Summary of Best 1-Year CD Rates March 2020
|Bank||APY||Minimum Deposit||Learn More|
Marcus by Goldman Sachs CD
CIT Bank CD
Discover Bank CD
Citizens Access CD
Capital One CD
Ally Bank CD
Connexus Credit Union CD
Synchrony Bank CD
TIAA Bank CD
Alliant Credit Union CD
Sallie Mae Bank CD
PurePoint® Financial CD
Bank5 Connect CD
» Want to see more options? Check out our list of the best CD rates overall
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 March 2020:
- CIT Bank: 1.86% APY.
- Marcus by Goldman Sachs: 1.85% APY.
- Barclays: 1.85% APY.
- Ally Bank: 1.50% APY.
- Synchrony: 1.50% APY.
- Discover: 1.75% APY.
- Capital One: 1.00% APY.
- Sallie Mae Bank: 1.50% APY.
- Alliant Credit Union: 1.40% APY.
- TIAA Bank: 1.75% APY.
- Bank5 Connect: 1.30% APY.
- Connexus Credit Union: 1.01% APY.
- Citizens Access: 1.50% APY.
- PurePoint Financial: 1.10% APY.
Last updated on March 2, 2020
We took 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, 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, 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 March 2020
- Marcus by Goldman Sachs CD: 1.85% APY
- CIT Bank CD: 1.86% APY
- Discover Bank CD: 1.75% APY
- Citizens Access CD: 1.50% APY
- Barclays CD: 1.85% APY
- Capital One CD: 1.00% APY
- Ally Bank CD: 1.50% APY
- Connexus Credit Union CD: 1.01% APY
- Synchrony Bank CD: 1.50% APY
- TIAA Bank CD: 1.75% APY
- Alliant Credit Union CD: 1.40% APY
- Sallie Mae Bank CD: 1.50% APY
- PurePoint® Financial CD: 1.10% APY
- Bank5 Connect CD: 1.30% APY
Frequently asked questions
A CD, or certificate of deposit, is a type of savings account that keeps money locked up for a set period or term, generally three months to five years. The longer the CD term, the higher the rate. 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.
You should only get a CD if you know you won’t need those funds during its term. 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. (You can find even shorter terms such as six-month CDs too.)
» Thinking of a longer term for higher yields? Check out the best three-year CD rates
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.