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Our Criteria
We conducted an assessment of 12-month certificate of deposit options provided by the country’s biggest banks and credit unions to find the best options, ultimately only featuring those that fit our strict criteria. To be eligible for this list, a bank or credit union must:

Be a top 30 bank or top 10 credit union based on 2022 consolidated assets.

Offer 1-year CDs at 3.00% APY or higher.

Offer 1-year CDs in all 50 states.

Be federally insured by the FDIC or the NCUA.
Understanding Our Methodology
Annuity.org’s independent editorial team assessed 1-year certificate of deposit options offered by the biggest banks and credit unions across the country to determine the most competitive rates.
The team selected the 30 largest banks and 10 largest credit unions based on consolidated assets as reported by the U.S. Federal Reserve or National Credit Union Administration, and evaluated that list to determine the qualifying institutions for their rankings.
They then made sure that a bank or credit union was offering 1-year CDs in all 50 states and was insured by either the FDIC or the NCUA.
Of the 18 qualifying banks and credit unions under these criteria, 15 offered CDs with 1-year terms. Two additional institutions offered CDs with comparative terms and were also included in these evaluations. The team further narrowed the selection to only those institutions offering 3.00% APY or higher for their final comparisons, resulting in a shortlist of 13 institutions.
The team based their final selection on factors such as APY, minimum deposits, early withdrawal penalties and any bonuses or promotions offered by the institutions.
Learn more about our broader Editorial Guidelines.
When structured properly, a CD is fully ensured up to $250,000 for an individual account and $500,000 for a joint account. The Federal Deposit Insurance Corporation (FDIC) insures CDs issued by banks, and the National Credit Union Administration (NCUA) insures CDs issued by credit unions.
Editor’s Choice: Best Overall
Credit Union Details
Alliant, founded in Chicago by United Airlines employees in the 1930s, is one of the largest credit unions in the United States. It reported $17 billion in assets and 700,000 members as of 2022.
Pros & Cons
Pros
- High APY
- Low-cost credit union membership
- Robust online and no-fee ATM presence
Cons
- $1,000 minimum deposit requirement
- Lack of physical branches
- Must have an active account with Alliant to purchase
Our Take
Alliant’s small brick-and-mortar footprint helps it offer highly competitive rates on CDs. It was the highest rate among banks and credit unions at the time of our review. While we found minimum deposit requirements, these were at the price of lower APY. Alliant’s minimum deposit is moderate among major banks and credit unions. Early withdrawal penalties are based on the number of days the CD is open — up to 90 days — minimizing your loss if you need your money early in your term.
Best for Small Depositors
Bank Details
Owned by the company that issues credit cards of the same name, American Express National Bank is an online-only bank that offers CDs, high-yield savings accounts and a rewards checking account. According to the U.S. Federal Reserve, it had $155.3 billion in assets in 2022.
Pros & Cons
Pros
- No minimum deposit requirement
- Highly competitive APY
- 24/7 customer service and support online or by phone
Cons
- No physical locations
- Limited banking products or services
- Higher early withdrawal fees
Our Take
While several banks we reviewed offered the same APY, American Express was the only one that required no minimum deposit, making it an attractive option for smaller depositors. The early withdrawal fee — 90 days’ interest — was in the moderate range among the banks reviewed. It was highly comparable to the HSBC Bank 1-year CD.
Best for Liquidity
Bank Details
Founded in Hong Kong in 1865, HSBC had a global presence before making its way to America. It fully acquired Marine Midland Bank in 1997, rebranding it as HSBC Bank. In addition to its brick-and-mortar presence, HBSC Direct is an online-only operation with a national presence. HSBC had $162.4 billion in combined assets in 2022, according to the U.S. Federal Reserve.
Pros & Cons
Pros
- Early withdrawal limited to 30 days’ interest
- Both brick-and-mortar and online-only operations
Cons
- High minimum deposit requirement ($1,000)
- Not well-suited for CD laddering because HSBC only offers 6-month, 1-year and 2-year CDs
Our Take
HSBC offered a highly competitive APY. If you may need to withdraw your savings before your 1-year CD matures, HSBC has the lowest penalty across the term among the banks we reviewed with this high of a rate at just 30 days’ worth of interest. It was highly comparable to the American Express 1-year CD — but held the edge if you withdrew anytime 30 days after opening your CD.
Best Special Rate
Bank Details
Dating back to 1847, BMO established its current charter in 2011 and is headquartered in Chicago. It serves customers nationwide with physical branches in the Midwest, Florida and Arizona. The U.S. Federal Reserve reported that BMO had $176.9 billion in consolidated assets in 2022.
Pros & Cons
Pros
- APY competitive with standard rates
Cons
- High minimum deposit ($1,000)
- 13-month term required to qualify for the special rate
Our Take
Special rate or promotional CDs offer higher rates, but may revert to standard rates when they reach maturity. BMO’s special rate was the highest among those offered by the banks we reviewed. The bank’s terms are non-standard, so this term allows an extra month before reaching maturity. The rate was also highly competitive with the standard rates we found.
Others We Considered
The banks and credit unions we reviewed offered highly competitive rates for 1-year CDs. Several missed out on making our list by only a fraction of a percentage point. But many offered other features that — when coupled with competitive rates — may be worth considering.
These were the banks and credit unions on our list which offered 3.00% APY or higher for most investors.
- Manufacturers and Traders (M&T) Bank
- When we made our rankings, M&T offered a competitive APY on its 12-month Select CD — above its standard 1-year CD’s advertised rate. It required a $1,000 minimum deposit. But to get the Select CD rate, you had to open a checking account with M&T.
- Ally Bank
- Ally Bank’s no-penalty CD’s APY came in fractions of a point below BMO’s Special CD. But Ally’s no-penalty CD allowed depositors to withdraw all their money at any point after the first six days the account was funded with no early withdrawal penalty. It also came with no minimum deposit.
- Navy Federal Credit Union
- Navy Federal Credit Union offered its 1-year Special EasyStart Certificate with an attractive APY and a minimum deposit of just $50. But, ultimately, it was edged out by American Express as best for small depositors because the Navy Federal certificate still had a higher minimum deposit and a maximum deposit of $3,000. Credit union membership is also restricted to people with a relationship to the military. But this may be a good option for military members, veterans or their families.
- Marcus (Goldman Sachs)
- Marcus — an online-only bank — offered a competitive APY with a $500 minimum deposit at the time of evaluation. While the rate was competitive with other banks, it has a high early withdrawal penalty — 270 days’ interest.
- Discover Bank
- This online bank affiliated with the credit card by the same name was another of several offering a competitive APY. But it had a $2,500 minimum deposit and higher withdrawal penalty — six months’ interest — than HSBC.
- Capital One
- Capital One offered a solid APY with no minimum deposit requirement when we were evaluating institutions. While lower than other rates we found, the APY was still well above the average rate for standard CDs and savings accounts.
- Citibank
- Citibank offered a lower APY, but a higher minimum deposit — $500 — than Capital One.
- JPMorgan Chase
- Our cut-off point for consideration was a 3.00% APY, and JPMorgan Chase hit it exactly when we evaluated its products. The rate is still above the rates for most standard CDs, but a minimum $1,000 deposit was required for its 1-year CD.
Other 1-Year CDs To Consider
Three other banks among those we reviewed offered lower rates, with the lowest being on a 1-year CD from First-Citizens.
How Are 1-Year CDs Different From Other Short-Term CDs?
Short-term CDs — including 1-year CDs — typically have lower rates than long-term CDs like 3- or 5-year CDs.
The general idea is that short-term depositors are taking less risk, so the bank or credit union offers a lower interest rate. Long-term depositors are taking on more risk with the possibility of changing interest rates, so they are rewarded with higher interest rates.
But these are not hard and fast rules. Several of the 1-year certificate of deposit rates we reviewed offered higher interest rates than some longer-term CDs, which is largely attributable to a partial inversion of the U.S. Treasury curve. This can vary within and between institutions.
Short-term CDs are typically considered to be those that reach maturity in 12 months or less. These can include terms from one month to one year. Banks and credit unions are free to set the terms of their CDs. They may choose to offer several terms or only a few.
Is a 1-Year CD Right for You?
A 1-year CD typically affords you a higher return than conventional savings accounts and greater flexibility with your savings than longer-term CDs — in exchange for a lower return on your investment.
It may be the right choice for you depending on your personal finance strategy and whether specific benefits in a certificate of deposit meet your financial goals:
A 1-year CD might make sense if:
- You are not saving for something in the more distant future.
- You are saving for a short-term goal such as a vacation, wedding or other mid-range purchase.
- You are willing to forgo potentially higher rates with longer-term CDs.
- You expect interest rates — and CD rates — to rise within the next year.
- You expect not to need access to your savings for at least a year.
Frequently Asked Questions About 1-Year CDs
A 1-year CD typically offers significantly more interest than a savings account and allows you to access or reinvest your savings within a relatively short period. Your savings in a CD is also FDIC- or NCUA-insured for up to $250,000, so your savings are secure.
Short-term investments that will give you a similar return to a 1-year CD include Series I Savings Bonds, money market accounts and high-yield savings accounts. In some cases, simply paying off debt will give you a similar return.
You cannot lose money in a 1-year CD unless you withdraw money before it matures (resulting in an early withdrawal penalty). As long as the institution that issues the CD is NCUA- or FDIC-insured, the CD is insured up to $250,000 in the event the institution fails. But you may lose buying power if your APY fails to keep up with rising interest rates.