A one-month certificate of deposit matures in the span of just four quick weeks. Interest rates on these CDs typically are low, mostly because banks want account holders to lock up their money for longer periods. But you may prefer a one-month CD if you need to protect some cash for the short term and think you’d be tempted to spend it.
Many savings accounts and money market accounts, however, offer higher annual percentage yields (APYs) than one-month CDs. But savings deposit accounts usually have variable APYs, while term CDs generally have fixed APYs for the term.
Though one-month CD rates are typically low, you may be able to find accounts offering competitive yields. Here are the best one-month CDs, providing the highest possible fixed return for this term.
Bankrate’s guide to choosing the right CD rate
Why you can trust Bankrate
Bankrate has more than four decades of experience in financial publishing, so you know you’re getting information you can trust. Bankrate was born in 1976 as “Bank Rate Monitor,” a print publisher for the banking industry, and has been online since 1996. Hundreds of top publications rely on Bankrate. Outlets such as The Wall Street Journal, USA Today, The New York Times, CNBC and Bloomberg depend on Bankrate as the trusted source of financial rates and information.
Methodology for Bankrate’s Best CD Rates
At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.
Bankrate regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.
To find the best CDs, our editorial team analyzes various factors, such as: annual percentage yield (APY), the minimum needed to earn that APY (or to open the CD) and whether or not it is broadly available. All of the accounts on this page are insured by the Federal Deposit Insurance Corp. (FDIC) banks or the National Credit Union Share Insurance Fund.
When selecting the best CD for you, consider the purpose of the money and when you’ll need access to these funds to help you avoid early withdrawal penalties.
The best 1-month CD rates January 2022
- SchoolsFirst Federal Credit Union: 0.20% APY; $20,000 minimum deposit to earn APY
- BrioDirect: 0.05% APY; $500 minimum deposit
- U.S. Bank: 0.05% APY; $500 minimum deposit
- KeyBank: 0.05% APY; $2,500 minimum deposit
- Union Bank: 0.05% APY; $2,500 minimum deposit
Note: Annual percentage yields (APYs) shown are as of Jan. 25, 2022, and may vary by region for some products.
Compare: Best 1-month CD rates
CD holders can earn 0.2 percent annual percentage yield (APY) on a one-month CD. If you want to earn a yield on your cash but also want the flexibility to reinvest, you might consider a one-month CD.
SchoolsFirst Federal Credit Union: 0.20% APY; $20,000 minimum deposit to earn APY
SchoolsFirst Federal Credit Union was formed by school employees during the Great Depression in 1934. The credit union has 50 branches.
SchoolsFirst serves the education community in California. Certain school employees, certain retired school employees and immediate family members of existing SchoolsFirst Federal Credit Union members are eligible to join.
SchoolsFirst offers CDs ranging from 30 days to five years. To open a CD, a $500 minimum deposit is required. If you put in more money you may be rewarded with a higher APY, as SchoolsFirst has four rate tiers: $500, $20,000, $50,000 and $100,000.
BrioDirect: 0.05% APY; $500 minimum deposit
BrioDirect is Sterling National Bank’s online brand. All BrioDirect savings deposit products are provided by Sterling National Bank, which was founded in 1888.
BrioDirect offers CDs and a high-yield savings account. Both of these savings products offer a competitive yield. It also offers money market and checking accounts.
BrioDirect offers 13 terms of CDs, ranging from 30 days to five years, with terms of one year and up offering the highest APYs.
U.S. Bank: 0.05% APY; $500 minimum deposit
U.S. Bank is one of the 10 largest commercial banks in the U.S. The bank’s history can be traced back to First National Bank of Cincinnati in 1863. U.S. Bank is based in Minneapolis.
It offers 11 terms of CDs, ranging from one month to five years. U.S. Bank also offers a Step Up CD and a Trade Up CD.
KeyBank: 0.05% APY; $2,500 minimum deposit
KeyBank has been around since 1849 and is headquartered in Cleveland. KeyBank has a network of around 1,100 branches and more than 1,400 ATMs. KeyBank has CDs with terms ranging from seven days to 10 years. KeyBank CDs are available to consumers and businesses in 15 states.
Union Bank: 0.05% APY; $2,500 minimum deposit
Union Bank serves retail customers with more than 350 branches along the California coast, Oregon and Washington. Union Bank is part of Mitsubishi UFJ Financial Group, or MUFG.
Union Bank offers CDs in terms ranging from seven days to five years. The seven to 31-day CDs require a $2,500 minimum deposit. All other terms require only $350 to open a CD.
1-month CD FAQS
How does a 1-month CD work?
A one-month CD allows you to get a fixed APY for a month. Withdrawing your money from the CD before the term ends likely will result in an early withdrawal penalty.
Pros and cons of a 1-month CD
Pros of a one-month CD:
- Your money isn’t locked away for long.
- It gives you the flexibility to either keep your money in the CD for another term when it matures or withdraw it when the term ends.
- Generally, a term CD will give you a fixed APY during the CD’s term.
Cons of a one-month CD:
- Unlike a savings account, a one-month CD may incur an early withdrawal penalty if you take money out before the term ends.
- A savings account or a no-penalty CD may earn a higher APY than a one-month CD.
- The APYs might not be competitive compared with other, longer-term CDs.
Can you lose money with a 1-month CD?
Withdrawing money prematurely from a one-month CD could result in the loss of any accrued interest and possibly a portion of the amount deposited, in the form of an early withdrawal penalty. It’s also possible to lose money if the bank holding the funds has failed and the total amount you have on account with the bank exceeds Federal Deposit Insurance Corp. (FDIC) limits or guidelines.
Alternatives to 1-month CDs
If you don’t want to tuck away your money for a month, here are some alternatives to consider:
Consider a savings account or money market account
A money market account or a high-yield online savings account may offer higher interest rates than a one-month CD. Additionally, you’ll be able to access your money quickly with no penalty. Money market and high-yield savings accounts, however, typically require higher balances and may restrict your access to the money.
Choose a CD with a longer term
Generally, savers who tuck away their money in longer-term CDs can snag higher interest rates. For example, the average five-year CD rate is hovering around 0.26 percent APY. Still, you may find higher APYs if you shop and compare CD rates.
How to use a 1-month CD in a CD ladder
A CD ladder lets you take advantage of different CD maturities and interest rates. To start one, figure out how much money you can invest and how long you can put money away. Then open a few short- and long-term CDs with staggered maturity dates, and decide how much money you’ll put in each.
The short-term CDs allow you to take advantage of rising interest rates, while the long-term CDs typically come with higher rates. As an example, you may decide to use a one-month CD as your shortest rung, plus a six-month CD, one-year CD and three-year CD. Keep your money invested in the long-term CDs, and as the short-term CDs mature, you can decide whether to use the money or reinvest it into a higher-rate CD.