5 Best 1-Year CD Rates Of June 2024 (up to 5.66% APY)

Editor’s Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.

People often make one-year goals, picturing where they want to be 12 months from now.

When it comes to setting your financial goals, a one-year certificate of deposit (CD) is a smart savings tool to utilize: stash some cash and let it grow untouched until this time next year. Plus, while savings rates are still high, one-year CDs are currently offering the best returns of all CD terms — making it the perfect time to open one.

To determine which one-year CDs are best, CNBC Select analyzed and compared dozens of CD accounts. The ones we selected for our ranking all offer APYs well above the national one-year CD average of 1.86%. All of the banks on this list are FDIC- or NCUA-insured, the latter if a credit union. (See our methodology for more information on how we chose the best one-year CD accounts.)

CIBC Bank USA is an ideal place to store your funds for a year as it’s currently offering a 5.66% APY on its one-year CD, one of the highest overall CD APYs we found. It has a reasonable minimum deposit of $1,000.

CD terms offered

9 months, 12 months, 18 months, 24 months, 30 months

Monthly fee

None

Early withdrawal penalty fee

CIBC Bank USA may charge a 30-day penalty if you withdraw your CD funds before maturity

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If leaving your savings untouched for 12 months scares you, perhaps doing so with a big-name bank reassures any doubt. Marcus by Goldman Sachs®’s one-year CD offers a nice 5.50% APY with a relatively low $500 minimum deposit.

CD terms offered

6 months, 9 months, 12 months, 18 months, 2 years, 3 years, 4 years, 5 years, 6 years

Monthly fee

None

Early withdrawal penalty fee

If you withdraw the balance of entire principal amount from your CD account prior to maturity, you’ll be charged an early withdrawal penalty based on the term of your CD and the principal (except in the case of a No-Penalty CD). Here’s how early withdrawal penalties are calculated:

• Less than 1 year: 90 days interest on the original principal balance at the interest rate in effect for the CD
• 1 year to 5 years: 180 days interest on the original principal balance at the interest rate in effect for the CD
• More than 5 years: 270 days interest on the original principal balance at the interest rate in effect for the CD

Early Withdrawal Penalty = Interest Rate ÷ 365 (or 366) × Penalty Days × Original Principal Balance

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BMO Alto offers a high 5.50% APY on its one-year CD with no minimum deposit required. The zero minimum requirement lets just about any saver take advantage of this strong APY, no matter their balance.

CD terms offered

6 months, 12 months, 24 months, 36 months, 48 months, 60 months

Monthly fee

None

Early withdrawal penalty fee

An early withdrawal of principal before maturity will cost an early withdrawal penalty. The penalty is calculated using the interest rate applicable to the CD at the time of early withdrawal. If the amount of the penalty exceeds the amount of your accrued and unpaid interest, then a reduction of principal would be required in order to pay the penalty:

• 11 months or less: You’ll be charged 90 days interest
• 12 months or more: You’ll be charged 180 days interest

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Popular Direct offers a solid 5.45% APY on its one-year CD with a $10,000 minimum deposit requirement. For those with a large savings that they want to hold onto and keep secure for 12 months, Popular Direct’s 1one-year CD is a good place to park it. A 5.45% APY on a $10,000 balance would net you $545 in interest earnings alone over just 12 months.

CD terms offered

3 months, 6 months, 12 months, 18 months, 24 months, 36 months, 48 months, 60 months

Monthly fee

None

Early withdrawal penalty fee

• For terms less than 91 days: The fee is 89 days simple interest
• For terms equal to or greater than 91 days but less than 12 months: The fee is 120 days simple interest
• For terms equal to or greater than 12 months but less than 36 months: The fee is 270 days simple interest
• For terms equal to or greater than 36 months but less than 60 months: The fee is 365 days simple interest
• For terms equal to or greater than 60 months: The fee is 730 days simple interest

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Lafayette Federal Credit Union (LFCU)‘s CD is a good option for those who prefer the community feel that credit unions offer. It’s currently offering a 5.56% APY over 12 months with just a $500 minimum deposit requirement.

CD terms offered

7 months, 1 year, 2 years, 3 years, 4 years, 5 years

Monthly fee

None

Early withdrawal penalty fee

Early withdrawal penalties may apply

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If you’re comfortable stashing away some savings for 12 months, take advantage of a one-year CD; this term length currently offers the highest CD rates on the market.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every CD review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of savings products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best one-year CDs.

To determine the best one-year CDs, CNBC Select analyzed dozens of options offered by online and brick-and-mortar banks, including credit unions. We found that the APY offered by online banks and credit unions far outpaced those offered by most national brick-and-mortar banks.

When ranking the top one-year CDs, we prioritized the ones offering the highest APYs. We then compared one-year CDs by looking at their minimum deposit requirements, penalties for early withdrawals, ease of use and industry rankings. We ranked our top picks by best for high APY, best for no minimum deposit, best for a large deposit, best from a big bank and best from a credit union.

All of the CDs included on this list are NCUA- or FDIC-insured up to $250,000 per person. The rates and fee structures banks advertise for their CD accounts are not guaranteed forever. They are subject to change without notice and they often fluctuate in accordance with the Fed rate. If you open a CD account, however, you’re often locked into that APY offered at account opening for the entire term length.

Your earnings depend on the CD term length, the amount you deposit, the APY offered when you opened the account and any associated fees. Generally, a larger deposit and a higher interest rate will earn you the most money. Any early withdrawals may result in penalty fees that lower your principal balance/earnings.

To open a CD account for the first time at a bank, most banks and institutions require a deposit of new money, meaning you can’t transfer money you already had in an account at that bank.

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