The best 1-year CD rates of September 2022

Updated

2022-09-29T17:07:59Z

Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

As of September 2022, the average rate for a 1-year CD in the US is 0.60%, according to the FDIC. However, some online banks pay over 2.85% APY right now.

A 1-year may ideal if you'd like to maintain a solid interest rate for a relatively short time. If you choose a 1-year CD, you'll also have the chance to earn a higher interest rate if rates are up in a year. Interest rates on savings accounts are expected to slowly rise over the course of the year.

Compare our top picks for 1-year CDs

  • First Internet Bank of Indiana Certificate of Deposit

  • First National Bank of America Certificate of Deposit

  • Bread Savings High-Yield CD

  • Crescent Bank CD

  • CFG Bank Certificate of Deposit

  • Bank5 Connect High-Yield Certificate of Deposit

  • Nationwide CD

  • Sallie Mae Certificate of Deposit

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Editor's rating

4/5

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Editor's rating

4/5

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Editor's rating

3.75/5

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Editor's rating

4/5

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Low minimum opening deposit

Editor's rating

4/5

A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star

Low minimum opening deposit

Editor's rating

3.75/5

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Low minimum opening deposit

Editor's rating

4/5

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0.20% to 2.85% APY (2.80% APY on 12-month term)

Editor's rating

3.75/5

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Learn more

On First Internet Bank of Indiana's website

Learn more

On First National Bank of America's website

First Internet Bank of Indiana

First Internet Bank of Indiana First Internet Bank of Indiana Certificate of Deposit

First Internet Bank of Indiana Certificate of Deposit

Annual Percentage Yield (APY)

1% to 3.25% APY

Minimum Deposit Amount

$1,000

First Internet Bank of Indiana First Internet Bank of Indiana Certificate of Deposit

First Internet Bank of Indiana Certificate of Deposit

Annual Percentage Yield (APY)

1% to 3.25% APY

Minimum Deposit Amount

$1,000

On First Internet Bank of Indiana's website

First Internet Bank of Indiana First Internet Bank of Indiana Certificate of Deposit

On First Internet Bank of Indiana's website

Deposit Details

Annual Percentage Yield (APY)

1% to 3.25% APY

Minimum Deposit Amount

$1,000

Pros Cons

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Competitive APY

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Standard early withdrawal penalties

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$1,000 opening deposit

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Interest is compounded monthly, not daily

Highlights

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  • Terms ranging from 3 months to 5 years
  • 90 days interest early withdrawal penalty for 3-month term; 180 days interest for 6-18 month term; 365 days interest for 24-60 month term
  • Interest is compounded monthly and paid monthly
  • Member FDIC

Additional Reading

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Why it stands out: First Internet Bank of Indiana pays a good rate for 1-year CDs, and contrary to what the bank's name may lead you to believe, this online bank is available to residents of all US states.

APY for 1-year CD: 2.99% APY

1-year CD early withdrawal penalty: 180 days interest

What to look out for: First Internet Bank of Indiana compounds your interest monthly, not daily, so you'll earn less in the long run. Depending on how much money is in your CD, this may or may not make a significant difference. 

Bread Savings

Bread Savings Bread Savings High-Yield CD

Bread Savings High-Yield CD

Annual Percentage Yield (APY)

3.00% to 3.65% APY

Minimum Deposit Amount

$1,500

Bread Savings Bread Savings High-Yield CD

Bread Savings High-Yield CD

Annual Percentage Yield (APY)

3.00% to 3.65% APY

Minimum Deposit Amount

$1,500

On Bread Savings's website

Bread Savings Bread Savings High-Yield CD

On Bread Savings's website

Deposit Details

Annual Percentage Yield (APY)

3.00% to 3.65% APY

Minimum Deposit Amount

$1,500

Pros Cons

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Competitive APY

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Standard early withdrawal penalties

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$1,500 minimum opening deposit

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Limited term options

Highlights

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  • CD terms range from 1 year to 5 years
  • Early withdrawal penalty: 180 days simple interest for terms between 1 year and 3 years; 365 days simple interest for terms between 4 years and 5 years
  • Interest compounded daily, paid monthly
  • FDIC Insured

Additional Reading

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Why it stands out: Bread Savings pays competitive rates on CDs. 

APY for 1-year CD: 3.00% APY

1-year CD early withdrawal penalty: 180 days simple interest

What to look out for: Minimum deposit and early withdrawal penalty. You'll need at least $1,500 to open a CD, and you can find lower early withdrawal penalties with some of our other top picks.

First National Bank of America

First National Bank of America First National Bank of America Certificate of Deposit

First National Bank of America Certificate of Deposit

Annual Percentage Yield (APY)

3.25% to 3.60% APY

Minimum Deposit Amount

$1,000

First National Bank of America First National Bank of America Certificate of Deposit

First National Bank of America Certificate of Deposit

Annual Percentage Yield (APY)

3.25% to 3.60% APY

Minimum Deposit Amount

$1,000

On First National Bank of America's website

First National Bank of America First National Bank of America Certificate of Deposit

On First National Bank of America's website

Deposit Details

Annual Percentage Yield (APY)

3.25% to 3.60% APY

Minimum Deposit Amount

$1,000

Pros Cons

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Competitive APY

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Term lengths up to 84 months

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$1,000 opening deposit

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High early withdrawal penalties

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No term lengths under 12 months

Highlights

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  • 3 branches in Michigan: East Lansing, Grand Rapids, and Traverse City
  • You can open CDs in a branch; if you don't live in Michigan, you can open CDs online
  • Term lengths ranging from 12 to 84 months
  • 180 days interest for terms of 12-23 months, 360 days interest for terms of 24-47 months, 540 days interest for terms of 48 to 84 months
  • Interest compounded daily, paid quarterly
  • FDIC insured

Additional Reading

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Why it stands out: First National Bank of America's main strength is its high interest rate. 

APY for 1-year CD: 3.25% APY

1-year CD early withdrawal penalty: 180 days interest

What to look out for: Early withdrawal penalty. The 180-day penalty isn't as harsh as what some banks charge, but you can still find lower fees at some of our other top picks.

CFG Bank

CFG Bank CFG Bank Certificate of Deposit

CFG Bank Certificate of Deposit

Annual Percentage Yield (APY)

3.20% to 3.60% APY

Minimum Deposit Amount

$500

CFG Bank CFG Bank Certificate of Deposit

CFG Bank Certificate of Deposit

Annual Percentage Yield (APY)

3.20% to 3.60% APY

Minimum Deposit Amount

$500

CFG Bank CFG Bank Certificate of Deposit

Deposit Details

Annual Percentage Yield (APY)

3.20% to 3.60% APY

Minimum Deposit Amount

$500

Pros Cons

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$500 minimum opening deposit

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Competitive APY

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Standard early withdrawal penalties

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Limited term options

Highlights

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  • 2 branches near Baltimore, Maryland
  • Free access to over 1,600 MT Banks ATMs on the East Coast
  • Terms range from 1 year to 5 years
  • Early withdrawal penalties: 90 days of interest for terms of 1 year; 180 days of interest for terms longer than 1 year
  • Interest compounded daily and paid monthly
  • Member FDIC

Additional Reading

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Why it stands out: CFG Bank has a high interest rate on its 1-year CD, and you'll only need $500 upfront to open one.

APY for 1-year CD: 3.20% APY

1-year CD early withdrawal penalty: 90 days of interest

What to look out for: Limited term options. CFG Bank doesn't have many CD terms to choose from — there are only 12-month, 13-month, 18-month, 36-month, or 60-month CDs.

Crescent Bank

Crescent Bank Crescent Bank CD

Annual Percentage Yield (APY)

0.50% to 3.75% APY

Minimum Deposit Amount

$1,000

Crescent Bank Crescent Bank CD

Annual Percentage Yield (APY)

0.50% to 3.75% APY

Minimum Deposit Amount

$1,000

On Crescent Bank's website

Crescent Bank Crescent Bank CD

On Crescent Bank's website

Deposit Details

Annual Percentage Yield (APY)

0.50% to 3.75% APY

Minimum Deposit Amount

$1,000

Pros Cons

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High interest rate

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Standard CD terms

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Standard early withdrawal penalties

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$1,000 minimum opening deposit

Highlights

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  • 3 branches in Louisiana
  • Terms range from 3 months to 5 years
  • Early withdrawal penalties: 90 days interest for a 1-year CD term; 180 days interest for all other CD terms
  • Interest compounded and deposited monthly
  • Member FDIC

Why it stands out: Crescent Bank has online CDs with competitive interest rates. You may open an online Crescent CD from anywhere in the US as long as you are a US citizen and over the age of 18.

APY for 1-year CD: 3.25% APY

1-year CD early withdrawal penalty: 90 days of interest

What to look out for: Crescent Bank has a $1,000 minimum opening deposit. Some of our other top picks let you open an a CD with less money upfront.

Bank5 Connect

Bank5 Connect Bank5 Connect High-Yield Certificate of Deposit

Bank5 Connect High-Yield Certificate of Deposit

Annual Percentage Yield (APY)

0.35% to 3.20% APY

Minimum Deposit Amount

$500

Bank5 Connect Bank5 Connect High-Yield Certificate of Deposit

Bank5 Connect High-Yield Certificate of Deposit

Annual Percentage Yield (APY)

0.35% to 3.20% APY

Minimum Deposit Amount

$500

On Bank5 Connect's website

Bank5 Connect Bank5 Connect High-Yield Certificate of Deposit

On Bank5 Connect's website

Deposit Details

Annual Percentage Yield (APY)

0.35% to 3.20% APY

Minimum Deposit Amount

$500

Pros Cons

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Competitive APY

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$500 opening deposit

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Limited term length options

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Standard-to-high early withdrawal penalties

Highlights

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  • Term lengths between 6 months and 3 years
  • 3 months interest early withdrawal penalty for terms under 1 year, 6 months interest early withdrawal penalty for terms of 1 year or more
  • A 2-year investment CD allows you to make deposits after opening the account
  • FDIC insured

Why it stands out: Bank5 Connect CDs have a low minimum opening deposit and good interest rates. 

APY for 1-year CD: 3.10% APY

1-year CD early withdrawal penalty: 6 months of interest

What to look out for: Bank5 Connect is the online operation of the Massachusetts-based bank Bank5. If you live in Massachusetts or Rhode Island, you'll have to open an account at a Bank5 branch. If you live outside of these states, you may open an online-only account with Bank5 Connect.

Nationwide CD

Axos Bank - Nationwide Nationwide CD

Annual Percentage Yield (APY)

0.20% to 2.85% APY (2.80% APY on 12-month term)

Minimum Deposit Amount

$500

Axos Bank - Nationwide Nationwide CD

Annual Percentage Yield (APY)

0.20% to 2.85% APY (2.80% APY on 12-month term)

Minimum Deposit Amount

$500

On Axos Bank - Nationwide's website

Axos Bank - Nationwide Nationwide CD

On Axos Bank - Nationwide's website

Deposit Details

Annual Percentage Yield (APY)

0.20% to 2.85% APY (2.80% APY on 12-month term)

Minimum Deposit Amount

$500

Pros Cons

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Competitive interest rate on 1-year CD and 18-month CD

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Low minimum opening deposit

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Standard variety of CD terms

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Some CD terms offer low CD rates

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High early withdrawal penalties

Highlights

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  • Earn 2.80% APY (Annual Percentage Yield) on 12-month term CD
  • Grow your money and reach your savings goals with competitive interest rates, guaranteed returns, and no market risk
  • $500 minimum deposit required to start
  • Early withdrawal penalties: For terms between 3 months and 5 months, the penalty is one and a half months of interest, earned or not; For terms between 6 months and 11 months, the penalty is 3 months of interest, earned or not; For terms between 1 year and 23 months; the penalty is 6 months of interest, earned or not; For terms between 2 years and 35 months, the penalty is 1 year of interest, earned or not; For terms of 3 years and 47 months, the penalty is 18 months of interest, earned or not; For terms of 4 years and more, the penalty is 2 years of interest, earned or not
  • Interest compounded daily and deposited monthly; For terms of 4 years or more, the penalty is 2 years of interest, earned or not
  • Interest compounded daily and deposited monthly
  • FDIC Insured up to $250,000

Why it stands out: Nationwide CDs have a minimum opening deposit of $500, which is less than what other banks require. You'll also earn a competitive interest rate on a 1-year CD specifically.

APY for 1-year CD: 2.80% APY

1-year CD early withdrawal penalty: 6 months of interest

What to look out for: While the 180-day penalty isn't as steep as what some banks charge, you may still find lower fees at some of our other top picks.

Sallie Mae Certificate of Deposit

Sallie Mae Sallie Mae Certificate of Deposit

Sallie Mae Certificate of Deposit

Annual Percentage Yield (APY)

1.75% to 3.35% APY

Minimum Deposit Amount

$2,500

Sallie Mae Sallie Mae Certificate of Deposit

Sallie Mae Certificate of Deposit

Annual Percentage Yield (APY)

1.75% to 3.35% APY

Minimum Deposit Amount

$2,500

Sallie Mae Sallie Mae Certificate of Deposit

Deposit Details

Annual Percentage Yield (APY)

1.75% to 3.35% APY

Minimum Deposit Amount

$2,500

Pros Cons

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Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Competitive APY

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Low-to-standard early withdrawal penalties

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$2,500 minimum deposit

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No terms under 6 months or over 5 years

Highlights

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  • Terms ranging from 6 months to 5 years
  • Early withdrawal penalties: Terms of 12 months or less are charged 90 days simple interest; terms of over 12 months are charged 180 days simple interest
  • Interest compounded daily, paid monthly

Additional Reading

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Why it stands out: Sallie Mae pays solid interest rates and has low early withdrawal penalties.

APY for 1-year CD: 3.05% APY

1-year CD early withdrawal penalty: 90 days of interest

What to look out for: Sallie Mae CDs require a minimum opening deposit of $2,500. If you don't have that much money for an initial deposit, some of our other top picks let you open a CD with $500 or $1,000.

Other 1-year CDs we considered

We looked at the following 1-year CDs as well. These CDs ultimately weren't chosen among our top picks because they may have lower rates than our winners, higher minimum opening deposits, or more substantial early withdrawal penalties. You might find some of these options appealing though, depending on your preferences.

  • Barclays Online Certificate of Deposit: Barclays may be a good option if you're looking for a CD with a low minimum opening deposit or low early withdrawal penalties. Our top picks pay higher interest rates on a 1-year CD, though.
  • Synchrony CD: Synchrony lets you open an account with $0,  but it offers lower interest rates than our top picks. 
  • Citibank: Citi has a competitive interest rate on a 1-year CD, but our top picks offer higher rates or have lower minimum opening deposits.
  • Ally High Yield Certificate of Deposit: Ally CDs have a $0 minimum opening deposit but our top picks offer higher interest rates right now.
  • Marcus by Goldman Sachs High-Yield CD: Most of our top picks pay either higher interest rates right now.
  • Capital One 360 Certificate of Deposit®: Most of our top picks have higher interest rates right now.
  • Discover CD: Discover pays a high interest rate, but you'll need a minimum of $2,500 to open a CD. Our top picks have lower minimum opening deposits.
  • Citizens Online Certificate of Deposit: Citizens has solid CD rates, but you'll need at least $5,000 to open an account.
  • American Express® Certificate of Deposit: American Express has solid interest rates, but our top picks have higher rates.
  • Pentagon Federal Credit Union Money Market Certificate: Pentagon Federal Credit Union pays a competitive interest rate, but the early withdrawal penalties are high compared to our top picks. 
  • CIT Bank CD: Other banks on our list offer high interest rates right now. 
  • RisingBank: RisingBank has high interest rates, but our top picks either pay high interest rates or have lower early withdrawal penalties. 
  • Amerant CD: Amerant has solid interest rates, but our top picks offer more competitive rates right now. 
  • BrioDirect High-Yield CD: BrioDirect has a variety of CD terms, but its 1-year CD rate isn't as strong as our top picks. 
  • TIAA Basic CD: TIAA offers a good interest rate, but our top picks offer even higher rates.
  • Connexus Share Certificate: Connexus requires a minimum opening deposit of $5,000. Our top picks have much lower minimum opening deposits, ranging from $0 to $2,500.
  • NBKC CD: NBKC offers competitive interest rates on long-term CDs, but its short-term CDs aren't as strong. 
  • Live Oak Bank CD:Live Oak Bank offers a solid interest rate, but our top picks have lower minimum opening deposits or higher interest rates.

Which bank is the most trustworthy?

We've compared each banks Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:

All of our top picks have an A+ from the BBB. Something to keep in mind is that a BBB rating isn't necessarily the end-all-be-all. If you'd like to see if a companies a good fit, talk to current customers or read online reviews too.

The only bank on our list that's been involved in a public controversy is Bread Savings. 

In July 2022, the BBB opened an investigation into Bread Financial because it received customer complaints stating they could not access Comenity credit card accounts.

According to the BBB website, Bread Financial said that due to its rebranding and software system, an upgrade was preventing customers from accessing their accounts. Bread Savings posted an FAQ on their website to explain the situation. The BBB has reached out again to see how the company will address customer issues, and will update Comenity Bank's profile once it has more information.

Why trust our recommendations?

Personal Finance Insider's mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to.

Frequently asked questions

A 1-year CD is a type of savings account. You'll put money into an account for 12 months and earn a fixed rate. You have the option to renew your CD at the end of the year, or close the account and take out your money.

If you open a 1-year CD at a 2.85% APY, you'll earn 2.85% for one year. Once your term ends, you'll have to option to renew your CD. Financial institutions may offer a new rate since interest rates on products are affected by the federal funds rate.

Keep in mind that some institutions offer variable-rate CDs or CDs that allow your rate to change after a predetermined amount of time.

The best option for you will likely depend on how soon you plan to need the money and which term pays the highest rate.

Longer terms typically offer higher rates — but that isn't always the case. Also, going for a short-term CD may give you the opportunity to get a better interest rate if rates are up in a year.

With a 3-year or 5-year CD, you could miss out on higher rates. That said, you could avoid lower rates with a 3-year or 5-year term if rates drop later.

Many experts recommend CD laddering — a strategy where you open multiple CDs with different term lengths. Through this strategy, you'll be able to take advantage of higher rates with longer terms, but also access some of your money earlier. For example, you might open 1-year, 3-year, and 5-year CDs at the same time, which means you'll get some of your money back in one year, then more in three years, then more in five years.

Choosing between a 1-year CD and high-yield savings account will depend on several factors.

Banks typically pays a higher rate for a 1-year CD than for a high-yield savings account. However, that's not always the case. You'll want to compare a few options to see which rates appeal the most to you.

Also, keep in mind that a 1-year CD locks in your rate for the entire year. If rates are dropping, this could make the CD a better choice, because your savings interest rate could decrease throughout the year. If rates are rising, the savings account might be a better fit, because your rate could go up.

It also depends on when you'll need to access your money. You should be able to access funds from your savings account regularly — but if you need access to money from your 1-year CD before it matures, you'll have to pay a fee.

You can also continuously add money to your savings account, whereas most 1-year CDs block you from making additional deposits after opening it.

You may prefer a money market account over a CD if you want quick access to your money. Money market accounts usually come with paper checks or an ATM card, which CDs don't offer.

Money market account rates also fluctuate, so you may prefer a money market account if rates are rising, but a CD if rates are dropping.

Many banks require higher deposits for money market accounts than CDs, which could affect your decision. It's also good to remember that you can add more funds to your money market account over time, while a CD only permits an opening deposit.

A CD is typically viewed as a type of savings account. Your potential for losses and gains — your risk — is much more limited. CDs aren't generally considered investments the same way something like an index fund, which puts your money into the stock market, is. Because the stock market is risky, experts generally don't advise investing money you'll need in the next five years. In the case of a stock market drop, you wouldn't have time to make up your losses.

If you need to access your money in a year and want a guaranteed rate of return, a 1-year CD is a better choice than a different type of investment account. 

If you're comfortable parting with your money for longer and want to take more risk with your money, then you may want to invest in the stock market. For example, you can get tax-advantaged retirement accounts, like a 401(k) or IRA, which grow your money over decades. Brokerage accounts are another option. These accounts may be useful tools to build long-term wealth, but can't guarantee a given return like a savings account can.

You can also open IRA CD, which is sort of a combo savings/investment account. It's a safe investment tool that may be a worthwhile option for people who are close to retirement age.

Laura Grace Tarpley, CEPF

Personal Finance Reviews Editor

Laura Grace Tarpley (she/her) is a personal finance reviews editor at Insider. She edits articles about mortgage rates, refinance rates, lenders, bank accounts, wealth building, and borrowing and savings tips for Personal Finance Insider. She is also a Certified Educator in Personal Finance (CEPF). She has written about personal finance for six years. Before joining the Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU. You can reach Laura Grace at ltarpley@insider.com. See below for some of her work. Today's 30-year mortgage rates Here are the best mortgage lenders right now The pros and cons of paying off your mortgage early The best online high-yield savings accounts Chase checking accounts: Compare all 5 options Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services »

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Sophia Acevedo, CEPF

Junior Banking Reporter

Sophia Acevedo is a junior banking reporter at Insider who covers banking and savings for Personal Finance Insider. She is also a Certified Educator in Personal Finance (CEPF). She joined Insider in July 2021 as a fellow for the Personal Finance Insider Reviews team. Before joining the Insider team, she was a freelancer based in Los Angeles and worked briefly in publishing. She also graduated from California State University Fullerton in 2020. You can reach out to her on Twitter at @sophieacvdo or send a quick email at sacevedo@insider.com. Read more about how Personal Finance Insider chooses, rates, and covers financial products and services

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