Best 1-Year CD Rates Today: April 2026 — Earn Up to 4.10% APY 

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If you’ve been sitting on cash in a regular savings account earning next to nothing, a 1-year certificate of deposit might be the simplest upgrade you can make right now. You lock in your rate today, leave it alone for 12 months, and walk away with a guaranteed return — no market risk, no surprises.

The best 1-year CD rates right now are sitting at 4.10% APY, which is well above the national average savings account rate. We’ve done the legwork so you don’t have to — here are the top picks and what you need to know before you open one.

Today’s Best 1-Year CD Rates

Here’s a quick look at the top-earning 1-year CDs available right now, all FDIC-insured.

Where to get the best 1-year CD rate

Right now, E*TRADE from Morgan Stanley, Limelight Bank, and Pacific National Bank are all offering the strongest 12-month rate available: 4.10% APY. ETRADE stands out in particular because it has no minimum deposit requirement, meaning you can start earning that rate with whatever you have — no $1,000 threshold to hit first.

If you’re comparing options, think about how long you’re comfortable setting your money aside and how much the early withdrawal penalty would cost you if something came up. A CD that fits your timeline and deposit amount can be just as valuable as chasing the top number on paper — especially if you plan to reinvest when it matures and want flexibility to shop rates again at that point.

How Much Can You Earn on a 1-Year CD Right Now?

Your potential earnings for a one-year CD can be calculated if you know how much money you will initially deposit. This chart calculates how much you can earn on a one-year CD earning 4.00% APY with various deposit amounts: 

Is a 1-year CD right for you?

A 1-year CD works best when you have money you won’t need to touch for 12 months and want a guaranteed, fixed return. You give up instant access — the bank rewards you with a better rate in exchange.

Here’s how that looks: $10,000 at 4.10% APY earns roughly $410 over 12 months. That same $10,000 in a typical 0.5% savings account earns about $50. That’s a $360 difference for doing almost nothing differently.

A 1-year CD is a good fit if you:

• Have cash sitting idle that you won’t need for at least a year
• Want a predictable return with no market risk
• Are comfortable with your money being locked up until maturity

It’s probably not the right fit if you:

• Might need the money in an emergency — a high-yield savings account is better for that
• Want the potential for higher returns and are comfortable with investment risk
• Are unsure about your financial situation over the next 12 months

Consider CD laddering if you want more flexibility

Instead of locking everything into one CD, spread your money across multiple CDs with staggered maturity dates — for example, 3-month, 6-month, and 12-month. Money comes available regularly, you’re never fully locked out, and you can reinvest at current rates as each one matures.

How to compare CDs beyond the APY

It’s tempting to just pick the highest APY and call it a day — and honestly, for a simple 1-year CD, that’s not terrible logic. But a few details can make a real difference in how much you actually walk away with.

• Early withdrawal penalties These range from 60 to 365 days of interest depending on the bank. Break a CD too early and a steep penalty can eat into your principal, not just your earnings. If your finances might shift in the next year, prioritize a shorter penalty over a marginally better rate.
• Minimum deposit requirements Some CDs have no minimum; others require $1,000, $5,000, or $10,000 to open. Make sure you’re comparing options that are actually realistic for the amount you have to commit.
• Bank vs. credit union Both are federally insured up to $250,000 — FDIC for banks, NCUA for credit unions. The main practical difference is that credit unions often have membership eligibility requirements, so confirm you qualify before applying.
• What happens at maturity Most CDs auto-renew at whatever rate is current when yours expires — which may be higher or lower. Set a reminder about two weeks before your maturity date so you’re making an active choice, not getting defaulted into a rate you didn’t shop for.

One-Year CD Rate Movement Tracker

This chart shows how national average rates for one-year CDs have fluctuated recently, using data from the FDIC.

Are 1-Year CD Rates Going Up or Down?

The one-year CD rate slightly declined in 2025, and will likely continue to see drops in the future. That said, there have been some fluctuations, likely due to economic uncertainty.

CD rates go up or down because they are affected by the Federal Reserve’s decisions. CD rates rise when the Fed raises rates, and decline when the Fed starts cutting rates. 

CD rates were very low during the COVID-19 pandemic, but rose significantly in 2022 and 2023 as the Fed raised rates to address inflation. When you look at historical CD rates, some banks even paid up to 5% APY for CDs during this time.

The Fed has been working toward lowering inflation to 2% while maintaining maximum employment and stable prices. In 2024 and 2025, the federal funds rate has been maintained for long periods of time, with interspersed rate cuts based on analysis of economic conditions.

Should You Open a 1-Year CD Today?

The best 1-year CD rates are likely to decline as overall interest rates decline, so now is a good time to lock in a rate. 

A 12-month CD is a great solution for savers who want to lock in a relatively high rate for the short term. If you are confident you won’t need access to the funds, then a one-year CD could be the right choice. 

But if you might need access to the funds, then the inflexible nature of a CD might make it a less-than-ideal choice for your situation. If you prefer more flexibility than a CD can offer, consider a high-yield savings account, a money market account or a T-bill instead. One option is to withhold your emergency fund in an accessible savings account and pour extra savings into a CD to tap into higher rates.

Compare CD Rates

• Best 3-Month CD Rates
• Best 6-Month CD Rates
• Best 1-Year CD Rates
• Best 5-Year CD Rates
• Best No-Penalty CD Rates
• Best Jumbo CD Rates
• Best No-Penalty CD Rates
• Best CDs With No Minimum Deposit Requirement
• Best CD Accounts

Melanie Grafil, Daria Uhlig, Karen Doyle, Sarah Sharkey and Cynthia Measom contributed to the reporting for this article.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of April 21, 2026.

*Capital One interest rates accurate as of 4/24/2026. See website for all current rates.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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