Best 12-Month CD Rates —
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How to pick a 12-month CD
A 12-month CD is the most popular CD term because it balances rate lock with a manageable commitment period. As of , the best 12-month CD rate is 4.30% APY at NBKC Bank with no minimum deposit. Several institutions offer 4.00% or more with no minimum.
12-month CD versus HYSA
The best HYSAs pay around 4.10–4.40% APY with no lock-in. The best 12-month CDs are currently competitive with or above the best HYSAs. The CD wins if you are confident you will not need the money for 12 months and want rate certainty against a potential Fed rate cut. The HYSA wins if you might need access before the term ends.
The no-penalty 11-month alternative
LendingClub Bank offers an 11-month no-penalty CD at 4.15% APY with a $2,500 minimum. Ally Bank’s 11-month no-penalty CD pays 4.00% with no minimum. These are effectively 12-month CDs with an exit clause — if rates rise or you need the money, withdraw early with no fee and reinvest. See all no-penalty CD options.
See also: CD earnings calculator — CD vs. HYSA calculator — Best 2-year CD rates — Early withdrawal penalty calculator
As of , the top-scored 12-month CD is the NBKC 12-Month CD at 4.30% APY with no minimum deposit. For no-penalty flexibility, LendingClub’s 11-month no-penalty CD at 4.15% APY is the best exit-anytime option. All rates are verified daily — check the rankings above for the current live list.
With Fed rate cuts expected, a 12-month CD started today locks in the current rate for the full term — protecting you if HYSA rates fall. If HYSAs drop 0.25% after a cut, your CD continues earning its locked rate while HYSA rates fall. On a $20,000 balance the difference is roughly $50 per 0.25% rate gap — small but guaranteed. The main trade-off is liquidity: breaking a 12-month CD early typically costs 90–180 days of interest.
LendingClub’s 11-month CD is no-penalty — you can withdraw any time after 6 days without penalty. It’s one month shorter but the no-penalty feature adds HYSA-like flexibility while still locking in a competitive rate. For most people this is a better choice than a standard 12-month CD unless you specifically need the 12-month term for a CD ladder where the maturity date matters.
Penalties vary by institution. Most 12-month CDs charge 90–180 days of interest for early withdrawal. On a $10,000 CD at 4.30%, a 90-day penalty costs approximately $107 and a 180-day penalty costs approximately $214. Use the early withdrawal calculator to model the exact cost before opening. No-penalty CDs listed above charge $0 regardless of when you withdraw.
Each CD receives a composite score based on APY (primary factor), early withdrawal penalty relative to term length, minimum deposit accessibility, and no-penalty bonus. No institution pays to appear or rank higher. Scores and rates are updated daily as each institution’s own rate page is verified. See the full scoring methodology.