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If inflation and rising interest rates have hurt your wallet, there’s a clever way to take revenge: You can use record-high interest rates to get the most return for your savings. Right now, one of the best ways to do that is with a short-term certificate of deposit (CD).
In 2020, you would’ve earned a measly 0.16% annual percentage yield (APY) on a 1-year CD. Today, you can earn up to 31 times more if you find a CD with a rate that tops 5% APY. And we’ve found 10 banks that fit the bill.
The catch? A simple commitment to lock up your cash for a full year, otherwise you could face hefty early withdrawal penalties.
And no matter how much you have to save, there’s a CD on this list that could fit. With minimum deposit requirements starting at $0, you’re running out of excuses for missing out on these top-notch rates.
The highest CD rates on 12-month certificates today*
- Connexus Credit Union: 5.61% APY
- Merrick Bank: 5.60% APY
- Colorado Federal Savings Bank: 5.55% APY
- Limelight Bank: 5.50% APY
- LendingClub: 5.50% APY
- Popular Direct: 5.50% APY
- Rising Bank: 5.50% APY
- Bread Savings: 5.50% APY
- MYSB Direct: 5.41% APY
- BMO Alto: 5.40% APY
*Rates are current as of September 6, 2023, and are subject to change. All banks and credit unions are FDIC or NCUA insured, respectively.
10 banks with 1-year CDs paying 5.40% APY and higher
1. Connexus Credit Union–5.61% APY
About
Connexus is a Wisconsin-based credit union offering various banking products, including checking accounts, CDs, and money market accounts.
| Key numbers | |
| 1-year certificate | 5.61% APY |
| Minimum opening deposit | $5,000 |
2. Merrick Bank–5.60% APY
About
Merrick Bank was founded in 1997. It’s primarily known as a credit card issuer but offers CDs with terms ranging from three to 60 months.
| Key numbers | |
| 1-year CD | 5.60% APY |
| Minimum opening deposit | $25,000 |
3. Colorado Federal Savings Bank–5.55% APY
About
Colorado Federal Savings Bank was founded in 1990 and offers two savings account options: CDs and high-yield savings accounts.
| Key numbers | |
| 1-year CD | 5.55% APY |
| Minimum opening deposit | $5,000 |
4. Limelight Bank–5.50% APY
About
Limelight Bank is an online banking division of Capital Community Bank, a Utah-based bank. Limelight offers just one banking product, CDs, with term lengths ranging from six to 36 months.
| Key numbers | |
| 1-year CD | 5.50% APY |
| Minimum opening deposit | $1,000 |
5. LendingClub–5.50% APY
About
LendingClub was founded in 2007 and provides both commercial and personal banking and lending products like personal loans.
| Key numbers | |
| 1-year CD | 5.50% APY |
| Minimum opening deposit | $2,500 |
6. Popular Direct–5.50% APY
About
Popular Direct is an online division of Popular Bank, one of the largest banks in the U.S. Currently, it offers a high-yield savings account and CDs with term lengths ranging from three to 60 months.
| Key numbers | |
| 1-year CD | 5.50% APY |
| Minimum opening deposit | $10,000 |
7. Rising Bank–5.50% APY
About
Founded in 2018, Rising Bank is an online banking division of Midwest Bank Centre and offers high-yield savings accounts, checking accounts, mortgages, CDs, and more.
| Key numbers | |
| 1-year CD | 5.50% APY |
| Minimum opening deposit | $100 |
8. Bread Savings–5.50% APY
About
Bread Savings, a part of Bread Financial and formerly called Comenity Direct Bank, is an online bank offering a high-yield savings account and CDs with terms ranging from one to five years.
| Key numbers | |
| 1-year CD | 5.50% APY |
| Minimum opening deposit | $1,500 |
| Monthly fee | $0 |
9. MYSB Direct–5.41% APY
About
MYSB Direct, a.k.a. M.Y. Safra Bank, is headquartered in New York City and operates a single branch there. Its products include personal checking and savings accounts, lending services, cash management services, and more.
| Key numbers | |
| 1-year CD | 5.41% |
| Minimum opening deposit | $500 |
10. BMO Alto–5.40% APY
About
BMO Alto is an online banking division of BMO Financial, one of the largest banks in the U.S. Currently, BMO Alto offers just two products: a high-yield savings account and CDs ranging from six months to five years.
| Key numbers | |
| 1-year CD | 5.40% APY |
| Minimum opening deposit | $0 |
Where to find more outstanding CD rates
If you’re willing to commit your cash for a full year, a one-year CD can be a risk-free investment option. But 12-month terms aren’t your only option. You could build a CD ladder with the highest CD rates today across all terms—and by doing so, you can lock in great rates for years to come.
So if you’re looking for more great rates, we’ve got your back again. We’ve done the legwork and found the highest CD rates today for the following terms:
