Certificates of deposit offer a secure means to earn a competitive interest rate for a one-year term.
For those with short-term savings that can’t be placed in riskier, high-return accounts, a one-year CD is a solid pick. They provide a foundation for a robust savings strategy, and their fixed rates guarantee stability.
Given that interest rates are at their peak in recent years, it’s the perfect time to think about investing in a one-year CD.
If you’re hesitant about committing to a one-year term, no-penalty CDs might be an option worth considering. These are like standard CDs but allow for early withdrawal without penalties, ideal for those anticipating rising rates.
| Bank Name | CD Rate |
|---|---|
| Western Alliance Bank | 5.51% APY |
| Pacific Western Bank | 5.50% APY |
| Quontic Bank | 5.30% APY |
| Patriot Bank | ✳️ 13-Month, 5.15% APY |
| Barclays Bank | 5.00% APY |
| BMO Harris | 5.25% APY |
| American First Credit Union | 4.50% APY |
| Discover Bank | 4.85% APY |
| Capital One | 5.00% APY |
| Ally Bank | 4.85% APY |
| SkyOne FCU | 4.20% APY |
Several offers listed above are in partnership with the Raisin platform (formerly known as SaveBetter). With Raisin, you create an account, and they offer you the increased rates. Even though Raisin manages your account, your money remains with the original bank and is FDIC insured. This aggregation model provides you with better rates, streamlined management, and the flexibility to shift funds between partner institutions.
Bank Highlights:
Western Alliance Bank – 5.51% APY
Located in Phoenix, Arizona, this bank has an appealing 12-month CD offer. Despite its relatively young age (founded in 1994), it oversees nearly $40 billion in assets.
PacWest Bank – 5.50% APY
Known also as Pacific Western Bank, this Beverly Hills-based bank has an excellent 12-month CD offer. Founded in 1999, it recently merged with Banc of California and boasts assets of over $40 billion.
Quontic Bank – 5.30% APY
This digital bank, a CDFI, aims to aid economically challenged communities. Their 12-month CD offer is notable, more so when paired with their savings account.
Patriot Bank – 13-Month, 5.15% APY ✳️
This Stamford, Connecticut-based bank’s offer is unique due to its 13-month duration. They have been operating since 1994 and have branches in Connecticut and New York.
Barclays Bank – 5.00% APY
This global bank offers a range of deposit products, including their notable 12-month CD.
BMO Harris – 5.25% APY
Originating from Chicago, this bank offers both a tempting bank bonus and competitive CD rates.
American First Credit Union – 4.50% APY
This LA-based credit union stands out for its 12-month CD offer and is federally insured.
Discover Bank – 4.85% APY
This well-known bank offers an array of online banking solutions, including a competitive 12-month CD.
Capital One – 4.85% APY
A major national bank, they have a variety of services and a competitive CD rate.
Ally Bank – 4.85% APY
As a prominent online bank, they provide a competitive 12-month CD among other attractive rates.
SkyOne FCU – 4.20% APY
Founded in 1949, this Hawthorne, California-based credit union offers a notable CD rate.
Considerations Before Opting for a 12-Month CD:
Before diving in, it’s crucial to understand each bank’s terms:
- Penalties for early withdrawal
- Minimum and maximum deposit requirements
Concluding Remarks on 12-Month CDs:
While we strive to provide the most recent rates, always check the bank’s official site for the latest info. One-year CDs offer a balance between attractive returns and a manageable commitment period. If you’re looking for even better rates, consider longer-term CDs.
