• A 1-year CD is simply a short-term certificate of deposit. Like other CDs, this financial product promises to provide investors with higher-than-normal interest rates, provided that they keep the money in the CD for its entire term.
• The Best 1 Year CD Rates (Certificate of Deposit). Compare the Best 1 Year CD Rates (Certificate of Deposit). FDIC insured Banks. Highest APY Interest Rate. Highest Yield CD Rates. Review the Top High Yield Certificate of Deposit rates Android Text Messages from PC. SMS from your computer. Best Audio Podcast Clips (PodClips) Best CD rates.

Right now, the best 1-year CD rates are at least 0.50%. You can snag a higher APY with longer CD terms, but 1-year CDs have their perks. You can renew a 1-year CD for a higher APY if rates are up. 1-year cd 2-year cd 3-year cd 4-year cd 5-year cd; apy. 0.63%. 0.75%. 0.85%. 0.85%. 0.90%. interest rate: 0.63%: 0.75%: 0.85%: 0.85%: 0.90%: open 1-year cd. Best 1-year CD from a National bank: Paramount Bank — 0.50% APY, $1,000 minimum deposit required. Paramount Bank offers an array of CDs, including a competitive 1-year CD that boasts a rate of 0.50% APY. There is a minimum deposit of $1,000 required for this account, and interest is paid to your account on a monthly basis.

Certificates of deposit, or CDs, are powerful, interest-bearing investments that reward investors for leaving cash untouched for a fixed period of time. A CD calculator can help you to know how much you can expect to make on your investment and how much to invest to reach your financial goal.

How to calculate CD earnings

Using a CD calculator is simple. Input the basic information about the CD option you're looking at, and click the calculate button. The information you'll need is your initial deposit size, how long the CD is invested for and the APY rate offered.

You can compare different scenarios by changing out these numbers to see the effects it will have on your total ending balance, interest earnings, total earnings and how that matches up against the current national average.

• Initial deposit: The amount of money you initially invest in your CD
• Period (months and years): The time period that your CD is for. This is the period of time you're expected to leave your funds untouched to get maximum gains.
• APY: The annual percentage yield (APY) is the percentage rate of return you'll see over the course of one year. APY, as opposed to the interest rate, does take into account the effects of compound interest.
• Total balance: The amount you should have available for withdrawal at the end of your CD investment term.
• Interest earnings: The portion of your earnings that come from interest
• Your earnings: The total earnings you'll see at the end of your CD term, including interest and the effects of compounding
• National average: The amount you would earn with a CD that mirrored the current national average rate of return

Why use a CD calculator

As long as you're getting a CD through a trusted banking partner that is FDIC insured or NCUA insured, the major difference between options will be the rate of return. CD calculators allow you to quickly determine how much you're going to make with a particular CD option. If you're looking to meet a particular savings goal, a CD calculator lets you quickly change period lengths, deposit amounts and APY rates to find the right option.

How to pick the best CD provider

The first thing you should look for when selecting a CD provider is whether it is FDIC- or NCUA-insured or not. You will want to stick to investing in financial institutions that have government backing of the funds.

From there, you'll want to look at the APY rates to see where you might get the best return. Remember, APY rates will vary based on the term of the CD and also may vary based on the amount of money you have invested. Always take the time to compare the best CD rates to make sure that you're locking your money into the right account.

Lastly, make sure you look at the early withdrawal penalties. Not all institutions assess the same penalties. Ideally, you'll keep the money in the CD until maturity, but it's good to know what will happen if you find a sudden need for the money.

What happens if you withdraw early

Unless you're taking advantage of a no-penalty CD like the ones offered through Ally Bank, you will incur an interest penalty if you withdraw your funds early. The idea of a CD is that the bank knows it can use your funds for different operations during the fixed period. When you withdraw early, the bank will assess a penalty because of this.

Different financial institutions will have different withdrawal penalties. For example, Alliant Credit Union will take back the interest earned up to 120 days for a CD that is open 18 to 23 months. Ally Bank will only take up to 60 days of interest for CDs 24 months or less. Keep in mind that the bank or credit union won't take any of your initial deposit as a penalty.

Yields generally aren’t as high as they were almost a year ago, but it’s still possible to find a competitive interest rate. One way to do that is to shop around and look at the yields tied to the share certificates offered by credit unions.

The average 1-year CD yield was 0.20 percent annual percentage yields (APY), according to Bankrate's weekly survey of institutions on Feb. 24, 2021.

1 Year Cd Usaa

Pros and cons of credit union CDs

Brick-and-mortar banks can be pretty stingy when it comes to paying out interest to customers with savings accounts. In many cases, their CD rates aren't impressive either.

Credit unions are member-owned institutions. That means they're always looking out for their customers. It's not hard to find a credit union offering competitive rates tied to CDs (or, as credit unions often call them, “share certificates”).

The drawback? You may not have access to a credit union share certificate if you cannot qualify for membership. While there are many credit unions that are easy to join, there are still institutions that have restrictions based on where you live or work, or the group you’re affiliated with.

Even if you can become a credit union member and apply for a share certificate, you may forget about this account if you have multiple accounts at different banks or you have no other ties to the credit union. If you’re not careful, your CD could automatically renew, forcing you to keep money locked up for a longer period of time than anticipated. That could cause problems if you need money you’ve saved to cover an emergency or make an important purchase.

Here are some credit unions offering today’s best widely available 1-year CD rates.

Best 1-year credit union CD rates - February 2021

• Delta Community Credit Union: 0.80% APY, $1,000 minimum deposit
• Navy Federal Credit Union: 0.55% APY, $1,000 minimum deposit
• Golden 1 Credit Union: 0.50% APY, $500 minimum deposit
• Alliant Credit Union: 0.50% APY, $1,000 minimum deposit
• SchoolsFirst Federal Credit Union: 0.50% APY, $20,000 minimum deposit for this APY
• Bethpage Federal Credit Union: 0.45% APY, $50 minimum deposit
• VyStar Credit Union: 0.45% APY, $500 minimum deposit
• Pentagon Federal Credit Union: 0.45% APY, $1,000 minimum deposit
• Randolph-Brooks Federal Credit Union: 0.45% APY, $1,000 minimum deposit

Note: The APYs (Annual Percentage Yields) shown are as of Feb. 26, 2021. Bankrate's editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated.

Delta Community Credit Union: 0.80% APY, $1,000 minimum deposit

Delta Community Credit Union began as the Delta Employees Credit Union in 1940. It was started by eight Delta Air Lines employees. Delta Community Credit Union has more than 430,000 members and has 29 branches in metro Atlanta and three branches outside of Georgia.

• What it pays: 0.80 percent APY
• Membership restrictions: Anyone living or working in metro Atlanta and employees of more than 150 businesses are welcome at Delta Community Credit Union. Delta Air Lines, Chick-fil-A and UPS are some of the eligible businesses.
• Minimum deposit: $1,000
• Early withdrawal penalty: 90 days of interest

Navy Federal Credit Union: 0.55% APY, $1,000 minimum deposit

Navy Federal Credit Union has more than 9 million members and is the world's largest credit union. It has a global network of 340 branches. Navy Federal Credit Union has its headquarters in Vienna, Virginia.

In addition to CDs, Navy Federal Credit Union also offers checking and savings accounts, loans and credit cards.

• What it pays: 0.55 percent APY
• Membership restrictions: Membership at Navy Federal Credit Union is open to all Department of Defense and Coast Guard Active Duty, civilian, contract personnel, veterans and their families.
• Minimum deposit: $1,000
• Early withdrawal penalty: The lesser of all dividends for 90 days on the amount that you withdraw or all of the dividends withdrawn since the certificate was issued or renewed.

Golden 1 Credit Union: 0.50% APY, $500 minimum deposit

Golden 1 Credit Union has been around since 1933. It has 1 million members and more than 70 branches in California.

• What it pays: 0.50 percent APY
• Membership restrictions: You must live or work in California and open a savings account at Golden 1 Credit Union with at least $1.
• Minimum deposit: $500
• Early withdrawal penalty: CD terms of one year through 23 months will incur a 180-day early withdrawal penalty. A CD with a term of two years or longer has an early withdrawal penalty of 365 days of dividends. A CD with a term between three months and 11 months has an early withdrawal penalty of 90 days of dividends.

Alliant Credit Union: 0.50% APY, $1,000 minimum deposit

In 1935, what's now Alliant Credit Union was founded as the United Airlines Employees' Credit Union. Alliant currently has more than 500,000 members nationwide.

Alliant offers competitive APYs with low minimum balance requirements for CDs. Alliant also has traditional individual retirement account (IRA) CDs, Roth IRA CDs and SEP IRA CDs.

• What it pays: 0.50 percent APY
• Membership restrictions: Current employees or those who are retired from a business that partners with Alliant Credit Union may be eligible to join the credit union. You may also be able to join by belonging to an organization that Alliant Credit Union partners with. You can also qualify to join Alliant Credit Union if you live or are employed in a community near its Chicago headquarters. If those circumstances don't apply to you, you can make a one-time $5 payment and Alliant Credit Union will donate that money to Foster Care to Success so you can become an Alliant Credit Union member.
• Minimum deposit: $1,000
• Early withdrawal penalty: Dividends on the number of days the CD is open, up to 90 days.

SchoolsFirst Federal Credit Union: 0.50% APY, $20,000 minimum deposit for this APY

SchoolsFirst Federal Credit Union was formed during the Great Depression in 1934. Created by school employees, the credit union has 50 branches. SchoolsFirst FCU has low minimum balances and CD terms from 30 days to five years. The more money you put in your CD, the higher the APY. CDs at this credit union have four balance tiers: $500, $20,000, $50,000 or $100,000.

• What it pays: 0.50 percent APY
• Membership restrictions: SchoolsFirst FCU serves the California educational community. Certain school employees, certain retired school employees and immediate family members of existing SchoolsFirst FCU members may be able to join.
• Minimum deposit: $20,000 for this APY
• Early withdrawal penalty: 90 days of dividends.

Bethpage Federal Credit Union: 0.45% APY, $50 minimum deposit

Bethpage Federal Credit Union is one of the largest credit unions in the United States, with over 300,000 members. It opened in 1941 for Grumman employees. Anyone who opens a $5 savings account can become a member.

Bethpage offers nine terms of CDs, ranging from three months to five years, and one 39-month Bump-Up CD.

• What it pays: 0.45 percent APY
• Membership restrictions: Bethpage FCU membership is open to anyone who opens a savings account with $5.
• Minimum deposit: $50
• Early withdrawal penalty: On a one-year CD, 90 days of interest; on longer-term CDs, 180 days of interest.

VyStar Credit Union: 0.45% APY, $500 minimum deposit

Headquartered in Jacksonville, Florida, VyStar Credit Union (formerly Jax Navy Federal CU) has more than 735,000 members and is one of the largest financial institutions in northeast Florida.

VyStar offers share certificates ranging from three months to five years, with a $500 minimum deposit to open. It also offers an 18-month step-up certificate that lets you deposit more money and “step up” your rate.

• What it pays: 0.45 percent APY
• Membership restrictions: VyStar membership is people who live or work in 49 Florida counties and 10 Georgia counties.
• Minimum deposit: $500
• Early withdrawal penalty: 180 days of dividends

Pentagon Federal Credit Union: 0.45% APY, $1,000 minimum deposit

Pentagon Federal Credit Union (PenFed) was established in 1935. It has more than 2 million members and has its main office in McLean, Virginia.

PenFed has nine terms of CDs. They range from a six-month CD to a seven-year CD.

• What it pays: 0.45 percent APY
• Membership restrictions: Everyone is eligible to apply for PenFed membership. All that is needed is to open and maintain a savings account with at least $5 in it. Some products may require military affiliation to receive certain benefits of the product.
• Minimum deposit: $1,000
• Early withdrawal penalty: The last 365 days of dividends earned when you make a withdrawal within 365 days from the date the CD was opened.

Randolph-Brooks Federal Credit Union: 0.45% APY, $1,000 minimum deposit

Randolph-Brooks Federal Credit Union has more than 55 branches. It has at least one location in the Texas cities of Austin, Corpus Christi and San Antonio.

Randolph-Brooks Federal Credit Union was established in 1952 and has its headquarters in Live Oak, Texas.

Besides its CDs, the institution offers a Really Free Checking account that doesn't require a minimum balance or charge a monthly fee.

• What it pays: 0.45 percent APY
• Membership restrictions: Where you live, attend school, work or worship are some of the more than 3,500 ways to become a member at Randolph-Brooks Federal Credit Union.
• Minimum deposit: $1,000
• Early withdrawal penalty: 60 days of interest
• What it pays: 0.45 percent APY
• Membership restrictions: Bethpage FCU membership is open to anyone who opens a savings account with $5
• Minimum deposit: $50
• Early withdrawal penalty: On a one-year CD, 90 days of interest; on longer-term CDs, 180 days of interest.

1 Year Cd's

Read the fine print

1 Year Cd Calculator

Before signing up for any bank account, it's important to understand the terms and conditions. With share certificates - and CDs across the board - there's typically a penalty for early withdrawal. By pulling money out of your share certificate (or CD) before it matures, you'll likely forfeit some of the interest you've earned. Consequences for early withdrawals vary from one credit union to the next and sometimes vary within a single credit union for share certificates with different term lengths.

As long as the credit union you've chosen is federally insured by the National Credit Union Administration Share Insurance Fund, the money you've deposited in your share certificate will be safe. In the event that the credit union shuts down, you'll still walk away with your savings. Just keep in mind that there's a $250,000 threshold for single ownership accounts. Larger amounts won't be automatically insured.

Recap: Best 1-year credit union CD rates - February 2021

Highest 10 Year Cd Rates

Learn more about other CD terms: