12 month CD Rates

A 12-month CD (certificate of deposit) is a time deposit, FDIC-insured up to $250,000, with a fixed maturity date of twelve months. It usually pays higher interest than a savings account and a penalty is typically charged for withdraws before maturity.

The yield on a 12 month (1 Year) CD is higher than the rate because the yield factors in compounding. Banks offer daily, monthly and quarterly compounding rates. Different banking institutions also have varying minimum deposit requirements. Most banks require a deposit of between $0-$25,000, however, some banks may require more.