Best 12-Month CD Rates: Navigating a Shifting Landscape (November 2025)

Certificates of deposit (CDs) continue to offer a haven in uncertain times, especially for those prioritizing security with their short-term savings. Currently, as of late November 2025, the top-tier 12-month CD rates are hovering around 4.20% APY. Considering the national average sits at a more modest 1.64%, there are some compelling opportunities.

It’s interesting. We’ve observed something a bit counterintuitive lately. While the Fed has been easing rates, a number of banks haven’t followed suit with their 12-month CD offerings. In fact, some are holding steady or nudging them upwards. Savings accounts, on the other hand, tell a different story.
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Locking in a guaranteed return might be a smart move right now. Here’s a quick look at some of the leading contenders in the 12-month CD space:

Credit One Bank: They’re headlining with a 4.20% APY, although that’s specifically for their jumbo CD, requiring a hefty $100,000 minimum deposit. Alliant Credit Union: Alliant is offering a competitive 4.10% APY on their standard 12-month CD. Their jumbo CD even climbs to 4.15% APY. Discover® Bank: Discover® CDs offer accessibility with no minimum deposit to open. You can currently secure 4.05% APY on a 12-month CD. Seattle Bank: For a more modest $1,000 minimum, Seattle Bank offers a 4.00% APY on their 12-month CD. Live Oak Bank: Live Oak mirrors Seattle Bank at 4.00% APY for a 12-month term, but requires a $2,500 minimum.

Where do these rates go from here? That’s the big question, isn’t it?
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Understanding the 12-Month CD

The premise of a 12-month CD is pretty straightforward. You agree to park your money with a bank for a year, and in return, they give you a fixed interest rate. There’s a catch, though: early withdrawals typically incur a penalty, often around 90 days’ worth of interest.

CDs tend to appeal to savers looking for predictability. While high-yield savings accounts offer flexibility, CDs can ensure a specific return over a set period. In a world of fluctuating rates, this certainty carries weight.

To illustrate, imagine investing $25,000 in a CD yielding 4.00% APY. Over a year, you’d pocket roughly $1,000. In comparison, the national average 12-month CD rate would only generate about $420 on the same principal.

Before You Commit: Key Considerations

CDs aren’t savings accounts; they operate under different rules. Before opening a CD, consider these factors:

Time Horizon: These are ideal for near-term goals like tuition, a wedding, or a down payment within a year. Interest Rate Outlook: Rates have cycles and if you think the rates are going to continue to fall, locking an APY could be a smart move CD Laddering: Diversify your risk. Combine a 12-month CD with longer-term options to try and maximize returns. Deposit Safety: FDIC or NCUA insurance is a must. It protects your deposits up to $250,000 per depositor, per institution.

And of course, take a close look at the fine print.

Minimum Deposit: Some banks might require a sizable minimum to open an account. Withdrawal Penalties: Know the consequences of accessing your money early. Renewal Policies: Many CDs automatically renew at maturity. Be aware of the terms if you’d rather not reinvest. Rate Locks: Confirm when your interest rate is officially locked—at application or funding. Digital Accessibility: Make sure the bank provides convenient online access for transfers and statements.

How We’re Keeping Tabs

Our team dedicates time to monitoring CD rates from a broad spectrum of banks and credit unions on a daily basis. We double-check every APY against official disclosures. Only FDIC- or NCUA-insured institutions available to the general public make the cut. Our rankings are independent and unbiased. We may receive a referral fee when you open an account through some of our links, but our recommendations are driven solely by yield, accessibility, and overall customer experience. We think that’s important.

Common Questions

Are 12-month CDs a safe bet? Generally, yes. They come with federal insurance, providing a solid level of protection. What if I need the money sooner? You can withdraw early, but expect to sacrifice some interest. Are CD earnings taxable? Yes, the interest you earn is subject to federal and sometimes state income taxes. What happens when my CD matures? Banks usually offer a grace period to either withdraw or renew your funds. Is now the right time to jump in? With rates still relatively high, locking in a short-term CD could be a worthwhile strategy. Timing, of course, is everything.

The CD market is always in motion. Staying informed and understanding the nuances is critical. It’s about finding the right balance between risk, reward, and your personal financial goals. This holds true no matter what the headlines are saying.

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