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Best CD rates 1 month – December 2021

A one-month certificate of deposit expires in just four quick weeks. Interest rates on these CDs are generally low, primarily because banks want account holders to hold their money for longer periods of time. But you might prefer a month-long CD if you need short-term money protection and think you’d be tempted to spend it.

However, many savings accounts and money market accounts offer higher annual percentage returns (APYs) than one-month CDs. But savings deposit accounts usually have variable APYs, while term CDs usually have fixed APYs for the term.

Although one-month CD rates are generally low, you may be able to find accounts that offer competitive returns. Here are the best one-month CDs, offering the highest possible fixed yield for that term.

Bankrate’s Guide to Choosing the Right CD Rate

Why you can trust Bankrate

Bankrate has over four decades of experience in financial publishing, so you know you’re getting information you can trust. Bankrate was born in 1976 as “Bank Rate Monitor”, a print publisher for the banking industry, and has been online since 1996. Hundreds of leading publications trust Bankrate. Outlets such as The Wall Street Journal, USA Today, The New York Times, CNBC, and Bloomberg depend on Bankrate as a trusted source of financial news and rates.

Methodology for the best Bankrate CD rates

At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team does not receive any direct compensation from advertisers and our content is thoroughly checked to ensure accuracy.

Bankrate regularly surveys around 70 widely available financial institutions, consisting of the largest banks and credit unions, as well as a number of popular online banks.

To find the best CDs, our editorial team analyzes various factors, such as: Annual Percentage Yield (APY), the minimum needed to earn that APY (or to open the CD) and whether or not it is widely available. All accounts on this page are insured by Federal Deposit Insurance Corp. banks. (FDIC) or the National Credit Union Share Insurance Fund.

When deciding which CD is best for you, consider the purpose of the money and when you will need to access those funds to help you avoid early withdrawal penalties.

The best 1 month CD rates December 2021

  • SchoolsFirst Federal Credit Union: 0.20% APY; Minimum deposit of $ 20,000 to earn APY
  • BrioDirect: 0.05% APY; Minimum deposit of $ 500
  • American Bank: 0.05% APY; Minimum deposit of $ 500
  • Key bank: 0.05% APY; Minimum deposit of $ 2,500
  • Union Bank: 0.05% APY; Minimum deposit of $ 2,500

Note: Annual Percentage Returns (APYs) shown are as of November 30, 2021. APYs for certain products may vary by region..

Compare: Best 1 month CD rates

CD holders can earn 0.2% Annual Percentage Return (APY) on a one month CD. If you want to get a return on your cash but also want the ability to reinvest, you might want to consider a one month CD.

SchoolsFirst Federal Credit Union: 0.20% APY; Minimum deposit of $ 20,000 to earn APY

SchoolsFirst Federal Credit Union was formed by school employees during the Great Depression in 1934. The credit union has 50 branches.

SchoolsFirst serves the educational community in California. Certain school employees, certain retired school employees, and immediate family members of existing members of the SchoolsFirst Federal Credit Union are eligible to join.

SchoolsFirst offers CDs ranging from 30 days to five years. To open a CD, a minimum deposit of $ 500 is required. If you invest more money, you could be rewarded with a higher APY, as SchoolsFirst has four rate tiers: $ 500, $ 20,000, $ 50,000, and $ 100,000.

BrioDirect: 0.05% APY; Minimum deposit of $ 500

BrioDirect is the online brand of Sterling National Bank. All BrioDirect savings deposit products are provided by Sterling National Bank, which was founded in 1888.

BrioDirect offers CDs and a high yield savings account. These two savings products offer competitive returns. It also offers money market accounts and current accounts.

BrioDirect offers 13 CD durations, ranging from 30 days to five years. But the one-year CD has the highest APY for a CD at BrioDirect.

American Bank: 0.05% APY; Minimum deposit of $ 500

US Bank is one of the 10 largest commercial banks in the United States. The history of the bank dates back to the First National Bank of Cincinnati in 1863. US Bank is based in Minneapolis.

It offers 11 CD durations, ranging from one month to five years. US Bank also offers a CD Step Up and CD Trade Up.

Key bank: 0.05% APY; Minimum deposit of $ 2,500

KeyBank has been in existence since 1849 and is headquartered in Cleveland. KeyBank has a network of around 1,100 branches and over 1,400 ATMs. KeyBank offers CDs with durations ranging from seven days to 10 years. KeyBank CDs are available to consumers and businesses in 15 states.

Union Bank: 0.05% APY; Minimum deposit of $ 2,500

Union Bank serves retail customers with more than 350 branches along the California Coast, Oregon and Washington. Union Bank is part of the Mitsubishi UFJ Financial Group, or MUFG.

Union Bank offers CDs for terms ranging from seven days to five years. Seven- to 31-day CDs require a minimum deposit of $ 2,500. All other terms only require $ 350 to open a CD.

One Month CD FAQs

How does a 1 month CD work?

A one month CD allows you to get a fixed APY for one month. Withdrawing your money from the CD before the end of the term will likely result in an early withdrawal penalty.

Pros and cons of a one month CD

Benefits of a one-month CD:

  • Your money is not locked away for long.
  • It gives you the option to keep your money in the CD for another term when it expires or to withdraw it at the end of the term.
  • Usually a CD term will give you a fixed APY for the life of the CD.

Disadvantages of a one month CD:

  • Unlike a savings account, a one month CD can incur an early withdrawal penalty if you withdraw money before the end of the term.
  • A savings account or CD without penalty can yield a higher APY than a 1-month CD.
  • APYs may not be competitive with other CDs over the longer term.

Can we lose money with a 1 month CD?

Withdrawing money prematurely from a one-month CD could result in the loss of accrued interest and possibly a portion of the deposited amount, in the form of an early withdrawal penalty. It is also possible to lose money if the bank holding the funds goes bankrupt and the total amount you have in your bank account exceeds the limits or guidelines of the Federal Deposit Insurance Corp. (FDIC).

Alternatives to 1 month CDs

If you don’t want to put your money aside for a month, here are some alternatives to consider:

Consider a savings or money market account

A money market account or a high yield online savings account may offer higher interest rates than a one month CD. In addition, you will be able to access your money quickly without penalty. However, money market and high yield savings accounts generally require higher balances and can restrict your access to money.

Choose a CD with a longer duration

Typically, savers who store their money in longer-term CDs can snag higher interest rates. For example, the average five-year CD rate hovers around 0.26% of APY. Nonetheless, you can find higher APYs if you shop around and compare CD prices.

How to use a one month CD in a CD ladder

A CD ladder allows you to take advantage of different CD maturities and interest rates. To get started, figure out how much money you can invest and how long you can save money. Then open a few short and long CDs with staggered due dates, and decide how much money you’re going to put in each.

Short-term CDs allow you to take advantage of rising interest rates, while long-term CDs usually have higher rates. For example, you may decide to use a one-month CD as the shortest rung, plus a six-month CD, a one-year CD, and a three-year CD. Keep your money invested in CDs for the long term, and as short term CDs mature, you may decide to use the money or reinvest it in a higher rate CD.

Learn more about other terms on the CD:

  • Best 1 year CD rates
  • Best 18-month CD rates
  • Best 2-year CD rates

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