It’s interesting to note that most banks have held their 12-month CD rates steady, or even increased them, since the Fed rate cut. This is the opposite of what we have seen with savings accounts.
This may be the best time to lock in a guaranteed rate. If you want to earn predictable returns over the next year, these are the best CD rates available today.
💰 Today’s best 12-month CD rates At a glance
Here are today’s best savings accounts for banks and credit unions:
1. Credit one bank – Credit One Bank offers a jumbo CD with an APY of 4.05%, but it does require a minimum deposit of $100,000 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.
3. Seattlebank – Seattlebank currently offers a 12-month CD at 4.00% APY with a minimum deposit of just $1,000.
4. Live Oak Sofa – Live Oak Bank is currently offering a 12-month CD at 4.00% APY with a minimum of $2,500 to open. Read more about Live Oak Bank here.
5. Navy Federal Credit Union – Navy Federal CU currently offers a 12-month regular stock certificate with a $1,000 minimum at an APY of 3.75%. If you have $100,000, you can get the jumbo stock certificate for 3.80% APY. Read our full review of Navy Federal Credit Union here.
A full list of the best 12-month CDs can be found here >>
How 12-month CDs work
A 12-month certificate of deposit pays a fixed interest rate for one year in exchange for holding your money until maturity. If you withdraw early, the bank will charge a penalty – usually 90 days’ interest.
CDs are attractive to savers who prefer guaranteed short-term returns. While high-yield savings accounts offer flexibility, CDs can provide higher fixed returns over a period of time, which can be useful when interest rates are expected to decline.
For example, a $25,000 CD at a 4.00% APY would earn about $1,000 in one year, compared to about $420 based on the current national average 12-month CD rate.
What you need to know before opening a CD
Certificates of deposit work differently than savings accounts. Make sure you understand what you’re getting:
- Short-term goals: Ideal for saving for college tuition, a wedding, or a down payment on your home within a year.
- Rate protection: A CD locks in your APY, so you’re protected from interest rate cuts.
- Ladder Strategy: Combine a 12-month CD with longer terms (24 or 36 months) to achieve higher interest rates while maintaining liquidity.
- Safety:
FDIC or NCUA insurance protects up to $250,000 per depositor, per institution.
Please ensure you understand all terms and conditions before opening an account:
- Minimum deposit: Some banks require $1,000 or more to open.
- Conditions for withdrawal: Check the penalties before committing any money.
- Renewal Policy: Many CDs automatically renew at their expiration date unless you unsubscribe.
- Rate guarantees: Please confirm if your rate is locked at the time of application or financing.
- Online access: Make sure the bank allows easy transfers and electronic 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 across the country. We confirm each APY directly from official rate information and registration filings.
Only FDIC or NCUA insured institutions available to US consumers are included.
Our rankings are editorially independent; the compensation does not affect the placement. While we may earn a referral fee when you open an account through certain links, our reviews and recommendations are based solely on returns, accessibility, and overall customer experience.
Frequently asked questions
Are 12-month CDs safe?
Yes. CDs are federally insured up to $250,000 per depositor, per institution.
Can I withdraw my money earlier?
Yes, but you will lose part of the interest, usually three months’ worth.
Are CD Income Taxable?
Yes. Interest earned is subject to federal income tax and, in some states, state income tax.
What happens when a CD matures?
You normally have a grace period of seven to ten days to withdraw or roll over your funds.
Is Now a Good Time to Open a CD?
Interest rates remain near their cycle highs, so taking out a short-term CD may make sense before potential cuts.
#Todays #12month #rates #December