Top 12-month APY Locked in for 12 months · FDIC insured Why lock in now: the Federal Reserve's target rate is currently 3.75%–4.00% ( source ). CD and savings rates track it closely — but unlike a variable savings account, a CD locks today's APY for the full term , so if the Fed cuts rates later, your yield is protected. What a 1-year CD would earn you Interest for a 12-month term at the listed APY. Early withdrawal forfeits some interest; APY assumes the balance stays to maturity. A certificate of deposit (CD) trades liquidity for a guaranteed higher yield: you commit to leaving your money in the account for a fixed term — here, 12 months — in exchange for a higher APY than a typical savings account. Top 1-year CDs currently pay 4.15% APY, locked in for the full term regardless of where the Fed moves rates. Below are our top picks for September 2026, ranked by APY among FDIC-insured banks accepting new accounts nationwide. APYs compiled from each bank's published rate pages and reputable rate trackers as of June 20, 2026. CD APYs lock in at the time of funding — the rate you see at open is the rate you get for the entire term. Get a heads-up when CD rates move One email a week when 12-month CD rates change meaningfully. Unsubscribe anytime. Frequently asked questions What is a certificate of deposit?

A CD is a time deposit at a bank. You commit funds for a fixed term (typically 3, 6, 12, 24, 36, or 60 months) and the bank pays a fixed APY for that term. Early withdrawal usually incurs a penalty of 3 to 12 months of interest. How does a CD compare to a high-yield savings account? HYSAs pay a variable rate and let you withdraw any time, but the rate can drop. CDs lock in a fixed APY for the full term — better in a falling-rate environment, worse if rates rise after you open. See our best HYSA ranking for the no-lock-in alternative. What's the early withdrawal penalty? Penalties vary by bank but are typically 3 months of interest on a 12-month CD. Check the disclosure before funding. Are CDs FDIC insured? Yes — CDs at FDIC-member banks are insured up to $250,000 per depositor, per institution, per ownership category, identical to checking and savings. If you're laddering large amounts, our FDIC insurance calculator shows how much is covered across your banks. Related on Branchspot Best high-yield savings accounts Best banks by state Glossary of banking terms