If the returns on the best savings accounts won’t do, look toward a CD.

Here are Today’s Best 1 Year CD Rates

  • Crestmark Bank: 1.80%
  • Banesco USA: 1.75%
  • CDBank.com: 1.75%
  • Incredible Bank: 1.72%
  • EverBank: 1.72%

Certificates of deposit are safe vehicles for investors. If you keep your funds locked up for an entire term, you can expect to end up with your initial deposit plus interest.

A 12-month CD won’t pay the highest rates in the market. But when your account comes due, you’ll be able to reinvest your funds in a CD with a more attractive yield.

The best 1-year CD rates pay more than four times the national average of 0.42 percent APY, according to Bankrate’s most recent national survey of banks and thrifts.

Today’s top nationally available 1-year CDs pay 1.80 percent APY. That’s not enough to retire on, but it’s a good vehicle to meet short-term financial obligations (like saving for a down payment on a mortgage) that can let your money grow near the rate of inflation without having to worry about missing out on better deals that arrive after you invest

Finding the best 1-year CD rates

CD rates remain low by historical standards, but you can find significantly better deals than at the big national bank that handles your checking account if you’re willing to shop around. Researching rates at several local banks, as well as reputable online banks, will usually yield the best rate.

Here are the top nationally available 1-year CD rates. Compare these offers then calculate how much interest you would earn when your CD matures.

Bank APY Minimum deposit
Crestmark Bank 1.80% $25,000
Banesco USA 1.75% $1,500
CDBank.com 1.75% $10,000
Incredible Bank 1.72% $1,000
EverBank 1.72% $5,000

Top account details

  • Crestmark Bank was founded in 1996 to serve small-to-medium sized businesses that needed financing. Headquartered in Troy, Michigan, it has branches across multiple states, including California, Louisiana and Florida. The bank earned five out of five stars in Bankrate’s latest review of its financial health.
  • Banesco USA is based in Coral Gables, Florida. It was founded in 2006 and has local branches as well as one in Puerto Rico. The bank earned four out of five stars in Bankrate’s latest review of its financial health.
  • CDBank.com is the online division of TBK Bank. It launched in May 2017 and is based in Dallas, Texas. TBK Bank earned four out of five stars in Bankrate’s latest review of its financial health.
  • Incredible Bank is an online division of River Valley Bank, a community bank headquartered in Wausau, Wisconsin. The internet bank was founded in 2009 and offers a variety of products, including CDs, motorhome loans and a high-yield savings account. River Valley Bank earned four out of five stars in Bankrate’s latest review of its financial health.
  • EverBank is based in Jacksonville, Florida. It’s a division of TIAA, FSB and operates primarily online. EverBank earned four out of five stars in Bankrate’s latest review of its financial health.

Keep your goals in mind

A 1-year CD is only useful if you don’t plan to touch your savings for a full 12 months. Breaking the contract you made with a bank or credit union and dipping into your account before it matures could cost you quite a bit of interest.

Something that’s more liquid — like a money market account — could be a better place for your funds. You’ll be stuck with a lower interest rate, but you’ll have the flexibility to use your savings to cover a last-minute trip or an emergency expense.

 

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