16 Best 1-Year CD Rates for August 2022
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ALSO CONSIDER: Best online savings || Best checking || 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 featured on this page are far above the national average of 0.31% 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 || Best checking || 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 featured on this page are far above the national average of 0.31% 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
Best 1-Year CD Rates
| Bank/institution | NerdWallet rating | Minimum deposit | APY | Learn more |
|---|---|---|---|---|
 Discover Bank CD Learn more at Discover Bank, Member FDIC | $2,500 Member FDIC | 2.30% | Learn more at Discover Bank, Member FDIC | |
 Barclays Online CD Learn more at Barclays, Member FDIC | $0 Member FDIC | 2.30% | Learn more at Barclays, Member FDIC | |
 Marcus by Goldman Sachs High-Yield CD Learn more at Marcus by Goldman Sachs, Member FDIC | $500 Member FDIC | 2.40% | Learn more at Marcus by Goldman Sachs, Member FDIC | |
 TIAA Bank Basic CD | $1,000 Member FDIC | 2.30% | Read review | |
 LendingClub CD | $2,500 Member FDIC | 2.01% | Read review | |
 Alliant Credit Union CD | $1,000 Federally insured by NCUA | 2.40% | Read review | |
 Vio Bank CD | $500 Member FDIC | 2.00% | Read review | |
 American Express® CD | $0 Member FDIC | 2.25% | Read review | |
 PenFed Credit Union Money Market Certificate | $1,000 Federally insured by NCUA | 2.30% | Read review | |
 Capital One 360 CD | $0 Member FDIC | 2.30% | Read review | |
 Live Oak Bank CD | $2,500 Member FDIC | 2.50% | Read review | |
 Synchrony Bank CD | $0 Member FDIC | 2.30% | Read review | |
 Sallie Mae Bank CD | $2,500 Member FDIC | 2.50% | Read review | |
 Popular Direct CD | $10,000 Member FDIC | 2.60% | Read review | |
 TAB Bank CD | $1,000 Member FDIC | 2.35% | Read review | |
 Bread Savings™️ CD | $1,500 Member FDIC | 3.00% | Read review |
at Discover Bank, Member FDIC
Discover Bank CD
Minimum deposit
$2,500Member FDIC
APY
2.30%at Discover Bank, Member FDIC
at Barclays, Member FDIC
Barclays Online CD
Minimum deposit
$0Member FDIC
APY
2.30%at Barclays, Member FDIC
at Marcus by Goldman Sachs, Member FDIC
Marcus by Goldman Sachs High-Yield CD
Minimum deposit
$500Member FDIC
APY
2.40%at Marcus by Goldman Sachs, Member FDIC
TIAA Bank Basic CD
Minimum deposit
$1,000Member FDIC
APY
2.30%Alliant Credit Union CD
Minimum deposit
$1,000Federally insured by NCUA
APY
2.40%PenFed Credit Union Money Market Certificate
Minimum deposit
$1,000Federally insured by NCUA
APY
2.30%Sallie Mae Bank CD
Minimum deposit
$2,500Member FDIC
APY
2.50%Popular Direct CD
Minimum deposit
$10,000Member FDIC
APY
2.60%Bread Savings™️ CD
Minimum deposit
$1,500Member FDIC
APY
3.00%» 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.)
Best 1-year CD rates for August 2022
Bread Savings: 3.00% APY, $1,500 minimum to open.
TAB Bank: 2.35% APY, $1,000 minimum to open.
Popular Direct: 2.60% APY, $10,000 minimum to open.
Barclays: 2.30% APY, no minimum to open.
Synchrony: 2.30% APY, no minimum to open.
Marcus by Goldman Sachs: 2.40% APY, $500 minimum to open.
Discover Bank: 2.30% APY, $2,500 minimum to open.
Capital One: 2.30% APY, no minimum to open.
Live Oak Bank: 2.50% APY, $2,500 minimum to open.
Alliant Credit Union: 2.40% APY, $1,000 minimum to open.
LendingClub Bank: 2.01% APY, $500 minimum to open.
American Express: 2.25% APY, no minimum to open.
Vio Bank: 2.00% APY, $500 minimum to open.
TIAA Bank: 2.30% APY, $1,000 minimum to open.
PenFed: 2.30% APY, $1,000 minimum to open.
Sallie Mae Bank: 2.50% APY, $2,500 minimum to open.
» 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).
How do CDs work?
Learn more about the journey of choosing, opening and closing CDs.
For choosing CDs:
For understanding CD rates:
For opening CDs:
For closing CDs:
See CD rates by term and type
Compare the best rates on certificates of deposit for various CD terms and types:
See CD rates by bank
If you want to see CD rates at specific banks, here’s a quick list of both traditional and online banks’ CDs (and one brokerage’s offering):
Last updated on August 1, 2022
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People often identify opening a savings account as their next money move.
Discover Bank Online Savings
APY
With $0 min. balance for APY
Bonus
Requirements to qualify
at Discover Bank, Member FDIC
Marcus by Goldman Sachs Online Savings Account
APY
With $0 min. balance for APY
at Marcus by Goldman Sachs, Member FDIC
Synchrony Bank High Yield Savings
APY
With $0 min. balance for APY
at Synchrony Bank, Member FDIC
Methodology
On a monthly basis, we compare rates at over 30 financial institutions, pulled from our full list, that we’ve seen to be consistently competitive. On a quarterly basis, we analyzed our full list, excluding banks that offered brokered CDs, since those accounts work differently from standard bank CDs. Higher rates might be available elsewhere.
We took a close look at over 80 financial institutions and financial service providers, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; 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.
Financial institutions and providers surveyed are: Affirm, Alaska USA Federal Credit Union, Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Bank7, Barclays, BB&T (now Truist), BMO Harris, Boeing Employees Credit Union, Bread Savings, BrioDirect, Capital One, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Discover Bank, E-Trade, Fifth Third Bank, First Foundation, First Tech Federal Credit Union, FNBO Direct, GO2bank, Golden 1 Credit Union, HSBC Bank, Huntington Bank, Industrial Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Monifi, Nationwide (by Axos), Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Redneck Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, Scarlet, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, State Employees’ Credit Union of North Carolina, SoFi, Suncoast Credit Union, SunTrust Bank (now Truist), Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo and Zynlo Bank.
To recap our selections...
NerdWallet's Best 1-Year CD Rates for August 2022
- Discover Bank CD: 2.30% APY
- Barclays Online CD: 2.30% APY
- Marcus by Goldman Sachs High-Yield CD: 2.40% APY
- TIAA Bank Basic CD: 2.30% APY
- LendingClub CD: 2.01% APY
- Alliant Credit Union CD: 2.40% APY
- Vio Bank CD: 2.00% APY
- American Express® CD: 2.25% APY
- PenFed Credit Union Money Market Certificate: 2.30% APY
- Capital One 360 CD: 2.30% APY
- Live Oak Bank CD: 2.50% APY
- Synchrony Bank CD: 2.30% APY
- Sallie Mae Bank CD: 2.50% APY
- Popular Direct CD: 2.60% APY
- TAB Bank CD: 2.35% APY
- Bread Savings™️ CD: 3.00% 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.
Yes, in a big way. The Federal Reserve has raised its rate multiple times in 2022, which encourages banks and credit unions to raise their CD rates. Learn more about Fed rate increases or, if you want a broader financial picture, see our explainer on historical CD rates.
