Why You Can Trust CNET
Our expert, award-winning staff selects the products we cover and rigorously researches and tests our top picks. If you buy through our links, we may get a commission. Reviews ethics statement

Best 1-year CD Rates for September 2022

CNET's top picks for 1-year CDs can help your savings keep up with inflation.

A certificate of deposit, or CD, is a type of savings account offered by banks, credit unions and other financial institutions such as investment firms. CDs offer a fixed interest rate that will generally be higher than national average annual percentage yield (APY) for a savings account, currently at 0.13% according to CNET's sister site, Bankrate. As of September, there are banks offering APYs as high as 2.90% for a 1-year CD. 

In exchange for higher interest rates, your deposit cannot be accessed during a fixed period -- typically anywhere from three months to five years -- without incurring penalties. Early withdrawal penalties vary among banks. Several CDs highlighted below impose a penalty of 90 days simple interest if money is withdrawn too soon. The set withdrawal date is known as the age of maturity. CDs offered by banks and credit unions are considered low-risk because their value is insured by either the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration for up to $250,000.

As interest rates rise, this is a good time to compare the rates you're earning on any cash parked in your savings account. If the gains from a savings account are being beaten back by inflation, a certificate of deposit can help.

What is a 1-year CD?

A 1-year CD is a deposit account that has a fixed period or "term" of one year in which a bank will pay a higher rate of interest that compounds -- when the interest earned is added to the beginning balance. The average APY for a 1-year CD is 0.65%, but it's important to shop around to find the best rates and features. A 1-year CD matures in 12 months from the date of purchase. After this date, funds can be accessed without incurring an early withdrawal penalty -- generally a portion of the interest that has been earned. CDs typically have a grace period of 7 to 10 days that allows customers to decide if they want to withdraw the funds, purchase another type of CD, or let the CD automatically renew.

CNET's picks for the best 1-year CD rates

Bank APY Minimum Deposit
CFG Bank 2.90% $500
Synchrony Bank 2.75% $0
Citibank 2.75% $500
Capital One 2.70% $0
Marcus by Goldman Sachs 2.70% $500
Ally 2.50% $0
Barclays 2.50% $0
My Banking Direct 2.50% $500
PenFed Credit Union 2.30% $1,000
VIO Bank 2.25% $500

Annual percentage yields (APYs) shown here are as of August 31, 2022. APYs may have changed since they were last updated and may vary by region for some products.

More details on the best 1-year CD rates

    CFG Bank
    • APY: 2.90%
    • Minimum deposit: $500
    • Early withdrawal penalty: 90 days interest
    • About the bank: CFG is a Maryland-based community bank that offers competitive rates on CDs with reasonable deposits required to open accounts, making them accessible to a wider range of savers.
    Synchrony Bank
    • APY: 2.75%
    • Minimum deposit: $0
    • Early withdrawal penalty: 90 days simple interest at current rate
    • About the bank: Synchrony is an online-only bank that takes advantage of limited overhead to offer attractive rates for deposit accounts. Transactions can be handled via its website or mobile app. Synchrony Bank also offers additional CD types like bump-up or no-penalty that provide more flexibility.
    Sarah Tew/CNET
    • APY: 2.75%
    • Minimum deposit: $500
    • Early withdrawal penalty: 90 days simple interest
    • About the bank: Citibank is the third-largest US bank offering a comprehensive suite of banking products and services to customers. ATMs and branches are plentiful throughout the US, which will appeal to the customers who prefer a traditional banking experience. However, the mobile app is robust and provides digital banking customers with a suite of tools to handle banking needs around the clock.
    Capital One
    • APY: 2.70%
    • Minimum deposit: $0
    • Early withdrawal penalty: Three months of interest
    • About the bank: Capital One, the 10th largest bank in the US, is an online bank with physical locations that you can visit in nine states across the eastern and southern US. It has also expanded the bank branch concept into a coffee shop styled Capital One Cafe with some banking services available in addition to treats, free Wi-Fi and a workspace that is open to the public.
  • APY: 2.70%
  • Minimum deposit: $500
  • Early withdrawal penalty: 90 days simple interest
  • About the bank: Marcus by Goldman Sachs is the online banking arm of New York-based multinational investment bank and financial services firm. While this is the seventh-largest bank in the US, all deposits must be electronically transferred using its mobile app because there are no branches or ATMs available.
Ally
  • APY: 2.50%
  • Minimum deposit: $0
  • Early withdrawal penalty: 60 days simple interest
  • About the bank: Ally is another online-only bank that offers a robust set of deposit products, loans, and services. The bank also offers bump-up (CDs that adjust to a higher APY if available) and no-penalty CDs. You can handle all of your banking needs through its mobile app or free via the Allpoint ATM network. There are no fees with any accounts, and 24/7 customer support via phone, chat or email.
Barclays
  • APY: 2.30%
  • Minimum deposit: $0
  • Early withdrawal penalty: 90 days simple interest
  • About the bank: The London-based bank has a US digital operation headquarters and offers an online CD application process. The bank provides six different terms for its traditional CDs with no minimum required to open an account. The account must be funded within 14 business days and a minimum balance, enough to earn one cent of interest, and must be maintained to earn interest. CDs automatically renew once the maturity date has passed. 
My Banking Direct
  • APY: 2.50%
  • Minimum deposit: $500
  • Early withdrawal penalty: 90 days interest
  • About the bank: My Banking Direct is a service of New York Community Bank. It offers basic digital and traditional banking products through its website and mobile app; ATM access is available through the Allpoint network. 
PenFed Credit Union
  • APY: 2.30%
  • Minimum deposit: $1,000
  • Early withdrawal penalty: Up to the last 365 days of dividends earned since the account was opened
  • Membership eligibility: PenFed is a credit union open to everyone. It offers a Money Market Certificate that operates exactly like a CD. 
Vio Bank
  • APY: 2.25%
  • Minimum deposit: $500
  • Early withdrawal penalty: 1% of the amount withdrawn, plus a $25 fee 
  • About the bank: VIO Bank is the online division of MidFirst bank that offers competitive rates on savings products. Peer-to-peer transactions tools such as Zelle are not compatible with this bank. Access to savings accounts is provided via online and mobile banking services.

FAQs

Why should I get a 1-year CD?

A certificate of deposit (CD) is a savings product that offers higher rates of interest than traditional savings or money market accounts in exchange for agreeing not to access the funds for a fixed period before the maturity date. You should purchase a 1-year CD if you want to earn a higher rate of interest and can allow the money to remain undisturbed for at least one year.

How should I choose a 1-year CD?

There are several factors involved in choosing the best CD to suit your financial needs. First understanding the variety of CD types will help you decide what works best. Traditional CDs offer fixed terms from three months to five years, generally have strict maturity dates, and don't allow you to modify the initial deposit after opening. However, specialty CDs offer flexibility in some of all of these areas. The interest rates may differ, so you'll need to decide what's more important when choosing a CD -- interest rates or flexibility, to help you make a decision.

Compare the interest rate and annual percentage yield to find the highest paying options. Then determine if there is a minimum deposit required. Next, select the fixed length of time, or term, that you want to purchase. The term should be no longer than when you estimate you'll need to access the funds to avoid any early withdrawal penalty. Finally, you'll need to understand if the CD offers an automatic renewal process only or lets you opt out to manage that process manually. In some cases, a CD will also allow you to determine when interest is dispersed. 

How are the fees and penalties associated with 1-year CDs?

Fees vary depending on the institution. Some banks advertise no fees. Others charge a fee if the account is closed before a set timeframe has elapsed. Most CDs charge a penalty for withdrawing money before the maturity date has passed. The fee is generally based on a percentage of the interest earned.

Can I lose money purchasing a 1-year CD?

Unless you are purchasing a CD offered by a brokerage account, CDs purchased through a bank or credit union are insured by the FDIC for up to $250,000. Any interest compounded is also covered by the insurance making it a low-risk investment. 

What are alternatives to a 1-year CD?

CD terms can vary from three months to five years. Generally, CDs with longer terms of maturity pay higher interest rates. Additionally, there are other safe savings accounts to consider high-yield savings accounts or I bonds.

Methodology

CNET Reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We selected the CDs with the highest APY for one-year terms from among the organizations we surveyed, and considered rates for shorter terms if one-year terms were identical or unavailable.

Banks surveyed include: Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Barclays, BMO Harris, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Citizens Access, Colorado Federal Savings Bank, Connexus Credit Union, Consumers Credit Union, Discover Bank, First Internet Bank of Indiana, First Tech Federal Credit Union, FNBO Direct, GO2bank, Golden 1 Credit Union, HSBC Bank, Huntington Bank, Lake Michigan Credit Union, LendingClub Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Nationwide (by Axos), Navy Federal Credit Union, NBKC, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, USAA Bank, Vio Bank, and Wells Fargo.

The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.