The Best 12 Month CD Rates
The top nationally available one year CD rates currently average 2.45% APY. That’s up more than a full percentage point since this time last year.
It’s unclear whether we’ll see more upward movement for 12-month CDs, given the Federal Reserve’s discussion of decreasing its benchmark interest rate this year. We’ll tell you what the Fed indicated about potential rate cuts in 2019.
The Top National One Year CD Rates
The top spot on our list comes from one bank paying 2.52% APY with a $5,000 minimum deposit requirement — SBI New York. In total, there are now 20 banks offering 2.25% APY or better on nationally available 12-month CDs.
While rates are creeping up, 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 20 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 three times the current national average of one year CDs, which is 0.99% APY.
Top 12 Month CD Rates: Nationally Available Bank Deals
|State Bank of India – Chicago||2.32%||$2,500|
|M.Y. Safra Bank||2.05%||$5000|
|Live Oak Bank||2.40%||$2,500|
|First Internet Bank of Indiana||2.32%||$1,000|
|State Bank of India – New York||2.52%||$5,000|
|Colorado Federal Savings Bank||2.35%||$5,000|
|Capital One 360||2.40%||$0|
Earning More with Local Deals
Savers can often find competitive 1-year returns by turning to credit unions and community banks. US Alliance Financial Credit Union, for instance, is offering 2.70% APY on slightly longer CD terms.
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 12 Month CDs: Credit Unions & Community Banks
|Bank||States||Term (in months)||APY|
|USAlliance Financial Credit Union||Nationwide||15||2.70%|
|PenFed Credit Union||Nationwide||12||1.80%|
|Idaho Central Credit Union||Idaho, Nevada||12||2.15%|
Watch for a Fed Impact
Average 1-year CD rates have been on the rise, but improvements have been slow, finally pushing to just 2.45% APY this month.
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.
That dramatic descent in rates was 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.
Rate cuts could be back on the table in 2019. There are a growing number of officials on the Fed’s policy making committee expecting to lower rates before the year is up.
Disclaimer: The rates above were verified in September 2019. Credit unions and banks should be contacted directly to determine eligibility for opening accounts with that institution, as well as to verify current rates.