The Leading Financial Institutions that Offer the Most Competitive One-Year Certificate of Deposit Rates and Terms
We look at the rates offered by more than 150 different banks and credit unions around the country to determine which offers the best 1-year CD rates. We keep tabs on annual percentage returns and reassess the list on a daily basis during the week. Every account is open to the general public and is protected by the National Credit Union Administration or the Federal Deposit Insurance Corporation, depending on where it was opened. A certificate of deposit (CD) with a one-year term gives you the chance to not only earn more interest on some of your savings but also keep that money from being taken out at random.
Products that guarantee returns on deposits for 11 to 14 months were taken into consideration for this list. The annual percentage yield (APY) is a primary consideration in our ranking system. In the event that there is a tie, we will examine the certificate of deposit (CD) that has the shortest term, followed by the one that has the lowest necessary minimum deposit to obtain the annual percentage yield (APY). We then proceed to examine the various fees associated with an early withdrawal. Because of these variables, we are finally able to evaluate which banks deserve to be placed where in our rankings. The following table displays the best CD rates for terms of one year as of June 28, 2022.
Best 1-Year CD Rates
|Bank or Credit Union||APY||Minimum Deposit||Early Withdrawal Penalty|
|Bread Savings||2.50%||$1,500||6 months of interest|
|United Texas Bank||2.25%||$1,000||3 months of interest|
|State Bank of Texas||2.25%||$25,000||30 days of interest|
|INSBank Online||2.20%||$2,500||6 months of interest|
|NexBank||2.15%||$25,000||6 months of interest|
|Luana Savings Bank||2.12%||$1,000||6 months of interest|
|NexBank||2.10%||$10,000||6 months of interest|
|Popular Direct||2.10%||$10,000||9 months of interest|
|Merrick Bank||2.10%||$25,000||2% of balance|
|Premier America Credit Union (14 months)||2.05%||$1,000||6 months of interest|
The best rates for certificates of deposit that are currently offered by our affiliates are listed below, followed by information on many of the financial institutions that were considered for this ranking.
Savings on Bread
Bread Financial is an FDIC-insured firm that was formerly known as Alliance Data Systems. Bread Savings is a division of Bread Financial. Bread Savings offers savings accounts and certificates of deposit (CDs), while Bread Financial offers a variety of credit cards and loans under the name Bread Loans.
Bread doesn’t have any stores, but users can access their accounts and manage them through the company’s website or a mobile app that works on both Android and Apple devices.
First United Bank of Texas
Dallas was the location in 1986 when United Texas Bank was established. It still only has two brick-and-mortar offices, and they are both in Dallas, but because it places such an emphasis on internet banking, its services are accessible to anybody in the country. This financial institution offers certificates of deposit with terms from one month to five years, as well as checking and savings accounts and a variety of personal loan options.
It is possible to pay bills online, make mobile check deposits, and use a mobile app that is compatible with Apple and Android smartphones through its online banking services.
Texas State Bank and Trust Company
In 1987, the State Bank of Texas was created with the intention of catering to the borrowing requirements of immigrant communities. It is a bank that is owned by a family, and it has branches in four different Chicago areas, in addition to the four branches that are located in Dallas and the surrounding area.
Customers have the ability to open accounts from any location thanks to online and mobile banking alternatives. The State Bank of Texas not only provides certificates of deposit but also checking and money market accounts.
INSBank Online: INSBank, which is headquartered in Tennessee, has a digital banking subsidiary known as INSBank Online. There are just two kinds of accounts available: money market accounts and certificates of deposit. CDs allow you to save for the short and medium-term by offering terms as flexible as they come, ranging from three months to three years.The accounts come with helpful perks such as an online dashboard and private client advocates who are available to answer any queries you might have.
NexBank was established in 1922 and currently has assets worth close to $8.9 billion. Customers mostly consist of financial institutions, major organizations, real estate companies, and middle-market firms, and they are located in Dallas, Irving, and Plano, Texas, as well as the surrounding areas. Nevertheless, it also provides personal banking services, such as checking, savings, and money market accounts; mortgages; and certificates of deposit (CDs) with maturities ranging from three months to five years.
Luana Savings Bank
The Luana Savings Bank was established in 1908 and currently has a total of six branch offices, three of which are located in the central region of Iowa and the remaining three are located in the northeastern region of the state. Even though one of its main areas is agricultural lending, it also offers a wide range of personal banking products and services, such as certificates of deposit, checking and savings accounts, vehicle loans, mortgage loans, personal loans, and other financial products and services.
Accounts can be managed by those who do not live in central or northeast Iowa through Luana’s online banking alternatives. These options include a mobile app that can be downloaded on devices running Android or iOS.
Popular Direct is a full-service bank that has been operating in the United States, Puerto Rico, and the Caribbean for more than 120 years. Popular Direct is a digital branch of Popular Bank. It operates as a wholly owned subsidiary of Popular Inc. Because Popular Direct focuses on savings and certificate of deposit accounts with terms from three months to five years, you can rest easy knowing that the FDIC will protect your deposits.
Customers have the option of managing their accounts online or through a mobile app that is compatible with iOS and Android smartphones, respectively.
Since its founding in 1997, Merrick Bank has established itself primarily as a significant issuer of Visa credit cards as its primary business focus. Personal loans, loans for boats and other recreational vehicles, and other types of loans are also offered by the bank. Certificates of deposit have maturities that can range from six months to two years.
A Credit Union Dedicated to Premier America
The 63-year-old organization boasts more than 100,000 members. Premier America is recognized as a leading financial cooperative in the United States. Simply becoming a free member of the Thousand Oaks Alliance for the Arts is all that is required to qualify you for membership in the organization. (In addition to this, you will need to open a savings account with a minimum deposit of five dollars.) Members of the credit union, which has its headquarters in California, have access to a shared network of more than 5,000 locations around the country.
Customers at Premier America can choose from a variety of banking products, including but not limited to credit cards, loans, and checking and savings accounts.There is a wide range of available terms for certificates, ranging from three months to five years.
What exactly is a one-year CD?
In exchange for the account holder’s commitment to keeping the deposit for a predetermined period of time, financial institutions like banks and credit unions may provide the option of opening a certificate of deposit (CD), which offers a fixed interest rate that is typically higher than that of other types of accounts. The fact that the rate does not change means that the person who has the CD is aware of the exact amount of interest they will get when the CD finally matures.
When purchasing a certificate of deposit (CD) with a term of one year, the account holder makes a commitment to refrain from withdrawing or making any other changes to the principal amount of the account during that time period. At the conclusion of the period, the whole amount of interest accrued will be added to the initial investment. After that, the customer has the choice of cashing out the entire amount, renewing the CD, or making another selection.
To whom is a yearlong CD best suited?
A certificate of deposit (CD) with a term of one year is an option for an investor who seeks a higher rate of return on their money than what is typically available from a savings account, despite the fact that savings accounts occasionally come with interest rates that are even more favorable than those offered by 1-year CDs. But because savings rates can change, you might want to buy a certificate of deposit (CD) if you think that savings rates might go down soon and you want to lock in a good rate now.
If you are putting money down for a trip or other significant event that will take place the following year, you might want to look into purchasing a certificate of deposit with a term of one year. The assumption is that this is a transaction with a relatively limited time horizon. When you break open a certificate of deposit (CD), it helps you avoid the temptation of spending the money, and it also allows you to collect some interest while you wait for the money to mature.
In most cases, the higher the rate you’ll earn corresponds to the longer the duration. When constructing a CD ladder, a certificate of deposit (CD) with a duration of one year might be of particular assistance in meeting longer-term savings goals. A certificate of deposit ladder lets you spread out the risks of putting all of your money in a single long-term CD by investing in certificates with different maturity dates.
You need to be okay with the idea of having the money locked up for a whole year. This is due to the fact that, in most cases, there are penalties for early withdrawal, and the very last thing you want to do is give up any of those earnings.
What Are Some Alternatives to Purchasing a CD That Is Valid for One Year?
A certificate of deposit that matures after one year is just one of the many savings vehicles available to people. Consider your existing financial circumstances, the goals you want to achieve, and the ways in which you save and spend money when selecting the strategy that will work best for you. There are additional things to think about besides purchasing a CD with a term length of one year.
If you are certain that you want to get a CD, you may choose whether to purchase one with a shorter or longer term according to the requirements that you have. CDs with shorter terms give you access to your money more quickly, but the annual percentage yield (APY) on these investments is likely to be lower. Longer periods will probably result in more earnings, but they will also keep you away from your money for a longer period of time.
You might want to think about opening an online saving account if you’d rather not have your money tied down in any way. Some annual percentage yields (APYs) are either on par with or even higher than those offered by 1-year CDs. One key distinction is that interest rates on savings accounts are subject to alteration at any time. Additionally, if you struggle to exercise self-control when it comes to spending, having easier access to your money through a savings account may not be in your best interest.
We have teamed with the following banks to bring you the high-yield savings and money market account offerings that are presented in the table. If you prefer instant account access, you may take advantage of this partnership.