Best 12 Month CD Rates Today: Secure High-Yield Savings in 2025

When considering a 12-month CD, it’s essential to evaluate the interest rates, minimum deposit requirements, early withdrawal penalties, and the reputation of the financial institution. As of March 2025, the average 12-month CD rate in the US hovers around 3.50% APY, but some institutions offer significantly higher yields. Below, we break down the critical aspects of investing in a 12-month CD to help you choose the best option for your financial goals.
Why Choose a 12-Month CD?
A 12-month CD is ideal for investors seeking a short-term commitment with better returns than a regular savings account. Unlike longer-term CDs, a 12-month term allows you to access your funds relatively soon while still benefiting from higher interest rates. This makes it a suitable choice for emergency funds, planned expenses, or as part of a CD laddering strategy to optimize liquidity and returns.
Top Banks Offering the Best 12-Month CD Rates
Several banks and credit unions stand out for their competitive 12-month CD rates. Here are some of the top contenders as of March 2025:
- Ally Bank : Known for its customer-friendly policies, Ally Bank offers a 12-month CD with a 4.00% APY and no minimum deposit requirement.
- Marcus by Goldman Sachs : With a 4.10% APY, Marcus provides a high-yield 12-month CD, requiring a minimum deposit of $500.
- Synchrony Bank : Synchrony offers a 4.05% APY on its 12-month CD, with a $2,000 minimum deposit.
- Capital One : Capital One’s 12-month CD comes with a 3.95% APY and a $0 minimum deposit, making it accessible to all savers.
Key Factors to Consider Before Investing
Before locking your funds into a 12-month CD, consider the following factors to ensure it aligns with your financial strategy:
- Interest Rates : Compare APYs across institutions to find the highest yield.
- Minimum Deposit : Some CDs require a substantial initial deposit, which may not be feasible for all investors.
- Early Withdrawal Penalties : Understand the fees associated with accessing your funds before the maturity date.
- FDIC Insurance : Ensure the institution is FDIC-insured to protect your investment.
Comparison of Top 12-Month CDs
Bank | APY | Minimum Deposit | Early Withdrawal Penalty |
---|---|---|---|
Ally Bank | 4.00% | $0 | 60 days of interest |
Marcus by Goldman Sachs | 4.10% | $500 | All earned interest |
Synchrony Bank | 4.05% | $2,000 | 90 days of interest |
Capital One | 3.95% | $0 | 3 months of interest |
How to Open a 12-Month CD
Opening a 12-month CD is a straightforward process. Most banks allow you to apply online, requiring basic personal information and funding the account via a linked bank account. Once your CD is active, the interest will compound according to the terms, and you’ll receive your principal plus interest upon maturity.
References
Ally Bank
Marcus by Goldman Sachs
Synchrony Bank
Capital One