As of August 2026, the best 1-year certificates of deposit (CDs) are offering annual percentage yields (APYs) as high as 4.40%, according to a recent report from CNBC. With interest rates still elevated, savers have a prime opportunity to lock in attractive returns on their cash. If you're looking to grow your savings with minimal risk, a 1-year CD could be a smart move.

Why Consider a 1-Year CD?

A 1-year CD is a time deposit that typically offers a fixed interest rate for a 12-month term. It's a popular choice for savers who want a better return than a standard savings account but don't want to tie up their money for several years. The current top rate of 4.40% APY is significantly higher than the national average, making it an appealing option for those with cash they won't need in the near term.

One of the key benefits of a 1-year CD is the guaranteed return. Unlike stocks or crypto, your principal is safe (up to FDIC or NCUA limits), and the interest rate is locked in for the entire term. This stability can be especially valuable in uncertain economic times.

How to Choose the Best 1-Year CD

When shopping for a 1-year CD, it's essential to compare rates from multiple financial institutions. Online banks often offer higher APYs than traditional brick-and-mortar banks because they have lower overhead costs. Look for banks that are FDIC-insured to protect your deposit.

Also, pay attention to the minimum deposit requirement and any early withdrawal penalties. Some CDs require a minimum of $500 or more, while others have no minimum at all. Make sure you can afford to lock up the funds for the full year to avoid penalties.

Key Factors to Compare

  • APY – The higher the better, but check if it's fixed or variable.
  • Minimum deposit – Choose one that fits your budget.
  • Early withdrawal penalties – Know the cost if you need access to your money early.
  • Customer service and online access – Ensure the bank offers a user-friendly experience.

Where to Find the Top Rates

The highest 1-year CD rates in August 2026 are being offered by online banks and credit unions. CNBC's report highlights that these institutions are competing aggressively for deposits, resulting in yields up to 4.40% APY. It's worth checking multiple sources, as rates can change frequently.

Be sure to read the fine print. Some accounts may have variable rates that can adjust after the term, or promotional rates that revert to a lower standard rate. Always confirm the terms before committing your money.

Is a 1-Year CD Right for You?

A 1-year CD is ideal for savers who have a specific financial goal in the near future, such as a down payment or a planned purchase. It's also a great way to diversify your savings portfolio, especially if you already have an emergency fund in a liquid account.

However, if you think you may need access to your funds before the term ends, consider a no-penalty CD or a high-yield savings account instead. The penalty for early withdrawal can eat into your interest earnings, so weigh your options carefully.

Key Takeaways

According to CNBC, the best 1-year CD rates in August 2026 offer up to 4.40% APY, providing a safe and profitable way to grow your savings. When choosing a CD, compare rates, check the minimum deposit, and understand the penalty terms. With careful research, you can lock in a great return for the next 12 months.

"In a rising-rate environment, 1-year CDs offer a balance of yield and flexibility for savers," noted financial experts.