Best 1-month CD rates — December 2022

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 picks for the top 1-month CD rates

• SchoolsFirst Federal Credit Union: 0.60% APY; $20,000 minimum deposit to earn APY
• Zions Bank: 0.10% APY; $1,000 minimum deposit
• 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 Nov. 30, 2022. Bankrate’s editorial team updates this information regularly, typically biweekly. APYs may have changed since the last update and may vary by region for some products.

A closer look at the top 1-month CD rates

SchoolsFirst Federal Credit Union: 0.60% APY; $20,000 minimum deposit to earn APY

SchoolsFirst serves the education community in California. Certain school employees, certain retired school employees and immediate family members of 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.

Zions Bank: 0.10% APY; $1,000 minimum deposit

Zions Bank has 122 full-service branches in Utah, Idaho and Wyoming. The bank offers 10 terms of CDs ranging from one month to five years.

Zions Bank also offers checking, savings and money market accounts, personal loans, mortgages and credit cards. It features mobile and online banking.

BrioDirect: 0.05% APY; $500 minimum deposit

BrioDirect is the online division of Webster Bank. Its CDs, savings account and money market account earn competitive yields.

BrioDirect offers 11 terms of CDs, ranging from one month to five years. A $500 deposit is required to open a CD. BrioDirect’s three-year CD offers the highest APY.

U.S. Bank: 0.05% APY; $500 minimum deposit

U.S. Bank is one of the 10 largest commercial banks in the U.S.

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 a network of over 1,000 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.

How to find the best 1-month CD rates

Comparison shopping is key when you’re looking for the best one-month CD rates. There are multiple types of CDs, including bump-up CDs and liquid CDs. But the top one-month CD rates are usually found with traditional CDs.

Check out the best one-month CDs offered by banks and credit unions and weigh the pros and cons of going with a short-term certificate of deposit over an account that’s more liquid. Don’t forget to crunch the numbers and calculate how much interest you could earn by the end of your term.

1-month CD FAQS

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  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.

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  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.
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  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.

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  What are the 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 0.70 percent APY. Still, you may find higher APYs if you shop and compare CD rates.

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  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.

Bankrate’s methodology for choosing the 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. 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.

Banks we monitor

These financial institutions are featured in our CD rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank5 Connect, Bank of America, Bank of the West, Barclays, Bask Bank, BB&T, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Morgan Stanley Private Bank, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Suntrust Bank, Synchrony Bank, TD Bank, TIAA Bank, UFB Direct, Union Bank (California), U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.