Best of
11 Best 1-Year CD Rates October 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 0.18% 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 the best rates available from a large pool of banks Here are the best 1-year CD interest rates.
Marcus by Goldman Sachs: 0.65% APY, $500 minimum to open.
Ally Bank: 0.65% APY, no minimum to open.
Connexus Credit Union: 0.61% APY, $5,000 minimum to open.
TAB Bank: 0.60% APY, $1,000 minimum to open.
HSBC Direct: 0.50% APY, $1,000 minimum to open.
Comenity Direct: 0.60% APY, $1,500 minimum to open.
Synchrony: 0.60% APY, $2,000 minimum to open.
Live Oak Bank: 0.60% APY, $2,500 minimum to open.
Sallie Mae Bank: 0.50% APY, $2,500 minimum to open.
Discover: 0.60% APY, $2,500 minimum to open.
Citizens Access: 0.60% APY, $5,000 minimum to open.
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 0.18% 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 the best rates available from a large pool of banks Here are the best 1-year CD interest rates.
Marcus by Goldman Sachs: 0.65% APY, $500 minimum to open.
Ally Bank: 0.65% APY, no minimum to open.
Connexus Credit Union: 0.61% APY, $5,000 minimum to open.
TAB Bank: 0.60% APY, $1,000 minimum to open.
HSBC Direct: 0.50% APY, $1,000 minimum to open.
Comenity Direct: 0.60% APY, $1,500 minimum to open.
Synchrony: 0.60% APY, $2,000 minimum to open.
Live Oak Bank: 0.60% APY, $2,500 minimum to open.
Sallie Mae Bank: 0.50% APY, $2,500 minimum to open.
Discover: 0.60% APY, $2,500 minimum to open.
Citizens Access: 0.60% APY, $5,000 minimum to open.
Summary of Best 1-Year CD Rates October 2020
| Bank | NerdWallet Rating | APY | Minimum Deposit | Learn More |
|---|---|---|---|---|
0.65% | $500 | Read review | ||
0.60% | $1,000 | Read review | ||
 Comenity Direct CD | 4.5 /5 | 0.60% | $1,500 | |
0.60% | $2,500 | Read review | ||
0.65% | $0 | Read review | ||
0.50% | $2,500 | Read review | ||
0.60% | $5,000 | Read review | ||
0.60% | $2,500 | Read review | ||
0.61% | $5,000 | Read review | ||
0.60% | $2,000 | Read review | ||
0.50% | $1,000 | Read review |
Marcus by Goldman Sachs High-Yield CD
APY
With $500 minimum balance
Minimum Balance
Member FDIC
TAB Bank CD
APY
With $1,000 minimum balance
Minimum Balance
Member FDIC
Comenity Direct CD
4.5
NerdWallet ratingAPY
With $1,500 minimum balance
Minimum Balance
Member FDIC
Live Oak Bank CD
APY
With $2,500 minimum balance
Minimum Balance
Member FDIC
Ally Bank High Yield CD
APY
With $0 minimum balance
Minimum Balance
Member FDIC
Sallie Mae Bank CD
APY
With $2,500 minimum balance
Minimum Balance
Member FDIC
Citizens Access Online CD
APY
With $5,000 minimum balance
Minimum Balance
Member FDIC
Discover Bank CD
APY
With $2,500 minimum balance
Minimum Balance
Member FDIC
Connexus Credit Union CD
APY
With $5,000 minimum balance
Minimum Balance
Federally insured by the NCUA
Synchrony Bank CD
APY
With $2,000 minimum balance
Minimum Balance
Member FDIC
HSBC Direct CD
APY
With $1,000 minimum balance
Minimum Balance
Member FDIC
» 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 2020:
Marcus by Goldman Sachs: 0.65% APY, $500 minimum to open.
Ally Bank: 0.65% APY, no minimum to open.
Connexus Credit Union: 0.61% APY, $5,000 minimum to open.
TAB Bank: 0.60% APY, $1,000 minimum to open.
HSBC Direct: 0.50% APY, $1,000 minimum to open.
Comenity Direct: 0.60% APY, $1,500 minimum to open.
Synchrony: 0.60% APY, $2,000 minimum to open.
Live Oak Bank: 0.60% APY, $2,500 minimum to open.
Sallie Mae Bank: 0.50% APY, $2,500 minimum to open.
Discover: 0.60% APY, $2,500 minimum to open.
Citizens Access: 0.60% APY, $5,000 minimum to open.
Last updated on October 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 October 2020
- Marcus by Goldman Sachs High-Yield CD: 0.65% APY
- TAB Bank CD: 0.60% APY
- Comenity Direct CD: 0.60% APY
- Live Oak Bank CD: 0.60% APY
- Ally Bank High Yield CD: 0.65% APY
- Sallie Mae Bank CD: 0.50% APY
- Citizens Access Online CD: 0.60% APY
- Discover Bank CD: 0.60% APY
- Connexus Credit Union CD: 0.61% APY
- Synchrony Bank CD: 0.60% APY
- HSBC Direct CD: 0.50% 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.
