One-year terms are among the most popular options for certificates of deposit (CDs). They have some of the highest yields and provide predictable earnings without tying up funds for too long.
We compared CDs from more than 45 banks, credit unions, and online institutions to find the ones with the best rates for terms of 12 months (or close to it), and also considered deposit requirements, early withdrawal fees, customer service, digital experience and other factors.
Currently, NASA Federal Credit Union has the highest return, a 4.35% APY on a 15-month CD with a $10,000 minimum deposit. Bread Savings offers a 4.25% APY on a one-year CD with only a $1,500 minimum. (CD rates are accurate as of Aug. 18, 2026.)
For more on how we made our picks, read our methodology.
Best 1-year CD rates of September 2026
- E*TRADE — 4.15% APY
- NASA Federal Credit Union — 4.35% APY (15 months)
- Newtek Bank — 4.10% APY
- DR Bank — 4.30% APY
- Popular Direct — 4.25% APY
- Bread Savings — 4.25% APY
- American Express — 4.25% APY (10 months)
- Happen Bank — 4.20% APY (11 months)
- Merrick Bank — 4.20% APY
- CFG Bank — 4.30% APY
- Sallie Mae Bank — 4.15% APY
- Dow Credit Union — 4.15% APY (13 months)
- Synchrony Bank — 4.10% APY
- USAlliance Financial — 4.00% APY (11 months)
E*TRADE CDs: 4.15% APY
Term: 12 months
Minimum deposit: None
Early withdrawal penalty: 3 months of simple interest
E*TRADE CDs
Annual Percentage Yield (APY)
4.05% to 4.35%
Terms
From 6 months to 60 months, plus add-on and bump-up CDs
Minimum deposit
None
Early withdrawal penalty
Equal to a certain number of days of simple interest, based on the term of the CD. If the penalty amount exceeds the accrued interest, the principal is also subject to penalty.
Terms apply.
Pros
- Above-average yields
- No minimum deposit
- 10-day rate guarantee
Cons
- Lacks no-penalty, bump-up and add-on CDs
- No physical branches
NASA Federal Credit Union CDs: 4.35% APY
Term: 15 months
Minimum deposit: $10,000
Early withdrawal penalty: 6 months of simple interest
NASA Federal Credit Union CDs
Annual Percentage Yield (APY)
4.05% to 4.40%
Terms
6 months to 60 months, plus add-on and bump-up CDs
Minimum deposit
$1,000 to $10,000
Early withdrawal penalty
Equal to six to 12 months of simple interest, depending on the length of the certificate term. If the penalty exceeds the accrued interest, the principal is also subject to penalty.
Terms apply.
Pros
- Above-average APYs
- Offers add-on and bump-up CDs
- NASA FCU membership available for free by joining the National Space Society.
Cons
- High minimum deposit requirements
- No physical branches
Newtek Bank CDs: 4.10% APY
Term: 12 months
Minimum deposit: $2,500 ($250,000 maximum)
Early withdrawal penalty: 6 months of simple interest
Newtek Bank CDs
Annual Percentage Yield (APY)
From 2.00% to 4.10% APY
Terms
6 months to 5 years
Minimum deposit
$2,500
Early withdrawal penalty
90 days of interest for CD terms under one year and 180 days (6 months) of interest for CD terms of one year or longer.
Terms apply.
Pros
- Wide range of fixed CD terms
- Offers limited-time rate specials
Cons
- $2,500 minimum deposit
- Lacks bump-up or no-penalty CDs
- No physical branches
DR Bank CDs: 4.30% APY
Term: 12 months
Minimum deposit: $500
Early withdrawal penalty: 6 months of simple interest
DR Bank CDs
Annual Percentage Yield (APY)
4.05% to 4.30% APY
Terms
From 3 months to 12 months
Minimum deposit
$500
Early withdrawal penalty
Ranges from 30 days to 360 days of interest, depending on the length of the CD.
Terms apply.
Pros
- Competitive yields on short-term CDs
- No cap on maximum deposit
Cons
- Only offers short-term CDs
- Mixed customer reviews
- Only two branches, both in Connecticut
Popular Direct CDs: 4.25% APY
Term: 12 months
Minimum deposit: $10,000
Early withdrawal penalty: 9 months of simple interest
Popular Direct CDs
Annual Percentage Yield (APY)
From 3.90% to 4.50% APY
Terms
From 3 months to 60 months
Minimum deposit
$10,000
Early withdrawal penalty
For terms less than 91 days, the penalty is 89 days simple interest. For terms equal to or greater than 91 days but less than 12 months, it's 120 days simple interest. For terms equal to or greater than 12 months but less than 36 months, it's 270 days simple interest; For terms equal to or greater than 36 months but less than 60 months, it's 365 days simple interest. For terms equal to or greater than 60 months, it's 730 days simple interest.
Terms apply.
Pros
- Above-average APYs
Cons
- $10,000 minimum deposit
- Doesn't have no-penalty or bump-up CDs
- Early withdrawal penalties are among the steepest we’ve seen
Bread Savings CDs: 4.25% APY
Term: 12 months
Minimum deposit: $1,500 ($1 million maximum)
Early withdrawal penalty: 6 months of simple interest
Bread Savings™ CDs
Annual Percentage Yield (APY)
From 3.80% to 4.50% APY
Terms
6 months to 5 years
Minimum deposit
$1,500
Early withdrawal penalty
For terms of less than 12 months, the penalty is 90 days of simple interest. For terms of 12 months to three years, the penalty is 180 days of simple interest. For terms of four years or longer, the penalty is 365 days of simple interest.
Terms apply.
Pros
- Above-average APYs
- Wide range of terms
Cons
- $1,500 minimum deposit
- Doesn't offer no-penalty or bump-up CDs
- No physical branches
American Express CDs: 4.25% APY
Term: 10 months
Minimum deposit: None
Early withdrawal penalty: 9 months of simple interest
American Express CDs
Annual Percentage Yield (APY)
3.00% to 4.25% APY
Terms
From 10 months to 5 years
Minimum deposit
None
Early withdrawal penalty
For CDs with terms less than 12 months, the penalty is 90 days' interest on the withdrawn amount. For terms between 12 and 48 months, it's 270 days' interest. For terms between 48 and 60 months, it's 365 days' interest. For terms of 60 months or more, the penalty is 540 days' interest.
Terms apply.
Pros
- Above-average APYs
- No minimum deposit
- Wide range of CD terms
Cons
- Penalty for early withdrawal is severe
- No physical branches
Happen Bank CDs: 4.20% APY
Term: 11 months
Minimum deposit: $500
Early withdrawal penalty: 3 months of simple interest
Happen Bank CDs
Annual Percentage Yield (APY)
From 3.40% to 4.20% APY
Terms
From 6 months to 5 years
Minimum deposit
$500
Monthly fee
None
Early withdrawal penalty fee
For terms of one year or less, the penalty is 90 days of simple interest. For terms greater than one year, the penalty is 180 days of simple interest.
Terms apply.
Pros
- Above-average APYs
- $500 minimum deposit
- Earned interest can be transferred to a Happen Bank checking or savings account
Cons
- No physical branches
Merrick Bank CDs: 4.20% APY
Term: 12 months
Minimum deposit: $25,000
Early withdrawal penalty: 6 months of simple interest
Merrick Bank CDs
Annual Percentage Yield (APY)
3.96% to 4.40% APY
Terms
From 3 months to 60 months
Minimum balance
$25,000
Monthly fee
None
Early withdrawal penalty fee
Three to nine months of interest, depending on the length of your term. If the penalty amount exceeds the accrued interest, the principal is also subject to penalty.
Terms apply.
Pros
- Highly competitive rates
- Wide range of terms
Cons
- $25,000 minimum deposit required
- No bump-up, no-penalty, or add-on options
- Does not offer checking or savings account
- No physical branches
CFG Bank CDs: 4.30% APY
Term: 12 months
Minimum deposit: $500
Early withdrawal penalty: 6 months of simple interest
CFG Community Bank CDs
Annual Percentage Yield (APY)
4.30%
Terms
12 months to 60 months
Minimum deposit
$500
Early withdrawal penalty
Depends on the term length. Withdrawing within six days of account opening will result in a 7-day interest penalty.
Terms apply.
Pros
- Higher-than-average APYs.
- Low $500 minimum deposit
Cons
- No in-person branches
- Website not as user-friendly as other online banks
Sallie Mae CDs: 4.15% APY
Term: 12 months
Minimum deposit: $1,000
Early withdrawal penalty: 6 months of simple interest
Sallie Mae CDs
Annual Percentage Yield (APY)
From 3.20% to 4.35% APY
Terms
From 6 months to 5 years
Minimum deposit
$2,500
Early withdrawal penalty fee
For terms of 12 months or less, the penalty is 90 days of simple interest on the amount withdrawn. For terms longer than 12 months, it's 180 days of simple interest.
Terms apply.
Pros
- Above-average APYs
- Early withdrawal penalties are less severe than at other institutions
Cons
- $2,500 minimum deposit required
- Lacks no-penalty and bump-up CDs
- No physical branches
Dow Credit Union CDs: 4.15% APY
Term: 13 months
Minimum deposit: $500
Early withdrawal penalty: 6 months of simple interest
Dow Credit Union CDs
Annual Percentage Yield (APY)
3.24% to 4.66% APY (for standard CDs, including potential Member Saver Reward bonus Giveback percentage)
Terms
3 months to 60 months
Minimum deposit
$500
Early withdrawal penalty
An early withdrawal penalty may be applied and could result in loss of principal.
Terms apply.
Pros
- Above-average APYs
- Member Giveback rebates and rewards can increase savings APY
- Youth CDs let savers under 18 make additional deposits
- Membership only requires a $5 deposit in a DCU savings account
Cons
- The only physical branches are in Michigan
Synchrony Bank CDs: 4.10% APY
Term: 12 months
Minimum deposit: None
Early withdrawal penalty: 3 months of simple interest
Synchrony Bank CDs
Annual Percentage Yield (APY)
From 0.25% to 4.35% APY
Terms
From 3 months to 60 months
Minimum deposit
None
Monthly fee
None
Early withdrawal penalty fee
There may be an early withdrawal penalty if you withdraw funds from the principal prior to the CD maturity date, applied to the amount of principal withdrawn. For the no-penalty CD, early withdrawals are not permitted within the first 6 days after account funding. After that, only withdrawal of the entire balance is allowed.
Terms apply.
Pros
- Above-average APYs
- Nine term options, from 3 to 60 months
- No minimum deposit
- Offers no-penalty, bump-up and IRA CDs
- If the rate increases within 10 days of account opening, you're automatically bumped up to the higher rate
Cons
- No physical branches
- No-penalty CD doesn't allow partial withdrawal
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest for your CD type in effect at that time.
USAlliance Financial no-penalty CDs: 4.00% APY
Term: 11 months
Minimum deposit: $500
Early withdrawal penalty: None (balance must be withdrawn in full)
USAlliance Financial CDs
Annual Percentage Yield (APY)
3.80% to 4.25% APY
Terms
3 to 60 months (5 years)
Minimum deposit
$500
Early withdrawal penalty
Accounts are subject to early withdrawal fees and other conditions, which are detailed in the Truth in Savings Disclosure and Membership Agreement, Certificate Account Disclosure and Fees and Service Charges Schedule.
Terms apply.
Pros
- Above-average APYs
- $500 deposit minimum for standard CD
- No-penalty and step-up CDs available
- Free membership available by joining an affiliated non-profit
Cons
- Only four physical branches
CD rates have been declining since the Federal Reserve began cutting rates in late 2024, but they continue to offer a guaranteed return on par with many high-yield savings accounts.
As of August 2026, the best CD rates generally range from about 4.00% to 5.00% APY for short- and mid-term CDs, with the highest yields typically offered by online banks and credit unions.
What is a CD?
A certificate of deposit, or CD, is a savings account that pays a fixed interest rate for a set period, usually between three months and five years, although there are CDs with terms of 10 years or longer.
- With a standard CD, you can only deposit funds at the beginning of the term. There may be a minimum deposit requirement (usually $500 or $1,000).
- Withdrawing funds before the CD matures typically means paying an early withdrawal penalty, calculated as a certain number of days' worth of earned interest (dividends) on the amount withdrawn. If the penalty exceeds the interest you've earned, your bank may take the remaining balance from your principal.
- When the CD matures, you can access your principal and accrued interest or roll the money over into a new CD. If you do nothing, most banks will auto-renew your CD at the rate offered at maturity.
- Unlike the variable APY of a savings account, you lock in your CD's rate the day you open the account. That can be beneficial if you open an account before rates drop. But if rates rise, you'll miss out on higher earnings.
- Unlike some savings accounts, most CDs don't come with monthly fees. But since they're not designed for regular transactions, they don't have access to an ATM card, either.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
From 3.80% to 4.50% APY
From 6 months to 5 years
Bread Savings™ (formerly Comenity Direct) is a product of Comenity Capital Bank, a Member FDIC.
From 3.70% to 4.10% APY
From 6 months to 6 years
Marcus by Goldman Sachs® is a brand of Goldman Sachs Bank USA, a Member FDIC.
How to choose a one-year CD
To pick the right CD, start by looking for banks that offer one-year terms. From there, consider these other factors:
- APYs: Shop banks, credit unions and online institutions to find the best rate.
- Minimum deposit: Minimum deposits can range from $100 to $10,000, with $500 the most common amount. (Jumbo CDs can require as much as $100,000.) Some institutions, including Ally Bank, have CDs with no minimum deposit requirement.
- Early withdrawal penalty: See what the fee is if you take your money out early. It might be worth a slightly lower APY if you have more flexibility.
- Compounding interest: See whether interest compounds daily or monthly.
- Customer service: Does the bank have physical branches for in-person banking or robust digital banking features?
- FDIC or NCUA insurance: Only open an account at a bank or credit union with deposits that are federally insured up to at least $250,000 per depositor, per ownership category.
Types of CDs
There are several kinds of CDs, each designed for specific needs.
- Traditional CD: A standard CD with a fixed interest rate and a set term. You agree to leave your money untouched until maturity to avoid early withdrawal penalties.
- High-yield CD: A CD offering a higher-than-average return.
- No-penalty CD: Lets you withdraw your money before the term ends without facing an early withdrawal fee, usually after a short lock-in period.
- Bump-up (or step-up) CD: Allows you to request a higher rate once (or sometimes more) during the term if the bank's CD rates increase.
- Add-on CD: Lets you deposit more money into the CD after opening it — helpful if you want to build your balance over time without opening multiple CDs.
- Jumbo CD: In exchange for a higher rate, jumbo CDs require a larger minimum deposit, often $75,000 to $100,000.
- Brokered CD: Sold through brokerage firms instead of directly from a bank. They can offer competitive rates but may be riskier if sold on the secondary market.
- IRA CD: A CD held inside an individual retirement account, giving you the safety of a CD with the tax advantages of an IRA.
Traditional CDs have benefits and drawbacks.
Pros
- A fixed interest rate means predictable earnings regardless of market changes.
- The early withdrawal penalty discourages spending money meant for savings.
- A CD ladder lets you access cash periodically while enjoying higher rates.
Cons
- There may be a minimum deposit requirement.
- CDs have lower returns than stocks and other investments.
- An early withdrawal penalty means CDs have limited liquidity.
- The value of your CD could decline if your APY slips below inflation.
FAQs
How much will $1,000 in a one-year CD earn?
The amount of interest you'll earn on a $1,000 one-year CD depends on the APY when you open the account. With a 4.00% APY, a $1,000 deposit would earn $40 in simple interest after one year.
Which is better, a one-year CD or a high-yield savings account?
Whether a CD or HYSA is better depends on your goals and risk tolerance. A one-year CD offers a fixed rate and guaranteed returns, while an HYSA provides easier access to your money.
Can I withdraw my money early from a one-year CD?
Unless you have a no-penalty CD, taking your money out before the CD matures results in an early withdrawal penalty, typically equal to up to a certain number of days of earned interest (dividends) on the amount withdrawn.
Is a one-year CD a good idea?
A one-year CD can be a good idea in a high-rate environment if you don't want to tie your money up for long. You'll lock in a good interest rate for the next 12 months while exposing your savings to zero risk. Just make sure you're comfortable not touching the money, since an early withdrawal will incur a penalty.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every CD list is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking and savings products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
To determine the best one-year CDs, CNBC Select compared certificates of deposit from more than 45 banks, credit unions and online financial institutions. We prioritized accounts offering the highest APYs, but also evaluated each using the following criteria:
- Minimum opening deposit: CDs with low or no minimum deposit requirements were given more weight.
- CD types: Banks that offered no-penalty, bump-up and other account types in addition to standard CDs were given more weight.
- Early withdrawal penalty: We compared penalty policies and gave preference to CDs with less restrictive terms.
- Deposit insurance: We only considered CDs offered by banks insured by the Federal Deposit Insurance Corporation (FDIC) or credit unions insured by the National Credit Union Administration (NCUA). We also considered whether institutions offered expanded FDIC insurance through deposit sweep programs.
- Customer experience: We considered a bank's mobile banking offers and customer support hours, and reviewed the overall ease of managing an account.
- Branch availability: We considered whether an institution had physical branches for savers to conduct in-person banking.
- Additional banking services: We considered whether an institution also offered checking and savings accounts, personal loans, mortgages, investments and other financial products.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
