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Best 1-year CD rates for December 2024

Best available rates across different account types for Thursday, December 5, 2024

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Current 1 year CD trends
Bankrate Partner average
4.34% APY
National average
1.68% APY

Top banks offering 1-year CD rates for December 2024

Note: Annual percentage yields (APYs) shown were updated between Nov. 28, 2024 and Dec. 4, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

TAB Bank

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

    4.52%
  • 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.

Popular Direct

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

    4.50%
  • 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.

First Internet Bank of Indiana

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

    4.42%
  • 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.

Limelight Bank

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

    4.40%
  • 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 savings score
  • Annual percentage yield

    4.31%
  • 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.

Bread Savings

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

    4.30%
  • Min. deposit to open

    $1,500

Why Bread Savings?

Bread Savings, formerly Comenity Direct, is an online bank that offers nine terms of CDs ranging from three months 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.

Barclays Bank

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

    4.25%
  • Min. deposit to open

    $0

Why Barclays Bank?

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.

Bank5 Connect

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

    4.25%
  • Min. deposit to open

    $500

Why Bank5 Connect?

Bank5 Connect's CDs start with a minimum deposit of $500, offering eight terms ranging from three months to three years, including an add-on CD called a 24-month Investment CD. While most APYs are competitive, the 3-year CD has a notably lower rate.

Bask Bank

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

    4.25%
  • 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.

Citizens Access

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

    4.25%
  • 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.

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In the news

The Federal Reserve cut rates by 25 basis points at its meeting on Nov. 7, after cutting rates by 50 basis points at its September rate-setting meeting. Top CD rates have been losing ground gradually in 2024 in light of strong signals the Fed would eventually cut rates. CD yields remain historically high at this time, however, so you can still lock in a high APY.

A long-term CD might be worth considering in this rate environment. This way, you’d be locking in an attractive yield for longer as rates continue to decline.

Shorter term CDs are currently earning higher yields than their longer-term counterparts, however. You may be able to find a CD term of up to nine months that’s earning a higher APY than a top-yielding savings account.

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

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 with a federally insured institution and that it’s within the stated limits and guidelines. Banks can be insured through the Federal Deposit Insurance Corp., while credit unions can be insured through the National Credit Union Administration (NCUA).

As of Dec. 05, 2024, the national average APY for one-year CDs is 1.68 percent, which is significantly 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.

Factors to compare when looking for a one-year CD include:

  • 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 the next 12 months. A one-year CD is also a great place for funds that need to be kept safe — provided it’s a federally insured CD and has a fixed 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, although you could also lose all of your money.

When deciding whether a one-year CD is right for you, one factor to consider is when you’ll need access to the money. If you have a goal of using the money in around 12 months’ time, a one-year CD “can be a great investment because you’re locking in that higher interest rate now,” says Maggie Klokkenga, CFP, CPA and financial planner with Abundo Wealth.

However, a longer-term CD could be in order if you plan to use the funds in the more distant future, Klokkenga says. “The reason why is because the Fed is expected to continue to decrease interest rates through the end of this year and into next year. That means that by the time that a one-year CD matures, you’re looking at investing your money at lower rates at that time.”

Conversely, money you might need in the near future is likely better off in a liquid high-yield savings account than a CD. “If you’re investing in a one-year CD, and you find that you need the cash before that one-year term ends, you may be paying a penalty to get to that money, or you may not get the full amount that you purchased the CD for,” Klokkenga says.

Pros and cons of 1-year CDs

Pros

  • Checkmark Icon

    Your money is protected with FDIC insurance, 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

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, or whatever the withdrawal limit is on the specific account). 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).