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Best 1-year CD rates of February 2025

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A one-year certificate of deposit (CD) could pay more than a high-yield savings account in today’s rate environment. But 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.

Current 1-year CD trends Caret Up Icon Caret Down Icon

Bankrate Partner average
4.13% APY
National average
1.85% APY
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Bask Bank

Rating: 4.5 stars out of 5
4.5 Bankrate CD score
  • Annual percentage yield

    4.40%
  • Min. deposit to open

    $1,000

Why Bask Bank?

Bask Bank offers six CD terms ranging from three months to two years. The bank also offers a savings account with a competitive APY and another savings account that earns American Airlines miles. Bask Bank has been around since 2020 and is a division of Texas Capital Bank.

America First Credit Union

Rating: 5 stars out of 5
5.0 Bankrate CD score
  • Annual percentage yield

    4.35%
  • Min. deposit to open

    $500

Why America First Credit Union?

America First Credit Union was founded in 1939 in Salt Lake City. It has CDs with terms ranging from three months to five years. The minimum opening deposit for CDs is $500. It also offers a variety of checking and savings accounts.

Citizens Access

Rating: 4.2 stars out of 5
4.2 Bankrate CD score
  • Annual percentage yield

    4.35%
  • Min. deposit to open

    $5,000

Why Citizens Access?

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.

Live Oak Bank

Rating: 3.9 stars out of 5
3.9 Bankrate CD score
  • Annual percentage yield

    4.30%
  • Min. deposit to open

    $2,500

Why Live Oak Bank?

Live Oak Bank offers nine terms of CDs, from three 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.

Popular Direct

Rating: 4 stars out of 5
4.0 Bankrate CD score
  • Annual percentage yield

    4.30%
  • Min. deposit to open

    $10,000

Why Popular Direct?

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 Select Savings account requires a $100 minimum deposit. All Popular Direct deposit accounts are opened through Popular Bank.

Marcus by Goldman Sachs

Rating: 4.9 stars out of 5
4.9 Bankrate CD score
  • Annual percentage yield

    4.25%
  • Min. deposit to open

    $500

Why Marcus by Goldman Sachs?

Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA. The online bank has a variety of CDs. This includes nine standard CDs in terms ranging from six months to six years, three no-penalty CDs and a Rate Bump CD. Marcus offers competitive yields on its CDs and high-yield savings account.

Limelight Bank

Rating: 4.4 stars out of 5
4.4 Bankrate CD score
  • Annual percentage yield

    4.25%
  • Min. deposit to open

    $1,000

Why Limelight Bank?

Limelight Bank is an online-only bank that’s a division of Capital Community Bank. It’s known for supporting eco-friendly causes such as solar initiatives. The bank offers four CD terms ranging from six months to three years. A minimum deposit of $1,000 is required. Limelight doesn’t offer any types of bank accounts other than CDs.

CIBC Bank USA

Rating: 4.6 stars out of 5
4.6 Bankrate CD score
  • Annual percentage yield

    4.21%
  • Min. deposit to open

    $1,000

Why CIBC Bank USA?

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.

TAB Bank

Rating: 4.1 stars out of 5
4.1 Bankrate CD score
  • Annual percentage yield

    4.21%
  • Min. deposit to open

    $1,000

Why TAB Bank?

TAB Bank was established in 1998 in Ogden, Utah, as a banking service inside truck stops. TAB (Transportation Alliance Bank) serves businesses and individual customers. It offers several checking accounts, a savings account, a money market account and CDs in six terms, from 12 months to five years.

First Internet Bank of Indiana

Rating: 4.1 stars out of 5
4.1 Bankrate CD score
  • Annual percentage yield

    4.20%
  • Min. deposit to open

    $1,000

Why First Internet Bank of Indiana?

First Internet Bank of Indiana was the first FDIC-insured financial institution to operate entirely online, according to the bank’s website. It launched in 1999, and its products are available in all 50 states. First Internet Bank offers eight terms of CDs, a money market savings account with a competitive yield, a savings account with a yield higher than the national average and two checking accounts.

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How to find the best 1-year CD for you

Pros and cons of 1-year CDs

Pros

  • Checkmark Icon

    Your money is protected with FDIC insurance if you are banking with an FDIC-insured institution, as long as you’re within FDIC limits and guidelines.

  • Checkmark Icon

    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 Icon

    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