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Best 1-year CD rates - March 2023

Best available rates across different account types for Thursday, March 23, 2023

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Top banks offering 1-year CD rates for March 2023

Limelight Bank

Limelight Bank Logo
Rating: 2.6 stars out of 5


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
5.15% APY
$1,000 minimum deposit to open

First Internet Bank of Indiana

Rating: 4.5 stars out of 5


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.

Invest Rate
5.06% APY
$1,000 minimum deposit to open

Bread Savings (formerly Comenity Direct)

Rating: 4 stars out of 5


Bread Savings, formerly Comenity Direct, is an online bank that offers five terms of CDs ranging from one year to five years and a high-yield savings account. You’ll need at least $1,500 to open a CD at Bread Savings, but you only need $100 to open a Bread Savings high-yield savings account. 

Bread Savings is part of Comenity Capital Bank, which is a unit of Bread Financial.

Invest Rate
5.05% APY
$1,500 minimum deposit to open

Rating: 3.8 stars out of 5


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
5.00% APY
$10,000 minimum deposit to open

Barclays Bank

Barclays Logo
Rating: 4.2 stars out of 5


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
5.00% APY
$0 minimum deposit to open

Live Oak Bank

Live Oak Bank Logo
Rating: 4 stars out of 5


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
4.80% APY
$2,500 minimum deposit to open

Bask Bank

Rating: 3.9 stars out of 5


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
4.75% APY
$1,000 minimum deposit to open

Citizens Access

Citizens Logo
Rating: 3.9 stars out of 5


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
4.75% APY
$5,000 minimum deposit to open


TIAA Bank Logo
Rating: 4.7 stars out of 5


TIAA Bank has nine financial centers, all located in Florida. Besides its Basic CDs, TIAA Bank has a Yield Pledge Checking account, a Yield Pledge Money Market and a 42-month Bump Rate CD.

Invest Rate
4.65% APY
$1,000 minimum deposit to open

In the news

The first bank failures since 2020 are a wake-up call for consumers. While failures of this size are unusual, they do occasionally happen. Here’s how you can stay protected: 

  • Make sure your money is deposited at an FDIC bank
  • Avoid having uninsured excess deposits. Confirm your money is within FDIC limits by going to the FDIC’s Electronic Deposit Insurance Estimator (EDIE) or calling the FDIC. 

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 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.   

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 APY. The APY includes the effects of compounding. Compound interest is the interest you earn on interest.

Calculate how much interest you’ll earn as you compare APYs.

Who should open a 1-year CD?

A one-year CD at an FDIC-insured bank is a great option for money that you’re not planning to use for a year and that you want to keep safe. Just make sure that your money is within FDIC limits and guidelines

There are higher-yielding potential investments out there. But the safety of FDIC insurance — backed by the full faith and credit of the U.S. government — and the fixed APY make a CD unique. That fixed APY means you can calculate exactly how much interest you’ll earn after a year. 

A high-yield savings account is probably a better option for money that you might need in a few days, weeks or months. That way the money will be liquid and available to you without incurring an early withdrawal penalty.

Today’s top nationally widely available one-year CDs pay 5.00 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 house) and can let your money grow near the rate of inflation without you having to worry about missing out on better deals that arrive after you invest.

Pros and cons of 1-year CDs


  • Your money is protected with FDIC insurance, as long as you’re within FDIC limits and guidelines. 
  • You know exactly how much interest you’ll earn since generally CDs have fixed APYs. 
  • Knowing that there’s an early withdrawal penalty can prevent you from withdrawing this money if you don’t need to. 


  • 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 it isn’t needed 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 they did 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.

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

Compared to money market account rates, however, one-year CD rates tend to be higher at competitive online banks. In many cases, you can qualify for one of the top one-year CD deals without having to fork over a large amount of cash. At banks with a tiered interest rate structure, you may have to deposit more money to earn the top money market account rate.

Like high-yield savings accounts, money market accounts are worth considering if you’re not able to tie up money for months or years at a time. 

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 money market accounts may be limited to a maximum of six convenient 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 accounts still have these limits. You might be charged a fee for exceeding these limits at some banks. 

These days some banks are allowing more transactions per statement cycle on savings deposit accounts. Union Bank, for instance, currently doesn’t have limits on the number of checks you can write from its money market account.

1-year CD FAQs

Research Methodology

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: 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 we monitor

These financial institutions are featured in our CD rate research: Barclays, Bask Bank,  BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Financial (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Credit One Bank, 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, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Morgan Stanley Private 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, Synchrony Bank, TD Bank, TIAA Bank, U.S. Bank, UFB Direct, Union Bank (California), USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.

Note: Bankrate doesn’t include callable CDs or brokered CDs on this page and compares regular CDs and no-penalty CDs separately.