Best 1-year CD rates - November 2023
Best available rates across different account types for Thursday, November 30, 2023
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What To Know First
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.
Best 1-year CD rates for November 2023
- Limelight Bank —5.75% APY, $1,000 minimum deposit
- Popular Direct —5.67% APY, $10,000 minimum deposit
- CIBC Bank USA —5.66% APY, $1,000 minimum deposit
- Bask Bank —5.60% APY, $1,000 minimum deposit
- LendingClub Bank —5.55% APY, $2,500 minimum deposit
- Barclays Bank —5.50% APY, no minimum deposit
- Sallie Mae Bank —5.50% APY, $2,500 minimum deposit
- Citizens Access —5.50% APY, $5,000 minimum deposit
- Live Oak Bank —5.40% APY, $2,500 minimum deposit
- BrioDirect —5.35% APY, $500 minimum deposit
Note: Annual percentage yields (APYs) shown are as of Nov. 30, 2023. Bankrate's editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products.
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The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
Certificate of Deposit (CD)
CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings / Money Market Accounts (MMA)
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
Top banks offering 1-year CD rates for November 2023
CIBC Bank USA
CIBC Bank USA offers its CDs online along with a high-yield savings account that pays a competitive yield.
In addition to CDs, LendingClub offers a high-yield savings account and a rewards checking account.
Sallie Mae Bank
Established in 2005, Sallie Mae Bank is headquartered in Salt Lake City. In 2014, Sallie Mae became a stand-alone consumer banking business.
Live Oak Bank
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.
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.
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:
- 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
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 — as long as you don’t withdraw funds from the CD before its term ends.
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 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
A good CD rate a few months ago might not be a great one-year CD rate now. That doesn’t mean you should keep waiting for a better rate. But it does mean you should evaluate today’s CD rate environment to find the right CD for you.
Look at the top CD rates. Factors such as a minimum opening deposit, a competitive APY or a familiar brand or bank might factor into your decision process.
Also, Bankrate’s bank reviews give banks scores based on their CDs. Part of the score is made up of how competitive the bank’s one-year CD — or a term close to that — was based on its yield during Bankrate’s review.
A 12-month CD is worth it if you have money that you won’t need in the next year – and you want that money earning a fixed APY at an FDIC-insured bank. Top 12-month CDs are earning higher yields than top high-yield savings accounts and five-year CDs in this current rate environment.
So, with a top 12-month CD, compared with a top five-year CD, you’re getting a higher APY and you’re able to access your money sooner.
But if you feel that the Fed has raised rates 11 times – and what goes up must come down – then locking in a five-year CD yield could be a smart move.
As long as you choose a one-year CD with a fixed rate — and keep the funds in the CD for the duration of the term and are following FDIC limits and guidelines — you won’t lose money. You may be subject to an early withdrawal penalty, if you withdraw before the term of the CD allows.
Each depositor at an FDIC-backed bank is insured for up to $250,000. No depositor has lost any money on FDIC-insured funds as a result of a bank failure, according to the FDIC website. If you’re concerned about FDIC insurance eligibility, use the FDIC’s Electronic Deposit Insurance Estimator.
It’s also important to factor in rising prices. If the rate of inflation is higher than your CD yield, your purchasing power goes down.
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).
These financial institutions are featured in our CD rate research: Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO, 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, 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, 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, Truist Bank, U.S. Bank, UFB Direct, 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.