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.

Bank APY Minimum deposit
Live Oak Bank 2.10% $2,500
My eBanc 2.05% $5,000
VirtualBank 2.05% $10,000
First Internet Bank of Indiana 2.02% $1,000
XCEL Federal Credit Union 2.02% $500

The best 1-year CD rates pay more than four times the national average of 0.45 percent APY, according to Bankrate’s most recent national survey of banks and thrifts.

Today’s top nationally available 1-year CDs pay 2.10 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

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

  • Live Oak Bank is based in Wilmington, North Carolina. The bank has supported small business owners since it opened in 2008. In Bankrate’s latest review of its financial health, it earned five out of five stars.
  • My eBanc is an online division of BAC Florida Bank, an institution based Coral Gables. BAC Florida Bank and its subsidiaries serve more than 13,000 customers in the United States and abroad in places like Latin America. In Bankrate’s latest review of its financial health, BAC Florida Bank earned four out of five stars.
  • VirtualBank operates as an online division of IBERIABANK, an FDIC-insured institution based in Lafayette, Louisiana. IBERIABANK earned four out of five stars in Bankrate’s latest review of its financial health.
  • First Internet Bank of Indiana, based in Fishers, Indiana, was founded in 1999. The online-only bank serves customers nationwide. It earned four out of five stars in Bankrate’s latest review of its financial health.
  • XCEL Federal Credit Union was established in 1964. The institution is based in Bloomfield, New Jersey. Joining the American Consumer Council is one of the easiest ways to qualify for membership. In Bankrate’s review of its financial health, the credit union earned two out of five stars.

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.