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9 Best 1-Year CD Rates July 2020

Spencer TierneyJuly 1, 2020

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.

One-year CD rates can help boost some of your short-term savings. Although rates have been decreasing since the Federal Reserve's March 2020 rate cuts, the rates featured on this page are still strong compared to the national average of 0.24% 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.

Summary of Best 1-Year CD Rates July 2020

BankNerdWallet Rating APYMinimum DepositLearn More
Marcus by Goldman Sachs CD

Marcus by Goldman Sachs CD

at Marcus by Goldman Sachs,

Member FDIC

1.10%

$500

at Marcus by Goldman Sachs,

Member FDIC

Sallie Mae Bank CD

Sallie Mae Bank CD

0.95%

$2,500

Read review
TIAA Bank CD

TIAA Bank CD

1.01%

$5,000

Read review
Citizens Access CD

Citizens Access CD

0.85%

$5,000

Read review
Ally Bank CD

Ally Bank CD

1.00%

$0

Read review
Bank5 Connect CD

Bank5 Connect CD

1.15%

$500

Read review
Comenity Direct CD

Comenity Direct CD

4.5

/5

1.00%

$1,500

Live Oak Bank CD

Live Oak Bank CD

3.5

/5

0.90%

$2,500

Connexus Credit Union CD

Connexus Credit Union CD

1.01%

$5,000

Read review
Marcus by Goldman Sachs CD

at Marcus by Goldman Sachs,

Member FDIC

Marcus by Goldman Sachs CD

Marcus by Goldman Sachs CD

APY

1.10%

With $500 minimum balance

Minimum Balance

$500

Member FDIC

at Marcus by Goldman Sachs,

Member FDIC


Why we like it

The Wall Street firm's online bank offers a 12-month CD term with a low minimum requirement.

Read Full Review

Sallie Mae Bank CD

Sallie Mae Bank CD

APY

0.95%

With $2500 minimum balance

Minimum Balance

$2,500

Member FDIC


Why we like it

Student loan provider Sallie Mae Bank offers a solid rate on its one-year CDs. There's a higher minimum than at some online banks.

Read Full Review

TIAA Bank CD

TIAA Bank CD

APY

1.01%

With $5000 minimum balance

Minimum Balance

$5,000

Member FDIC


Why we like it

The online bank has wide range of CDs, though it requires a high opening minimum.

Read Full Review

Citizens Access CD

Citizens Access CD

APY

0.85%

With $5000 minimum balance

Minimum Balance

$5,000

Member FDIC


Why we like it

Citizens Access, Citizens Bank's new online division, offers savings accounts and CDs. The minimum amount to open is hefty for both, though.

Read Full Review

Ally Bank CD

Ally Bank CD

APY

1.00%

With $0 minimum balance

Minimum Balance

$0

Member FDIC


Why we like it

Ally lets you open and receive its rate with any amount.

Read Full Review

Bank5 Connect CD

Bank5 Connect CD

APY

1.15%

With $500 minimum balance

Minimum Balance

$500

Member FDIC


Why we like it

Bank5 Connect has a low opening minimum for its CDs.

Read Full Review
Comenity Direct CD

Comenity Direct CD

4.5

NerdWallet rating 
Comenity Direct CD

APY

1.00%

With $1500 minimum balance

Minimum Balance

$1,500

Member FDIC


Why we like it

Comenity Direct offers high-yield CDs with a somewhat high minimum of $1,500.

Live Oak Bank CD

Live Oak Bank CD

3.5

NerdWallet rating 
Live Oak Bank CD

APY

0.90%

With $2500 minimum balance

Minimum Balance

$2,500

Member FDIC


Why we like it

Live Oak Bank offers online CDs with a stellar rate, though there's a hefty minimum requirement of $2,500.

Connexus Credit Union CD

Connexus Credit Union CD

APY

1.01%

With $5000 minimum balance

Minimum Balance

$5,000

Federally insured by the NCUA


Why we like it

Connexus Credit Union offers a 12-month rate with a minimum that's higher than some other online banks. Anyone can join with a one-time $5 donation to its partner nonprofit, Connexus Association.

Read Full Review

» 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

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:

Here are the best 1-year CD rates for July 2020:

  • Bank5 Connect: 1.15% APY.

  • Marcus by Goldman Sachs: 1.10% APY.

  • Sallie Mae Bank: 0.95% APY.

  • TIAA Bank: 1.01% APY.

  • Connexus Credit Union: 1.01% APY.

  • Ally Bank: 1.00% APY.

  • Comenity Direct: 1.00% APY.

  • Live Oak Bank: 0.90% APY.

  • Citizens Access: 0.85% APY.

Last updated on July 1, 2020

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, Aspiration, Associated Bank, Axos Bank, Bank5 Connect, Bank7, Bank of America, Bank of the West, Barclays, BB&T, BBVA, Boeing Employees Credit Union, BMO Harris, Capital One 360, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT, Citibank, Citizens Access, Citizens Bank, Comenity Direct, Comerica Bank, Commerce Bank, Connexus Credit Union, Consumers Credit Union, Discover Bank, E-Trade, Fidelity, Fifth Third Bank, First National Bank, First Tech Federal Credit Union, GoBank, Golden 1 Credit Union, GS Bank, HSBC Bank USA, Huntington Bank, KeyBank, Live Oak Bank, M&T Bank, Moven, Navy Federal Credit Union, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Radius Bank, Redneck Bank, Regions Bank, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, Simple, State Employees’ Credit Union of North Carolina, State Farm Bank, Suncoast Credit Union, SunTrust Bank, Synchrony Bank, TCF Bank, TD Bank, TIAA Bank, Union Bank, UFB Direct, USAA, U.S. Bank, Varo, Vio Bank, Wells Fargo and Zions Bank.

To recap our selections...

NerdWallet's Best 1-Year CD Rates July 2020

Frequently asked questions