Best 1-Year CD Rates 2026: 5%+ APY & No-Penalty Options
CIBC Bank USA leads the 1-year CD market at 4.21% APY with a $1,000 minimum and only a 30-day early withdrawal penalty — making it nearly as flexible as a no-penalty CD. Marcus by Goldman Sachs offers 4.00%–4.20% APY (verify at marcus.com) with a $500 minimum and a 10-day rate guarantee. E*TRADE at 4.10% APY adds the unique option of selling brokered CDs on the secondary market to exit early without a traditional penalty.
1-Year CD Rates Buying Guide
Photo by DS stories / PexelsQuick Verdict: Our top pick is the CIBC Bank USA — Agility 12-Month CD — Best 1-year CD nationally at 4.21% APY, with just a 30-day early withdrawal penalty and $1,000 minimum.
Top Pick: CIBC Bank USA Agility 12-Month CD
CIBC Bank USA leads the 1-year CD market at 4.21% APY as of March 2026, with an unusually short 30-day early withdrawal penalty — making it nearly as flexible as a no-penalty CD while paying a full-rate yield. The $1,000 minimum is accessible for most savers. Marcus by Goldman Sachs is the best alternative: competitive APY, $500 minimum, and a 10-day rate guarantee at account opening. All five CDs on this page are FDIC insured. Rates verified from official bank websites as of March 2026.
Why a 1-Year CD in March 2026
The 1-year CD is the most popular term because it balances yield with a reasonable commitment period. Top online banks still pay 4.00%–4.21% APY — more than double the national average of 1.89%. On a $10,000 deposit, that difference is $189 (national average) vs. $421 (top rate) over 12 months. After three Fed rate cuts in late 2025, rates may continue declining — locking in now captures today's yield for a full year rather than watching it erode in a savings account.
Rates and Terms Comparison
- CIBC Bank USA: 4.21% APY — $1,000 minimum, only a 30-day early withdrawal penalty (lowest in this group)
- Marcus by Goldman Sachs: 4.00%–4.20% APY (verify at marcus.com) — $500 minimum, 10-day rate guarantee, 270-day early withdrawal penalty
- E*TRADE Brokered CD: ~4.10% APY — $1,000 minimum, can be sold on secondary market to exit without traditional penalty
- Popular Direct: Competitive rate — $10,000 minimum, strong track record across multiple CD terms
- Ally Bank 11-Month No-Penalty CD: ~3.75%–4.00% APY (verify at ally.com) — $0 minimum, withdraw full balance after 6 days with zero penalty
Rates as of March 2026. Verify current APYs at each bank before opening — rates change frequently. All accounts FDIC insured to $250,000 per depositor.
Who 1-Year CDs Are Best For
1-year CDs are ideal for savers with money they won't need for 12 months who want a guaranteed return higher than savings accounts: emergency fund overflow, money earmarked for a specific purchase next year, or cash waiting for a home down payment. Not suitable for emergency funds (early withdrawal penalties) or money with uncertain timing. If there's meaningful risk you'll need the funds within 12 months, the no-penalty CD or a high-yield savings account is a better choice.
CD laddering: Open four equal-amount CDs staggered 3 months apart — you'll have a CD maturing every quarter, giving regular liquidity while keeping money invested at above-savings rates.
What to Watch Out For
- Early withdrawal penalty gap matters. Marcus charges a 270-day penalty; CIBC charges just 30 days. On $10,000 at 4.00% APY, breaking out of Marcus at month 3 costs roughly $296 in forfeited interest vs. only $33 at CIBC. Factor this into your flexibility analysis.
- Auto-renewal. Most 1-year CDs auto-renew at the then-current rate at maturity. Set a reminder 14 days before maturity to decide whether to renew, withdraw, or move funds — the grace period is typically only 7–10 days.
- No-penalty CD tradeoff. Ally's no-penalty CD pays 25–45 basis points less than the top locked rate. If you can commit to 12 months, the traditional CD wins on yield. If timing is uncertain, the no-penalty option wins on flexibility.
- $10,000 minimum for Popular Direct. If you don't meet this threshold, CIBC or Marcus typically delivers better net return at lower minimum requirements.
How to Apply
All five CDs are available fully online. Opening a CD takes 10–15 minutes: select your CD at the bank's website (linked from each card above), provide your Social Security number, date of birth, and address, then fund via ACH bank transfer. Your CD begins earning once funds arrive — typically 1–3 business days. Note your exact maturity date and set a 14-day-advance reminder to manage renewal or withdrawal before the grace period closes.
For a side-by-side view of CD and high-yield savings rates in the same guide, see our Best High-Yield CDs and Savings Accounts 2026. On a shorter timeline? Our Best 6-Month CD Rates of March 2026 covers the same banks with half the lock-in period. If you want flexibility without any lock-in at all, Best Starter Savings Account for Beginners 2026 covers high-yield savings accounts with no minimum or penalty.
At a Glance
| # | Product | Award | APY | Min Deposit | Monthly Fee | |
|---|---|---|---|---|---|---|
| 1 | CIBC Bank USA — Agility 12-Month CD | Best Overall | 4.21% APY for 12 months | — | — | Apply → |
| 2 | Marcus by Goldman Sachs — 12-Month CD | Also Excellent | 4.00%–4.20% APY for 12 months (verify at marcus.com) | — | — | Apply → |
| 3 | E*TRADE Bank — 1-Year CD | Best Value | 4.10% APY for 12 months | — | — | Apply → |
| 4 | Popular Direct — 12-Month CD | Worth Considering | 4.05% APY for 12 months | — | — | Apply → |
| 5 | Ally Bank — 11-Month No-Penalty CD | ~3.75% APY for 11 months (verify at ally.com) | — | — | Apply → |
CIBC Bank USA — Agility 12-Month CD
“Best 1-year CD nationally. 4.21% APY with only a 30-day early withdrawal penalty makes it the most flexible high-rate CD on this list. If you might need funds early, this is the clear choice.”
What we like
- 4.21% APY — highest nationally available 1-year CD rate as of March 2026
- 30-day early withdrawal penalty — lowest of any top-rate CD on this list
- Low $1,000 minimum deposit (top rate tier requires $25,000 per some sources — verify)
- 7 available CD terms from 6 to 30 months
- FDIC insured up to $250,000 per depositor
Watch out for
- Online-only bank — no physical branches
- Less widely known brand than Marcus or Goldman Sachs
- Top-rate may apply only to $25,000+ deposits — verify the $1,000 tier rate at us.cibc.com
- 10-day grace period at maturity to withdraw or change terms
Rates as of April 8, 2026. Terms apply. Verify on issuer site.
Marcus by Goldman Sachs — 12-Month CD
“The most trusted 1-year CD brand with the lowest minimum. Verify today's exact APY at marcus.com — it has varied between sources in March 2026. The 270-day penalty is steep; if you might exit early, c”
What we like
- $500 minimum deposit — the lowest of any top-rate 1-year CD on this list
- 10-Day CD Rate Guarantee — if Marcus raises rates within 10 days of opening, you get the higher rate
- Goldman Sachs institutional backing — deepest brand trust in consumer banking
- Maturity instructions settable up to 12 months in advance online
- FDIC insured up to $250,000 per depositor
Watch out for
- APY range reported as 4.00%–4.20% depending on source and date — verify current rate at marcus.com before opening
- 270-day early withdrawal penalty for 12-month term — the steepest penalty on this list
- Online-only — no physical branches
- No monthly interest withdrawal option
Rates as of April 8, 2026. Terms apply. Verify on issuer site.
E*TRADE Bank — 1-Year CD
“Best for existing E*TRADE users who want CD access inside their investment account. The secondary market exit option is the unique value — but verify the brokered CD price before selling.”
What we like
- 4.10% APY — confirmed by NerdWallet as top pick for March 2026
- Brokered CDs can be sold on secondary market to exit without traditional penalty
- Rate guarantee: highest rate within first 10 days of opening is honored
- Seamlessly managed within existing E*TRADE investment account
- FDIC insured up to $250,000 per account holder per account type
Watch out for
- Secondary market exit may yield less than face value if rates rose since purchase
- Requires an E*TRADE account — extra step vs. opening directly at a bank
- 4.10% APY is below CIBC (4.21%) and potentially below Marcus
- Brokered CD mechanics are more complex than a standard bank CD
Rates as of April 8, 2026. Terms apply. Verify on issuer site.
Popular Direct — 12-Month CD
“Reliable 4.05% APY from an established brand for savers with $10,000 to deploy. If you can meet the minimum, Popular Direct is a trustworthy choice. Below that, choose Marcus or CIBC.”
What we like
- 4.05% APY — confirmed by multiple aggregators for March 2026
- Division of Popular Bank — established institution with decades of operating history
- FDIC insured up to $250,000 per depositor
- Consistently competitive across multiple CD terms
- 10-day grace period at maturity to change terms or withdraw
Watch out for
- $10,000 minimum deposit — the highest barrier on this list
- 270-day early withdrawal penalty for 12–35 month terms — steep
- Online-only — no physical branches
- 4.05% is below CIBC (4.21%) and E*TRADE (4.10%)
Rates as of April 8, 2026. Terms apply. Verify on issuer site.
Ally Bank — 11-Month No-Penalty CD
“The safety net option. If there is any chance you need access before 12 months, take the 3.75% with no penalty rather than risk a 270-day penalty from a standard CD. Ally is a top-tier online bank.”
What we like
- No early withdrawal penalty after 6 days — withdraw the full balance at any time
- $0 minimum deposit — the most accessible option on this list
- Ally Bank is consistently ranked among the best online banks (4.7 App Store rating)
- FDIC insured up to $250,000 per depositor
- Can open inside a Roth or Traditional IRA at Ally
Watch out for
- ~3.75% APY is 46 basis points below the top 1-year rate (CIBC at 4.21%)
- 11-month term rather than exactly 12 months
- Rate is variable and not guaranteed for the full term like a standard CD
- No-penalty CD has no rate guarantee feature like Marcus
Rates as of April 8, 2026. Terms apply. Verify on issuer site.
Frequently Asked Questions
What is the national average for 1-year CD rates in March 2026?
How does the early withdrawal penalty work?
What is a brokered CD and how does it differ from a bank CD?
Should I open a 1-year CD now or wait for better rates?
Can I open a 1-year CD inside a Roth IRA?
Does any bank have a 5% APY 1-year CD in 2026?
How We Evaluate Financial Products
We compare financial products based on objective criteria: annual fees, APR ranges, rewards rates, sign-up bonuses, and key perks. We do not factor in issuer relationships or compensation when determining rankings. Products are ranked based on overall value for the target use case described on this page.
Rates and terms change frequently. We update these pages regularly, but always verify current rates directly on the issuer’s website before applying. APR ranges shown reflect the full possible range — your actual rate depends on your creditworthiness.
This content is for informational purposes only and should not be considered financial advice. We compare products; we do not advise on which product is right for your personal financial situation. Read our full methodology →