The top 1-year CD rates for December 2022

CDs are a type of deposit account, typically offered by banks and credit unions, that usually offer higher interest rates than your average savings account. The reason is that CDs hold savers accountable to a certain term (usually anywhere between seven days and 10 years), during which time the account holder is unable to touch their funds. Most, but not all, accounts charge a penalty for withdrawing that money before the end of your CD’s term, also known as its maturity date. 

One major factor you’ll need to consider when choosing a CD is the account’s term length. For the saver with a specific short-term goal in mind, a one-year CD can be a great way to help your savings grow without committing to locking up your money for an extended amount of time. The Fortune Recommends editorial team ranked more than 40 CDs with one-year terms and came up with a list of our top 10 picks. We weighed minimum deposits to open an account, annual percentage yields (APYs), compounding frequency, and customer service options. (Read our full methodology here.)

The 10 best 1-year CD rates

Here is our list of the best one-year CDs according to Fortune Recommends editors. Note: Minimum deposit requirements, APYs, and other numbers in our list are up to date as of Nov. 17, 2022, but are subject to change.

1. CFG Bank: For savers who are on the hunt for the highest APY

Key numbers 
Minimum opening deposit: $500
1-year APY: 4.60%
Penalty: One-year CD accounts are subject to an early withdrawal penalty equal to 90 days’ worth of simple interest. 

Why we picked it: CFG Bank, a Maryland-based bank, took our top slot for one-year CDs—boasting a 4.60% APY, more than six times the national average for one-year CDs. The minimum opening deposit for this account is on the lower end compared to other CDs in the space, and interest is compounded daily. Customer service representatives can be reached by telephone, Monday through Friday, 8:30 a.m. to 5 p.m. EST and customers can also contact CFG 24/7 via email or its online and mobile banking platforms. 

2. PenFed Credit Union: For the saver who is serious about locking up their funds 

Key numbers 
Minimum opening deposit: $1,000
1-year APY: 4.25%
Penalty: If you make a withdrawal within the first year of opening your account, you’ll forfeit all dividends. 

Why we picked it: Pentagon Federal Credit Union (PenFed) is a Virginia-based credit union that offers online banking options in addition to a few brick-and-mortar locations across the U.S. and a mobile app. Dividends are compounded daily, but posted to accounts on a monthly basis. This account’s APY is on the higher end, but customers should beware that making an early withdrawal could cost them all their dividends. For any questions, customers can reach PenFed by email, chat, or phone Monday to Friday, 7:00 a.m. to 11:00 p.m. EST, 8:00 a.m. to 11:00 p.m. on Saturday, and 9:00 a.m. to 5:30 p.m. EST on Sunday.

3. Synchrony Bank: For the saver who is just getting started

Key numbers 
Minimum opening deposit: $0
1-year APY: 4.15%
Penalty: There is an early withdrawal penalty applied to the amount of principal withdrawn equal to 90 days’ simple interest. 

Why we picked it: Synchrony Bank doesn’t have any brick-and-mortar locations, so it may not be for those who prefer face-to-face service. However, it may appeal to new savers who haven’t built up huge savings yet, since it doesn’t require a minimum opening deposit or a high APY. Interest on these accounts is compounded daily, and savers can do all of their banking online or via mobile app. Synchrony customers also have the option of withdrawing interest they earn on their account at any time.
Customer service representatives can be reached via chat and phone. Automated service is available via phone 24 hours a day, seven days a week. Representatives are available Monday through Friday from 8 a.m. until 10 p.m. EST and from 8 a.m. until 5 p.m. EST on Saturday and Sunday.

4. Bread Savings: For the saver who prefers to do all of their banking online

Key numbers 
Minimum opening deposit: $1,500
1-year APY: 4.50%
Penalty: For one-year terms, the penalty is 180 days’ simple interest. 

Why we picked it: Bread Savings is an online-only bank that gives customers the ability to open an online CD in minutes. Interest on one-year CDs is compounded daily, and customers aren’t charged any fees for monthly account maintenance. The withdrawal penalty is on the higher end for a short-term CD, but the account offers a high APY that could make short-term savers more likely to keep their hands off their money.
As far as customer service goes, Bread offers a mobile app for customers to use, online banking, and a customer service number that’s available to call on weekdays between 7 a.m. and 9 p.m. CT, and weekends and most holidays from 9 a.m. to 5 p.m. CT. 

5. HSBC: For savers who are worried they may need access to their funds  

Key numbers 
Minimum opening deposit: $1,000
1-year APY: 4.25%
Penalty: For one-year terms, the penalty is 30 days’ simple interest.

Why we picked it: HSBC is one of the world’s largest financial institutions, serving around 40 million customers across the globe. Products include wealth management services, commercial banking, checking accounts, credit card, home loans, savings and more. HSBC has some physical locations across the U.S., but customers will have to do a majority of their banking online or via mobile app. HSBC’s one-year CD boasts a 4.25% APY and this account also had the lowest penalty on our list for early withdrawals. Interest on this account compounds daily, and customers who need assistance can contact a representative via live chat or phone weekdays from 8:00 a.m. to 9:00 p.m. ET and Saturday from 8:00 a.m. to 4:30 p.m. ET. 

6. [hotlink ignore=true]Barclays Bank: For the saver who has never seen the inside of their bank’s branch 

Key numbers 
Minimum opening deposit: $0
1-year APY: 4.00%
Penalty: For one-year terms, the penalty is 90 days’ simple interest.  

Why we picked it: Barclay’s is a U.K.-based bank that operates its U.S. accounts solely online; U.S.-based account holders will need to do all of their banking on Barclays’ website or through the mobile app. Interest on this CD is compounded daily, and there is no minimum opening deposit—which leaves it up to the account holder to decide how much to put away. The good news: Customers can contact representatives for support 24/7.

7. American Express: For the saver who doesn’t want to worry about minimum balance requirements or fees

Key numbers 
Minimum opening deposit: $0
1-year APY: 4.00%
Penalty: For one-year terms, the penalty is 270 days’ interest on the withdrawn amount. 

Why we picked it: American Express National Bank offers savings accounts and certificate of deposit accounts to choose from, although there are no physical retail locations to visit, so you have to make all your transactions online. This account made our list thanks to its $0 opening deposit for a 4.00% APY. Interest on these accounts compounds daily, and customers can reach a representative via 24/7 phone or live chat. 

8. Ally Bank: For the saver who wants to test-drive a CD account  

Key numbers 
Minimum opening deposit: $0
1-year APY: 3.75%
Penalty: There is an early withdrawal penalty equal to 60 days of interest. 

Why we picked it: Ally Bank is an online-only bank that offers a $0 down CD. Account holders can deposit as little as they want to and can earn 3.75% on their funds. Once the CD matures, they also have the opportunity to earn a 0.05% loyalty reward if they renew their CD. Interest on this CD is compounded daily, and customers can contact Ally with any questions or concerns 24/7 via online chat, email, or phone. 

9. Bethpage Federal Credit Union: For the saver who prefers a credit union over a big bank 

Key numbers 
Minimum opening deposit: $50
1-year APY: 4.00%
Penalty: The penalty for one-year terms is equal to 90 days worth of dividends on the principal amount withdrawn. 

Why we picked it: Bethpage Federal Credit Union is a New York–based credit union that offers a number of financial products including checking accounts, money market accounts, credit cards, and more. There are more than 30 branch locations around the New York-area. This account made our list for its relatively low minimum deposit and high APY. Plus, interest on this account compounds daily. Customers can ask questions about their account by calling Bethpage via phone on weekdays between 7:30 a.m. and 7 p.m. ET, and on Saturdays between 8 a.m. and 2 p.m.

10. Marcus by Goldman Sachs: For savers who want to make sure they lock in the highest rate possible  

Key numbers 
Minimum opening deposit: $500
1-year APY: 4.00%
Penalty: For one-year terms, the penalty is 90 days’ simple interest.

Why we picked it: Marcus by Goldman Sachs operates on an online-only model that offers a wide range of banking products, including one-year CDs. Interest on these accounts is compounded daily, and this account boasts an APY of 4.00%, which can translate to major savings over the course of a year. Marcus also has a 10 day CD guarantee which guarantees that customers will be granted a higher APY if rates increase within the first 10-days of opening an account that has at least $500 in it. Like many online banks, Marcus also offers a mobile banking app, and for those who may need extra assistance, customer service representatives are available 24/7 via telephone or online chat. 

What is a 1-year CD?

Banks and credit unions typically offer a wide range of CD terms. One-year CDs require account holders to deposit their money in one lump sum and leave their funds untouched for 12 months. After that period of time has passed, the CD has officially reached maturity and the account holder can withdraw funds (plus any interest accrued) or roll over those funds into a new CD. 

CDs with shorter terms can be a flexible option for savers who are not playing the long game and don’t want to tie up their funds for years on end, but the tradeoff is often that accounts with shorter term lengths tend to have lower APYs. 

What are the different types of CDs?

Aside from varying term lengths, some CDs come with unique rules or features that may be better suited for you and your savings goals. A few common CD types include: 

• High-yield CD: A CD that offers a higher-than-average APY. 
• Jumbo CD: In exchange for a higher interest rate, these CDs require higher minimum deposits than standard CDs—usually $100,000 or higher. 
• Bump-up CD: When interest rates increase, a bump-up CD gives account holders the option to increase their CD’s APY as their account continues to mature.  
• Add-on CD: These CDs give you the option to deposit additional funds in your CD after you’ve made your initial deposit. 
• No-penalty CD: These CDs won’t charge you a penalty for withdrawing funds before your CD matures.

As you’re weighing your options, consider all of the perks of a CD account, as well as any possible penalties associated with each account. Knowing how much potential your money has to grow over the course of your preferred timeline—and what will happen if you end up needing access to your funds sooner rather than later—can help you make the right decision for you and your financial plan. 

Our methodology

The Fortune Recommends^TM team compared one-year certificates of deposit (CDs) from more than 50 major banks, credit unions, and online-only banks. Our top picks are available across the U.S., so you can sign up for an account no matter where you’re located. 

We ranked the best one-year CDs on the following categories:

• 1-year term (50%): This number represents the real rate of return on your balance; the higher the APY, the better. 
•  Minimum deposit requirement (20%): In order to open a CD at any financial institution, it will require that you deposit a minimum dollar amount.
• Compound frequency (15%): Interest on deposit accounts like CDs can compound daily or monthly. The more frequency interest compounds on your CD, the better.
• Customer service (5%): Top picks offer customers three ways to get in contact: chat support, by phone, or even email. Among the three options, we gave the phone support the most weight.

The best CDs offer APYs twice the national average. We didn’t include brokered CDs on our list, which are sold on the secondary market through brokerages instead of banks and can be riskier because of this.

The rates, fees, and minimum deposit requirements for CDs are available for limited time periods, and APYs are subject to fluctuation, which could impact how much interest you earn. All the bank and credit unions on this list are insured by the FDIC and NCUA respectively. Should you choose to terminate your CD before it matures, you may likely be subject to a penalty, which varies by bank.