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Best 1-year CD rates - November 2023

Best available rates across different account types for Thursday, November 30, 2023

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Top banks offering 1-year CD rates for November 2023

Limelight Bank

Limelight Bank_logo
Rating: 4.4 stars out of 5
4.4

Overview

Limelight Bank calls itself a conscientious bank that ties its business to eco-friendly initiatives. According to its website, Limelight Bank is a division of Capital Community Bank, with headquarters in Provo, Utah. Deposits at Limelight Bank turn into loans for solar projects, according to its website. You’ll need to find a bank elsewhere for a savings account or checking account. Limelight Bank only offers CDs on its website.
Invest Rate
5.75% APY
Loan
$1,000 minimum deposit

Popular Direct

Popular Direct_logo
Rating: 4 stars out of 5
4.0

Overview

Popular Direct offers competitive yields but is known for its high minimum balance requirements. The bank offers eight terms of CDs and a savings account. Popular Direct CDs have a $10,000 minimum deposit requirement, and the Ultimate Savings account requires a $5,000 minimum deposit. All Popular Direct deposit accounts are opened through Popular Bank.
Invest Rate
5.67% APY
Loan
$10,000 minimum deposit

CIBC Bank USA

CIBC Bank USA_logo
Rating: 4.1 stars out of 5
4.1

Overview

CIBC Bank USA, formerly The PrivateBank and Trust Co., was founded in 1991 and is based in Chicago. It was renamed CIBC Bank USA.

CIBC Bank USA offers its CDs online along with a high-yield savings account that pays a competitive yield.
Invest Rate
5.66% APY
Loan
$1,000 minimum deposit

Bask Bank

Bask Bank_logo
Rating: 4.4 stars out of 5
4.4

Overview

Bask Bank was founded in 2020 and started offering CDs and an interest savings account in 2022. It’s been offering a competitive APY on its savings account and its four terms of CDs, which have terms ranging from six months to two years. It’s also known for offering a unique airline mileage savings account.
Invest Rate
5.60% APY
Loan
$1,000 minimum deposit

LendingClub Bank

LendingClub Bank_logo
Rating: 4.2 stars out of 5
4.2

Overview

LendingClub is an online bank that offers six terms of CDs ranging from six months to five years. A $2,500 minimum deposit is required.

In addition to CDs, LendingClub offers a high-yield savings account and a rewards checking account.
Invest Rate
5.55% APY
Loan
$2,500 minimum deposit

Barclays Bank

Barclays Bank_logo
Rating: 4.8 stars out of 5
4.8

Overview

Barclays is an online bank popular for its credit cards, but it also offers CDs and an online savings account. ​​Barclays offers CDs with terms ranging from one year to five years.
Invest Rate
5.50% APY
Loan
$0 minimum deposit

Sallie Mae Bank

Sallie Mae Bank_logo
Rating: 4.7 stars out of 5
4.7

Overview

Sallie Mae Bank offers 11 terms of CDs, a savings account, money market account, credit cards and private student loans. It offers a competitive yield on its deposit products.

Established in 2005, Sallie Mae Bank is headquartered in Salt Lake City. In 2014, Sallie Mae became a stand-alone consumer banking business.
Invest Rate
5.50% APY
Loan
$2,500 minimum deposit

Citizens Access

Citizens Access_logo
Rating: 4.2 stars out of 5
4.2

Overview

Citizens Access is known for being Citizens Bank’s online bank. Citizens Access made its debut in 2018 and offers five terms of CDs that all require at least a $5,000 deposit. Citizens’ CD terms range from one year to five years. For those who don’t have $5,000 for a CD, Citizens Access’ savings account only requires a 1 cent minimum deposit.
Invest Rate
5.50% APY
Loan
$5,000 minimum deposit

Live Oak Bank

Live Oak Bank_logo
Rating: 4.7 stars out of 5
4.7

Overview

Live Oak Bank offers seven terms of CDs, from six months to five years. All CDs have a $2,500 minimum deposit requirement. Live Oak Bank also offers an online savings account, which doesn’t have a minimum balance requirement.
Invest Rate
5.40% APY
Loan
$2,500 minimum deposit

BrioDirect

BrioDirect_logo
Rating: 3.9 stars out of 5
3.9

Overview

BrioDirect is an online subsidiary of Webster Bank. Its savings account and money market account earn competitive yields.

BrioDirect also offers CDs with terms ranging from 30 days to five years, all of which require a $500 deposit to earn the disclosed APY.

The 5.35 percent APY currently offered on BrioDirect’s one-year CD is a promotional offer. You can only get this yield by opening a new account on or after Oct. 14. A promotional CD will renew at the going standard APY for a one-year CD.
Invest Rate
5.35% APY
Loan
$500 minimum deposit
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In the news

The Federal Reserve didn’t raise rates for the second time in a row at its latest meeting on November 1. It’s unclear whether the Fed will raise rates again this year at its final December meeting. After 11 rate increases, a long-term CD might be worth considering in this current rate environment. That can help you build a CD ladder for the long term.

But in the short term, a one-year CD can earn more than a top-yielding savings account. A one-year CD is among the highest yielding CD terms offered.

What to know about 1-year CDs

What is a 1-year CD?

Having a one-year CD means that your savings will be tied up for 12 months. Generally, you won’t be able to access your funds during that period of time without incurring an early withdrawal penalty. In exchange, you’ll earn a higher yield than you would from a standard savings account or money market account. 

How do 12-month CD rates work

At competitive online banks, CD rates will generally follow changes in Treasury yields. They might also follow other factors such as the rates set by competitors and the bank’s need for deposits.   

In the current rate environment, 12-month CDs are one of the most competitive terms for high yields at competitive FDIC-insured banks.

Some banks have a 10-day best-rate guarantee, meaning you could end up with a better rate if the bank raises theirs within days of your decision to open and fund your account. But generally, once you open and fund a fixed-rate CD, you’re stuck with that APY until your term ends. Over time, the bank may raise or lower the advertised rate for new account holders, but your rate will remain the same.

You’ll find that some institutions offer bump-up or step-up CDs that allow rates to change either upon request or at certain intervals during the term. Rates for these CDs, however, tend to be lower than those tied to fixed-rate CDs.

When reviewing CD rates, pay close attention to the annual percentage yield (APY). The APY includes the effects of compounding. Compound interest is the interest you earn on interest.

How to find the best 1-year CD for you

Decide the purpose of the money and when you’ll need it when considering a one-year CD.

A one-year CD could be a good option if you have money that you can sock away for at least a year but that you can’t afford to lose. Make sure this CD is at an FDIC-insured bank and within the FDIC’s guidelines and following the FDIC’s deposit insurance rules.

As of Nov. 30, 2023, the national average APY for one-year CDs is 1.74 percent, which is a lot lower than the top yields. That’s why you want to shop around to find the right CD for you, instead of just going to the bank down the street.

Here are things to compare when looking for a one-year CD: 

  • APY
  • Minimum deposit requirements
  • Early withdrawal penalties 

When should you get a 1-year CD?

You should get a one-year CD if you have money that you’re not going to spend in a year. A one-year CD is also a great place for funds that need to be kept safe – provided it’s an FDIC-insured CD and has a fixed, guaranteed APY. 

Money that you can risk losing, might be better off in another type of investment. You might be able to earn a higher return in an investment. But you could also lose all of your money. 

Today’s top one-year CD APYs earn more than top high-yield savings accounts.

Pros and cons of 1-year CDs

Pros

  • Checkmark

    Your money is protected with FDIC insurance, as long as you’re within FDIC limits and guidelines.

  • Checkmark

    You know exactly how much interest you’ll earn since generally CDs have fixed APYs — as long as you don’t withdraw funds from the CD before its term ends.

  • Checkmark

    Knowing that there’s an early withdrawal penalty can prevent you from withdrawing this money if you don’t need to.

Cons

  • You can probably earn more through other investments. But you might also lose money from those investments since they probably don’t have a guaranteed, fixed yield.

  • CDs have early withdrawal penalties. So if you unexpectedly need this money, you could lose interest — and even potentially some principal.

Alternatives to 1-year CDs

1-year CDs vs. other CD terms

A one-year CD is a great place to keep your money if you won’t need it during the year. Consider other CD lengths for longer-term money.  

While a five-year CD might have a higher APY, a shorter-term CD can be a better option. CD rates could change significantly in a year, and you might miss out on a good deal by locking up your money for longer. Of course, rates could also decrease significantly — like when the pandemic first hit. 

1-year CDs vs. savings accounts

CDs with terms lasting for one year often pay more interest than traditional savings accounts. Here’s why: you’re rewarded with a higher yield in exchange for agreeing to leave your money tied up for a set period of time.

That’s not the case with all CD terms in this current rate environment. Generally, one-year CDs and high-yield savings accounts have a higher APY than a top five-year CD.

What’s more, if you keep money locked up in a CD, it’s harder to access those savings. With a liquid savings account, there is usually no consequence for withdrawing funds (unless you make more than six withdrawals or transfers per statement cycle). Since your CD may have an early withdrawal penalty, you’ll probably think twice about raiding your savings.

Another benefit one-year CDs have over savings accounts is the guaranteed rate that applies for the full term. Savings account rates can change at any time as a result of changes in an interest rate environment or a bank’s priorities. That means over time, your rate of return could decline.

There are downsides to choosing a one-year CD over a savings account. Because CDs traditionally are not liquid accounts, it’s best to keep your emergency fund in a savings account. That way, you can easily access the funds you need to cover an unexpected expense without paying a penalty. Additionally, just as savings account interest rates can go down, they can also go up. By locking your money up in a CD, you could miss out on an opportunity to earn more interest.

1-year CDs vs. money market accounts

Another more liquid option than a CD is parking your cash in a money market account. At some banks, the money market account requires a higher minimum deposit. A money market account may also pay more interest than the institution’s savings account.

With a money market account, you can easily withdraw your savings at any time without penalty, and at some banks, you’ll have access to a debit card. Keep in mind that like savings accounts, money market accounts may be limited to a maximum of six transfers or withdrawals per month or per statement cycle. 

Even though in April 2020, there was an interim final rule to amend Regulation D and delete the limit on certain withdrawals, most savings and money market accounts still have these limits. You might be charged a fee for exceeding these limits at some banks.

1-year CD FAQs

Research methodology

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: 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).