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ALSO CONSIDER: Best online savings accounts || Best checking accounts || Best high-interest accounts
The best one-year CD rates can help boost some of your short-term savings.
Why trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.
Rates fell steadily since the Federal Reserve's March 2020 rate cuts, but the rates featured on this page are still strong compared to the national average of 0.14% APY for one-year CDs. These rates apply to 12-month CDs starting when you open and fund them. Here's a list of our picks.
» Want to see a wider pool of high rates? See our list of the best high-interest accounts
ALSO CONSIDER: Best online savings accounts || Best checking accounts || Best high-interest accounts
The best one-year CD rates can help boost some of your short-term savings.
Why trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.
Rates fell steadily since the Federal Reserve's March 2020 rate cuts, but the rates featured on this page are still strong compared to the national average of 0.14% APY for one-year CDs. These rates apply to 12-month CDs starting when you open and fund them. Here's a list of our picks.
» Want to see a wider pool of high rates? See our list of the best high-interest accounts
Summary of Best 1-Year CD Rates for October 2021
| Bank/Institution | NerdWallet Rating | Minimum Deposit | APY | Learn More |
|---|---|---|---|---|
 Discover Bank CD Learn more at Discover Bank, Member FDIC | $2,500 Member FDIC | 0.50% | Learn more at Discover Bank, Member FDIC | |
 Quontic Bank CD Learn more at Quontic Bank, Member FDIC | $500 Member FDIC | 0.60% | Learn more at Quontic Bank, Member FDIC | |
 Comenity Direct CD Learn more at Comenity Direct, Member FDIC | $1,500 Member FDIC | 0.65% | Learn more at Comenity Direct, Member FDIC | |
 TIAA Bank Basic CD | $1,000 Member FDIC | 0.55% | Read review | |
 Alliant Credit Union CD | $1,000 Federally insured by the NCUA | 0.55% | Read review | |
 TAB Bank CD | $1,000 Member FDIC | 0.50% | Read review | |
 Synchrony Bank CD | $0 Member FDIC | 0.55% | Read review | |
 Connexus Credit Union CD | $5,000 Federally insured by the NCUA | 0.61% | Read review | |
 Ally Bank High Yield CD | $0 Member FDIC | 0.55% | Read review | |
 Marcus by Goldman Sachs High-Yield CD | $500 Member FDIC | 0.55% | Read review | |
 Live Oak Bank CD | $2,500 Member FDIC | 0.60% | Read review | |
 Sallie Mae Bank CD | $2,500 Member FDIC | 0.60% | Read review | |
 PenFed Credit Union Money Market Certificate | $1,000 Federally insured by the NCUA | 0.60% | Read review |
at Discover Bank, Member FDIC
Discover Bank CD
Minimum Deposit
Member FDIC
APY
at Discover Bank, Member FDIC
at Quontic Bank, Member FDIC
Quontic Bank CD
Minimum Deposit
Member FDIC
APY
at Quontic Bank, Member FDIC
at Comenity Direct, Member FDIC
Comenity Direct CD
Minimum Deposit
Member FDIC
APY
at Comenity Direct, Member FDIC
TIAA Bank Basic CD
Minimum Deposit
Member FDIC
APY
Alliant Credit Union CD
Minimum Deposit
Federally insured by the NCUA
APY
Connexus Credit Union CD
Minimum Deposit
Federally insured by the NCUA
APY
Ally Bank High Yield CD
Minimum Deposit
Member FDIC
APY
Marcus by Goldman Sachs High-Yield CD
Minimum Deposit
Member FDIC
APY
Sallie Mae Bank CD
Minimum Deposit
Member FDIC
APY
PenFed Credit Union Money Market Certificate
Minimum Deposit
Federally insured by the NCUA
APY
» Want to see more options? Check out our list of the best CD rates overall
What is a 1-year CD?
A 1-year CD, or certificate of deposit, is a type of savings account that keeps money locked up for 12 months at a fixed rate. (You can find even shorter terms, such as six-month CDs.)
» Thinking of a longer term for higher yields? Check out the best three-year CD rates
What's involved in opening a CD?
You'll need to decide on what term and type of CD to get and whether to open a single or joint account. To see all five steps, check out this guide to opening a CD account.
Are CDs safe?
Yes. Most banks and credit unions insure your money in a CD up to $250,000 per person per account type, such as single-owned and joint accounts. Plus, your returns are guaranteed as long as you don’t withdraw early, in which case you may have to pay a penalty. For more details, see our article on the safety of CDs.
No-penalty CDs offer more freedom
When you withdraw your money from a CD before the term expires, you generally pay a penalty of at least several months of interest earned.
Some providers, however, allow you to withdraw your money before the term expires, with no penalty. Keep in mind that rates may be a little lower for these no-penalty CDs.
The following three banks offer no-penalty CDs:
Marcus by Goldman Sachs Bank (read NerdWallet's full review)
CIT Bank (read NerdWallet's full review)
Ally Bank (read NerdWallet's full review)
Here are the best 1-year CD rates for October 2021:
Comenity Direct: 0.65% APY, $1,500 minimum to open.
Connexus Credit Union: 0.61% APY, $5,000 minimum to open.
Quontic Bank: 0.60% APY, $500 minimum to open.
PenFed: 0.60% APY, $1,000 minimum to open.
Sallie Mae Bank: 0.60% APY, $2,500 minimum to open.
Live Oak Bank: 0.60% APY, $2,500 minimum to open.
Ally Bank: 0.55% APY, no minimum to open.
Marcus by Goldman Sachs: 0.55% APY, $500 minimum to open.
Alliant Credit Union: 0.55% APY, $1,000 minimum to open.
TIAA Bank: 0.55% APY, $1,000 minimum to open.
Synchrony: 0.55% APY, $2,000 minimum to open.
TAB Bank: 0.50% APY, $1,000 minimum to open.
Discover: 0.50% APY, $2,500 minimum to open.
Last updated on October 1, 2021
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Methodology
On a monthly basis, we compare rates at over 20 financial institutions, pulled from our full list, that we’ve seen to be consistently competitive. On a quarterly basis, we take a close look at over 70 financial institutions, including the largest U.S. banks based on assets, debit card volume, internet search traffic and other factors; the nation’s largest credit unions, based on deposits as well as broad-based membership requirements; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more; we favored those with the highest CD rates. We excluded banks that offered brokered CDs, since those accounts work differently from standard bank CDs. Higher rates might be available elsewhere.
Financial institutions surveyed include: Alaska USA Federal Credit Union, Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Associated Bank, Axos Bank, Bank5 Connect, Bank7, Bank of America, Bank of the West, Barclays, BB&T, BBVA, BMO Harris, Boeing Employees Credit Union, Capital One 360, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens Access, Citizens Bank, Comenity Bank, Comerica Bank, Commerce Bank, Connexus Credit Union, Consumers Credit Union, Discover Bank, E*TRADE Bank, Fifth Third Bank, First Foundation Bank, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, GoBank, Golden 1 Credit Union, Goldman Sachs Bank USA, HSBC Bank, Huntington Bank, KeyBank, Lake Michigan Credit Union, LendingClub, Live Oak Bank, M&T Bank, Nationwide Bank, Navy Federal Credit Union, NBKC Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Redneck Bank, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, State Employees' Credit Union of North Carolina, Suncoast Credit Union, SunTrust Bank, Synchrony Bank, TAB Bank, TCF Bank, TD Bank, TIAA Bank, U.S. Bank, UFB Direct, Union Bank, USAA, Varo, Vio Bank, Wells Fargo, Woodforest National Bank and Zions Bank.
To recap our selections...
NerdWallet's Best 1-Year CD Rates for October 2021
- Discover Bank CD: 0.50% APY
- Quontic Bank CD: 0.60% APY
- Comenity Direct CD: 0.65% APY
- TIAA Bank Basic CD: 0.55% APY
- Alliant Credit Union CD: 0.55% APY
- TAB Bank CD: 0.50% APY
- Synchrony Bank CD: 0.55% APY
- Connexus Credit Union CD: 0.61% APY
- Ally Bank High Yield CD: 0.55% APY
- Marcus by Goldman Sachs High-Yield CD: 0.55% APY
- Live Oak Bank CD: 0.60% APY
- Sallie Mae Bank CD: 0.60% APY
- PenFed Credit Union Money Market Certificate: 0.60% APY
Frequently asked questions
You should only get a 1-year CD if you know you won’t need those funds for a year. Pulling money out of a CD before its expiration date will likely result in an early withdrawal fee, which is typically a percentage of the interest earned. See this month’s top rates.
It depends on your savings goals and how sure you are that you won't need your funds before the CD term expires. Having to pay an early withdrawal penalty, generally up to one year's worth of interest, can be a blow to your savings. Common CD terms range from six months to five years; if you want to play it safe, go for a shorter CD term or a no-penalty CD.
CD rates are quoted as an annual percentage yield, or APY, which is how much the account earns in one year including compound interest. Banks generally compound interest monthly or daily.
» See what CDs can earn you with our CD calculator
It depends on what's more important to you: rates or access to your money. Some of the current CD rates tend to be higher than the best savings account rates, but you sacrifice access to money in CDs. If that doesn't work for you, check out our list of best online savings accounts.
It depends on the level of risk you want to take. Investment, or brokerage, accounts can have higher returns than CDs, but CDs guarantee returns. They're typically federally insured for up to $250,000 and offer fixed interest rates. Brokerage accounts can be riskier, since you aren’t protected against losses. See this month’s top rates for 1-year CDs.
