Best 12-Month CD Rates (2026)

The best 12-month CD rates right now

A certificate of deposit (CD) pays a fixed interest rate for a fixed term. With a 12-month CD, you deposit a set amount and agree not to touch it for a year; in exchange, the bank guarantees a rate that won't change for the entire term. That certainty is the whole point of a CD.

The table below shows the top 12-month CD rates as of September 16, 2026^[1]. The leader, EagleBank, pays 4.45% APY on a $1,000 minimum. Notice the gap between these rates and the FDIC's national average of 1.73% for a 12-month CD^[3]: shopping around more than doubles the interest you earn.

How a 12-month CD works

A CD is essentially a loan you make to the bank. You agree to leave a fixed amount on deposit for a set term — 12 months here — and the bank pays a fixed APY for the whole period. Unlike a savings account, the rate doesn't float. If rates fall, your CD keeps its rate; if rates rise, you're locked at the old rate until maturity. That trade-off is what a CD is: certainty now in exchange for flexibility later.

When the 12 months are up, the CD reaches maturity. Most CDs then auto-renew into a new CD at whatever rate the bank is offering at that moment — often a less competitive one. Set a reminder a week or two before maturity so you can shop around and move the money instead of letting it roll over on autopilot.

CD vs. high-yield savings

A 12-month CD only makes sense for money you are sure you won't need for a year. If there's any chance you'll need the cash, a high-yield savings account is the better fit. The FDIC's national average for savings is just 0.37%^[3], but top online banks are paying roughly 4% or more with no lockup^[2] — close to the best CD rates, but with your money available anytime.

The practical rule: keep your emergency fund and short-term cash in savings, and put money with a specific future date — a house down payment next year, a tuition bill, a planned large purchase — in a CD. The fixed rate removes the guesswork about what you'll earn.

Rates have been sitting near recent highs after the Federal Reserve raised its target range by 25 basis points in September 2026^[4]. Locking a rate now means you keep earning it even if the Fed later cuts, which is the main argument for choosing a CD over a floating savings rate when you don't need the money immediately.

Early withdrawal penalties

If you take money out before the 12 months are up, you'll pay an early withdrawal penalty. Banks typically charge a penalty equal to several months of interest — often around three months for a 12-month CD, though the exact amount varies by institution. Because the penalty is usually deducted from the interest you've earned, withdrawing early in the term can leave you with less than you deposited.

Some banks offer "no-penalty" CDs that let you withdraw without a fee, but they almost always pay a lower rate than the best standard CDs^[2]. Before opening, read the account's specific penalty terms — they're buried in the fine print, and they're the main reason a CD isn't for money you might need soon.

FAQ

Is a 12-month CD a good idea right now?

For money you won't need for a year and want a guaranteed return, yes. The best 12-month CDs pay around 4.45% APY^[1], far above the 1.73% national average^[3]. The main cost is illiquidity: you'll face a penalty for early withdrawal.

How much do I need to open a 12-month CD?

It varies widely. Several top-rate CDs open with as little as $500 (USAlliance Financial, DR Bank, CFG Bank), while Popular Direct requires $10,000^[1]. Many of the best rates are available at modest minimums, so a low balance doesn't lock you out of a top rate.

What happens when my CD matures?

Most CDs auto-renew into a new CD at the then-current rate unless you instruct the bank otherwise. Set a reminder before maturity so you can compare rates and decide whether to renew, move the money, or withdraw it.

Are CDs safe?

If the bank is an FDIC member, your deposits — including CDs — are insured up to $250,000 per depositor, per bank, per ownership category^[3]. That protection covers both principal and interest if the bank fails.