Best 1-year CD rates of November 2025 (Up to 4.10%)

What is a 1-year CD?

Having a one-year CD means that your savings will be tied up for 12 months. Generally, you won’t be able to access your funds during that period of time without incurring an early withdrawal penalty. In exchange, you’ll earn a higher yield than you would from a standard savings account or money market account.

How do 12-month CD rates work?

At competitive online banks, CD rates will generally follow changes in Treasury yields. They might also follow other factors such as the rates set by competitors and the bank’s need for deposits. 

In the current rate environment, 12-month CDs are one of the more competitive terms for high yields at some banks.

Some banks have a 10-day best-rate guarantee, meaning you could end up with a better rate if the bank raises theirs within days of your decision to open and fund your account. But generally, once you open and fund a fixed-rate CD, you’re locked in with that APY until your term ends. Over time, the bank may raise or lower the advertised rate for new account holders, but your rate will remain the same.

You’ll find that some institutions offer step-up CDs that allow rates to change either upon request or at certain intervals during the term. Rates for these CDs, however, tend to be lower than those tied to fixed-rate CDs.

When reviewing CD rates, pay close attention to the Compound interest is the interest you earn on interest.

To find the best one-year CD for you, shop around for a high yield. As of November 12, 2025, the national average APY for one-year CDs is 1.95 percent, which is significantly lower than the top yields.

Also, make sure the CD you choose is with a federally insured institution and that your deposits are within the stated insurance limits and guidelines. Banks can be insured through the Federal Deposit Insurance Corp., while credit unions can be insured through the National Credit Union Administration (NCUA).

In addition to a high yield and federal insurance, consider these factors when looking for a one-year CD:

• Minimum deposit requirements: There are online banks that have no minimum deposit requirements to open a CD, and others that might require $10,000. Find a minimum that works for you.
• Early withdrawal penalties: Though ideally you only put money in a CD that you can afford to sock away for the length of the term, you might find yourself needing to pull money out early. Familiarize yourself with the early withdrawal penalties for your CD term — they vary bank by bank and term by term.

When should you get a 1-year CD?

You should get a one-year CD if you have money that you’re not going to spend in the next 12 months. Anything you might need sooner is better off in one of the best high-yield savings accounts. A one-year CD is also a great place for funds that need to be kept safe — provided it’s a federally insured CD and has a fixed APY.

Money that you can risk losing might be better off in another type of investment. You might be able to earn a higher return in an investment, although you could also lose all of your money.

"With the Fed lowering rates recently, it could be a good time to lock in a one-year CD before APYs decrease further,” says Maggie Klokkenga, CFP, CPA and financial planner with Abundo Wealth. “Banks may be lowering their interest rates anywhere from a couple of days to a couple weeks after the Fed’s announcement, so definitely purchase that CD now if that was your intention.”