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As of January 2023, the average rate for a 1-year CD in the US is 1.28%, according to the FDIC. However, some online banks pay at least 4.45% APY right now.

A 1-year term may a good choice 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.

First Internet Bank of Indiana Certificate of Deposit

Why it stands out: First Internet Bank of Indiana pays high interest rates on several short-term CDs. Its 1-year CD, in particular, stands out for its high interest rate.

First Internet Bank of Indiana also has a savings account, a money market account, and two types of checking accounts.

APY for 1-year CD: First Internet Bank of Indiana 1 Year Certificate of Deposit APY

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

What to look out for: First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference.

CFG Bank Certificate of Deposit

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

APY (Annual Percentage Yield) for 1-year CD: 1 Year – CFG Bank Certificate of Deposit APY

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

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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.

Pentagon Federal Credit Union Money Market Certificate – Product Name Only

Why it stands out: If you prefer banking with a credit union over a bank, you might consider a Pentagon Federal Credit Union Money Market Certificate – Product Name Only. Pentagon Federal Credit Union pays one of the highest CD rates available for a 1-year term. 

APY (Annual Percentage Yield) for 1-year CD: Pentagon Federal Credit Union 1 Year Money Market Certificate – APY  APY

1-year CD early withdrawal penalty: 365 days of interest 

What to look out for: Pentagon Federal Credit Union has a high early withdrawal penalty for a 1-year term. Also, bear in mind that credit unions require membership to open accounts. The easiest way to join is to open a savings account with Pentagon Federal Credit Union Premium Online Savings Account – Minimum Deposit.

Alliant Certificate

Why it stands out: Alliant is another solid online credit union. A 1-year Alliant certificate pays higher interest rates than what you would earn at many brick-and-mortar or online banks.

APY for 1-year CD: Alliant 1 Year Certificate APY

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

What to look …read more

Source:: Business Insider

      

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