If you are looking for a safe and stable way to grow your savings, a certificate of deposit (CD) may be a good option for you. A CD is a type of bank account that pays a fixed interest rate for a fixed period of time, usually ranging from a few months to several years. You agree to keep your money in the CD until it matures, or you may face an early withdrawal penalty.
CDs are attractive because they typically offer higher interest rates than regular savings accounts or money market accounts. They also have the advantage of being insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250,000 per depositor, per institution, per ownership category.
However, not all CDs are created equal. Different banks and credit unions may offer different terms and rates for their CDs, depending on factors such as market conditions, customer demand and competition. To get the best deal on your CD, you need to shop around and compare multiple offers from various institutions.
One of the most popular CD terms is one year, or 12 months. A one-year CD can be a good choice if you want to earn a decent return on your money without locking it up for too long. You can also use a one-year CD as part of a CD ladder strategy, where you invest in multiple CDs with different maturity dates to create a steady stream of income and liquidity.
To help you find the best one-year CD rates for July 2023, we have compiled a list of some of the top offers from reputable banks and credit unions across the country. We have based our selection on the following criteria:
- The annual percentage yield (APY) is at least 4%, which is well above the national average of 1.63% for one-year CDs as of July 6, 2023, according to data from Curinos.
- The minimum deposit requirement is $5,000 or less, which is affordable for most savers.
- The institution is FDIC-insured or NCUA-insured, which means your money is protected up to $250,000 in case of bank failure.
- The institution has a positive reputation and customer service record, based on online reviews and ratings.
Here are our picks for the best one-year CD rates for July 2023:
Bread Savings: 5.35% APY
Bread Savings is an online bank that offers competitive rates on its CDs and savings accounts. It has five terms of CDs ranging from one year to five years, with a minimum deposit of $1,500. Its one-year CD has an impressive APY of 5.35%, which is one of the highest in the market. Bread Savings also has a low early withdrawal penalty of three months’ interest for its one-year CD, which is lower than many other banks.
To open a CD with Bread Savings, you need to be at least 18 years old and have a valid Social Security number and U.S. mailing address. You can fund your CD with an electronic transfer from another bank account or with a check by mail. You can also access your account online or through the Bread Savings mobile app.
BMO Alto: 5.25% APY
BMO Alto is an online division of BMO Harris Bank, which is part of BMO Financial Group, one of the largest financial services providers in North America. BMO Alto offers four terms of CDs ranging from six months to two years, with no minimum deposit requirement. Its one-year CD has an attractive APY of 5.25%, which is also among the highest in the market. BMO Alto also has a reasonable early withdrawal penalty of six months’ interest for its one-year CD.
To open a CD with BMO Alto, you need to be at least 18 years old and have a valid Social Security number and U.S. mailing address. You can fund your CD with an electronic transfer from another bank account or with a debit card. You can also access your account online or through the BMO Harris mobile app.
Alliant Credit Union: 5.00% APY
Alliant Credit Union is one of the largest credit unions in the U.S., serving over half a million members nationwide. It offers nine terms of CDs ranging from three months to five years, with a minimum deposit of $1,000. Its one-year CD has a competitive APY of 5.00%, which is well above the national average. Alliant Credit Union also has a moderate early withdrawal penalty of three months’ interest for its one-year CD.
To open a CD with Alliant Credit Union, you need to be at least 18 years old and have a valid Social Security number and U.S. mailing address. You also need to be eligible for membership, which you can achieve by joining Foster Care to Success, a non-profit organization that supports foster youth, or by being related to or living with an existing member. You can fund your CD with an electronic transfer from another bank account or with a check by mail. You can also access your account online or through the Alliant mobile app.
Marcus by Goldman Sachs: 4.85% APY
Marcus by Goldman Sachs is an online division of Goldman Sachs Bank USA, which is part of Goldman Sachs Group, one of the largest and most prestigious financial institutions in the world. Marcus offers 12 terms of CDs ranging from six months to six years, with a minimum deposit of $500. Its one-year CD has a respectable APY of 4.85%, which is also above the national average. Marcus also has a relatively low early withdrawal penalty of three months’ interest for its one-year CD.
To open a CD with Marcus, you need to be at least 18 years old and have a valid Social Security number and U.S. mailing address. You can fund your CD with an electronic transfer from another bank account or with a check by mail. You can also access your account online or through the Marcus mobile app.
Capital One: 4.65% APY
Capital One is one of the largest and most well-known banks in the U.S., offering a wide range of products and services, including CDs and savings accounts. It offers 10 terms of CDs ranging from six months to five years, with no minimum deposit requirement. Its one-year CD has a decent APY of 4.65%, which is also above the national average. Capital One also has a fair early withdrawal penalty of three months’ interest for its one-year CD.
To open a CD with Capital One, you need to be at least 18 years old and have a valid Social Security number and U.S. mailing address. You can fund your CD with an electronic transfer from another bank account or with a check by mail. You can also access your account online or through the Capital One mobile app.
Bottom Line
CDs can be a great way to save money and earn interest without taking any risk. However, not all CDs offer the same rates and terms, so it pays to shop around and compare different offers from various banks and credit unions. The best CD rates for July 2023 are offered by online institutions that have low or no minimum deposit requirements and high APYs. By choosing one of these CDs, you can maximize your savings and reach your financial goals faster.