9 Best 12-Month CD Rates (February 2023)

Investing in a certificate of deposit (CD) is an excellent option for securing a high interest rate for an entire year.

This is particularly beneficial for those with short-term savings that they do not want to place in higher-risk, higher-yield accounts.

CDs offer a stable and predictable return and are a key component of a sound savings strategy.

With interest rates currently at historic highs, now is a prime time to consider a 12-month CD.

Here are the best 12-month CD rates:

Best 12-Month CD Rates

Some of the listed offers are provided by banks and credit unions partnering with SaveBetter, which allows you to benefit from higher interest rates.

Your funds are held by a participating bank and are FDIC insured, while account management and access is managed by SaveBetter. Your funds are grouped with other SaveBetter customers but remain fully insured.

The platform offers not only higher interest rates but also the convenience of easily switching between partner banks to find even better rates.

This is made possible through SaveBetter’s negotiation of higher rates on behalf of its customers, as it can secure deposits for banks more cheaply than the banks’ own marketing efforts.

1. Western Alliance Bank – 4.90% APY

Western Alliance Bank, headquartered in Phoenix, Arizona, is offering a remarkable 12-month CD deal through SaveBetter.

Currently, this deal is at the top of our list with a 4.90% APY and a minimum deposit requirement of only $1. This offer is FDIC insured, ensuring the safety of your funds.

Although Western Alliance Bank is relatively new, having been established in 1994, it has rapidly grown and now boasts assets of close to $40 billion, making it a well-established and financially sound institution.

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2. Sallie Mae – 4.40% APY

Sallie Mae offers a 14-month CD account (so just a bit longer than 12 months) with a competitive interest rate of 4.40% APY through SaveBetter.

One of the advantages of this account is the absence of early withdrawal penalties, allowing you to access your funds before the maturity date without incurring any additional fees or charges.

Additionally, this account has no additional fees and requires only a $1 minimum balance, making it accessible and convenient for a variety of customers.

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3. Great Lakes Credit Union – 4.60% APY

Great Lakes Credit Union, based in northern Illinois, is offering a highly attractive 12-month CD with an interest rate of 4.60% APY, the highest on the market. This rate is exclusively available through SaveBetter and cannot be obtained by visiting the credit union’s website directly.

As a credit union, Great Lakes is insured by the National Credit Union Administration, providing peace of mind for its members’ funds. With a minimum deposit requirement of just $1 and daily compounded interest, credited at the end of each month, this CD is a great option for those looking to grow their savings.

Additionally, it is important to note that the early withdrawal penalty on this CD is 90 days of simple interest, providing some flexibility in the event of an unexpected need for funds. So, if you are looking for a secure and high-yielding savings option, consider Great Lakes Credit Union’s 12-month CD through SaveBetter.

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4. SkyOne Federal Credit Union – 4.20% APY

Founded in 1949, SkyOne Federal Credit Union is headquartered in Hawthorne, California and has a long-standing reputation for offering some of the best rates in the market. This is evident in their current 12-month CD, which boasts a 4.20% APY and is available exclusively through SaveBetter.

As a credit union, SkyOne is insured by the National Credit Union Administration, ensuring the safety of its members’ funds. With a minimum deposit requirement of just $1 and daily compounded interest credited at the end of each month, this CD is an attractive option for those looking to grow their savings.

It is important to note that the early withdrawal penalty on this CD is 90 days of simple interest, allowing for some flexibility in the event of unexpected needs for funds. If you are in the market for a high-yielding savings option, consider SkyOne Federal Credit Union’s 12-month CD through SaveBetter.

5. Ally Bank – 4.25%

With a 4.25% APY interest rate for a 12-month CD and no minimum deposit, it’s not hard to see why Ally Bank made our list.

This bank is online-only but serves over 8.5 million customers. Ally Bank compounds your interest daily, and there’s a bonus APY if you renew your CD once the term is up. 

There’s no minimum deposit required to open your account, and you’ll always get the best rate we offer for your CD term with the Ally Ten Day Best Rate Guarantee. Your money grows with interest compounded daily.

7. American Express National Bank – 4.50% APY

AmEx is beloved by many, especially since they’ve been operating since 1950. This bank offers a 4.50% APY with no minimum deposit or fees.

The rates will depend on which terms you choose but range from six months to five years. Interest is paid out each month but compounded daily, making a CD from AmEx National Bank a smart short-term investment.

8. Capital One – 4.15% APY

As part of a long-term investment strategy, you can earn up to 4.15% APY with no minimum deposit with Capital One.

High-interest rates continue with Capital One. This bank has been public since 1994 and offers 4.15% APY on its 12-month CD.

There are no partial withdrawals. If you do pull your funds out early, you’ll pay a penalty of at least three months’ worth of dividends if your term is shorter than a year. This doubles to six months if your terms are longer.

Related: Capital One Promotions, Bonuses, and Offers

9. Discover  – 4.25% APY

To access the 4.25% APY rate from Discover, you’ll need to fund your new 12-month CD with at least $2,500 to start.

Discover also offers CDs starting at three months and extending to 10 years, but there’s no real advantage to going with 10 years over 5 years.

With no fees and the ability to set up a CD ladder, Discover offers comparable rates to other banks and credit unions on our list.

Final Words

In conclusion, certificates of deposit (CDs) are a popular savings option for those seeking stability and predictability.

The 12-month CD offered by Western Alliance Bank, Sallie Mae, Great Lakes Credit Union, and SkyOne Federal Credit Union, available through SaveBetter, are among the highest yielding in the market, offering rates of 4.90%, 4.60%, and 4.20% APY respectively.

As federally insured credit unions, these institutions provide the security of insured funds, while the minimum deposit requirements and daily compounded interest make these CDs accessible to a wide range of savers.

With early withdrawal penalties of 90 days of simple interest, these CDs offer a balance of stability and flexibility. If you are looking for a high-yielding savings option, consider these 12-month CDs offered through SaveBetter.