Best 1-year CD rates of March 2026 (Up to 4.10%)

What is a 1-year CD?

Opening a one-year CD means that you tie up your money for 12 months. Generally, you won’t be able to access your funds during that period of time without incurring an early withdrawal penalty. In exchange, you’ll earn a guaranteed yield for that time.

How do 12-month CD rates work?

Competitive CD rates will generally follow changes in Treasury yields. They might also follow other factors such as the rates set by competitors and the bank’s need for deposits.

In the current rate environment, 12-month CDs are one of the more competitive terms for high yields at some banks.

Some banks have a 10-day best-rate guarantee, meaning you could end up with a better rate if the bank raises theirs within days of your decision to open and fund your account. But generally, once you open and fund a fixed-rate CD, you’re locked in with that APY until your term ends. Over time, the bank may raise or lower the advertised rate for new account holders, but your rate will remain the same.

You’ll find that some institutions offer bump-up or step-up CDs that allow rates to change either upon request or at certain intervals during the term. Rates for these CDs, however, tend to be lower than those tied to fixed-rate CDs.

When reviewing CD rates, pay close attention to the annual percentage yield (APY). The APY includes the effects of compounding. Compound interest is the interest you earn on interest.

To find the best one-year CD for you, shop around for a high yield. As of March 04, 2026, the national average APY for one-year CDs is 1.89%, which is significantly lower than the top yields.

Also, make sure the CD you choose is with a federally insured institution and that your deposits are within the stated insurance limits and guidelines. Banks can be insured through the Federal Deposit Insurance Corp. (FDIC), while credit unions can be insured through the National Credit Union Administration (NCUA).

In addition to a high yield and federal insurance, consider these factors when looking for a one-year CD:

• Minimum deposit requirements: There are online banks that have no minimum deposit requirements to open a CD, and others that might require $10,000 or more. Find a minimum that works for you.
• Early withdrawal penalties: Though ideally you only put money in a CD that you can afford to sock away for the length of the term, you might find yourself needing to pull money out early. Familiarize yourself with the early withdrawal penalties for your CD term — they vary bank by bank and term by term.

When should you get a 1-year CD?

A one-year CD could be right for you if you have money that you’re not going to spend in the next 12 months. Anything you might need sooner is better off in one of the best high-yield savings accounts. A one-year CD is also a good option for funds you want to invest in a safe and guaranteed way — provided it’s a federally insured CD and has a fixed APY. 

Money that you can risk losing might be better off in another type of investment. You might be able to earn a higher return in an investment, although you could also lose all of your money, too.

“Although the Fed is expected to hold rates for the near future, this is a great time to lock in the interest rate on a one-year CD,” says Maggie Klokkenga, CFP, CPA and financial planner with Abundo Wealth. “Take the time to evaluate your goals and if the time horizon matches up with one year or a little less, go ahead and buy a one-year CD now.”

1-year CDs vs. other CD terms

A one-year CD is a great place to keep your money if you won’t need it during the year. Consider other CD lengths for longer-term goals. The longer you leave your money deposited, the more interest it will earn.  

See more: Bankrate's best five-year CDs

1-year CDs vs. savings accounts

One-year CDs at competitive banks sometimes offer higher interest rates than even high-yield savings accounts because you’re agreeing to leave your money deposited for a set period. And since your CD may have an early withdrawal penalty, you’ll probably think twice about raiding your savings. 

But with a savings account, there is usually no consequence for withdrawing funds. That’s why it’s best to keep your emergency fund in a savings account. 

The drawback is that your APY is not guaranteed in a savings account like it is in a CD. It can go down, or up, at any time.

1-year CDs vs. money market accounts

Another more liquid option than a CD is a money market account. With a money market account, you can easily withdraw your savings at any time. And at some banks, you’ll have access to a debit card or checks. Keep in mind that like savings accounts, money market accounts may be limited to a maximum of six transfers or withdrawals per month or per statement cycle. Also, at some banks, the money market account requires a higher minimum deposit. 

Research methodology

Bankrate researches over 100 banks and credit unions, including some of the largest financial institutions, online-only banks, regional banks and credit unions with both open and restrictive membership policies.

To find the best one-year CD rates, we regularly survey one-year CD offerings from the banks and credit unions that continually offer the most competitive rates.

The banks and credit unions on this page are selected based on their current APY for a one-year CD and their minimum deposit requirements. Only banks and credit unions with broadly available CDs made the list. Learn more about how we choose the best banking products and our methodology for reviewing banks.