Updated 30 March 2026
Best 1-Year CD Rates
The most popular CD term for good reason. Lock in 4.00% to 4.25% for 12 months. Long enough to beat a declining HYSA rate, short enough to stay flexible. Here are the top banks.
Discover
4.25%
APY
Minimum
$2,500
Early penalty
6 months interest
Interest on $25K
$1063
Highest rate among major banks for 1-year CDs. Also offers a no-penalty 7-month option. Excellent customer service and strong brand reputation.
Capital One
4.20%
APY
Minimum
$0
Early penalty
6 months interest
Interest on $25K
$1050
No minimum deposit. Access to Capital One Cafes for in-person service. Straightforward online account opening.
Ally
4.20%
APY
Minimum
$0
Early penalty
60 days interest
Interest on $25K
$1050
The lowest early withdrawal penalty for 1-year CDs: only 60 days of interest. No minimum. Best choice if you want a safety valve.
Marcus (Goldman Sachs)
4.10%
APY
Minimum
$500
Early penalty
270 days interest
Interest on $25K
$1025
Goldman Sachs's consumer brand. $500 minimum. Highest early withdrawal penalty of the major banks. Only choose Marcus if you are confident you will not need the money.
Synchrony
4.05%
APY
Minimum
$0
Early penalty
180 days interest
Interest on $25K
$1013
No minimum deposit. Synchrony also offers a bump-up CD option that lets you request one rate increase during the term if rates rise.
Frequently Asked Questions
Why is 1-year the most popular CD term?
One year strikes the balance between rate-locking and flexibility. It is long enough to lock in a meaningful rate above what you might get from a HYSA in 12 months. It is short enough that you can reassess your savings strategy annually without being tied up for years. Most financial planners recommend 1-year CDs as the default starting point for CD investing.
Are there promotional odd-term CDs that beat standard 1-year rates?
Yes. Some banks offer 11-month, 13-month, or 14-month promotional CDs at rates 0.10% to 0.25% higher than their standard 12-month offering. BMO Alto, Bread Financial, and Barclays periodically run these promotions. Check each bank's website for current promotional terms.
Should I put all my money in a 1-year CD?
No. Keep your emergency fund (3 to 6 months of expenses) in a high-yield savings account for liquidity. Only put money you know you will not need for 12 months into a 1-year CD. If you have a large sum, consider splitting it across a 6-month and 1-year CD ladder to maintain some shorter-term access.