The Best 1-Year CD Rates of December 2022


Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.

As of December 2022, the average rate for a 1-year CD in the US is 0.90%, according to the FDIC. However, some online banks pay at least 4.50% APY right now.

A 1-year term may a good choice if you’d like to maintain a solid interest rate for a relatively short time. If you choose a 1-year CD, you’ll also have the chance to earn a higher interest rate if rates are up in a year. Interest rates on savings accounts are expected to slowly rise over the course of the year.

Compare our top picks for 1-year CDs

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Low minimum opening deposit

Editor’s rating

4/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Competitive interest rate

Editor’s rating

4/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Competitive interest rate

Editor’s rating

3.5/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Competitive interest rate

Editor’s rating

3.75/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star


Learn more


On First Internet Bank of Indiana’s website

 

CFG Bank CFG Bank Certificate of Deposit

CFG Bank Certificate of Deposit


Annual Percentage Yield (APY)

4.60% to 4.86%


Minimum Deposit Amount

$500

CFG Bank CFG Bank Certificate of Deposit

CFG Bank Certificate of Deposit


Annual Percentage Yield (APY)

4.60% to 4.86%


Minimum Deposit Amount

$500


Annual Percentage Yield (APY)

4.60% to 4.86%


Minimum Deposit Amount

$500

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Why it stands out: CFG Bank has a high interest rate on its 1-year CD, and you’ll only need $500 upfront to open one.

APY (Annual Percentage Yield) for 1-year CD: 4.86% APY

1-year CD early withdrawal penalty: 90 days of interest

What to look out for: Limited term options. CFG Bank doesn’t have many CD terms to choose from — there are only 12-month, 13-month, 18-month, 36-month, or 60-month CDs.

First Internet Bank of Indiana First Internet Bank of Indiana Certificate of Deposit

First Internet Bank of Indiana Certificate of Deposit


Annual Percentage Yield (APY)

2.02% to 4.75%


Minimum Deposit Amount

$1,000

First Internet Bank of Indiana First Internet Bank of Indiana Certificate of Deposit

First Internet Bank of Indiana Certificate of Deposit


Annual Percentage Yield (APY)

2.02% to 4.75%


Minimum Deposit Amount

$1,000

On First Internet Bank of Indiana’s website


Annual Percentage Yield (APY)

2.02% to 4.75%


Minimum Deposit Amount

$1,000

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Why it stands out: First Internet Bank of Indiana pays high interest rates on CDs. Its 1-year CD, in particular, stands out for its high interest rate.

APY for 1-year CD: 4.75% APY

1-year CD early withdrawal penalty: 180 days of interest

What to look out for: First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference.

Bread Savings Bread Savings High-Yield CD

Bread Savings High-Yield CD


Annual Percentage Yield (APY)

4.50% to 4.75%


Minimum Deposit Amount

$1,500

Bread Savings Bread Savings High-Yield CD

Bread Savings High-Yield CD


Annual Percentage Yield (APY)

4.50% to 4.75%


Minimum Deposit Amount

$1,500

On Bread Savings’s website


Annual Percentage Yield (APY)

4.50% to 4.75%


Minimum Deposit Amount

$1,500

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Why it stands out: Bread Savings pays higher CD rates than what you would earn at many brick-and-mortar or online banks.

APY for 1-year CD: 4.50% APY

1-year CD early withdrawal penalty: 180 days of interest

What to look out for: The minimum opening deposit for Bread Savings CDs is $1,500, which is a bit steep compared to other banks.

Bread Savings is also an online-only bank with a high-yield savings account and CDs. It doesn’t have a checking account or ATM network.

Rising Bank Rising Bank Certificate of Deposit

Rising Bank Certificate of Deposit


Annual Percentage Yield (APY)

3.35% to 4.60%


Minimum Deposit Amount

$1,000

Rising Bank Rising Bank Certificate of Deposit

Rising Bank Certificate of Deposit


Annual Percentage Yield (APY)

3.35% to 4.60%


Minimum Deposit Amount

$1,000


Annual Percentage Yield (APY)

3.35% to 4.60%


Minimum Deposit Amount

$1,000

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Why it stands out: A 1-year Rising Bank Certificate of Deposit pays a higher interest rate than most brick-and-mortar and online banks.

APY for 1-year CD: 4.60% APY

1-year CD early withdrawal penalty: 90 days of interest

What to look out for: Rising Bank has limited CD terms. It offers only 6-month, 1-year, 2-year, and 3-year CDs.

Other 1-year CDs we considered

We looked at the following 1-year CDs as well. These CDs ultimately weren’t chosen among our top picks because they may have lower rates than our winners, higher minimum opening deposits, or more substantial early withdrawal penalties. You might find some of these options appealing though, depending on your preferences.

  • CIT Bank Term CD: The 1-year CIT Bank CD offers a lower interest rate than our current picks. However, if you’re open to considering terms beyond a 1-year CD, the 13-month CIT Bank CD might be worth exploring. A 13-month CIT CD pays 4.55% APY.
  • Pentagon Federal Credit Union Money Market Certificate: Pentagon Federal Credit Union has high interest rates for its 1-year and 18-month CDs. However, you’ll find a more competitive interest rate at one of the financial institutions we’ve featured as a top pick. 
  • First National Bank of America Certificate of Deposit: First National Bank of America has a variety of CD terms and pays good rates. However, the rates on its CDs don’t compete with any of the banks on our list. 
  • Bask Bank Certificate of Deposit: Bask Bank has a strong 6-month CD, but its other CD terms aren’t as strong.
  • Capital One 360 Certificate of Deposit®: Capital One 360 might be worth considering if you’d like to open a CD with a low minimum opening deposit. But, its CD rates aren’t as competitive as our top picks.
  • Citi Fixed Rate Certificates of Deposit: Citi Fixed Rate CDs have a low $500 minimum opening deposit. Still, our top picks pay higher interest rates right now. 
  • Sallie Mae Certificate of Deposit: You’ll need a minimum opening deposit of $2,500 to open a CD at Sallie Mae. Our top picks have lower minimum opening deposits.
  • Bank5 Connect High-Yield Certificate of Deposit: Bank5 Connect has a strong interest rate on a 6-month CDs, but its other CD terms aren’t as strong.
  • Nationwide CD: Nationwide’s 1-year CDs and 18-month CDs are its most appealing options, but other online banks offer even higher rates right now.
  • Barclays Online Certificate of Deposit: Barclays may be a good option if you’re looking for a CD with a low minimum opening deposit or low early withdrawal penalties. Our top picks pay higher interest rates on a 1-year CD, though.
  • Ally High Yield Certificate of Deposit: Ally CDs might be a good choice if you’d like to get a CD with a $0 minimum opening deposit or low early withdrawal penalties. But its CD rates are currently lower than any of the banks on our list.
  • Marcus by Goldman Sachs High-Yield CD: Marcus has low minimum opening deposits on accounts, but our top picks pay higher interest rates right now.
  • Discover CD: The initial opening deposit for a Discover CD is  $2,500. Our top picks have lower minimum opening deposits.
  • Citizens Online Certificate of Deposit: You’ll need at least $5,000 to open an account, which is a bit steep compared to other online banks.
  • American Express® Certificate of Deposit: American Express has solid interest rates, but our top picks have higher rates.
  • Amerant CD: Amerant has solid interest rates, but our top picks offer more competitive rates right now. 
  • BrioDirect High-Yield CD: BrioDirect has a variety of CD terms, but its 1-year CD rate isn’t as strong as the institutions we’ve chosen.
  • TIAA Basic CD: TIAA has a variety of CDs, but other online banks and credit unions pay higher interest rates on CDs right now.
  • Connexus Share Certificate: Connexus requires a minimum opening deposit of $5,000. Our top picks have much lower minimum opening deposits.
  • NBKC CD: NBKC offers competitive interest rates on long-term CDs, but its short-term CDs aren’t as strong. 
  • Live Oak Bank CD: Live Oak Bank offers a competitive interest rate, but you’ll need at least $2,500 to open an account.

Bank is trustworthiness and BBB ratings

We’ve compared each banks Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. Here is each company’s score:

CFG Bank has an F rating because it has received and hasn’t responded to three customer complaints on the BBB website.

Bread Savings currently has a NR (“No Rating”) because the BBB is reviewing a pattern of complaints before assigning a rating. In July 2022, the BBB opened an investigation into Bread Financial because it received customer complaints stating they could not access Comenity credit card accounts. According to the BBB website, Bread Financial said that due to its rebranding and software system, an upgrade was preventing customers from accessing their accounts. Bread Savings posted an FAQ on their website to explain the situation. 

Something to keep in mind is that a BBB rating isn’t necessarily the be-all and end-all. If you’d like to see if a company is a good fit, talk to current customers or read online customer reviews.

Why trust our recommendations?

Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.

Frequently asked questions

A 1-year CD is a type of savings account. You’ll put money into an account for 12 months and earn a fixed rate. You have the option to renew your CD at the end of the year, or close the account and take out your money.

If you open a 1-year CD at a 4.50% APY, you’ll earn 4.50% for one year. Once your term ends, you’ll have to option to renew your CD. Financial institutions may offer a new rate since interest rates on products are affected by the federal funds rate.

Keep in mind that some institutions offer variable-rate CDs or CDs that allow your rate to change after a predetermined amount of time.

The best option for you will likely depend on how soon you plan to need the money and which term pays the highest rate.

Longer terms typically offer higher rates — but that isn’t always the case. Also, going for a short-term CD may give you the opportunity to get a better interest rate if rates are up in a year.

With a 3-year or 5-year CD, you could miss out on higher rates. That said, you could avoid lower rates with a 3-year or 5-year term if rates drop later.

Many experts recommend CD laddering — a strategy where you open multiple CDs with different term lengths. Through this strategy, you’ll be able to take advantage of higher rates with longer terms, but also access some of your money earlier. For example, you might open 1-year, 3-year, and 5-year CDs at the same time, which means you’ll get some of your money back in one year, then more in three years, then more in five years.

Choosing between a 1-year CD and high-yield savings account will depend on several factors.

Banks typically pays a higher rate for a 1-year CD than for a high-yield savings account. However, that’s not always the case. You’ll want to compare a few options to see which rates appeal the most to you.

Also, keep in mind that a 1-year CD locks in your rate for the entire year. If rates are dropping, this could make the CD a better choice, because your savings interest rate could decrease throughout the year. If rates are rising, the savings account might be a better fit, because your rate could go up.

It also depends on when you’ll need to access your money. You should be able to access funds from your savings account regularly — but if you need access to money from your 1-year CD before it matures, you’ll have to pay a fee.

You can also continuously add money to your savings account, whereas most 1-year CDs block you from making additional deposits after opening it.

You may prefer a money market account over a CD if you want quick access to your money. Money market accounts usually come with paper checks or an ATM card, which CDs don’t offer.

Money market account rates also fluctuate, so you may prefer a money market account if rates are rising, but a CD if rates are dropping.

Many banks require higher deposits for money market accounts than CDs, which could affect your decision. It’s also good to remember that you can add more funds to your money market account over time, while a CD only permits an opening deposit.

A CD is typically viewed as a type of savings account. Your potential for losses and gains — your risk — is much more limited. CDs aren’t generally considered investments the same way something like an index fund, which puts your money into the stock market, is. Because the stock market is risky, experts generally don’t advise investing money you’ll need in the next five years. In the case of a stock market drop, you wouldn’t have time to make up your losses.

If you need to access your money in a year and want a guaranteed rate of return, a 1-year CD is a better choice than a different type of investment account. 

If you’re comfortable parting with your money for longer and want to take more risk with your money, then you may want to invest in the stock market. For example, you can get tax-advantaged retirement accounts, like a 401(k) or IRA, which grow your money over decades. Brokerage accounts are another option. These accounts may be useful tools to build long-term wealth, but can’t guarantee a given return like a savings account can.

You can also open IRA CD, which is sort of a combo savings/investment account. It’s a safe investment tool that may be a worthwhile option for people who are close to retirement age.



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