Look, if there’s one thing you deserve after the past few years, it’s more for your money. With inflation chipping away at your wallet and paycheck, isn’t it time this economy paid you back?
Well, that time is now. After the Fed’s latest rate hike, rates on one-year certificates of deposit (CDs) are sky-high—some offering annual percentage yield (APYs) of over 5%. And while a CD requires you to commit money for one full year or pay a penalty (which no one wants), many have low to no investment minimums. So, whatever you’re comfortable committing, you can start earning some of the highest interest rates available in years.
You can explore our ranking methodology here.
Current 1-year CD rates for our top picks*
| Institution | APY | Great for | Minimum deposit | See details |
| CIBC Agility | 5.51% | Those who want a smaller early withdrawal penalty (just in case) | $1,000 | Read ourreview of CIBC Agility |
| Barclays | 5.30% | Those who don’t have a ton of savings yet | $0 | Learn more about Barclays |
| Marcus by Goldman Sachs | 5.50% | Those who want a rate guarantee | $500 | Read our review of Marcus |
| Ally Bank | 5.25% | Those who want 24/7 online support | $0 | Read our review of Ally |
| Limelight Bank | 5.50% | Those who want to support green initiatives | $1,000 | Learn more about Limelight Bank |
| VIO Bank | 4.70% | Those who don’t need ATM access | $500 | Learn more about VIO Bank |
| Synchrony | 5.30% | Those who are just getting started with saving | $0 | Read our review of Synchrony |
| Bread Savings | 5.50% | Those with more to save | $1,500 | Learn more about Bread Savings |
| PenFed Credit Union | 5.00% | Those who prefer a credit union over a bank | $500 | Read our review of PenFed |
| BMO Alto | 5.50% | Those who want a simplified banking experience | $0 | Learn more about BMO Alto |
The 10 best 1-year CD rates
The following is our list of the best one-year CDs according to Fortune RecommendsTM editors, based on our ranking of several account features.
Note: Minimum deposit requirements, APYs, and other figures in our list are up to date as of January 3, 2024, but are subject to change.
1. CIBC Agility—5.51% APY
| Key numbers | |
| Minimum opening deposit | $1,000 |
| 1-year APY | 5.51% |
| Early withdrawal penalty | Up to 30 days’ simple interest |
| Great for | Those who want a smaller early withdrawal penalty (just in case) |
Why we picked it
CIBC Bank USA is a subsidiary of Toronto-based Canadian Imperial Bank of Commerce, which was founded in 1867. It offers a line of online deposit products under the Agility brand.
The 1-year CD from CIBC Agility also comes with one of the highest rates available today. It also imposes a fairly low early withdrawal penalty for customers who need to pull out their money before the maturity date. However, it also requires a higher minimum opening deposit than many of the other banks on our list.
2. Barclays—5.30% APY
| Key numbers | |
| Minimum opening deposit | $0 |
| 1-year APY | 5.30% |
| Early withdrawal penalty | 90 days’ simple interest |
| Great for | Those who don’t have a ton of savings yet |
Why we picked it
Barclays is a U.K.-based bank that operates its U.S. accounts solely online, so account holders need to do all of their banking on the Barclays website or through the mobile app.
Interest on Barclays’ one-year CD is compounded daily, and there is no minimum opening deposit, which makes this CD one of the more flexible on our list for savers at any stage.
3. Marcus by Goldman Sachs—5.50% APY
| Key numbers | |
| Minimum opening deposit | $500 |
| 1-year APY | 5.50% |
| Early withdrawal penalty | 90 days’ interest |
| Great for | Those who want a rate guarantee |
Why we picked it
Marcus by Goldman Sachs is an online consumer banking division of Goldman Sachs, which provides a variety of high-yield deposit accounts, as well as credit cards and investment services.
The 1-year CD from Marcus by Goldman Sachs comes with one of the highest rates available today at 5.50% APY. You will need a minimum opening deposit of $500 to lock in this rate. Marcus guarantees that if you open and fund a CD account within 10 days and the interest rate on that term goes up, the bank will automatically match the new rate.
4. Ally Bank—5.25% APY
| Key numbers | |
| Minimum opening deposit | $0 |
| 1-year APY | 5.25% |
| Early withdrawal penalty | 60 days’ interest |
| Great for | Those who want 24/7 online support |
Why we picked it
Ally Bank is an online-only bank that offers a wide range of financial products and services, including checking and savings accounts, CDs, credit cards, auto loans, personal loans, a robo-advisor, and more.
The bank’s high-yield 1-year CD rate of 5.25% is one of the best available—and there’s no minimum balance requirement. Ally’s excellent customer service options helped boost it even higher in the rankings.
5. Limelight Bank—5.50% APY
| Key numbers | |
| Minimum opening deposit | $1,000 |
| 1-year APY | 5.50% |
| Early withdrawal penalty | 90 days’ interest |
| Great for | Those who want to support green initiatives |
Why we picked it
Limelight Bank is an online bank with a focus on eco-friendly initiatives. It’s based in Utah but serves customers nationwide.
Limelight’s one-year CD has one of the highest rates available today at 5.50% APY. However, it also has one of the highest minimum deposit requirements of $1,000.
One potential drawback for savers who want to roll over their CD after a year may be Limelight’s limited CD terms. This bank only offers four term lengths ranging from 6 to 36 months.
9. Vio Bank—4.70% APY
| Key numbers | |
| Minimum opening deposit | $500 |
| 1-year APY | 4.70% |
| Early withdrawal penalty | 1% of the amount withdrawn, plus a $25 fee |
| Great for | Those who don’t need ATM access |
Why we picked it
Another online-only bank to make our list, Vio Bank is a division of MidFirst Bank, the largest privately held bank in the U.S.
Its one-year CD boasts a competitive 4.70% APY and a modest 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 substantial, especially if you deposit a small amount. At 1% of the amount withdrawn, plus a $25 fee, you’d lose part of your principal balance if you deposited $500 and made an early withdrawal.
7. Synchrony Bank—5.30% APY
| Key numbers | |
| Minimum opening deposit | $0 |
| 1-year APY | 5.30% |
| Early withdrawal penalty | 90 days’ simple interest on principal withdrawn |
| Great for | Those who are just getting started with saving |
Why we picked it
Synchrony Bank in an online-only bank with no brick-and-mortar locations. Its product offerings include CDs, savings accounts, money market accounts, credit cards, and more.
The one-year CD from Synchrony may appeal to new savers who haven’t built up a large balance yet, since it doesn’t require a minimum opening deposit. Interest on this account is compounded daily, and customers can do all of their banking online or via mobile app. Synchrony customers also have the option to withdraw accrued interest at any time without penalty.
8. Bread Savings—5.50% APY
| Key numbers | |
| Minimum opening deposit | $1,500 |
| 1-year APY | 5.50% |
| Early withdrawal penalty | 180 days’ simple interest |
| Great for | Those with more to save |
Why we picked it
Bread Savings is part of Bread Financial, a tech-based financial services company. Bread Savings focuses on providing a simplified online banking experience to those who are looking for high-yield accounts.
The bank’s 1-year CD offers a highly competitive rate of 5.50% APY. Interest compounds daily, allowing customers to grow their savings faster compared to other accounts. However, it also has the highest minimum deposit requirement at $1,500 and a relatively steep early withdrawal penalty.
9. PenFed Credit Union—5.00% APY
| Key numbers | |
| Minimum opening deposit | $500 |
| 1-year APY | 5.00% |
| Early withdrawal penalty | If the certificate is redeemed within the first year, all dividends will be forfeited |
| Great for | Those who prefer a credit union over a bank |
Why we picked it
Founded in 1935, Pentagon Federal Credit Union (PenFed) is America’s second-largest federal credit union. It has an open charter, meaning anyone can join.
The 1-year money market certificate from PenFed comes with a competitive 5.00% APY. There is a somewhat substantial minimum opening deposit of $1,000 required. Dividends are posted monthly.
10. BMO Alto—5.50% APY
| Key numbers | |
| Minimum opening deposit | $0 |
| 1-year APY | 5.50% |
| Early withdrawal penalty | 180 days’ simple interest |
| Great for | Those who want a simplified banking experience |
Why we picked it
BMO Alto is the online-only division of BMO and specializes in offering high-yield savings and CD accounts.
The 1-year CD from BMO Alto boasts a 5.50% APY, as well as no minimum opening balance requirement, which helped boost its ranking.
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.
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
- Best CD rates overall
- Best 6-month CD rates
- Best 3-year CD rates
- Best 5-year CD rates
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 live.
We ranked the best one-year CDs in the following categories:
- Annual percentage yield (50%): This number represents the real rate of return on your balance; the higher the APY, the better.
- Minimum deposit requirement (30%): To open a CD at any financial institution, it will require that you deposit a minimum dollar amount.
- Interest compounding frequency (15%): Interest on deposit accounts like CDs can compound daily or monthly. The more often interest compounds on your CD, the more you stand to earn over the term.
- Customer service (5%): Top picks offer customers three ways to get in contact: chat support, by phone, or email. Among the three options, we gave the phone support the most weight.
The best CDs offer APYs two to three times 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 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.
