About 1-Year CDs
The 1-year (or 12-month) CD is one of the most popular terms. It often offers a competitive sweet spot between high rates and reasonable liquidity.
How a 1-Year CD Works
A 1-year CD requires you to commit your funds for 12 months. Because you are locking your money for longer than a 3 or 6-month term, banks typically offer a higher APY. It is a core building block for any CD laddering strategy.
Why Choose a 1-Year CD?
- Guaranteed Return: Lock in a high rate today even if market rates fall later this year.
- Safety: Your principal and interest are guaranteed.
- Standard Term: Almost every bank offers special promotions for 12-month terms, making it easy to find great rates.