Certificates of deposit (CDs) are still one of the best ways to save money for a short time, especially for people who want to make sure they get their money back as rates go down. The FDIC says that as of January 14, 2026, the best 12-month CD rates go up to 4.10% APY (annual percentage yield). Many banks and credit unions still offer rates that are much higher than the national average of 1.63%. Best 12-Month CD Rates
It’s intriguing that most banks have kept their 12-month CD rates the same or even raised them since the Fed Rate cut. We’ve been seeing the opposite of this trend with savings accounts.
Now could be the ideal moment to secure a fixed rate. These are the best CD rates right now if you want to make a steady amount of money over the next year. Best 12-Month CD Rates
Credit One Bank – Credit One Bank is offering a jumbo CD at 4.10% APY, but it does require a $100,000 minimum deposit to open.
2. Alliant Credit Union – Alliant Credit Union offers short term and long term CDs with competitive APYs. Right now you can get 4.00% APY on a 12-month CD option! And you can even earn up to 4.05% APY on a Jumbo CD. Read our full Alliant Credit Union Review. Best 12-Month CD Rates
3. Seattle Bank – Seattle Bank is currently offering a 12-month CD at 4.00% APY with just a $1,000 minimum deposit.
4. Live Oak Bank – Live Oak Bank is currently offering a 12-month CD at 4.00% APY with a $2,500 minimum to open. Read more about Live Oak Bank here.
5. Navy Federal Credit Union – Navy Federal CU is currently offering a regular 12-month share certificate with just a $1,000 minimum at 3.75% APY. If you have $100,000, you can get the jumbo share certificate for 3.80% APY. Read our full Navy Federal Credit Union review here. Best 12-Month CD Rates
How 12-Month CDs Work
A 12-month certificate of deposit pays a fixed interest rate for one year in exchange for keeping your money on deposit until maturity. If you withdraw early, the bank charges a penalty – typically 90 days of interest.
CDs appeal to savers who prefer guaranteed, short-term returns. While high-yield savings accounts offer flexibility, CDs can secure a higher fixed return for a set period, which can be helpful if rates are expected to decline. Best 12-Month CD Rates
For example, a $25,000 CD at 4.00% APY would earn roughly $1,000 in one year, compared with about $420 based on today’s national average 12-month CD rate.
What To Know Before Opening A CD
Certificates of deposit operate differently than savings accounts. Make sure you understand what you’re getting:
- Short-Term Goals: Ideal for saving toward tuition, a wedding, or a home down payment within a year.
- Rate Protection: A CD locks your APY, so you’re insulated from rate cuts. Best 12-Month CD Rates
- Ladder Strategy: Pair a 12-month CD with longer terms (24- or 36-month) to capture higher rates while maintaining liquidity.
- Safety: FDIC or NCUA insurance protects up to $250,000 per depositor, per institution.
Before opening an account, make sure you understand all the terms:
- Minimum Deposit: Some banks require $1,000 or more to open.
- Withdrawal Terms: Review penalties before committing funds.
- Renewal Policy: Many CDs automatically renew at maturity unless you opt out.
- Rate Guarantees: Confirm whether your rate is locked at the time of application or funding.
- Online Access: Ensure the bank allows easy transfers and e-statements.
How We Track And Verify Rates
At The College Investor, our editorial team reviews CD rates daily from more than 30 banks and credit unions nationwide. We confirm every APY directly from official rate disclosures and regulatory filings. Best 12-Month CD Rates
Only FDIC- or NCUA-insured institutions available to U.S. consumers are included.
Our rankings are editorially independent – compensation does not influence placement. While we may earn a referral fee when you open an account through some links, our reviews and recommendations are based solely on yield, accessibility, and overall customer experience. Best 12-Month CD Rates
FAQs
Are 12-month CDs safe?
Yes. CDs are federally insured up to $250,000 per depositor, per institution.
Can I withdraw my money early?
Yes, but you’ll forfeit some interest, typically three months’ worth.
Are CD earnings taxable?
Yes. Interest earned is subject to federal income tax, and in some states, state tax.
What happens when a CD matures?
You’ll usually have a 7- to 10-day grace period to withdraw or renew your funds. Best 12-Month CD Rates
Is now a good time to open a CD?
Rates remain near their cycle highs, so locking in a short-term CD can make sense before potential cuts.