If you know you’ll need to spend money soon but still want to earn a great interest rate in the meantime, a 1-month CD may be a great fit. Your money only remains tied up for about 30 days, and in turn you earn more interest than you’d receive in a standard savings account—though it’s still a modest amount compared to the best CDs rates available at longer term lengths.
Best 1-month CD rates of November 24, 2024
*APYs are current as of November 24, 2024 and are subject to change. Read our complete methodology here.
Find the best CD for you
Use the widget below to find the CDs with the best rates in your area.
The best 1-month CDs: editors' picks*
While the banks above may be offering excellent rates, our team may not have vetted the institutions or their products. In contrast, we’ve conducted extensive research on the banks below and ranked them based on overall rates, minimum deposit requirements, and the ability to open and manage the account from anywhere.
*APYs are updated daily but are subject to change.
Bank of America 1-month CD
| APY | 0.03% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | The greater of all interest earned or seven days’ interest on the amount withdrawn |
Why we picked Bank of America's 1-month CD
Bank of America offers fixed-term CDs with $1,000 minimum opening balances. You won’t pay any annual fees although, like most CDs, you will pay an early withdrawal penalty if you take your money out early.
You can access your account via a mobile app, where you can see the interest you've accrued and your account balances wherever you are. If you have more than $20,000 in combined accounts at Bank of America, you can qualify for Preferred Rewards. This gives you benefits such as better rates on savings, foreign currency exchanges, and loans.
Learn more: Read our Bank of America review
BrioDirect 1-month CD
| APY | Not currently offered% |
| Minimum Deposit | $500 |
| Early withdrawal penalty | 1 month of interest, even if it hasn’t been earned |
at Bankrate
at Bankrate
Why we picked BrioDirect's 1-month CD
When you get a high-yield CD from BrioDirect, your interest compounds daily and will be added at maturity. Its 1-month CD rate is Not currently offered%, and it has one of the lowest minimum deposits offered, at $500.
Even though it's an online bank, you get the same protections you'd find in a brick-and-mortar bank: FDIC deposit insurance. Because BrioDirect is an online bank, you'll need a smartphone to get started. However, opening an account takes only minutes and, from there, you can fund your CD via automated clearing house (ACH), check, or wire.
Learn more: Read our BrioDirect review
PNC 1-month CD
| APY | 0.01% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | Equal to the interest you would've earned if held to term |
Why we picked PNC Bank's 1-month CD
If you have a large sum to invest, consider PNC Bank as you’re rewarded for having a larger sum invested. With a fixed-rate CD, there's a minimum opening deposit of $1,000.
However, if you're renewing the CD, you can renew with as little as $1 to earn interest. Interest rates on renewals below $1,000 are 0.01%. For deposits of $1,000 to $24,999.99, your interest rate is 0.02%. When depositing more than $25,000, your interest rate is 0.03%.
Learn more: Read our PNC Bank review
JPMorgan Chase 1-month CD
| APY | 0.01% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | Interest earned during CD term (not exceeding 1 month) |
Why we picked JP Morgan Chase's 1-month CD
If you have an established relationship with JP Morgan Chase Bank, such as by having a credit card or checking account already with them, you're going to have a better rate than a nonrelationship client will have. For nonrelationship CDs, you’re only earning 0.01%. If you have a relationship with JP Morgan Chase, your rate is 0.02%, no matter the amount invested.
Learn more: Read our Chase Bank review
U.S. Bank 1-month CD
| APY | 0.05% |
| Minimum Deposit | $500 |
| Early withdrawal penalty | Greater of full-term interest or 1% of the amount withdrawn, plus a $25 fee |
Why we picked U.S. Bank's 1-month CD
U.S. Bank's 1-month CD, requiring only a $500 minimum opening deposit, offers one of the best interest rates at 0.05%. While a 0.05% APY will only earn you $0.02 on $500 after a month, it still beats many standard checking or savings account rates you'll find. Be sure you won't touch the money during the 1-month term, as it's got a hefty $25 fee, plus 1% of the amount withdrawn.
Learn more: Read our U.S. Bank review
All information about U.S. Bank CD and MMA rates has been collected independently by Fortune Recommends™.
Pros & cons of a 1-month CD
If you're considering a 1-month CD, you should know what you're getting into. Here are some advantages and disadvantages to consider before investing.
Pros
- Your money is only tied up for 30 days
- The interest you’ll earn is often more than a standard checking or savings account
- It’s one of the lowest-risk options available
Cons
- Returns not as high as investing in stocks or some other asset classes
- You may have better rates and fewer restrictions by putting the money into a high-yield savings account
- Withdrawing your money before maturity often has fees or penalties
How to choose the best 1-month CD
Before putting your money into a 1-month CD, know what to look for. Here is a general guide to choosing the best option for you:
- Compare interest rates: Not only should you compare interest rates across available 1-month CD terms, take a look at interest rates on other products with fewer restrictions.
- Check the minimum deposit requirement: Most deposits have a minimum requirement of $1,000, although some let you invest as little as $500.
- Understand early withdrawal penalties: Emergencies happen, so finding a 1-month CD with a reasonable early withdrawal penalty is important. Some charge only the interest you would’ve earned if kept to term, however, some charge a fee on top of that interest.
- Check the bank reliability: Many banks and credit unions require you to have an account with them to open a CD. Check the reviews to ensure this is a financial institution you’d want to do business with. This includes seeing what accessibility you have. Can you view your accounts online? What if you need to visit a branch?
1-month CD calculator: how to determine your earnings potential
To calculate your earnings from a CD, you’ll need to use the following formula: P(1+R/N)(NT) = A. Where “A” represents the value of your CD, including interest. "P" is equal to your principal balance or initial deposit. "R" represents your yearly interest rate―in this case, it would be your APY. "N" represents the compound frequency of your CD in a given year, and "T" represents the number of years until your CD’s maturity date.
Here’s an example:
- Initial deposit “P” = $1,000
- APY “R” = 5.00%
- Daily compound frequency “N” = 12
- Number of years until maturity “T” = 0.083 (one-twelfth of a year)
Our equation would turn out like this:
1,000 x ((1+(5.00/12)) x (12 x 0.083)) = $1,004.07
So, if you deposit $1,000 into a 1-month CD with an interest rate of 5.00% that compounds monthly, you could expect to withdraw about $1,004 at the end of the term.
Alternatives to 1-month CDs
There are several savings options available to you if you want to consider an alternative. These include:
- Savings account: Generally, a standard savings account has fewer restrictions than you’d find with a 1-month CD.
- High-yield savings account: A high-yield savings account is like a supercharged standard savings account, with some of the best rates hovering around 5.00% APY.
- Money market account (MMA): Think of an MMA as a savings account with check-writing privileges.
Best CD rates for more terms
When searching for competitive CD rates beyond the 1-month term, it's important to recognize that some banks with potentially higher rates might not be available nationwide. While our focus is on widely accessible options, local or regional banks might offer attractive rates but with limited availability.
More CDs to consider:
Our methodology
Fortune Recommends has partnered with industry leader Curinos to track the top CD rates from around the country. Our editors' picks are curated by our team of personal finance experts after evaluating not only the APY of the products but also the minimum deposit requirement and ease of opening new accounts. Rates are updated frequently but are subject to change.
Learn more: read about our banking methodology.
Frequently asked questions
Are CDs FDIC insured?
Yes, certificates of deposit (CDs) are protected by the Federal Deposit Insurance Corporation (FDIC). This federal agency insures all types of bank accounts held by its members, such as savings accounts, money market accounts, and CDs, up to $250,000 per customer per bank. This insurance secures your funds in the unlikely event of a bank failure. If you opt for a CD from a credit union, verify that it is insured by the National Credit Union Administration (NCUA), which functions similarly to the FDIC but specifically insures credit unions.
Are 1-month CDs a good idea?
If you want a safe, short-term way to park your money while earning slightly more interest than you would on a savings account, a 1-month CD might be a good choice. However, what you'll earn is modest compared to what you might get in a high-yield savings account, and you'll have a penalty if you take your money out early.
How much does a 1-month CD pay?
The APY on a 1-month CD is relatively low and varies by bank and current market rates. These rates are often below 0.05% APY and will vary by the amount invested.
Should I buy a CD now or wait?
In a high-interest rate environment like we’re in now, you’ll find some of the highest rates on CDs compared to a low-interest rate environment. Whether you should buy a CD now or wait depends on your individual circumstances. However, if interest rates are a main concern, now is a great time.
