Best 1-Year CD Rates for July 2024

One-year CDs offer some of the most competitive rates found on the market. Learn about high-interest, low minimum deposit, and no withdrawal penalty CDs.
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Want to earn more money on your savings? If you don’t expect to need the money for the next year or so, consider a one-year CD as an alternative to a savings account.

CDs offer similar safety and stability features to savings accounts but generally have higher rates. They do require that you commit your savings for a set amount of time, but a one-year CD can earn you a higher rate without a very long commitment.

What Is a 1-Year CD?

A 1-year certificate of deposit is a type of savings account offered by banks where you deposit money for a fixed term at a specific interest rate. You can’t take your money out of the account before the maturity date without paying a penalty.

CDs are considered low-risk investments and typically offer higher interest rates than regular savings accounts. This makes them an attractive option for short-term savings with guaranteed returns.

How Interest Rates Make a Huge Impact on How Much You Can Earn

Just like any bank product, including personal loans, mortgages, and savings accounts, CD rates fluctuate depending on several factors, mostly inflation.

  • Average 1-year CD rates were 0.81% in fall 2018. By 2019, that number was 2.69%.

  • Two years later, in the fall of 2021, the global economy was feeling the effects of the COVID-19 pandemic, and the 1-year CD average rate reflected this at 0.15%.

  • Then, the Fed started raising the federal interest rate, and CD rates went up dramatically in 2023.

  • In 2024, rates started out high, and banks competed to give customers some of the highest rates that have been seen in decades.

However, these high rates won’t last forever. Just as they’ve fallen before, they’ll fall again. That’s why it’s vital to lock in the best CD rates when you see them. You can use a CD calculator to see how much you can earn on a CD based on your deposit, interest rate, and maturity date.

Below is an illustration of how much interest rates impact the amount of money you’ll earn on a 12-month CD if you invest $5,000 and why CDs are worth it.

How Much Can You Earn on a 1-year CD with $5,000? Compare Rates

Which Banks Have the Best CD Rates?

Hundreds of banks offer CDs, and there’s fierce competition among them to offer the best rates. Use our MoneyRates CD rate-finder tool below to sort through the list to find a CD that fits your financial goals.

The Best 12-Month CDs

A quick internet search will yield several banks offering top-notch CDs with competitive interest rates. Here are some we like in particular.


What stands out: No minimum opening deposit

Technically, a 13-month CD, the 1-year CD from Barclays stands out because there’s no minimum deposit amount to open. If you want to get your feet wet and get used to the idea of setting money aside, this is a good CD to do that with.

If you take a small amount, like $250, and invest it in this CD at 5%, you’ll have $262.50 at the end of the year. The $12.50 return is a nice return when you consider you didn’t have to do anything to earn it aside from not spending your money. It gives you a taste of what it’s like to earn a good interest rate and may encourage more saving.

Also, the APY offered is one of the most competitive in this category.

Brio Direct

What stands out: A robust, fun-to-use mobile app

Brio Direct offers CDs in several different amounts, including a 12-month CD with a competitive interest rate. You can fund your CD electronically through a savings or checking account from any bank. You’ll find some lower rates for CDs with longer terms, so you may need to check out some other banks if you want to create a CD ladder and open accounts of differing rates. This one is a favorite for the low opening deposit of $500 and the robust mobile app in which you can watch your money grow month by month.

Discover® Bank

What stands out: Full-service banking

Discover offers a multitude of CDs, from three months to 10 years. The interest rates offered are highly competitive, and the 12-month CD is one of the best interest rates Discover offers.

All Discover CDs require a minimum opening deposit of at least $2,500, so they might not be suitable for some new CD users. However, those with bigger deposits will earn one of the best APYs on the market. For people who like having their savings, CD, and checking accounts in one place, Discover fits the bill, offering a great APY on savings and a solid rewards checking account.

Marcus Bank

What stands out: No penalty for withdrawal

Technically a 13-month CD, the Marcus CD is one worth knowing about for several compelling reasons. First, that one extra month allows you to earn another month of interest.

Unlike some other CDs that require $1,000, $2,500, or even more to invest in, this CD requires only $500. Probably the best thing about the Marcus 13-month CD is that it is a no-penalty CD. If you’ve been nervous about locking up your money for a year, this CD could be for you. Starting one week after funding your account, if you change your mind and want to withdraw your money, you won’t pay a penalty for withdrawal like you would with other CDs.

Quontic Bank

What stands out: Innovative online banking

Quontic’s 12-month CD is another solid choice if you’re looking at earning one of the highest APYs on the market. With a low $500 opening deposit and a promise from Quontic of needing only three minutes to open, you could start earning pretty quickly and easily with a Quontic CD.

Quontic is a full-service online bank offering checking, savings, and even several types of nonconventional mortgages. Checking account holders have access to a truly remarkable feature: The Quontic Pay Ring, a ring you wear on your finger to make payments wherever contactless payment is accepted. You don’t even have to take out your phone to pay.

Pros and Cons of 1-year CDs

Here are some of the advantages and a few drawbacks of a one-year CD:


  • Usually pays a higher rate than a savings account.
  • Guarantees your rate for a full year, so you know what you’ll earn even if interest rates change.
  • Makes the money available at a scheduled time, so you can plan your spending or next investment around it.


  • By locking into a rate, you won’t earn more if interest rates rise over the next year.
  • You will probably pay a penalty if you need to access the money before the CD matures.
  • Not a growth vehicle that will help you stay ahead of inflation over the long term.

Who Are 1-year CDs Best For?

Is a one-year CD a good fit for your needs? This kind of account is best for people who:

  • Don’t have an immediate need for the money.
  • have predictable expenses, so they are unlikely to break into the account unexpectedly and incur an early withdrawal penalty.
  • Have a significant expense coming up in a year’s time.
  • Aren’t putting aside the money for distant goals like retirement, which might require more growth-oriented investments.

Tricks to Get the Most From Your 1-year CD

Here are five ways you can make the most of your one-year CD:

Don’t Automatically Roll Over Your CD at Maturity

Your bank may have had the best CD rates the last time you signed up for one, but these things change all the time. Shop around to see if they still have the best rate.

Compare Rates from Multiple Banks Before Choosing

CD rates vary greatly from bank to bank. Check out a few banks to see which have the best one-year CD rates.

Consider Slightly Longer CD Terms

If you think it might be more than a year before you need your CD, keep in mind that a longer-term CD might offer a better rate. Some banks offer slightly different terms, such as a 13-month CD, that might give you a better rate while only locking up your money a little longer.

Use a 1-Year CD as Part of a CD Ladder

A CD ladder is a series of CDs that mature at different times. This can give you some near-term liquidity while also earning some of the higher rates you get with longer-term CDs.

Compare Early Withdrawal Penalties as Well as Rates

If you find two CDs that offer good rates, how do you choose? One thing to look at is the penalty you’d pay if you need to access your money early. A lower penalty might be the tie-breaker between two CDs with the same rate.

FAQs About 1-year CDs

What do one-year CDs pay?

According to the FDIC, the national average rate on a one-year CD was 1.8% as of July 2024. However, the best one-year CD rates are much higher than that. It pays to shop around.

Will CD rates go up over the next year?

That depends largely on whether inflation picks up. When inflation goes up, interest rates are likely to rise.

How can I get a better interest rate?

The two best ways of getting a better rate on a one-year CD are to shop around for a better rate and consider a longer-term CD if you can wait more than a year before you need the money.

Is CD interest taxable?

CD interest is taxable unless you own the CD within a tax-advantaged vehicle like an IRA. CD interest is typically taxable in the year in which it is earned, regardless of whether the interest is actually paid out during that year.


We reviewed more than 50 certificate of deposit accounts from top traditional banks, credit unions, and neobanks.

We chose the best CDs based on APYs offered, consistently competitive APYs, special features, accessibility, and minimum opening deposit requirements.

Our diligent approach ensures that our recommendations are founded on a detailed and holistic analysis, identifying the best-suited CDs for our users.  Visit our Deposit Product Ratings Methodology page for an in-depth look at how we choose the products we feature on our pages.

About Author
Kristin Marino
Kristin Marino is a seasoned voice in the finance and education sectors, with rich experience spanning decades as a writer and editor. Kristin has lent her editorial financial expertise to platforms like MoneyRates, The Balance, and MoneyGeek. With a keen ability to distill complex financial concepts into accessible insights, she remains dedicated to guiding readers toward informed financial choices.
Our reviews are unbiased and thorough, focusing on consumer needs. For details, see our Editorial Policy & Methodology.