Best 12-Month CD Rates – 4.60% APY (February 2023)

Certificates of deposit are a great way to lock in a high interest rate for a whole year.

When you have short term savings that you can’t put in higher yielding, and higher risk, accounts – a 12-month CD is often a great choice. They’re the cornerstone of a good savings plan and with a locked in rate, you can get predictability.

Interest rates are at the highest they’ve been in many years, so now is a great time to consider a 12-month CD.

Alternatively, if you don’t want to lock in a 12-month rate, you can consider no penalty CDs as an alternative. They just like regular CDs except you can close them for any reason without penalty – a great choice if you see higher rates.

Table of Contents
  1. Bellco Credit Union – 4.75% APY
  2. Great Lakes Credit Union – 4.60% APY
  3. BMO Harris – 4.50% APY
  4. American First Credit Union – 4.50% APY
  5. SkyOne FCU – 4.20% APY
  6. Capital One – 4.15% APY
  7. Barclays Bank – 4.25% APY
  8. Discover Bank – 4.25% APY
  9. Ally Bank – 4.25% APY
  10. Important Facts about 12-Month CDs
  11. Final Thoughts on 12-Month CDs
Bank NameCD Rate
Bellco Credit Union4.75% APY
(13-month)
Learn more
Great Lakes Credit Union4.60% APYLearn more
BMO Harris4.50% APYLearn more
American First Credit Union4.50% APYLearn more
SkyOne FCU4.20% APYLearn more
Capital One4.25% APYLearn more
Barclays Bank4.25% APYLearn more
Discover Bank4.25% APYLearn more
Ally Bank4.25% APYLearn more

Some of the offers on this list are with credit unions and banks that work with the SaveBetter platform. With SaveBetter, you open an account with SaveBetter and get the higher rate through them. Your account is managed through SaveBetter but the funds are still at the bank and get FDIC insurance. You don’t get an account number at the bank though, it’s all grouped together with other SaveBetter customers, but it’s still insured and protected. The benefit is that you get higher rates and can easily move it between partner banks to get even higher rates. SaveBetter negotiates these higher rates because they can get deposits for the bank much cheaper than their own marketing efforts.

Click here to learn more about how SaveBetter works.

Bellco Credit Union – 4.75% APY

Colorado-based Bellco Credit Union has a 13-month term (so only a little longer than 12 months) with a slightly higher yield of 4.75% APY. I put them on the list because their rate is higher for a term that’s really close to a year. This offer is through SaveBetter.

As a credit union, it is federally insured by the National Credit Union Administration.

There is a $1 minimum to open and interest is compounded daily but credited on the last calendar day of each month. The early withdrawal penalty on this CD is 90 days simple interest.

👉 Learn more about this offer

Great Lakes Credit Union – 4.60% APY

Great Lakes Credit Union Logo

Great Lakes Credit Union is a credit union in northern Illinois and they currently have the highest interest rate on a 12-month CD at 4.60% APY. This rate is only available through SaveBetter, you can’t get this rate if you go to their website directly. (as a reminder, here is how SaveBetter works)

As a credit union, it is federally insured by the National Credit Union Administration.

There is a $1 minimum to open and interest is compounded daily but credited on the last calendar day of each month. The early withdrawal penalty on this CD is 90 days simple interest.

👉 Learn more about this offer

BMO Harris – 4.50% APY

BMO Harris Logo

BMO Harris is a bank based out of Chicago with a presence in eight states but they have over 500 branches. They offer a great bank bonus on their accounts but their CDs are very competitive, get 4.50% APY on the 12-month CD. Their CDs do have a minimum deposit of $1,000.

The approach here is to take advantage of BMO Harris’ checking and savings account bonuses and get up to $350 in cash for satisfying a few conditions. Then get their CD and the higher rate.

👉 Learn more about this offer

American First Credit Union – 4.50% APY

American First Credit Union Logo

American First Credit Union is a smaller credit union with four branches in the Los Angeles, CA area. Their 12-month CD is offering an impressive yield of 4.50% APY.

As a credit union, it is federally insured by the National Credit Union Administration.

There is a $1 minimum to open and interest is compounded daily but credited on the last calendar day of each month. The early withdrawal penalty on this CD is 90 days simple interest.

👉 Learn more about this offer

SkyOne FCU – 4.20% APY

SkyOne Federal Credit Union logo

SkyOne Federal Credit Union is headquartered in Hawthorne, California and founded in 1949. SkyOne has consistently had some of the highest rates we’ve seen on certificates of deposit so it’s no surprise to see them on this list for their 12-month CD currently yielding 4.20% APY. This rate is available through SaveBetter.

As a credit union, it is federally insured by the National Credit Union Administration.

There is a $1 minimum to open and interest is compounded daily but credited on the last calendar day of each month. The early withdrawal penalty on this CD is 90 days simple interest.

👉 Learn more about this offer

Capital One – 4.15% APY

Capital One Logo

Capital One is our first large national bank and they offer everything you could need from a bank – checking, savings, CDs, money market, credit cards, you name it. They got into online banking years ago when they acquired ING Direct and they’ve continued to lead the way in terms of interest rates ever since.

Their 12-month CD currently offers 4.15% APY with no minimum balance and you can even pick how often the interest is paid out (end of term, monthly, or annually). Much like other banks on this list, the early withdrawal penalty is 3 months of interest.

They offer great rates on other deposit products too. For example, their savings account currently yields 3.40% APY.

They are FDIC insured.

Barclays Bank – 4.25% APY

Barclays Logo

Barclays Bank is an international bank with headquarters in London but a sizable U.S. operation that includes many deposit products like savings and certificates of deposit. While they don’t offer a no-penalty CD, their 12-month CD yields an impressive 4.25% APY.

What’s nice about Barclays is that their savings account offers a great yield too – 3.40% APY!

They are FDIC insured and the CDs have no minimum to open. The early withdrawal penalty on a 12-month CD is 90 days of simple interest.

👉 Learn more about this offer

Discover Bank – 4.25% APY

Discover Bank Logo

Discover Bank is probably a familiar name to you and they have a whole suite of online banking options that are very attractive. First, make sure you read up on the Discover Bank bonus for new customers.

Next, if you are looking for a 12-month CD, they’re currently offering one with a yield of 4.25% APY. As a a bank, the are insured by the Federal Deposit Insurance Corporation.

The CD has no minimum deposit required, no monthly fees, and the early withdrawal penalty is 3 months of simple interest.

👉 Learn more about this offer

Ally Bank – 4.25% APY

Ally Bank Logo

Ally Bank is an online bank (and it’s the one I use as my primary online bank) and they have a 12-month CD currently offering 4.25% APY. You can also get pretty solid rates on checking and savings accounts too – it’s one of the reasons why I use them as my main bank.

As a a bank, the are insured by the Federal Deposit Insurance Corporation.

Their CDs have no minimum deposit to open and the early withdrawal penalty is only 60 days of interest.

👉 Learn more about this offer

Important Facts about 12-Month CDs

Before you open a 12-month CD from a bank, you’ll want to research these terms about each one before you open an account:

  • Early withdrawal terms and penalty – Each bank’s early withdrawal terms are different. Almost all of them will assess some kind of penalty, usually 90 days or 3 months of interest, but there are some that charge slightly less (like Ally).
  • Minimum deposit – Many online banks will let you open a CD with just $1 but some will require more. It’s important to know this because you can open multiple CDs at a single bank. If the minimum is low, just open several small CDs so you can close them if you need to in case you need the money earlier.
  • Maximum deposit – Some CDs have a maximum deposit amount because they want to limit how much you can earn at the higher interest rate. This is rare.

Final Thoughts on 12-Month CDs

We aim to keep our 12-month CD rates as up to date as possible but always review the bank’s website to see the latest rates.

12-month CDs occupy that sweet spot where you can get a higher interest rate but lock up your funds for a short period of time. Many of the banks on our list will give higher rates for longer terms.

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About Jim Wang

Jim Wang is a forty-something father of four who is a frequent contributor to Forbes and Vanguard's Blog. He has also been fortunate to have appeared in the New York Times, Baltimore Sun, Entrepreneur, and Marketplace Money.

Jim has a B.S. in Computer Science and Economics from Carnegie Mellon University, an M.S. in Information Technology - Software Engineering from Carnegie Mellon University, as well as a Masters in Business Administration from Johns Hopkins University. His approach to personal finance is that of an engineer, breaking down complex subjects into bite-sized easily understood concepts that you can use in your daily life.

One of his favorite tools (here's my treasure chest of tools,, everything I use) is Personal Capital, which enables him to manage his finances in just 15-minutes each month. They also offer financial planning, such as a Retirement Planning Tool that can tell you if you're on track to retire when you want. It's free.

He is also diversifying his investment portfolio by adding a little bit of real estate. But not rental homes, because he doesn't want a second job, it's diversified small investments in a few commercial properties and farms in Illinois, Louisiana, and California through AcreTrader.

Recently, he's invested in a few pieces of art on Masterworks too.

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Opinions expressed here are the author's alone, not those of any bank or financial institution. This content has not been reviewed, approved or otherwise endorsed by any of these entities.

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