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Best 1-Year CD Rates October 2018

Oct. 1, 2018
Banking, CDs
best-1-year-cd-rates
NerdWallet adheres to strict standards of editorial integrity to help you make decisions with confidence. Some of the products we feature are from partners. Here’s how we make money.
We adhere to strict standards of editorial integrity. Some of the products we feature are from our partners. Here’s how we make money.
Best 12-month CD rates | October 2018
Goldman Sachs Bank USA

at Goldman Sachs Bank USA,

Member, FDIC

Marcus by Goldman Sachs

Overall bank rating:

2.55% APY
$500 minimum deposit
Discover

at Discover,

Member, FDIC

Discover

Overall bank rating:

2.50% APY
$2,500 minimum deposit

Capital One 360

Overall bank rating:

2.50% APY
No minimum deposit

Alliant Credit Union

Overall bank rating:

2.65% APY
$1,000 minimum deposit

TIAA Bank

Overall bank rating:

2.65% APY
$5,000 minimum deposit

Bank 5 Connect

Overall bank rating:

2.55% APY
$500 minimum deposit

 

» Want to see more options? Check out our list of the best CD rates overall

What is a CD?

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.

How do CD rates work?

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 with our CD calculator

When should you get a 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.

What’s better: CDs or high-yield savings accounts?

It depends on what’s more important to you: rates or access to your money. The best 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.

What’s better: CDs or investment 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.

Best 1-year CD rates, October 2018

Financial institutionAPYMinimum deposit
TIAA Bank2.65%$5,000
Alliant Credit Union2.65%$1,000
Marcus by Goldman Sachs2.55%$500
Bank5 Connect2.55% $500
Capital One 3602.50%No minimum deposit
Discover Bank2.50%$2,500

METHODOLOGY

We featured easy-to-join financial institutions that we’ve reviewed with the highest rates currently listed in NerdWallet’s CD rates tool for one-year CDs. For the ZIP code and minimum deposit requirement, we used 94103 and $5,000, respectively. We also included select, standout rates from other trusted online financial institutions that we have reviewed. Higher rates might be available elsewhere.

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