If you’re looking to grow your savings without the risks of the stock market, a 1-year certificate of deposit (CD) could be the perfect option for you. With guaranteed returns and federal insurance, 1-year CDs are popular among savers who want higher yields than a regular savings account without committing to longer-term savings products.
Not sure where to start? Our team has carefully evaluated numerous accounts to compile a list of the top 10 1-year CDs available today. These accounts offer competitive rates, minimal fees, low deposit requirements, and excellent customer service. You can find more details about these top picks below.
Ally Bank’s 1-year CD stands out with a competitive 3.75% APY and no minimum deposit requirement, making it an attractive option for new savers. Interest compounds daily, and the penalty for early withdrawal is 60 days’ interest.
Synchrony Bank’s 1-year CD offers a competitive 3.8% APY with no opening fees. However, early withdrawals incur a penalty of 90 days’ simple interest at the current rate.
For those looking for higher returns, Marcus by Goldman Sachs’ 1-year CD provides a generous 4% APY with a minimum deposit of $500. The early withdrawal penalty is 90 days’ interest on the original principal balance.
America First Credit Union’s 1-year CD offers a competitive rate of 3.95% APY with a $500 minimum deposit requirement. Interest compounds monthly, and early withdrawals result in a penalty of 60 days’ dividends.
Capital One’s 1-year CD offers a competitive 3.9% APY with no minimum deposit requirement. However, early withdrawals incur a penalty of three to six months’ interest, depending on the term.
American Express National Bank’s 1-year CD provides a 3.25% APY with no minimum opening deposit. The penalty for early withdrawal is 270 days’ interest on the amount withdrawn at the current rate.
Bask Bank’s 1-year CD offers a 3.75% APY with a $1,000 minimum opening deposit and no monthly fees. Early withdrawals result in a penalty of 90 days’ simple interest.
TAB Bank’s 1-year CD offers a competitive 3.9% APY with a $1,000 minimum opening deposit. The penalty for early withdrawal is 90 days’ interest on the amount withdrawn.
Live Oak Bank’s 1-year CD boasts a high 4% APY, but requires a $2,500 minimum opening deposit. The early withdrawal penalty is 90 days’ simple interest.
Quontic Bank’s 1-year CD rounds out our top 10 list with a 3% APY and a $500 minimum opening deposit. Interest compounds daily, and early withdrawals incur a penalty equal to the interest for the full length of the stated term.
When choosing a 1-year CD, consider factors like interest rates, minimum deposit requirements, early withdrawal penalties, and your savings goals. The length of your CD term should align with when you’ll need access to the funds.
Our grading system for 1-year CDs considered over 300 data points to determine the best accounts. We evaluated accounts based on factors like APY, minimum opening deposit, compounding frequency, and customer service contact methods. Higher APYs, lower minimum deposit requirements, frequent interest compounding, and multiple customer service contact methods were rewarded with more points.
Investing in a 1-year CD can help you grow your savings securely. With competitive rates and guaranteed returns, these accounts are a great option for savers looking to maximize their earnings without taking on market risks.
