Best 1-Year CD Rates 2026
The 1-year CD is often considered the sweet spot of CD terms — offering a meaningfully higher rate than a savings account while keeping your money committed for a manageable period. Current top rates run roughly 4.15%–4.40% APY from leading online banks, with some credit unions offering higher promotional rates.
Why Choose a 1-Year Term
- Balances rate and flexibility — long enough to capture a competitive fixed rate, short enough that your money isn't locked up for years
- Good for known short-term goals — saving for a wedding, car purchase, or home down payment roughly a year out
- Popular CD ladder building block — commonly used as one rung in a multi-term CD ladder strategy
Frequently Asked Questions
It depends on current rates — when CD rates exceed comparable savings rates and you're confident you won't need the money for the full year, a CD locks in the higher guaranteed rate. Compare both directly since savings rates can sometimes match or exceed CD rates depending on market conditions.
Varies widely — some online banks require as little as $500, while others have no minimum at all. Jumbo CDs requiring $100,000+ sometimes offer a modestly better rate, but standard CDs are accessible to most savers.