How today's CD rates compare
The FDIC's national average rate next to the Treasury yield for the same term, as of August 31, 2026. Rates vary widely between banks, and the Treasury yield is a useful yardstick for any offer.
| CD term | National average | Treasury yield | Interest on $10,000 at the average |
|---|---|---|---|
| 12-month | 1.73% | 4.16% | $173 |
Sources: FDIC national rates (deposits under $100,000) and Federal Reserve H.15. Updated monthly in our CD Rate Gap Report.
How Much Does a 1-Year CD Earn?
A 1-year (12-month) CD is the sweet spot of certificate-of-deposit investing — long enough to earn a strong rate, short enough that your money is not locked away for years. The calculator above is preset to a 12-month term; enter your deposit and APY for an exact figure.
Here is what a 1-year CD earns at an example rate of 4.75% APY (compounded daily):
| Deposit | Interest Earned (1 year) | Maturity Value |
|---|---|---|
| $1,000 | $48.65 | $1,048.65 |
| $5,000 | $243.23 | $5,243.23 |
| $10,000 | $486.46 | $10,486.46 |
| $25,000 | $1,216.15 | $26,216.15 |
| $50,000 | $2,432.30 | $52,432.30 |
Note that the effective return is slightly higher than the nominal 4.75% because of daily compounding — $10,000 earns $486.46, an effective APY of about 4.86%.
1-Year CD Rates in 2026
The table above shows the FDIC's national average for a 12-month CD next to the 1-year Treasury yield, updated every month. At the average bank, the 12-month term has recently paid more than longer terms, but the average itself sits far below the Treasury yield. Rates vary widely between institutions, and the best offers usually come from online banks, credit unions and brokered CDs, so compare several before you commit.
A 1-year CD locks your rate for twelve months: if rates fall, you keep it; if they rise, you can reinvest at maturity. The Federal Reserve raised its target range in September 2026, so check whether offers have moved before you buy.
When a 1-Year CD Makes Sense
A 12-month CD is the right fit when:
- You want the best CD rate available — the 1-year term frequently pays the highest APY of all terms.
- You expect rates to fall — locking for a full year protects you from rate cuts, unlike a 3- or 6-month CD that matures sooner into a lower-rate environment.
- You have a 1-year goal — saving for a down payment, wedding, or large purchase about a year out.
- You want simplicity — one CD, one year, one predictable payout. No laddering complexity required.
If you might need the money in under a year, a 6-month CD or no-penalty CD offers more flexibility. If you can commit longer and want to lock a rate for the long haul, compare a 5-year CD — though at the average bank, longer terms have often paid less in 2026.