Best 1-Year CD Rates for January 2026

Certificates of deposit (CDs) remain a cornerstone of safe investing, especially for 1-year terms that balance liquidity and yield in today’s rate environment. As of January 2026, top 1-year CD rates reach up to

4.10% APY

, offered by competitive online banks and credit unions. These rates outpace traditional savings accounts, providing FDIC or NCUA insurance up to $250,000 per depositor per institution. This guide compares the best options, explains key features like minimum deposits and early withdrawal penalties, and offers strategies to optimize returns.

Top 1-Year CD Rates at a Glance

We’ve curated nationally available 1-year CDs from highly rated institutions, focusing on regular rates without promotional gimmicks. Rates fluctuate daily, so verify before opening. Here’s a snapshot of leading offers:

Bank/Institution	APY	Minimum Deposit	Rating	Insurance
E*TRADE (Morgan Stanley Private Bank)	4.10%	$0	4.5/5	Member FDIC
Marcus by Goldman Sachs	4.00%	$500	5.0/5	Member FDIC
Alliant Credit Union	4.00%	$1,000	4.1/5	Federally insured by NCUA
Sallie Mae Bank	4.00%	$2,500	4.6/5	Member FDIC
Newtek Bank	4.00%	$2,500	4.0/5	Member FDIC
Live Oak Bank	4.00%	$2,500	3.3/5	Member FDIC
Popular Direct	4.00%	$10,000	4.5/5	Member FDIC
TAB Bank	3.90%	$1,000	4.2/5	Member FDIC
Capital One 360	3.90%	$0	4.5/5	Member FDIC
Discover Bank	3.90%	$0	4.5/5	Member FDIC
Ally Bank	3.85%	$0	5.0/5	Member FDIC
My Banking Direct	3.80%	$2,500	2.7/5	Member FDIC
Bask Bank	3.75%	$1,000	3.0/5	Member FDIC

Standouts include E*TRADE’s industry-leading 4.10% APY with no minimum, ideal for small savers, and Marcus by Goldman Sachs’ perfect-rated 4.00% option.

E*TRADE from Morgan Stanley stands out for its accessibility—no minimum deposit required—and competitive yield across terms from 6 months to 5 years. It pairs well with checking and savings accounts for comprehensive banking.

CD National Rates Trends

1-year CD rates have stabilized around 4.00% in early 2026, down slightly from 2025 peaks but still elevated compared to pre-pandemic averages below 1%. Online institutions dominate with higher yields than brick-and-mortar banks, often 2-3 times the national average. Track trends using interactive charts from rate aggregators, which categorize by term length. Expect modest declines if the Federal Reserve cuts rates further, making now an optimal lock-in window.

Best CD Accounts At a Glance

• Highest APY: E*TRADE at 4.10% – Zero minimum makes it unbeatable for flexibility.
• Best for Low Deposits: Ally Bank, Capital One, Discover at $0 minimum – Perfect for testing CDs.
• Top Credit Union Option: Alliant at 4.00% – Membership often free via donation.
• Highest Minimum Yield: Popular Direct at 4.00% – Suited for larger sums ($10K+).
• Overall Best Rated: Marcus by Goldman Sachs (5.0/5) – Reliable for no-penalty variants too.

Calculate Your CD Earnings

Use this formula to project returns: Future Value = Principal × (1 + APY/n)^(n×t), where n=compounding frequency (daily=365), t=1 year. Examples for $10,000 deposit:

Institution	APY	Total Value	Interest Earned
E*TRADE	4.10%	$10,410	$410
Marcus	4.00%	$10,400	$400
Alliant	4.00%	$10,400	$400
Bask Bank	3.75%	$10,375	$375

Even at the low end, 3.75% yields $375 on $10K—far superior to 0.45% high-yield savings averages.

Compare The Best CD Rates for January 2026

Hundreds of institutions compete, but online players lead. Marcus by Goldman Sachs excels with a 13-month no-penalty CD at competitive rates above national averages, requiring just $500. Withdraw anytime after 7 days penalty-free. TAB Bank and Bask offer strong 3.90% and 3.75% with $1,000 minima, emphasizing digital ease. Live Oak and Sallie Mae demand $2,500 but deliver 4.00% reliably. For no-minimum ease, Capital One 360 and Discover shine at 3.90%.

How CDs Work

A CD locks your principal for a fixed term (here, 1 year) at a guaranteed APY. Interest compounds daily or monthly, paid at maturity or periodically. Early withdrawal incurs penalties, typically 90-180 days’ interest. All listed are federally insured: FDIC for banks, NCUA for credit unions.

Pros and Cons of 1-Year CDs

• Pros: Predictable returns, higher yields than savings, inflation hedge, low risk.
• Cons: Illiquidity, opportunity cost if rates rise, penalties erode gains.

CD Laddering Strategy

Laddering staggers maturities to balance liquidity and high rates. Example with $15,000:

• $5,000 in 6-month CD
• $5,000 in 1-year CD
• $5,000 in 18-month CD

Reinvest maturing funds at prevailing rates, averaging 3.5-4.0% over time while accessing cash biannually. Ideal for uncertain rate paths.

Early Withdrawal Penalties

Expect 3-12 months’ interest loss. Examples:

Bank	Penalty
Marcus	90 days
Ally	60 days
Capital One	90 days
Popular Direct	180 days

Opt for no-penalty CDs if flexibility is key.

Online vs. Traditional Bank CDs

Online CDs yield 3.75-4.10%, vs. 1-2% at branches. Digital banks cut overhead, passing savings to you. All offer easy online opening.

Why Choose 1-Year CDs Now?

With potential Fed cuts, lock in 4%+ before declines. Beats inflation (est. 2.5%) and volatile markets.

Frequently Asked Questions (FAQs)

Q: What is the highest 1-year CD rate available?

A: E*TRADE offers 4.10% APY with $0 minimum as of January 2026.

Q: Are CDs FDIC insured?

A: Yes, bank CDs up to $250,000 per depositor; credit unions via NCUA.

Q: Can I withdraw early from a CD?

A: Yes, but penalties apply—typically 90 days’ interest. No-penalty options exist.

Q: What’s CD laddering?

A: Dividing funds across staggered terms for liquidity and reinvestment opportunities.

Q: How do I open a 1-year CD?

A: Online in minutes—provide ID, SSN, fund via ACH/transfer.

Q: Will CD rates rise or fall in 2026?

A: Likely fall with Fed easing, so lock in now.