Best 12-Month CD Rates – 5.30% APY (April 2024)

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. Quontic Bank – 5.30% APY
  2. First Financial Northwest Bank – 4.90% APY
  3. BMO Bank – 5.25% APY
  4. Barclays Bank – 5.00% APY
  5. Discover® Bank – 4.70% APY
  6. Ally Bank – 4.50% APY
  7. Western Alliance Bank – 5.05% APY
  8. Important Facts about 12-Month CDs
  9. Final Thoughts on 12-Month CDs
Bank NameCD Rate
Quontic Bank5.30% APYLearn more
First Financial
Northwest Bank
4.90% APYLearn more
BMO Bank5.25% APYLearn more
Barclays Bank5.00% APYLearn more
Discover® Bank4.70% APYLearn more
Ally Bank4.50% APYLearn more
Western Alliance Bank5.05% APYLearn more

Some of the offers on this list are with credit unions and banks that work with the Raisin platform. (Raisin was previously known as SaveBetter) With Raisin, you open an account with Raisin and get the higher rate through them. Your account is managed through Raisin 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 Raisin 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. Raisin 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 Raisin works.

Quontic Bank – 5.30% APY

Quontic Bank is a a digital bank that is also a CDFI (Community Development Financial Institution, a US Department of Treasury certification), which means they look to use private and public funds to help economically disadvantaged communities. It’s a positive mission.

They offer a 12-month CD with a 5.30% APY, which is a great rate especially when you couple it with their savings account that offers 4.50% APY.

Interest compounds daily, there are no monthly fees, and a $500 minimum balance.

👉 Learn more about this offer

First Financial Northwest Bank – 4.90% APY

First Financial Northwest Bank offers a 12-month certificate of deposit with a yield of 4.90% APY through the Raisin platform. The minimum deposit is just $1 and there are no maintenance fees. Interest is compounded daily and credited monthly.

First Financial Northwest Bank was founded in 1923 and headquartered in Renton, Washington. It’s publicly traded and is FDIC insured.

👉 Learn more about this offer

BMO Bank – 5.25% APY

BMO Harris Logo

BMO Bank 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 5.25% 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 Bank’s checking and savings account bonuses and get up to $400 in cash for satisfying a few conditions. Then get their CD and the higher rate.

👉 Learn more about this offer

Barclays Bank – 5.00% 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 5.00% APY.

What’s nice about Barclays is that their savings account offers a great yield too – 4.35% 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 – 4.70% 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 4.70% APY. As a a bank, the are insured by the Federal Deposit Insurance Corporation.

The CD has a $2,500 minimum deposit, no monthly fees, and the early withdrawal penalty is 3 months of simple interest.

👉 Learn more about this offer

Ally Bank – 4.50% 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 4.50% 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

Western Alliance Bank – 5.05% APY

Western Alliance Bank is a bank based out in Phoenix, Arizon and they have a fantastic 12-month CD offer that is currently second on our list – get 5.05% APY with a minimum deposit of just $1. This offer is available through Raisin and is it FDIC insured.

Western Alliance Bank is relatively new, having been founded in 1994, but they have assets close to $40 billion – so they are not small.

👉 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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