Best one-year CD rates pay 2.73%

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The top nationally available 12-month CD rate is currently 2.73% APY.

That's up since this time last year.

Indeed, we've seen shorter-term CDs mostly move north this year.

But they are still a far cry from the nearly 4.00% yields we saw on 1-year CDs pre-recession.

And in light of the Federal Reserve's recent decision to decrease its benchmark interest rate, CD rates could drop in the near future. We'll tell you what the Fed indicated about additional rate cuts in 2019.


The top national deals

The top spot on our list comes from one bank paying 2.73% APY with a $2,500 minimum deposit requirement — State Bank of India - Chicago.

In total, there are now 21 banks offering 2.25% APY or better on nationally available 12-month CDs.

Yet while rates are currently at some of the highest levels we've seen in nearly a decade, they're still historically low since drastically falling during the recession.

After plunging in the spring of 2011, the leading 12-month yield wavered between its post-recession low of 1.05% and 1.10% APY for all of 2012 and half of 2013.

Fast forward to 2019 and 21 banks are offering more than twice that post-recession low.

That makes it crucial to shop around for the best CD rates.

All of the deals below pay around two to three times the current national average of 1-year CDs, which is 0.91% APY.

TOP 12-MONTH CD RATES: Nationally Available Bank Deals


Bank APY Minimum Deposit
State Bank of India - Chicago 2.73% $2,500
ableBanking 2.60% $1,000
My eBanc 2.60% $1,500
Colorado Federal Savings Bank 2.60% $5,000
Merrick Bank 2.56% $25,000
Sallie Mae 2.55% $2,500
M.Y Safra Bank 2.51% $500
Comenity Direct 2.50% $1,500
Citizens Access  2.50% $5,000
State Bank of India - New York 2.52% $5,000
Synchrony Bank 2.50% $2,000
Ally Bank 2.50% $25,000
TIAA Bank 2.50% $5,000
First Internet Bank of Indiana 2.48% $1,000
Live Oak Bank 2.45% $2,500
Popular Direct 2.45% $10,000
Rising Bank 2.40% $1,000
Banesco USA 2.40% $1,500
Capital One 360 2.30% $0
PurePoint Financial  2.25% $10,000
BankPurely  2.25% $1,000


Earning more with local deals

Savers can often find better, or at least competitive, 1-year returns by turning to credit unions and community banks.

State Department Federal Credit Union, for instance, is offering 2.52% APY, just below our national leaders.

But for those who live in the right place or work for the right employer, it's possible to earn even more. That's why it pays to shop for rates locally.

On all of the deals below, eligibility requirements apply. Contact the bank or credit union directly to determine if you qualify for membership.

TOP REGIONAL 1-YEAR CDS: Credit Unions & Community Banks

Bank States Term (in months) APY
State Department Federal Credit Union Nationwide 12 2.52%
Idaho Central Credit Union Idaho, Nevada 12 2.45%
Alliant Credit Union Idaho, Nevada 12 2.40%
USAlliance Financial Credit Union Nationwide 15 2.30%
TFCU Nationwide 12 2.25%
Penfed Credit Union Nationwide 12 2.10%


Watching for a Fed impact

Average 1-year CD rates have been on the rise, but improvements have been slow, pushing to just 0.91% APY this July.

Of course, all of these rates are dismal compared to the 12-month average of 3.78% APY we saw before reckless mortgage lending plunged us into the Great Recession.

The dramatic descent in rates is a result of the Federal Reserve aiming to stave off a complete financial collapse by dropping interest rates to about zero in December 2008 — and keeping them anchored there for 7 years.

That dismal period ended with the Fed's rate-setting committee approving what was expected to be the first of several small increases in the federal funds rate.

But now rate cuts are back on the table in 2019. In its latest move, the Federal Reserve cut its benchmark rate by a quarter of a percentage point. And it left the door open for future cuts, writing in its post-meeting statement that “uncertainties about this outlook remain.”

So there's a chance that decreases could arrive in 2019 that would translate into lower bank returns down the line.

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