The top 1-year CD rates for October 2022

S&P Futures

3,783.50

+19.50(+0.52%)

 

Dow Futures

31,241.00

+118.00(+0.38%)

 

Nasdaq Futures

11,443.25

+84.75(+0.75%)

 

Russell 2000 Futures

1,754.90

+8.00(+0.46%)

 

Crude Oil

85.44

+0.39(+0.46%)

 

Gold

1,662.20

+5.90(+0.36%)

 

Silver

19.38

+0.31(+1.65%)

 

EUR/USD

0.9849

-0.0013(-0.13%)

 

10-Yr Bond

4.2130

-0.0130(-0.31%)

 

Vix

29.69

-0.29(-0.97%)

 

GBP/USD

1.1329

+0.0027(+0.24%)

 

USD/JPY

148.7990

+1.1690(+0.79%)

 

BTC-USD

19,525.62

+320.78(+1.67%)

 

CMC Crypto 200

446.21

+14.45(+3.35%)

 

FTSE 100

6,969.73

+25.82(+0.37%)

 

Nikkei 225

27,287.54

+396.96(+1.48%)

 

Illustration by Tim Boelaars

Whether you’re growing your savings for a long-term goal like retirement or looking to build a nice cushion for a purchase that’s only a year down the line, a certificate of deposit (CD) can be an effective savings vehicle to help you hit your goal.

CDs are a type of deposit account, typically offered by banks and credit unions, that usually offer higher interest rates than your average savings account. The APYs are higher, because account holders cannot withdraw their money for a certain length of time (anywhere between seven days and 10 years), which is known as a term. Most, but not all, accounts charge a penalty for withdrawing funds before the end of the CD’s term, also known as its maturity date.

One major factor to consider when choosing a CD is the length of the term. For the saver with a specific short-term goal in mind, a 1-year CD can be a great way to help your savings grow without committing to locking up your money for an extended amount of time. The Fortune Recommends editorial team ranked more than 40 CDs with one-year terms and came up with a list of our top 10 picks. We weighed minimum deposits to open an account, annual percentage yields (APYs), compounding frequency, and customer service options. (Read our full methodology here.)

CFG Bank

Synchrony Bank

Ally Bank

Citibank

Bask Bank

Bread Savings

Barclays[hotlink ignore=true] Bank</a></li><li><a href=”#DepartmentofCommerceFederalCreditUnion”>Department of Commerce Federal Credit Union</a> </li><li><a href=”#PenFedCreditUnion”>PenFed Credit Union</a> </li><li><a href=”#MarcusbyGoldmanSachs”>Marcus by Goldman Sachs</a> </li><li><a href=”#Whatisa1yearCD”>What is a 1-year CD</a> </li><li><a href=”#WhatarethedifferenttypesofCDs?”>What are the different types of CDs?</a></li><li><a href=”#Ourmethodology”>Our methodology</a></li></ul> <!– /wp:list –> <!– wp:html –> <div class=”myFinance-widget” data-ad-id=”ed375ef3-c83b-43c1-8a5a-57347a4e9d42″ data-campaign=”fortune-cds-multi” data-sub-id=”cds-multi-cc”></div> <!– /wp:html –> <!– wp:heading –> <h2>The top 10 one-year CD rates</h2> <!– /wp:heading –> <!– wp:paragraph –> <p>Here is our list of the best one-year CDs according to Fortune Recommends editors. Note: Minimum deposit requirements, APYs, and other numbers in our list are up to date as of Oct. 20, 2022, but they are subject to change.</p> <!– /wp:paragraph –> <!– wp:heading {“level”:3} –> <h3 id=”CFGBank”>1. CFG Bank: For savers who are on the hunt for the highest APY</h3> <!– /wp:heading –> <!– wp:paragraph –> <p><strong>Key numbers </strong><br><strong>Minimum opening deposit:</strong> $500<br><strong>1-year APY:</strong> 3.95%<br><strong>Penalty:</strong> One-year CD accounts are subject to an early withdrawal penalty equal to 90 days’ worth of simple interest. </p> <!– /wp:paragraph –> <!– wp:paragraph –> <p><strong>Why we picked it:</strong> CFG Bank, a Maryland-based bank, took our top slot for one-year CDs—boasting a 3.95% APY. The minimum opening deposit for this account is on the lower end compared to some competitors, and interest is compounded daily. Customer service representatives can be reached by telephone, Monday through Friday, 8:30 a.m. to 5 p.m. EST and customers can also contact CFG 24/7 via email or its online and mobile banking platforms. </p> <!– /wp:paragraph –> <!– wp:heading {“level”:3} –> <h3 id=”SynchronyBank”>2. Synchrony Bank: For savers who are just getting started</h3> <!– /wp:heading –> <!– wp:paragraph –> <p><strong>Key numbers </strong><br><strong>Minimum opening deposit:</strong> $0<br><strong>1-year APY: </strong>3.46%<br><strong>Penalty: </strong>There is an early withdrawal penalty applied to the amount of principal withdrawn equal to 90 days’ simple interest. </p> <!– /wp:paragraph –> <!– wp:paragraph –> <p><strong>Why we picked it:</strong> Synchrony Bank doesn’t have any brick-and-mortar locations, so it may not be for those who prefer face-to-face service. However, it could appeal to new savers who haven’t built a huge savings yet since it doesn’t require a minimum opening deposit and a high APY. Interest on these accounts is compounded daily, and savers can do all of their banking online or via mobile app. Synchrony customers also have the option of withdrawing interest they earn on their account at any time.  </p> <!– /wp:paragraph –> <!– wp:heading {“level”:3} –> <h3 id=”AllyBank”>3. Ally Bank: For savers who want to test-drive a CD account  </h3> <!– /wp:heading –> <!– wp:paragraph –> <p><strong>Key numbers </strong><br><strong>Minimum opening deposit:</strong> $0<br><strong>1-year APY: </strong>3.25%<br><strong>Penalty: </strong>There is an early withdrawal penalty equal to 60 days of interest. </p> <!– /wp:paragraph –> <!– wp:paragraph –> <p><strong>Why we picked it:</strong> Ally Bank is an online-only bank that doesn’t require account holders to make a minimum deposit—they can deposit as little as they want and can earn 3.25% on their funds. Once their CD matures, they also have the opportunity to earn a 0.05% loyalty reward if they renew their CD for another term. Interest on this CD is compounded daily, and customers can contact Ally with any questions or concerns 24/7 via online chat, email, or phone. </p> <!– /wp:paragraph –> <!– wp:heading {“level”:3} –> <h3 id=”Citibank”>4. Citibank: For savers who have some, but not a lot, of money saved </h3> <!– /wp:heading –> <!– wp:paragraph –> <p><strong>Key numbers </strong><br><strong>Minimum opening deposit:</strong> $500<br><strong>1-year APY: </strong>3.75%<br><strong>Penalty: </strong>There is an early withdrawal penalty equal to 90 days’ simple interest.</p> <!– /wp:paragraph –> <!– wp:paragraph –> <p><strong>Why we picked it:</strong> Citibank has branches across the globe as well as a strong digital presence with online and mobile banking platforms. Its one-year CD offers a high APY at 3.75% and a lower opening deposit compared to some other financial institutions. Interest is compounded daily. And if you decide that you still don’t need your funds after one year, Citibank will automatically renew your CD for the same term length, if available, and current rate.<strong> </strong>Citibank offers customers phone support 24/7. </p> <!– /wp:paragraph –> <!– wp:heading {“level”:3} –> <h3 id=”BaskBank”>5. Bask Bank: For savers with a substantial nest egg</h3> <!– /wp:heading –> <!– wp:paragraph –> <p><strong>Key numbers </strong><br><strong>Minimum opening deposit:</strong> $1,000<br><strong>1-year APY: </strong>3.60%<br><strong>Penalty: </strong>There is an early withdrawal penalty equal to 60 days of interest.</p> <!– /wp:paragraph –> <!– wp:paragraph –> <p><strong>Why we picked it:</strong> Bask Bank is an online division of Texas Capital Bank that offers a wide range of CD terms. The APY is on the higher end, but this one-year CD account does require a minimum deposit of $1,000, which could feel like a stretch for newer savers. Interest is compounded daily, and customers can reach Bask Bank via email or the customer support number from 7 a.m. to 7 p.m. CST on Mondays through Fridays, or 9 a.m. to 4 p.m. CST on Saturdays.</p> <!– /wp:paragraph –> <!– wp:heading {“level”:3} –> <h3 id=”BreadSavings”>6. Bread Savings: For savers who prefer to do all of their banking online</h3> <!– /wp:heading –> <!– wp:paragraph –> <p><strong>Key numbers </strong><br><strong>Minimum opening deposit: </strong>$1,500<br><strong>1-year APY: </strong>3.60%<br><strong>Penalty:</strong> For one-year terms, the penalty is 180 days’ simple interest. </p> <!– /wp:paragraph –> <!– wp:paragraph –> <p><strong>Why we picked it:</strong> Bread Savings is an online-only bank that gives customers the ability to open an online CD in minutes. Interest on one-year CDs is compounded daily, and customers aren’t charged any fees for monthly account maintenance. The withdrawal penalty is on the higher end for a short-term CD, but the account still offers a high APY that could encourage short-term savers to keep their hands off their money. Customers can bank via Bread’s mobile app or online, and there’s a customer service number that’s available to call on weekdays between 7 a.m. and 9 p.m. CST, and weekends and most holidays from 9 a.m. to 5 p.m. CST. </p> <!– /wp:paragraph –> <!– wp:heading {“level”:3} –> <h3 id=”Barclaysbank”>7. [hotlink ignore=true]Barclays Bank: For savers who have never seen the inside of their bank’s branch

Key numbers Minimum opening deposit: $01-year APY: 3.25%Penalty: For one-year terms, the penalty is 90 days’ simple interest.

Why we picked it: Barclay’s is a U.K.-based bank that operates its U.S. accounts solely online. Account holders will need to do all of their banking on Barclays’ website or through the mobile app if they are based in the U.S. The good news: Customers can contact representatives for support 24/7. Interest on this CD is compounded daily, and there is no minimum opening deposit—which leaves it up to the account holder to decide how much they’re ready to put away. 

8. Department of Commerce Federal Credit Union: For savers prefers to bank with a credit union

Key numbers Minimum opening deposit: $5001-year APY: 3.81%Penalty: For one-year CDs, customers will pay a fee of 180 days’ worth of interest.

Why we picked it: The Department of Commerce Federal Credit Union’s one-year CD had the second-highest APY on our list with interest compounding monthly and just a $500 minimum deposit to open a CD. As a credit union, the DOCFCU does have certain membership requirements. Anyone who lives, works, worships, or attends school in Washington, D.C. can join, as well as current or retired employees of certain government offices, their relatives, or anyone who lives with a DOCFCU member.

Applicants who don’t fall into those categories can still join by paying $15 to become a member of the American Consumer Council. The DOCFCU has shared branches across the U.S. and offers a mobile app for 24/7 banking and email support, as well as phone support between 8:30 a.m. and 3:30 p.m. EST, Monday through Friday.

9. PenFed Credit Union: For savers who are serious about locking up their funds 

Key numbers Minimum opening deposit: $1,0001-year APY: 3.15%Penalty: If you make a withdrawal within the first year of opening your account, you’ll forfeit all dividends. 

Why we picked it: Pentagon Federal Credit Union (PenFed) is a Virginia-based credit union that offers online-banking options in addition to a few brick-and-mortar locations across the U.S. Dividends are compounded daily, but posted to accounts on a monthly basis. This account’s APY is good, but customers should beware that making an early withdrawal could cost them all their dividends. For any questions, customers can reach PenFed by email, chat, or phone Monday to Friday, 7:00 a.m. to 11:00 p.m. EST, 8:00 a.m. to 11:00 p.m. on Saturday, and 9:00 a.m. to 5:30 p.m. EST on Sunday. PenFed also offers a mobile app. 

10. Marcus by Goldman Sachs: For savers who want to make sure they lock in the highest rate possible  

Key numbers Minimum opening deposit: $5001-year APY: 3.25%Penalty: For one-year terms, the penalty is 90 days’ simple interest.

Why we picked it: Marcus by Goldman Sachs operates on an online-only model that offers a wide range of banking products, including 1-year CDs. Interest on these accounts is compounded daily, and this account boasts an APY of 3.25%, which can translate to major savings over the course of a year. Marcus also has a 10-day CD guarantee which promises that customers will be granted a higher APY if rates increase within the first 10-days of opening an account that has at least $500 in it. 

Like many online banks, Marcus also offers a mobile banking app, and for those who may need extra assistance, customer service representatives are available 24/7 via telephone or online chat. 

What is a one-year CD?

Banks and credit unions typically offer a wide range of CD terms. One-year CDs require account holders to deposit their money in one lump-sum and leave their funds untouched for 12 months. After that period of time has passed, the CD has officially reached maturity and the account holder can withdraw their funds (plus any interest accrued) or rollover those funds into a new CD. 

CDs with shorter terms can be a flexible option for savers who are not playing the long game and don’t want to tie up their funds for years on end, but the tradeoff is often that accounts with shorter term lengths tend to have lower APYs. 

What are the different types of CDs?

Aside from varying term lengths, some CDs come with unique rules or features that may be better suited for you and your savings goals. A few common CD types include:

As you’re weighing your options, consider all of the perks of a CD account, as well as any possible penalties associated with each account. Knowing how much potential your money has to grow over the course of your preferred timeline—and what will happen if you end up needing access to your funds sooner rather than later, can help you make the right decision for you and your financial plan. 

Our methodology

The Fortune RecommendsTM team compared one-year certificates of deposit (CDs) from more than 50 major banks, credit unions, and online-only banks. Our top picks are available across the U.S., so you can sign up for an account no matter where you’re located. 

We ranked the best one-year CDs on the following categories:

The best CDs offer APYs twice the national average. We didn’t include brokered CDs on our list, which are sold on the secondary market through brokerages instead of banks and can be riskier because of this.

The rates, fees, and minimum deposit requirements for CDs are available for limited time periods, and APYs are subject to fluctuation, which could impact how much interest you earn. All the bank and credit unions on this list are insured by the FDIC and NCUA respectively. Should you choose to terminate your CD before it matures, you may likely be subject to a penalty, which varies by bank.

This story was originally featured on Fortune.com

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High-yield CD: A CD that offers a higher-than-average APY.

Jumbo CD: In exchange for a higher interest rate, these CDs require higher minimum deposits than standard CDs—usually $100,000 or higher.

Bump-up CD: When interest rates increase, a bump-up CD gives account holders the option to increase their CD’s APY as their account continues to mature.

Add-on CD: These CDs give you the option to deposit additional funds in your CD after you’ve made your initial deposit.

No-penalty CD: These CDs won’t charge you a penalty for withdrawing funds before your CD matures.

One-year term (50%): This number represents the real rate of return on your balance; the higher the APY, the better.

Minimum deposit requirement (20%): In order to open a CD at any financial institution, it will require that you deposit a minimum dollar amount.

Compound frequency (15%): Interest on deposit accounts like CDs can compound daily or monthly. The more frequency interest compounds on your CD, the better.

Customer service (5%): Top picks offer customers three ways to get in contact: chat support, by phone, or even email. Among the three options, we gave the phone support the most weight.

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