CD Rankings Term: 12 Months Top APY: 5.10% Last updated: 2026-06-27

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 June 2026, the top of market is Marcus by Goldman Sachs at ~5.10% APY with a $500 minimum. Below is the field, ranked. If your horizon is 3+ years, scroll to "When to skip a 1-year CD entirely" — the math usually points elsewhere.

The top 10 — at a glance

#	Bank / Credit Union	APY	Min Deposit	Insurance	Early Withdrawal Penalty
1	Marcus by Goldman Sachs	5.10%	$500	FDIC	90 days interest
2	Synchrony Bank	5.05%	$0	FDIC	90 days interest
3	Sallie Mae Bank	5.00%	$2,500	FDIC	90 days interest
4	Barclays Online CD	4.95%	$0	FDIC	90 days interest
5	Ally Bank High Yield CD	4.90%	$0	FDIC	60 days interest
6	Discover Bank	4.85%	$2,500	FDIC	3 months interest
7	Capital One 360 CD	4.80%	$0	FDIC	3 months interest
8	PenFed Money Market Cert.	4.75%	$1,000	NCUA	365 days dividends (steep)
9	Navy Federal Std. Cert.	4.65%	$1,000	NCUA	90 days dividends
10	Citizens Access Online CD	4.55%	$5,000	FDIC	180 days interest

Rates as of June 2026 — bank-published direct CDs only. Brokered CDs (Fidelity, Schwab) are covered separately in Brokered CD vs Bank CD.

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 10 in detail

1. Marcus by Goldman Sachs — 5.10% APY

Top of market for bank-direct 1-year CDs as of June 2026. $500 minimum, no maximum, 10-day rate guarantee (if rates drop after you apply, you keep the higher rate; if they go up within 10 days, you can ask for the bump). 90-day early withdrawal penalty. Owned by Goldman Sachs Bank USA — fully FDIC insured. Full Marcus review →

2. Synchrony Bank — 5.05% APY

No minimum deposit, which is rare in this tier. Strong online interface, ATM card available on linked high-yield savings. 90-day EWP. Pays compound interest daily. Synchrony Financial is publicly traded and well-capitalized. Full Synchrony review →

3. Sallie Mae Bank — 5.00% APY

Strong rate, but $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. 90-day EWP. No physical branches; online and phone only. Full Sallie Mae review →

4. Barclays Online CD — 4.95% APY

UK-headquartered, US-FDIC-insured online bank. $0 minimum to open. 90-day EWP. No checking account required. Older online platform but rates are consistently top-quartile. Full Barclays review →

5. Ally Bank — 4.90% APY

The most depositor-friendly early-withdrawal penalty on this list at just 60 days of interest. $0 minimum. Ally also publishes "Loyalty Reward" of 0.05% APY on renewal. Slightly lower headline APY than the leaders, but the friendlier EWP is real value if there's any chance you'll need access. Full Ally review →

6. Discover Bank — 4.85% APY

$2,500 minimum. Standard 3-month EWP on terms under 1 year, 6 months on 1-year+. Discover Bank is fully FDIC insured. Reliable but no longer best-in-class on yield. Full Discover review →

7. Capital One 360 CD — 4.80% APY

$0 minimum. Decent rate, slick app, can be linked to Capital One checking. 3-month EWP. Capital One is one of the largest US retail banks; FDIC insured. Full Capital One 360 review →

8. PenFed Money Market Certificate — 4.75% APY

Credit-union "CD" (technically a certificate). $1,000 minimum. NCUA insured to $250K — equivalent to FDIC. Warning: the early withdrawal penalty is 365 days of dividends on certificates ≥ 1 year — easily the harshest on this list. If you might touch the money, go elsewhere. Full PenFed review →

9. Navy Federal Standard Certificate — 4.65% APY

Membership restricted to military, veterans, DoD employees, and immediate family. $1,000 minimum. 90-day EWP. NCUA insured. Solid rate within the eligibility universe. Full Navy Federal review →

10. Citizens Access Online CD — 4.55% APY

$5,000 minimum — the highest on this list. 180-day EWP. Online arm of Citizens Bank. Made the cut on brand stability, not yield leadership. Full Citizens Access 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. You pick up roughly 0.40-0.80% of yield over a top HYSA in exchange for liquidity you weren't going to use.

Fit #2: Escalating-rate environment (or feared cuts)

If you believe the Fed is on hold or about to cut, 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 ultimately lives. A 1-year CD parks it productively at ~5% 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 at 5.10% 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) currently locks ~5.40-5.65% for the entire term, tax-deferred. 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 at 5.50-5.85% is almost always the right 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 — Fidelity/Schwab CDs typically pay +0.20-0.50% over bank-direct
Best MYGA Rates 2026 — for 3+ year horizons, this is usually the right comparison

Bottom line

For a 1-year horizon, Marcus by Goldman Sachs at 5.10% is the cleanest pick today — top rate, low minimum, friendly platform, fair EWP. If you have any chance of needing the money inside 12 months, Ally's 60-day EWP is the lower-yield-but-safer call. Both beat any HYSA on the market.

But here's the 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 #4163961. NPN #20602398. Reviews 30+ carriers and tracks bank-direct + brokered CD markets weekly. Phone: 213-414-2808. Email: hans@goldsteinco.net.

FAQ — 1-Year CDs

What is the best 1-year CD rate available in 2026?

As of June 2026, Marcus by Goldman Sachs leads the bank-direct 1-year CD market at approximately 5.10% APY with a $500 minimum. Brokered 1-year CDs through Fidelity/Schwab can push 5.30-5.40% APY but trade differently than bank CDs.

Is a 1-year CD better than a high-yield savings account?

Usually yes if you can commit the money for the full term. Top 1-year CDs pay roughly 0.40-0.80% more than top HYSAs as of 2026. The trade-off is liquidity: HYSAs allow withdrawals; CDs charge an early withdrawal penalty (typically 90-180 days of interest).

What happens if I withdraw early from a 1-year CD?

You forfeit interest — typically 90 days for most banks, 180 days at some (Synchrony, Citizens). On a 1-year CD held less than 90-180 days, you can actually receive back LESS than you deposited because the penalty exceeds interest earned to date.

Are CDs FDIC insured?

Yes. Bank CDs are FDIC insured up to $250,000 per depositor, per bank, per ownership category. Credit union CDs (Navy Federal, PenFed) are NCUA insured to the same limits. To exceed $250K coverage at one institution, spread across multiple banks or use joint accounts.

Should I lock in a 1-year CD or wait for higher rates?

Nobody knows where rates go next. The honest answer: lock what you need now, ladder the rest. If the Fed cuts in the next 12 months, today's 5%+ CDs will look smart. If rates rise, you reinvest at maturity. A 1-year CD is short enough that timing risk is minimal.

What's the minimum to open a 1-year CD?

Varies widely. Marcus, Ally, Capital One 360, and Discover have $0-500 minimums. Sallie Mae and Synchrony start at $2,500. PenFed starts at $1,000. Brokered CDs through Fidelity/Schwab typically require $1,000 minimum in $1,000 increments.

Are CD interest earnings taxable?

Yes. CD interest is taxed as ordinary income at federal and (most) state levels in the year credited — even if you don't withdraw it. The bank issues Form 1099-INT each January. This is one reason MYGAs (multi-year guaranteed annuities) look attractive for non-IRA money: MYGA interest is tax-deferred until withdrawn.

Can I get a higher rate than a 1-year CD?

Yes — by going longer. A 3-year MYGA currently pays ~5.40-5.65%, a 5-year MYGA ~5.50-5.85%. If you don't need access to the money for 3+ years, a MYGA usually beats any 1-year CD strategy on after-tax dollars. The trade-off is liquidity and a surrender period.

MYGA vs CD comparison — get my independent take before locking in

Talk to a licensed independent expert. Hans.

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.

Drop your info — within 24 hours, you'll get a written side-by-side of the top 1-year CD vs a comparable MYGA on your dollar amount, and a no-pressure 15-minute call if you want one.

Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers

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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.