Best 1-Year CD Rates 2026, Top 10 Banks & Credit Unions Ranked
Quick take: 1-year CDs are the sweet spot for short-horizon cash you can lock down. As of September 25, 2026, the top of the national 1-year market is 4.35-4.50% APY (HAB Bank 4.50%, EagleBank 4.45%, per DepositAccounts). Among the big-name online banks, Barclays (4.25%), Sallie Mae (4.20%) and Ally (4.15%) lead. Below are the big names, ranked by their own published 12-month APY. If your horizon is 3+ years, scroll to "When to skip a 1-year CD entirely", the math usually points elsewhere.
| Bank / product | 12-month APY | Source, as of |
|---|---|---|
| HAB Bank 12 Month CD (top national) | 4.50%, $1.5K min | DepositAccounts, 9/25/2026 |
| EagleBank 12 Month CD | 4.45%, $1K min | DepositAccounts, 9/25/2026 |
| E*TRADE from Morgan Stanley 12 Month CD | 4.35%, $0 min | DepositAccounts, 9/25/2026 |
| Barclays Online CD | 4.25% | banking.us.barclays, APYs as of 9/11/2026 |
| Sallie Mae | 4.20% | salliemae.com, 9/24/2026 |
| Ally High Yield CD | 4.15% | ally.com, 9/24/2026 |
| Synchrony | 4.10% | synchrony.com, 9/24/2026 |
| Navy Federal Standard Certificate | 4.05% ($1K) / 4.10% ($100K) | navyfederal.org, 9/24/2026 |
| Capital One 360 | 4.00% (11-month 4.30%) | capitalone.com, 9/24/2026 |
| Marcus | 3.90% | marcus.com, captured 9/25/2026 |
| PenFed Money Market Certificate | 2.90% | penfed.org, effective 9/11/2026 |
| Citizens Access Online CD | 8-month only, 4.00% | citizensaccess.com, as of 7/28/2026 (bank's own date) |
For comparison: A-rated 5-year MYGAs topped out around 5.50-6.05% (public carrier rate sheets, October 14, 2026). Rates change often; confirm with the bank before you fund.
CD vs MYGA, after tax
What $100,000 earns in 3 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.65%, the best A-rated rate we track as of October 13, 2026: Athene MaxRate 3-year (AM Best A+), $100,000 and up, effective September 25, 2026 (Athene rate card).
| CD, interest taxed every year | $112,162 |
|---|---|
| MYGA, tax-deferred, before tax | $117,926 |
| MYGA after paying tax on all the interest at withdrawal | $113,982 |
| Tax deferral alone adds about | $170 |
| MYGA ahead of the CD, after tax | $1,820 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
The big-name banks and credit unions, at a glance
| # | Bank / Credit Union | APY | Min Deposit | Insurance | Early Withdrawal Penalty |
|---|---|---|---|---|---|
| 1 | Barclays Online CD | 4.25% | $0 | FDIC | 90 days interest |
| 2 | Sallie Mae Bank | 4.20% | $2,500 | FDIC | 90 days interest |
| 3 | Ally Bank High Yield CD | 4.15% | $0 | FDIC | 60 days interest |
| 4 | Synchrony Bank | 4.10% | $0 | FDIC | 90 days interest |
| 5 | Navy Federal Std. Cert. | 4.05% ($1K) / 4.10% ($100K) | $1,000 | NCUA | 90 days dividends |
| 6 | Capital One 360 CD | 4.00% | $0 | FDIC | 3 months interest |
| 7 | Marcus by Goldman Sachs | 3.90% | $500 | FDIC | 90 days interest |
| 8 | PenFed Money Market Cert. | 2.90% | $1,000 | NCUA | 365 days dividends (steep) |
| 9 | Citizens Access Online CD | no 12-month term listed (8-month 4.00%) | $5,000 | FDIC | 180 days interest |
12-month APYs from each bank's own site, checked September 24-25, 2026 (Barclays APYs as of 9/11/2026, PenFed effective 9/11/2026, Citizens Access as of 7/28/2026 per the bank). Discover no longer opens CDs: Discover Bank merged into Capital One on May 18, 2025. Bank-published direct CDs only. Brokered CDs (Fidelity, Schwab) are covered separately in Brokered CD vs Bank CD.
Rates expire like milk.
The best MYGA, CD and savings rates change every few weeks. Get a short email when a rate on this page changes.
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Methodology, how we ranked
The order above is primarily APY-driven, but ties are broken on these tie-breakers in order:
- Stated APY for fresh deposits on the 1-year term (not 11- or 13-month "special" terms).
- Lower minimum deposit: accessibility matters.
- Less punitive early-withdrawal penalty (Ally at 60 days is friendliest; PenFed at 365 days is brutal).
- Online application + ACH funding with no in-branch requirement.
- FDIC/NCUA-backed only. No uninsured "high-yield" deposits.
What we did NOT weight: signup bonuses, app star ratings, or relationship pricing. Those vary by customer and don't reflect what you'll actually earn on a single CD.
The big names in detail
1. Barclays Online CD, 4.25% APY
12-month APY as of 9/11/2026 on Barclays' US site (banking.us.barclays). $0 minimum to open. 90-day EWP. No checking account required. Full Barclays review →
2. Sallie Mae Bank, 4.20% APY
12-month APY (13-month also 4.20%; its 15-month pays 4.40%). $2,500 minimum locks out smaller savers. Sallie Mae is best known for student loans, but its FDIC bank arm offers competitive CDs and HYSA. No physical branches; online and phone only. Full Sallie Mae review →
3. Ally Bank, 4.15% APY
The most depositor-friendly early-withdrawal penalty on this list at 60 days of interest. $0 minimum. The 18-month pays 4.25%. Full Ally review →
4. Synchrony Bank, 4.10% APY
No minimum deposit. 12- and 13-month terms both pay 4.10%; the 16-month pays 4.30%. Synchrony Financial is publicly traded. Full Synchrony review →
5. Navy Federal Standard Certificate, 4.05% APY
4.05% at $1,000 and $20,000, 4.10% at $100,000+ (rates as of Sep 24, 2026). Members with Navy Federal checking and direct deposit can also open a 12-month Special EasyStart Certificate at 4.35% APY with $50 (max $3,000). Membership restricted to military, veterans, DoD employees, and family. NCUA insured. Full Navy Federal review →
6. Capital One 360 CD, 4.00% APY
$0 minimum. The 11-month term pays more (4.30%) than the 12-month. Capital One now also holds former Discover Bank deposits after the May 18, 2025 merger. FDIC insured (Capital One, N.A., cert #4297). Full Capital One 360 review →
7. Marcus by Goldman Sachs, 3.90% APY
Marcus prices its 12-month below its neighbors: the 9-month pays 4.30% and 18-month through 6-year terms pay 4.35%. $500 minimum. Goldman Sachs Bank USA, FDIC insured. Full Marcus review →
8. PenFed Money Market Certificate, 2.90% APY
1-year Money Market Certificate (effective 9/11/2026), $1,000 minimum; PenFed's 2- to 7-year certificates pay 3.20%. NCUA insured. Warning: the early withdrawal penalty on longer certificates is steep. Full PenFed review →
9. Citizens Access Online CD, no 12-month term listed
The bank's site currently advertises one CD: an 8-month Online CD at 4.00% APY with a $5,000 minimum (APY accurate as of 07/28/2026, per the bank). Online arm of Citizens Bank. Full Citizens Access review →
Discover Bank, no longer opens CDs
Discover Bank merged into Capital One on May 18, 2025, and Discover's CD pages now redirect to Capital One. See Capital One 360 above. Discover review →
1-year CD strategy, when this term actually fits
Fit #1: Emergency-plus cash
You already have 3-6 months of expenses in an HYSA. The next layer, money you "probably" won't touch for a year, is exactly what a 1-year CD is built for. On September 24-25, 2026, top 1-year CDs paid 4.35-4.50% APY versus about 3.00-4.00% on leading online savings accounts, so the pickup is roughly 0.35-1.50 points depending on the savings account you compare against.
Fit #2: Uncertain rate direction
The Fed raised its target range to 3.75-4.00% on September 16, 2026. If you think rates have peaked, a 1-year CD locks today's yield for 12 months. If you believe rates will keep rising, a 1-year CD lets you reinvest in 12 months at a higher rate without committing for 3-5 years. The 1-year is the natural hedge term.
Fit #3: Bridge to a better rate decision
You're holding $250K from a home sale or 401(k) rollover and haven't decided where it will end up. A 1-year CD parks it at the going rate (4.35-4.50% APY at the top of the market on September 25, 2026) while you decide. Better than HYSA, no commitment beyond 12 months.
Fit #4: Funding a known 12-month obligation
Tax bill due next April, tuition due in 11 months, planned home purchase in a year. Match the term to the date.
When to skip a 1-year CD entirely
The 1-year CD is a tactical short-term tool. For longer-horizon money, the math usually points away from CDs altogether. Three honest comparisons:
If your horizon is 3-5 years
A 1-year CD rolled twice exposes you to reinvestment risk: what's the rate in 2027 and 2028? You don't know. A 3-year MYGA (multi-year guaranteed annuity) locks one rate for the entire term, tax-deferred; for reference, A-rated 5-year MYGAs topped out around 5.50-6.05% on October 14, 2026 (public carrier rate sheets). On $250K, the after-tax difference compounds meaningfully. See CD vs MYGA comparison → for the worked numbers.
If your horizon is 5+ years
A 5-year MYGA (A-rated carriers topped out around 5.50-6.05% on October 14, 2026, versus 4.35-4.50% APY on the best 5-year CDs) is usually the stronger answer for non-IRA money. Tax deferral compounds. State guaranty fund coverage replaces FDIC. Surrender period matches your horizon. The 1-year CD strategy ladder-renewing five times in a row is a worse expected outcome and worse tax outcome.
If you want to smooth interest rate exposure
Read the CD ladder strategy guide →. A 1-5 year CD ladder isn't a bad answer, it's just usually a beaten answer at current MYGA spreads.
Quick comparisons you should also see
- Best 5-Year CD Rates 2026: where the real yield differential lives
- Best CD Rates 2026 (all terms): full term curve, 6mo through 5yr
- Brokered CD vs Bank CD: how Fidelity/Schwab brokered CDs compare with bank-direct CDs
- Best MYGA Rates 2026: for 3+ year horizons, this is usually the right comparison
My take
For a 1-year horizon on September 25, 2026, the best national rates (4.35-4.50% APY) sit at smaller banks such as HAB Bank and EagleBank; among the big names, Barclays (4.25%) and Sallie Mae (4.20%) lead. If you have any chance of needing the money inside 12 months, Ally's 60-day EWP at 4.15% is the safer call.
My candid take: most of the money people park in 1-year CDs shouldn't be in 1-year CDs. It should either be in an HYSA (if it might actually be needed) or in a 3-5 year MYGA (if it won't). The 1-year CD is the right answer in narrower cases than people assume. Worth a 15-minute conversation before you lock anything more than $100K into one.
About Hans Goldstein: Independent retirement income specialist. CA Life License #4273294. NPN #20602398. Reviews 30+ carriers and tracks bank-direct + brokered CD markets weekly. Phone: 213-414-2808. Email: hans@hansgoldstein.com.
FAQ, 1-Year CDs
MYGA vs CD comparison, get my independent take before locking in
Talk to Hans Goldstein, a licensed independent insurance producer.
1-year CDs are fine for short-horizon cash. For anything 3+ years, MYGAs almost always win on after-tax dollars, but only if you understand the surrender period and state guaranty fund coverage. Get an independent comparison before you commit.
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Disclosure
Rates and minimums reflect publicly available bank disclosures as of the date stated above. CD APYs and early-withdrawal penalty schedules change frequently, sometimes weekly. Always confirm current values against the bank's most recent disclosure document and account agreement before purchasing. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific product, deposit account, or insurance contract. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers across the annuity and long-term care insurance market; the producer does not sell bank deposit products and earns no commission on CDs. MYGA references are illustrative of generally available carrier rates as of 2026 and are subject to change. Always read the actual contract and consult a licensed advisor before purchasing any annuity. Past CD rate trends do not predict future rates. FDIC and NCUA coverage limits are subject to change. Tax discussion reflects law as of 2026 and is subject to change.