1-Year Certificate of Deposit
A time-locked deposit at a fixed APY for twelve months. The twelve-month term sits at the inflection point of the yield curve in most rate environments, balancing commitment with liquidity.
Rate Summary — as of
Typical APY range
4.60–5.30%
Typical minimum balance
$500
What Is a 1-Year Certificate of Deposit?
A time-locked deposit at a fixed APY for twelve months. The twelve-month term sits at the inflection point of the yield curve in most rate environments, balancing commitment with liquidity.
Key Features
- Fixed rate for 12 months
- Higher than HYSA at most banks
- FDIC/NCUA insured
- Predictable income
What to Watch Out For
- Early-withdrawal penalty (typically 90–180 days of interest)
- Rate lock means you miss gains if rates rise
- Auto-renewal may roll into a lower-rate term
Who This Product Fits
Emergency Fund Builder
Accumulating 3–6 months of expenses in an accessible, liquid account. Prioritises FDIC safety, no withdrawal limits, and zero monthly fees.
College Saver
Saving for education costs on a 5–18 year horizon. Values predictability; considers CDs for fixed tranches alongside a 529, not as a replacement.
Retiree on Fixed Income
Drawing income from deposits. Prioritises rate predictability, CD ladders, and FDIC/NCUA coverage across multiple institutions.
Compare by Bank Type
The same 1-Year CD product type varies significantly by institution. Select a bank category to see how rates, fees, and features differ:
Big-Four Banks
Chase, Bank of America, Wells Fargo, and Citibank. Unmatched branch network; rates typically 0.01–1.…
Regional Banks
Mid-size institutions (Regions, Huntington, Fifth Third, KeyBank). Often competitive CDs; savings ra…
Online-Only Banks
Ally, Marcus, Discover Bank, American Express Bank. Consistently lead rate tables by 1–3 percentage …
Credit Unions
Member-owned cooperatives insured by NCUA. Share rates often match or beat online banks; membership …
Fintech Neobanks
SoFi, Wealthfront Cash, Betterment Cash Reserve. Pass-through deposit models; rates competitive but …
Brokerage Banks
Fidelity, Charles Schwab, Vanguard banking arms. Sweep rates are often low on default; money market …
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