimum opening deposit: $1,000
1-year APY: 4.65%
Penalty: 91 days of simple interest.
Why we picked it
TIAA Bank is a subdivision of TIAA, or the Teachers Insurance and Annuity Association which is headquartered in New York. Its products include personal, business, and commercial banking products, as well as investment services. TIAA’s 1-year CD offers an APY of 4.65% for its 1-year terms—just over three times the average national rate. Interest on these CDs compounds daily. TIAA representatives are available via email and by telephone, Monday through Friday from 8:00 a.m. to 5:00 p.m. ET.
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 period of time has passed, the CD has officially reached 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 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 on end, but the tradeoff is often that accounts with shorter term lengths tend to have lower APYs.
What are the different types of CDs?
Aside from varying term lengths, some CDs come with unique rules or features that may be better suited for you and your savings goals. A few common CD types include:
- High-yield CD: A CD that offers a higher-than-average APY.
- Jumbo CD: In exchange for a higher interest rate, these CDs require higher minimum deposits than standard CDs—usually $100,000 or higher.
- Bump-up CD: When interest rates increase, a bump-up CD gives account holders the option to increase their CD’s APY as the account continues to mature.
- Add-on CD: These CDs give you the option to deposit additional funds in your CD after you’ve made your initial deposit.
- No-penalty CD: These CDs won’t charge you a penalty for withdrawing funds before your CD matures.
As you’re weighing your options, consider all of the perks of a CD account, as well as any possible penalties associated with each account. Knowing how much potential your money has to grow over the course of your preferred timeline—and what will happen if you end up needing access to your funds sooner rather than later—can help you make the right decision for you and your financial plan.
Best CD rates for other terms
Our methodology
The Fortune RecommendsTM team 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’re located.
We ranked the best one-year CDs on the following categories:
- 1-year term (50%): This number represents the real rate of return on your balance; the higher the APY, the better.
- Minimum deposit requirement (30%): In order to open a CD at any financial institution, it will require that you deposit a minimum dollar amount.
- Compound frequency (15%): Interest on deposit accounts like CDs can compound daily or monthly. The more frequency interest compounds on your CD, the better.
- Customer service (5%): Top picks offer customers three ways to get in contact: chat support, by phone, or even email. Among the three options, we gave the phone support the most weight.
The best CDs offer APYs twice the national average. We didn’t include brokered CDs on our list, which are sold on the secondary market through brokerages instead of banks and can be riskier because of this.
The rates, fees, and minimum deposit requirements for CDs are available for limited time periods, and APYs are subject to fluctuation, which could impact how much interest you earn. All the bank 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 may likely be subject to a penalty, which varies by bank.
