Best 12 Month Certificate of Deposit Accounts

Compare CD terms with ease, find the right one for you, and open your account in minutes.

Open your new short term CD with confidence. Each of our recommendations is federally insured up to $250,000 per depositor.

Fund your new short term CD as soon as possible & take advantage of the power of compound interest today!

To recap our recommendations.

Best Certificate of Deposits According To CompareAccounts™

Discover® Bank Certificate of Deposit Account: 5.20% APY - 12 Month Term

Western Alliance Bank® High Yield CD: 5.70% APY - 6 Month Term

Western Alliance Bank® High Yield CD: 5.51% APY - 12 Month Term

U.S. Bank® Certificate of Deposit Account: up to 4.80% APY - 13 Month Term

CIT Bank® Certificate of Deposit Account: 4.65% APY - 13 Month Term

CIT Bank® No Penalty Certificate of Deposit Account: 4.90% APY - 11 Month Term

Discover® Bank Certificate of Deposit Account:4.40% APY - 24 Month Term

Customers Also Viewed These High Yield Accounts

American Express® High Yield Savings Account

Best For: Competitive APY From An Online Bank

American Express is best known for their suite of incredibly rewarding credit cards. They also offer a high yield savings account with a competitive Annual Percentage Yield (APY) of 4.30% as of December 04, 2023.

Other benefits of this account include no monthly fees, 24/7 Customer Service, FDIC insurance up to $250,000 per depositor and the fact it's backed by the service & reliability of American Express, it's a no brainer as to why so many people are signing up.

To top it off, American Express ranked #1 in Customer Satisfaction with Online Only Savings Accounts from Direct Banks according to the J.D. Power 2022 U.S. Direct Banking Satisfaction Study.ⓘ

See American Express National Bank's Secure Site For More Details.

Discover® Bank High Yield Online Savings Account

Best For: Online Banking Experience + No Fees

Discover Bank offers 4.35% APY with no monthly fees and $0 initial deposit.

Discover Bank is one of the first online focused banks to offer no monthly fees and what they call "No. Fees. Period."

Whereas other banks may charge you a fee for certain services, Discover won't charge you a fee on any of the following items: monthly maintenance, official bank check, expedited delivery for official bank checks, deposited item returned, stop payment order, insufficient funds, or for closing your account.

If you're looking for a competitive APY with "No. Fees. Period." this account is for you.

See Discover Bank's Secure Site For More Details.

CIT Bank® Platinum Savings Details

Best For: Customer Experience + High APY Interest Rates

CIT Bank ranked #1 in the nation for humanizing the customer experience in a recent survey conducted by American Banker of more than 5,000 consumers covering 50 financial institutions.

CIT Bank has been helping customers for over 100 years. Founded in 1908, CIT Bank is now part of First Citizens BancShares, Inc.

They currently offer 5.05% APY on their high yield savings account with no monthly fees. Minimum Balance for this APY is $5,000.

You can open a CIT Bank platinum savings account in as little as 5 minutes to complete the sign-up process.

Deposits are insured through the FDIC for up to $250,000 per depositor and interest compounds daily.

See CIT Bank's Secure Site For More Details.

Customers Bank High Yield Savings Account

Best For: High APY + No Monthly Fees

Customers Bank high yield savings account offers 5.30% APY exclusively through the Raisin Platform.

This APY is much higher than what you’ll find at almost all "traditional" banks and even most online banks.

In addition to this high APY, Customers Bank offers $0 monthly maintenance fees, unlimited withdrawals, and is insured by the FDIC for up to $250,000 per depositor.

These features plus the sky high APY make this account a rare offer.

Founded in 2009, Customers Bank is a super-community bank with over $22 billion in assets.

Ranked by total assets, Customers Bank is in the top 5% of all banks in America and is consistently ranked as one of the best banks in America by Forbes.

See Raisin's Secure Site for Customers Bank For More Details.

What to Look for in a Certificate of Deposit Account

It’s always wise to compare your options when opening a new certificate of deposit account.

Small differences in interest rates and fees can quickly add up over time, especially if you’re keeping a large balance in the account.

Here are the top features to look for and compare:

1. Interest Rate

The interest rate of a certificate of deposit is one of its most important features. However, a very high interest rate can get completely wiped out if you have to pay a penalty fee because you need to withdrawl your funds before the term is complete.

Besides interest rate, term length is the second most important factor. Other important features of your certificate of deposit account include the required initial deposit, and minimum balance required.

2. Term Length

Most banks will charge you what’s called a “penalty fee” for withdrawing your funds before the term length has been completed.

This means, that if you open a 12-month CD, but withdraw your funds within 6 months, then you’ll pay a penalty fee.

Therefore, you need to decide when you’ll need these funds again.

For any term less than a year, we recommend a high-yield savings account.

If this is your first CD account, we recommend starting with a 12 – 15 month term.

If you’ve opened a CD account in the past, then you choose which term is right for you and your unique situation.

3. Required Initial Deposit

Initial deposit is another important factor when deciding to open up a certificate of deposit. Most banks require at least a $500 initial deposit to open a CD account.

While others require much more than $500 to open the account.

Again, because the initial deposit is in the hundreds if not thousands, we recommend you open a high-yield savings account if you need these funds within a year.

Pros & Cons of a 1-Year CD:

A certificate of deposit (CD) is a type of deposit account that is offered by banks and credit unions. It typically requires you to deposit a sum of money for a set period of time, after which you can withdraw your funds plus any interest earned. A 1-year CD is a type of CD with a term of 1 year.

Benefits of a 1-year CD:

• Low risk: CDs are considered a very low-risk investment. Your money is FDIC-insured up to $250,000 per depositor, per institution, so you can feel confident that your money is safe.
• Predictable returns: With a 1-year CD, you know exactly what your interest rate will be for the term of the CD, so you can plan accordingly.
• Flexibility: A 1-year CD may be a good option if you don’t want to commit to a longer term CD but still want to earn a higher interest rate than a savings account. You can also choose to ladder your CDs, which means you have CDs with different term lengths, so you have some that mature every year. This allows you to take advantage of potentially higher interest rates in the future.

Detriments of a 1-year CD:

• Opportunity cost: If you invest your money in a 1-year CD, you won’t be able to access it for the term of the CD without paying an early withdrawal penalty. This means that if you need to use your money before the CD matures, you’ll lose out on some of the interest you would have earned.

  If you think you may need your money before 12 months, we recommend either a high yield savings account or a short term certificate of deposit.

• Limited returns: The interest rates on CDs are generally lower than other types of investments, such as stocks or mutual funds. This means that you may not earn as much on your money as you would with other types of investments.

  CDs are low risk, lower reward investments. If you value a guarenteed return over a potentially higher return, they’re a good product for you.

*National Savings Rate Average as published by FDIC