Standout 1-year Online Certificate of Deposits (CDs)
A CD, or certificate of deposit, is a type of savings account with a fixed interest rate that’s usually higher than a regular savings account. It also has a fixed term length and a fixed date of withdrawal, known as the maturity date. You lock funds in a CD for a term generally ranging from three months to five years. CDs don’t have monthly fees, but most have an early withdrawal penalty.
CDs are an excellent way to earn money for doing virtually nothing. A CD (also known as certificate of deposit) is a type of savings account with a fixed rate and term. They often pay more in interest than your average savings account — sometimes as much as 11x more*. Consider a CD for two reasons: to have guaranteed returns without much risk and to have a safe place for savings earmarked for future use. Thankfully, it only takes minutes to find the best one for you. Check out the offers from our partners and start earning more interest today.
A CD, or certificate of deposit, is a type of savings account with a fixed interest rate that’s usually higher than a regular savings account. It also has a fixed term length and a fixed date of withdrawal, known as the maturity date. You lock funds in a CD for a term generally ranging from three months to five years. CDs don’t have monthly fees, but most have an early withdrawal penalty.
CDs are an excellent way to earn money for doing virtually nothing. A CD (also known as certificate of deposit) is a type of savings account with a fixed rate and term. They often pay more in interest than your average savings account — sometimes as much as 11x more*. Consider a CD for two reasons: to have guaranteed returns without much risk and to have a safe place for savings earmarked for future use. Thankfully, it only takes minutes to find the best one for you. Check out the offers from our partners and start earning more interest today.
| Bank/institution | NerdWallet rating | Minimum deposit | APY | Learn more |
|---|---|---|---|---|
3.9/5 | $0 Member FDIC | 4.00% | Learn moreat Barclays, Member FDIC | |
4.7/5 | $1,000 Federally insured by NCUA | 4.00% | Learn moreat Alliant Credit Union, Federally insured by NCUA |
Building an emergency fund
Emergency funds don’t get enough credit. They’re useful to literally everyone and protect you from falling into debt when life happens. Think: blown transmission, a surprise vet bill or even losing a job. Experts recommend having 3-6 months of living expenses in your fund. And because the money needs to be available at last notice — but might sit around for quite a while — a high-interest savings account is one of the best accounts you can use.
Why online banks dominate the list
The two most important factors for virtually every bank-shopper are APYs and maintenance fees (since they have the biggest impact on your bottom line). And, as it happens, online banks are offering massive APYs — as much as 11x the average APY** — plus, they also offer rock-bottom maintenance fees.
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*The national average annual percentage yield ("APY") is listed as 0.41% as reported by the Federal Deposit Insurance Corporation as of April 21, 2025.
**11x more interest based on the national average annual percentage yield ("APY") of 0.41% (as reported by the Federal Deposit Insurance Corporation as of April 21, 2025) as compared to online banks with interest-bearing savings account APYs of 0.40% or more. Estimated annual earnings result assumes principal and interest remain on deposit for one year and interest rates and APY do not change. Estimated annual earnings are for informational purposes only. Interest rates and APY are subject to change and specific results cannot be guaranteed.
To recap our selections...
NerdWallet's Standout 1-year Online Certificate of Deposits (CDs)- Barclays Online CD: 4.00% APY
- Alliant Credit Union Certificate: 4.00% APY