Best 1-Year CD Rates for July 2024 [Up to 5.25%!]

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Contributor, Benzinga
June 27, 2024

The best 1-year CDs offer competitive rates and flexibility to maximize earnings without a long-term commitment.

While it’s true that a Certificate of Deposit (CD) with longer terms typically offer higher annual percentage yields (APYs), sometimes it makes sense to open a CD with a shorter term. You might choose this route because it is your first experience with saving and you don’t want to tie up your money for a long time, or you may be looking for a reasonably quick return on your investment. Whatever your reason, it is important to compare offers from different financial institutions to find the best CDs that fit your goals.

Some institutions are already lowering 1-year CD rates in anticipation of Fed rate cuts in 2024, but nationwide CD rates are still high. Discover the best 1-year CD rates on the market and start earning more on your savings. Explore your top options and lock in a great rate now.

Quick Look: The Best 1-Year CD Rates

Best 1-Year CD Rates

Here are Bezinga's top picks for the best 1-year CD rates based on our research.

1. Best Overall: Crescent Bank

Crescent Bank offers a wide range of online CDs, including 12-month CDs, automatically renewing at the current rate as many times as you need. You can open a 1-year CD account with a minimum opening deposit of $1,000 and an attractive APY of 4.90%. Crescent does not have a maintenance or service fee and gives users access to online banking services at all times.

  • APY: 4.90%
  • Minimum deposit: $1,000

Why We Love It: Crescent Bank's 1-year CDs offer a low-risk, high-reward investment option for individuals looking to grow their savings. With its competitive APY and zero maintenance or service fees, customers can maximize their savings potential over the course of the CD term.

2. Best APY: Bread Savings (formally Comenity Direct)

Bread Savings is an online platform that offers higher-than-average CD rates. With its low-entry deposit, it opens up CD saving to more people. You can use a CD like this as part of a CD ladder, which combines both short- and long-term savings with more frequent access to a portion of your money. In a CD ladder, you divide the amount of money you'd like to save into CDs with different maturity dates.

Bread Savings loyal customers can also enjoy a higher renewal rate on their 1-year CD at 5.30%. The CD account automatically renews for another term without you having to take any action. The only drawback to this bank is that it does not have local branches or ATMs – all of your transactions must be made online.

  • APY: 5.25%
  • Minimum deposit: $1,500

Why We Love It: Bread Savings offers one of the highest APY on a 1-year CD. Plus, their auto-renew feature can be beneficial for those who want to continue earning interest on their savings without having to constantly monitor their CD and reinvest the funds manually.

3. Best for Account Access: Merrick Bank

Merrick Bank offers a wide variety of CD terms – from six months to 60 months, all with competitive APYs. You will have access to your account online at any time, but you can also reach a customer service representative during normal business hours Monday through Friday. While the minimum balance is higher than some at $25,000, the rates that this bank offers can make it worthwhile.

  • APY: 5.20%
  • Minimum deposit: $25,000

Why We Love It: We love Merrick Bank because of its competitive APY and flexible CD terms. Also, you can easily track your investment and view your earnings through their user-friendly online portal, making it simple to stay on top of your finances.

4. Best for Simplicity: Live Oak Bank

If you’re looking for an online bank that offers simplistic features at competitive APYs, Live Oak Bank could be it. You can open one of the best savings accounts with no minimum balance or a CD account with a minimum of $2,500. The Live Oak mobile app allows you to manage your entire accounts on your device. However, if you want more products than a savings account and a CD, this bank might not be for you. Additionally, since it has no branches or ATMs, so you have to be comfortable conducting all of your transactions online.

  • APY: 5.00%
  • Minimum deposit: $2,500

Why We Love It: Live Oak Bank offers a convenient online platform, where you can easily manage your CD account from anywhere at any time. From opening a 1-year CD account, or other account types, to monitoring your account activity, you can access all of your banking needs with just a few clicks.

5. Best for Low Minimum Deposit: Department of Commerce Federal Credit Union

The Department of Commerce Federal Credit Union (DOCFCU) makes it easy for those who want to start saving. With as little as $500, you can get a 1-year CD that pays one of the best 1-year CD rates in the market. You can also earn additional interest on your Certificate with their Relationships Rewards feature, which is based on the number of products and services you avail with And with a $5 opening deposit, you can open a savings account with the credit union and transfer your interest to it. You will have to join the credit union to open a CD, but anyone can join – and can do it online or by calling.  

  • APY: 4.76%
  • Minimum deposit: $500

Why We Love It: With its low minimum deposit requirement, DOCFCU gives its members who may not have a large amount of money to deposit upfront a chance to open a 1-year CD account and take advantage of the higher interest rates on CDs.

6. Best for Variety of Terms: Pentagon Federal Credit Union

If you have $1,000 to save, you can open a Money Market Certificate with the Pentagon Federal Credit Union. Some credit unions use the term Certificate in contrast to banks, which call the account a CD. At only $1,000, the PenFed offering opens the CD/Certificate market to just about anyone. You will have to balance the benefits with the high penalty rate and lower APY rate. But if you know your money will stay put for a year, this option might be a good choice for you.

  • APY: 4.00%
  • Minimum deposit: $1,000

Why We Love It: Pentagon Federal Credit Union offers a wide range of CD terms, from 6 months to 7 years.  This means that whether you're looking for a short-term investment to save up for a big purchase or a long-term investment to secure your financial future, PenFed has a CD term that can meet your needs.

What Is a 1-year CD?

A 1-year CD, or certificate of deposit, is a type of savings account offered by banks and credit unions with a fixed interest rate and maturity date of 12 months. This means that you agree to keep your money deposited in the account for the full year in exchange for a higher interest rate than a regular savings account but still have the security of a fixed rate of return.

How Do 1-year CDs Work?

When you open a 1-year CD, you agree to deposit a set amount of money into the account and leave it there for a specified period of time, typically 12 months. In return, the bank or credit union will pay you a fixed interest rate on your deposit.

The interest rate on a 1-year CD is usually higher than what you would earn with a regular savings account because you are agreeing to keep your money with the bank for a longer period of time. The longer the term of the CD, the higher the interest rate typically is.

At the end of the one-year term, you have the option to withdraw your initial deposit plus any interest earned, or you can choose to roll the money over into a new CD with a new term length and interest rate.

One important thing to note about 1-year CDs is that there is usually a penalty for withdrawing your money before the term is up. This penalty can vary depending on the financial institution, but it is typically a certain number of months' worth of interest or a percentage of the total amount you have invested.

Pros and Cons of 1-year CDs

Here are some pros and cons of investing in a 1-year CD.


  • Higher interest rates compared to traditional savings accounts
  • Fixed interest rate for the duration of the CD
  • Low risk of losing money


  • Limited access to funds for the duration of the CD
  • Penalties for early withdrawal
  • May not keep up with inflation

How to Find the Best 1-year CD for You

When trying to find a 1-year CD to buy, you should look for the following features to ensure that your money is working for you in the best way possible.

  • Minimum deposit: Look for a CD with a low minimum deposit if you have limited savings and are new to this type of savings account. This will allow you to start small and learn how CDs work.
  • APY rates: High APY means you can earn more money over time.
  • Fees: Banks and credit unions charge fees for CDs, such as fees for early withdrawals or other small fees that can impact your balance significantly. It's important to research and compare fee structures before choosing an institution.
  • Customer support: When choosing a bank, whether online-only or brick-and-mortar, good customer service is crucial. This is important because placing your money with a bank for a year can be beneficial, but if you have difficulty reaching them, it can lead to a negative experience.

How to Open a 1-year CD Account

Opening a CD is easy and fast in most instances. Follow these steps:

1. Find a bank or credit union: Compare 1-year CD rates and terms from various providers to find the best one that suits your situation. Be sure to do business with a bank that is insured by the Federal Deposit Insurance Corporation (FDIC) or a credit union that is by National Credit Union Administration (NCUA.)

2. Decide how you want to be paid: Decide how and when you will collect your interest. You can have it applied to your CD balance, transfer it to a savings account or ask that it is directly delivered to you via check, bank wire or other means.

3. Open a CD account: If you don’t already have an account with the issuing bank or credit union, you will have to open one. It will ask for personal information such as your name, address and social security number.

4. Deposit funds into your CD account: Depending on the bank or credit union you have chosen, you can do this by sending a wire, transacting an ACH deposit, mailing a check or providing cash to a local branch.

5. Review and sign the CD agreement: Read the agreement carefully and double-check important details such as APY, minimum deposit requirement and fees before signing.

1-Year CD Alternatives

Consider these alternatives to 1-year CDs:

  • 1-year CDs vs. other CD terms: While a longer CD terms, such as 18-month, 2-year, 3-year or 5-year CDs, can get you a higher rate, shorter-term CDs may be a better option because CD rates can change significantly in a year, and locking up your money for longer could cause you to miss out on a good deal or be affected by rate decreases.
  • 1-year CDs vs. high-yield savings accounts: High-yield savings accounts offer higher interest rates than traditional savings accounts, making them a good option for earning more on your savings with easy access to your funds and possibly no minimum balance requirements.
  • 1-year CDs vs. money market accounts: Money market accounts offer higher interest rates than traditional savings accounts and often come with check-writing privileges and ATM access for convenient access to funds.

Start Earning More on Your Savings

Investing in CDs can be a great way to grow your savings with minimal risk. However, it's important to note that CD rates can change frequently, so it's wise to regularly check for the most up-to-date information. With the right research and comparison, you can find the best 1-year CD rate that meets your financial goals.

Frequently Asked Questions 


Who has the highest 12 month CD rate today?


Banks and credit unions change their CD rates as interest rates rise and fall. At the time of this writing, Bread Savings is offering 5.25% APY for a 1-year CD. Before you buy a CD, look at the latest rates to make sure you get the highest APY.


Can you add money to a CD regularly?


You cannot add money to a traditional CD, but it is possible to open an add-on or additional CD. Banks and credit unions vary in their requirements, but most offer this type of CD for those with larger minimum deposits.


How much does a $10,000 CD earn in a year?


The amount of money your CD earns in a year depends on your interest rate. For instance, if your APR is 1%, you would earn $100. But if your APR is 2%, the CD would earn $200.


Can you get 6% on a CD?


It is possible to find a CD with a 6% interest rate, but it may be difficult as current interest rates are typically lower. Shopping around and exploring different financial institutions may increase your chances of finding a CD with a 6% rate.


Suzanne Kearns

About Suzanne Kearns

Suzanne is an expert in the insurance, personal finance, real estate and retirement planning space.