Below are the best CD rates from our partners, followed by the best 1-year CD rates from our analysis of the roughly 200 banks and credit unions in the United States that now provide CDs to customers. Our annual rankings include 10-14 months terms with deposits as high as $25,000.
When multiple financial institutions offer the same best rate, we ranked certificates of deposit (CDs) by their minimum deposit requirements, then by their term lengths, and finally, if necessary, by the severity of their early withdrawal penalties.
How Does a Year-Long CD Work?
CDs, or certificates of deposit, are savings products sold by financial institutions to individuals in which the latter promise a higher interest rate on the depositor’s money if the money is left in the account for a predetermined period. Time deposits are another name for CDs because of this.
You can save money and get interested in it by putting it in a certificate of deposit (CD), just like you can with a savings or money market account. You can get one just like any other bank or credit union account. However, certificates of deposit (CDs) exist in a wide variety and typically have a maturity date after which the cash must be withdrawn. Early withdrawal is possible, but it will cost you.
What Circumstances Favor a One-Year Certificate of Deposit?
Opening a one-year CD can be a wise financial decision when considered in the proper context. Prioritize your own needs and current financial status. Do you know that you won’t need this money in the next year, but you also wouldn’t feel safe storing it up for much longer?
It’s also crucial to compare the rates of return offered by the best one-year certificates and the best high-yield savings accounts. When a savings or money market account can yield the same or more, it’s often the better choice.
Rates, Minimums, and Fees for 1-Year Certificates of Deposit
Certificates of deposit (CDs) are offered by virtually every central retail bank and credit union, with a wide range of options available. The content of CD maturities provided by some institutions may be limited to just one or two alternatives, while others may offer a whole spectrum of CD maturities. Each financial institution has minimum deposit requirements and penalties for withdrawing money before its due date.
Top Certificate of Deposit Interest Rates for September 2022
Current Best 1-Year Certificate of Deposit Rates:
For example, at the State Bank of Texas, you can earn an annual percentage rate of 3.25 percent.
- APR: 3.21% at Connexus Credit Union
- This includes the 3.14% annual yield offered by Lafayette Federal Credit Union.
- APR: 3.13% at the Department of Commerce Federal Credit Union
- There’s the 3.10 percent annual percentage yield at Rising Bank.
APR: 3.10 percent at ConnectOne Bank
- 3.25% APY at State Bank of Texas
- Term Length (Months): 12
- $25,000 required for the initial deposit
- Interest for one month is added to the withdrawal amount if made prematurely.
- About State Bank of Texas: Founded in 1987, State Bank of Texas is a family-owned bank with eight locations across Texas and Chicago and a nationwide online customer base.
3.21% APY Connexus Credit Union
- Duration (in months): 12
- The bare minimum required to open an account is $5,000.
- There is a three-month interest penalty for making an early withdrawal.
- By contributing $5 to the Connexus Association and maintaining a savings balance of $5 or more, anyone can become a credit union member.
APR: 3.14 percent at Lafayette Federal Credit Union
- Duration (in months): 12
- The bare minimum to put down is $500.
- Withdrawal before six months and pay interest on it.
- For membership, all you need is $50 in savings and a $10 membership to the Home Ownership Financial Literacy Council to join Lafayette Federal.
The Federal Credit Union of the Department of Commerce offers an annual rate of 3.13%.
- Length of Contract (Months): 12 – 23
- $25,000 required for the initial deposit
- Withdrawal before six months and pay interest on it.
- Membership in the American Consumer Council, a non-profit organization, is required to join the DCFCU, but it’s free.
The Increasing Bank – 3.10 Percent Annual Percentage Yield
- Term Length (Months): 12
- An initial investment of $1,000 is required.
- There is a three-month interest penalty for making an early withdrawal.
- Established in 1906 in St. Louis, Missouri, Midwest BankCentre operates Rising Bank as an online-only subsidiary.
Three Point One Percent Annual Percentage Yield (APY) at ConnectOne Bank
- Duration (in months): 13
- With a $500 minimum deposit,
- Withdrawal before six months and pay interest on it.
- ConnectOne, founded in 2005 and headquartered in Englewood Cliffs, New Jersey, has over two dozen locations throughout New Jersey and New York. It provides services to consumers around the country via its website.
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