Certificates of deposit (CDs) remain one of the most reliable short-term savings tools, especially for those seeking guaranteed returns as rates begin to level off. As of October 22, 2025, the best 12-month CD rates reach up to 4.20% APY (annual percentage yield), with many banks and credit unions still offering yields far above the national average of 1.68%, according to the FDIC.
CDs lock in your rate for a fixed period, offering peace of mind even as the Federal Reserve prepares further rate adjustments. If you’re looking to earn a predictable return over the next year, these are the best CD rates available today.
💰 Today’s Best 12-Month CD Rates At a Glance
Here are the best bank and credit union savings accounts rates today:
|
Bank or Credit Union |
Top APY |
Minimum Deposit |
|---|---|---|
|
4.20% |
$100,000 |
|
|
4.10% |
$1,000 |
|
|
4.00% |
$1,000
|
|
|
4.00% |
$1,000 |
|
|
3.80% |
$0 |
1. Credit One Bank – Credit One Bank is offering a jumbo CD at 4.20% APY, but it does require a $100,000 minimum deposit to open.
2. Alliant Credit Union – Alliant Credit Union offers short term and long term CDs with competitive APYs. Right now you can get 4.10% APY on a 12-month CD option! Read our full Alliant Credit Union Review.
3. Community Savings – This bank based in Ohio is currently offering 4.00% APY on a 12-month CD with just a $1,000 minimum.
4. Seattle Bank – Seattle Bank is currently offering a 12-month CD at 4.00% APY with just a $1,000 minimum deposit.
5. Barclays Bank – Barclays Bank offers short term and long term CDs with competitive APYs. Right now you can get 3.80% APY on a 12-month CD option! Read our full Barclays Bank review here.
How 12-Month CDs Work
A 12-month certificate of deposit pays a fixed interest rate for one year in exchange for keeping your money on deposit until maturity. If you withdraw early, the bank charges a penalty – typically 90 days of interest.
CDs appeal to savers who prefer guaranteed, short-term returns. While high-yield savings accounts offer flexibility, CDs can secure a higher fixed return for a set period, which can be helpful if rates are expected to decline.
For example, a $25,000 CD at 4.00% APY would earn roughly $1,000 in one year, compared with about $420 based on today’s national average 12-month CD rate.
What To Know Before Opening A CD
Certificates of deposit operate differently than savings accounts. Make sure you understand what you’re getting:
- Short-Term Goals: Ideal for saving toward tuition, a wedding, or a home down payment within a year.
- Rate Protection: A CD locks your APY, so you’re insulated from rate cuts.
- Ladder Strategy: Pair a 12-month CD with longer terms (24- or 36-month) to capture higher rates while maintaining liquidity.
- Safety: FDIC or NCUA insurance protects up to $250,000 per depositor, per institution.
Before opening an account, make sure you understand all the terms:
- Minimum Deposit: Some banks require $1,000 or more to open.
- Withdrawal Terms: Review penalties before committing funds.
- Renewal Policy: Many CDs automatically renew at maturity unless you opt out.
- Rate Guarantees: Confirm whether your rate is locked at the time of application or funding.
- Online Access: Ensure the bank allows easy transfers and e-statements.
How We Track And Verify Rates
At The College Investor, our editorial team reviews CD rates daily from more than 30 banks and credit unions nationwide. We confirm every APY directly from official rate disclosures and regulatory filings.
Only FDIC- or NCUA-insured institutions available to U.S. consumers are included.
Our rankings are editorially independent – compensation does not influence placement. While we may earn a referral fee when you open an account through some links, our reviews and recommendations are based solely on yield, accessibility, and overall customer experience.
FAQs
Are 12-month CDs safe?
Yes. CDs are federally insured up to $250,000 per depositor, per institution.
Can I withdraw my money early?
Yes, but you’ll forfeit some interest, typically three months’ worth.
Are CD earnings taxable?
Yes. Interest earned is subject to federal income tax, and in some states, state tax.
What happens when a CD matures?
You’ll usually have a 7- to 10-day grace period to withdraw or renew your funds.
Is now a good time to open a CD?
Rates remain near their cycle highs, so locking in a short-term CD can make sense before potential cuts.
The post Best 12-Month CD Rates for October 22, 2025: Up to 5% appeared first on The College Investor.
