If the returns on the best savings accounts won’t do, look toward a certificate of deposit (CD).

CDs 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.

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.

Best 1-year CD Rates in July 2018

Bank APY Minimum deposit
State Bank of Texas 2.60% $25,000
Merrick Bank 2.55% $25,000
ableBanking 2.50% $1,000
CIT Bank 2.50% $1,000
Communitywide Federal Credit Union 2.50% $2,000

The best 1-year CD rates pay nearly four times the national average of 0.67 percent APY, according to Bankrate’s most recent national survey of banks and thrifts.

Today’s top nationally available 1-year CDs pay 2.60 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

Even after recent rate hikes by the Federal Reserve, 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.

Top account details

  • State Bank of Texas is a family-owned and operated bank founded in 1987. Its CDs are available nationwide. In the latest review of the bank’s financial health, it earned five out of five stars.
  • Merrick Bank was founded in 1997. The FDIC-insured institution is based in Utah and earned five out of five stars in the latest review of its financial health.
  • ableBanking is an online division of Northeast Bank, a community bank headquartered in Lewiston, Maine. Northeast Bank earned five out of five stars in the latest review of its financial health.
  • CIT Bank is an internet bank based in Pasadena, California. Its holding company, CIT Group, was founded in 1908. CIT Bank earned five out of five stars in the latest review of its financial health.
  • Communitywide Federal Credit Union is based in South Bend, Indiana. It was established in 1967 and earned five out of five stars in the 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.