A 12 month CD (certificate of deposit) is a time deposit with a fixed rate for the entirety of the 12 month term. Upon maturity of the certificate you can withdraw the balance without penalty. 12 month CD’s are FDIC insured for up to $250,000. A penalty will typically be enforced for early withdraw of funds.

Banks offer daily, monthly and quarterly compounding rates. The yield on a 12 month bank CD is higher than the rate because the yield factors in compounding interest over the term of the certificate. Many financial institutions require a minimum deposit for 12 month CD accounts, some require no minimum deposit.

Best 12 Month CD Rates

Rank Bank Name Investment Type Term CD Rate Compounded Minimum Deposit
1 Melrose Credit Union Bank CD 12 mo 1.40% Daily $5,000
2 MetLife Bank Bank CD 12 mo 1.30% Daily $25,000
3 E-Loan Bank CD 12 mo 1.26% Daily $10,000
4 AuroraBank Bank CD 12 mo 1.21% Daily $1,000
5 Ally Bank Bank CD 12 mo 1.20% Daily $0

Comparing our best 12 month CD rates above, and also reviewing our local market CD Rates section is going to help you find the best 12 Month CD for your needs.

Finding the best 12 month CD

When looking for a 12 month CD it is important that rate is not your only determining factor. You will need to keep in mind other aspects such as the APY, interest withdraw guidelines, minimum deposit requirements and whether or not the financial institution is FDIC or NCUA insured.

When taking in all aspects of an investment, a 12 month CD is often times one of the best investment out there. The term is still relatively shorty, bringing flexibility and security, and the rates are often so competitive that they are better then the 18 month or even the 2 year CD accounts. Many times the minimum deposits on 12 month CDs are very low, meaning you can invest smaller portions of your money, reducing the risk.

12 month CDs give you flexibility, security and often times great returns.