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Best 12 Month CD Rates, December 2014

This article was written by in Banking. 9 comments.


The best 12 month CD rates may not be impressive overall today compared with historical rates. With the Federal Reserve keeping interest rates low for the near future, all types of deposits will not command the interest rates that were common before the recession. With nowhere to go but up, it may not make a lot of sense to lock in a rate for a long period of time. With most certificates of deposit, once you agree to a term like five years, you’ll be stuck with that rate even if new CDs have different rates.

This is a good approach in an environment where rates are high and possibly falling, but not a great idea when rates are low and possibly increasing. Nevertheless, you can often find better rates for CDs than for savings and money market accounts, so if you know you won’t need your savings for three months, six months, or a year, you might be able to achieve slightly higher interest payments from the bank. One drawback is there is often a penalty for accessing your cash before your term is up.

For the uninitiated, a certificate of deposit (CD) is considered a “time deposit.” CDs are generally considered cash or savings when it comes to asset allocation, but the “time” requirement presents a maturity date like a bond. This probably doesn’t matter for most individual savers and investors, but it does carry an important distinction for businesses whose investments are reported to regulatory authorities.

Like savings accounts, CD interest rates are compared using APY, annual percentage yield.

 Term
 Amount

Type: CD

Minimum to earn APY $2000

1.10%APY

Rates as of 12/22/2014
FDIC Insured

Advertiser Comments

  • Member FDIC
  • Synchrony Bank was formerly GE Capital Retail Bank
  • Balances from $2,000 - 100,000+ earn 1.10% APY

See more rates

Type: CD

Minimum to earn APY $0

1.05%APY

Rates as of 12/22/2014
FDIC Insured

Advertiser Comments

  • Get our best rate with the Ally Ten Day Best Rate Guarantee.
  • Open and fund with any amount.
  • Member FDIC.

See more rates

Type: CD

Minimum to earn APY $2000

1.20%APY

Rates as of 12/22/2014
FDIC Insured

Advertiser Comments

  • Member FDIC
  • Synchrony Bank was formerly GE Capital Retail Bank
  • Min Balance $2,000. Use Promo code BON12

See more rates

TermRateAPYMin. To Earn APYDetails
1 year2.96%3.00%$50Special Easy Start Certificate - $3,000 maximum balance - must have direct deposit of net pay - Navy FCU checking and monthly automatic deposit of at least $300 - See site for membership eligibility details.
1 year1.20%$50012 Month CD - Rates may vary based on location - Rate collected within: NY
1 year1.15%1.15%$10,000Anytime Access CD - Simple Interest $10,000 Minimum Opening Balance
1 year1.15%1.15%$5,000Share Certificate - contact Melrose CU for opening paperwork - Must be a member
1 year1.14%1.15%$2,50012 Month -Nationwide - apply online
1 year1.14%$50012 Month CD - for balances in Tier $0-$9,999
1 year1.10%1.11%$1,000Money Market CD-membership is open to U.S. military
1 year1.09%1.10%$5,000
1 year1.09%1.10%$5,000Online CD
1 year1.10%$10,000Rate available with active checking account - membership is available nationwide - may become a member and open account online - contact credit union for details - credit union located in Wisconsin
1 year1.10%$1,000Term CD - Apply online
1 year1.09%1.10%$500Open online- Maximum deposit amount $1,000,000
1 year1.05%1.06%$2,500Giant Personal CD
1 year1.04%1.05%$0High-Yield CD - Apply online - Rate collected within: CA
1 year1.04%1.05%$50012 Month CD
1 year1.01%1.01%$1,000Rate may vary by location. Rate collected within: 94104 (CA)
1 year1.00%1.00%$2,50012 Month CD
1 year1.00%1.00%$10,000eCD rates for online account only
1 year1.00%1.00%$1,00012 month CD
1 year0.95%0.95%$1,000Local funds only, contact retail offices in Ohio
1 year0.95%0.95%$5,00012 Month - Rate collected in Arizona
1 year0.94%0.94%$1,000
1 year0.90%$50012-Month CD - Internet only bank - apply online or by mail - product available to all 50 states
1 year0.90%0.90%$1,000UNITY Gold One Year E-CD - Tier $1,000 - $99,999.99 - Available Online only
1 year0.90%$50012 Month CD - Online Bank - apply online or by mail - product available to all 50 states
1 year0.90%0.90%$10,00012 Month Personal CD - APY for balances under 100K
1 year0.90%$1,000APY for balances $1,000 - $49,999 - apply online
1 year0.85%0.85%$10,000
1 year0.80%$5,000Certificate of Deposit Accounts, New York Branch
1 year0.80%0.80%$1,000Online CD
1 year0.80%0.80%$012 Month Online CD
1 year0.78%0.78%$1,000365 Days
1 year0.75%0.75%$1,000
1 year0.71%$1,000Fixed Rate Standard CD Tier $1,000 - $94,999 - USAA Bank is a member based bank providing services to active and retired military personnel and their families. Most banking products are available to the general public. See website for details.
1 year0.70%0.70%$500
1 year0.70%$50012 Month CD - Apply online - Limited to Pennsylvania, New Jersey and New York market area
1 year0.70%0.70%$1,500Yield Pledge CD
1 year0.68%0.68%$1,00012-23 Month Terms-Rates and terms specific to accounts opened online
1 year0.66%0.66%$1,000Must be opened online to get this rate. Rate may vary by location. Rate collected within: 94104 (CA) Beal Bank, SSB
1 year0.65%0.65%$1,00012 Month CD
1 year0.65%0.65%$500Membership is limited to employees of the air transportation industry, as well as those who live or work in select counties of the Minneapolis/St. Paul, MN, metro area
1 year0.65%$1,000
1 year0.60%0.60%$500
1 year0.60%$50012 Month CD
1 year0.60%$1,00012 Month CD - Rate/APY may vary by location
1 year0.60%0.60%$5,000Personal CD 12-23 Month - open online, $5,000 to open
1 year0.60%0.60%$1,000
1 year0.60%0.60%$2,500Located in Bristow, OK
1 year0.60%0.60%$1,00012 Month CD - Limited to local Nebraska market area
1 year0.60%0.60%$50012 Month CD

Rates / APY terms above are current as of the date indicated. These quotes are from banks, credit unions and thrifts, some of which have paid for a link to their website. Bank, thrift and credit union deposits are insured by the FDIC or NCUA. Contact the bank for the terms and conditions that may apply to you. Rates are subject to change without notice and may not be the same at all branches.

Here are some of today’s best 12 month CDs APY rates.


Discover Bank CDDiscover Bank offers a hassle-free banking experience. I am a current, happy customer. Discover offers a rate of 1.00% APY for their 12 month CD as of December 14, 2014.


Ally Bank CDAlly Bank offers two unique types of CDs in addition to a traditional CD. The Ally Bank Raise Your Rate CD has a feature that mitigates the risk of CD rates increasing while you’re locked in. You’ll have one opportunity during the term of the CD to lock in the market interest rate. The shortest term offered is 2 years, though, not 12 months. The rate for this 2 year product is 1.29% APY as of December 19, 2014.

Ally Bank also offers a No-Penalty CD, where you can withdraw your money at any time without a penalty. This term is slightly less than a year at 11 months, and the current rate is 0.87% APY as of December 19, 2014. Beyond these products, Ally Bank also offers a typical 12-month CD, subject to an early withdrawal penalty and no option to increase the interest rate mid-term, and the current rate for a 12-month high yield CD is 1.05% APY as of December 19, 2014.


American Express Bank CDCapital One 360, the brand that emerged from Capital One’s acquisition of ING DIRECT, remains a mainstay of online banking and continues to set the standard for all other online banks. Like ING before it, Capital One 360 offers state-of-the-art banking products and delivers excellent customer service. The interest rate for Capital One 360’s 12-month CD is 0.40% APY as of December 14, 2014.


American Express Bank CDAmerican Express is a relative newcomer to online banking, but their products are compelling to offer here. I like my account with American Express. This bank offers a wide range of terms for CDs from six months to 60 months, with many intermediate terms. The interest rate American Express offers on their 12 month CD is 0.55% APY as of December 14, 2014.


Sallie Mae CDSallie Mae Bank is also new to offering banking products, having been established in 2005. My account with Sallie Mae was the easiest to open, and my only criticism is the lack of integration with Quicken and online tracking tools. Sallie Mae offers a strong 1.15% APY on the 12 month certificate of deposit as of December 14, 2014.


Do you have a favorite bank, offering a compelling CD product, you’d like to see added to this list? Let me know by leaving a comment below.

If time deposits aren’t right for you and you’d like the ability to withdraw your money as needed, consider a high yield savings account from one of the best online banks. If you do like the idea of saving with CDs, consider creating a CD ladder to make the most of the highest CD rates.

Updated December 19, 2014 and originally published August 20, 2011. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 9 comments… read them below or add one }

avatar mp99

I’m a big discover card fan….I was a discover bank customer for a few years, but I wouldn’t recommend them to anyone now. The bank (unlink their sister company [credit card]) has the WORST customer service, they are not easy to deal with and are not open to suggestions for improvement. They used to have the WORST website although I hear it is better now. One of my biggest complaints was that they said they HAD to mail me statements, no matter what I told them they had to do it. I asked about emailing them, I was told flat out by a supervisor (not a first level phone support) that they were a bank and had no intentions of emailing paperwork. I think they finally had to change their tune when other people started to complain too.

I switched to Ally and I do love my bank :) Talk about ease of use and friendly!

Reply to this comment

avatar Luke Landes ♦127,550 (Platinum)

Thanks for sharing your experience!

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avatar Stocksicity

I was actually looking at Ally bank for a CD Account, mainly because of their no-penalty clause. Good to see they made the list.

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avatar Ceecee ♦53 (Newbie)

Ugghhh, the rates are awful. ING used to have the highest rates, but no more. The 1.35% at Ally looks to be the best…and at least you can up it if they offer a higher rate during the term, which I doubt. Never thought I would see CD rates this low. Feel sorry for seniors wanting some safe and liquid income.

Reply to this comment

avatar Luke Landes ♦127,550 (Platinum)

That’s the state of today’s economy. At some point, rates will be higher again… but the question will always be the relationship between savings interest rates (after taxes) and inflation. When interest rates are higher, inflation will be higher, too. Will the rates be above or below inflation? And how does inflation play into your own personal rate of inflation?

CDs aren’t really an investment, they’re more like a safe place to put money you might need after period of a year (or less, or more, depending on the term). Accept that your savings will probably lose money relative to inflation, and you’re in it for the safety.

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avatar skylog ♦368 (Nickel)

if i buy CD’s from ING direct, what, if anything, would happen to those CD’s when they are finally sold to capital one? i am assuming that the rates/terms would remain the same. am i wrong to think this?

that said, man, the ING rates are horrid. it would seem the best option if you are already with ING is to just keep your funds in a savings account.

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avatar qixx ♦1,895 (Half-Dollar)

Isn’t the ING Savings Account rate 0.95%. So you can lock in your money for less than if you leave it accessable?

Also Flexo it might be worth adding a note at the bottom with a link to one of your posts on CD Ladders.

Reply to this comment

avatar Luke Landes ♦127,550 (Platinum)

With the savings account, the rate could, and probably will, change. The CD rate may be lower, but it’s guaranteed for the whole term. The savings rate could drop below the CD rate. Thanks for the suggestion of adding a link!

Reply to this comment

avatar skylog ♦368 (Nickel)

certainly a valid point, which i totally did not think about. i would still be inclined to leave my money in the savings account as i am not looking to put my money in a long-term cd at the moment anyway.

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