10 Best 1-Month CD Rates of 2024
Best for Term Flexibility
Bank of America Fixed Term CD
Vault Verified
APY
0.03%
Min. Deposit Requirement
$1,000
Term Length
28 days
Early Withdrawal Penalty
Minimum 7 days of interest
Why We Chose It
If you want more than just a one-month CD or want to build a specialized CD ladder, Bank of America offers great flexibility. Its Fixed Term CD comes in just about every term imaginable, ranging from 28 days up to 10 years. Read our Bank of America review.
Pros
- Terms from one to 120 months
- No annual or transfer fees
Cons
- Low interest rate
- Early withdrawal penalty of seven days or more in interest
- Interest compounds monthly, not daily
- Only offers a seven-day grace period before automatic renewal
Best for Low Initial Deposit
U.S. Bank Standard CD
Vault Verified
APY
0.05%
Min. Deposit Requirement
$500
Term Length
1 month
Early Withdrawal Penalty
Yes
Why We Chose It
You can start a U.S. Bank Standard CD with just a $500 deposit, making it a good choice if you don’t have $1,000 or more to fund the account. Read our U.S. Bank review.
Pros
- Minimum opening deposit of $500
- Offers a CD Special with higher interest rates for select terms
- Existing customers may get a bonus rate
Cons
- Doesn’t disclose early withdrawal penalty until CD account is opened
- Lower-than-average interest rate
- No CD Special rate for 1-month CD
Best Online-Only CD
BrioDirect High-Yield CD
Vault Verified
APY
0.05%
Min. Deposit Requirement
$500
Term Length
30 days
Early Withdrawal Penalty
1 month interest
Why We Chose It
The BrioDirect High-Yield CD requires just $500 to start and only takes a few minutes to set up.
Pros
- Easy to open a CD account from your smartphone
- Only requires $500 to start
- No fees
Cons
- Early withdrawal penalty may cost more interest than you actually earn
- Lower-than-average interest rate on one-month CD
- No cash deposits
Best CD for California Residents
SchoolsFirst Federal Credit Union Share Certificate
Vault Verified
APY
2.95% to 3.15%
Min. Deposit Requirement
$500
Term Length
30 days
Early Withdrawal Penalty
30 days interest
Why We Chose It
Eligible members can open a 30-day Share Certificate with SchoolsFirst FCU and earn an impressive 1-month CD rate of up to 3.15% APY. Traditional and Roth IRA CDs are also available with slightly higher interest rates and a 10-day rate guarantee.
Pros
- High CD rates available
- Only requires $500 initial deposit
- CDs earn higher interest rates than checking or savings accounts
Cons
- Must have an affiliation with an eligible California district or school to qualify for membership
- Promotional interest rate only available for other CD terms
Best for Relationship Benefits
KeyBank Short-Term CD
Vault Verified
APY
0.05%
Min. Deposit Requirement
$2,500
Term Length
30 days
Early Withdrawal Penalty
Minimum 7 days of interest
Why We Chose It
KeyBank offers a full suite of banking services, from checking and savings accounts to mortgages and credit cards. It even offers relationship reward rates for CD terms and loans.
Pros
- Flexible maturity dates as soon as 7 days from account opening
- Promo CD rates available for select terms
- Interest is compounded daily
Cons
- Lower-than-average interest rate
- Minimum 7 days of interest early withdrawal penalty
- Only available in select states
Best 1-Month CD Rates
Ponce Bank CD
Vault Verified
APY
3.00%
Min. Deposit Requirement
$500
Early Withdrawal Penalty
Yes
Why We Chose It
Ponce Bank offers an impressive 1-month CD rate of 3.00% APY and only requires a $500 minimum balance.
Pros
- High APY for 1-month CD
- IRA CDs available
- No fees
Cons
- No online setup option
- Minimal information available online
Best for Low Early Withdrawal Penalty
Huntington Bank Fixed Rate CD
Vault Verified
APY
0.05%
Min. Deposit Requirement
$1,000
Term Length
1 month
Early Withdrawal Penalty
1% of principal
Why We Chose It
Huntington Bank CDs offer low early withdrawal penalties for one-month CDs: 1% of the principal balance. That’s just $10 if you open a CD with the minimum $1,000 deposit. Read our Huntington Bank review.
Pros
- 1% early withdrawal penalty
- No fees
- Multiple term options available for standard and jumbo CDs
Cons
- Can only open in a physical branch
- $1,000 minimum deposit
- Promo interest rates only available for longer CD terms
Best for Idaho and Utah Residents
Zions Bank Personal CD
Vault Verified
APY
0.30%
Min. Deposit Requirement
$1,000
Term Length
1 month
Early Withdrawal Penalty
30 days of interest
Why We Chose It
Zions Bank offers a one-month CD option if you live in Idaho or Utah that doesn’t have any monthly fees. Interest compounds daily to help you earn more, and you only need to put down a minimum deposit of $1,000 to open your account.
Pros
- No monthly fees
- Interest compounds daily
- No penalty to withdraw interest before maturity
Cons
- Only available to Idaho and Utah residents
- Only three-day renewal grace period
- Have to apply in person
Best for the South and Midwest
Regions Bank CD
Vault Verified
APY
0.01%
Min. Deposit Requirement
$2,500
Term Length
1 month
Early Withdrawal Penalty
30 days of interest
Why We Chose It
If you live in the South or Midwest, you can open a Regions Bank CD at one of its hundreds of locations across 15 states. With this one-month CD, you can take advantage of interest disbursem*nts directly into your Regions savings, checking or money market account.
Pros
- Interest disbursem*nts pays interest directly into your savings account
- No monthly fees
- Interest compounds daily
Cons
- Only one business day grace period at renewal
- High minimum opening deposit
- Extremely low APY
Best Brokered CDs
Charles Schwab OneSource CD
Vault Verified
APY
Up to 5.38%
Min. Deposit Requirement
Varies
Term Length
1 month
Early Withdrawal Penalty
Varies
Why We Chose It
The Charles Schwab OneSource CD marketplace is a little different, as it’s a curation of brokered CDs sold by other banks. Because these CDs are being sold on the secondary market, they offer much higher APYs than you would find at individual banks. You buy and manage these CDs through Charles Schwab, but because they’re held by different banks, you can exceed the $250,000 FDIC insurance limit.
Pros
- Higher APYs than you’d find at other banks
- Can sell on the secondary market if you need funds early
- Allows you to hold CDs at different banks so you don’t max out your FDIC insurance
Cons
- Early withdrawals typically not permitted
- Interest does not compound
- More of a learning curve than standard CDs
1-Month Certificate of Deposit Overview
A fixed rate one-month CD may be beneficial if you’re looking for guaranteed growth, as savings accounts typically have variable interest rates that can change at any time. But given the short timeframe, a one-month CD may not be the best option for earning interest compared to CDs with longer terms or a high-yield savings account (HYSA) that has similar or lower minimum balance requirements and no early withdrawal penalties.
What Is a 1-Month CD?
A one-month CD is a type of savings account that holds your deposit for a month, allowing you to earn a fixed interest rate for the one-month term. But if you remove the money before the month is over, you’ll likely be hit with an early withdrawal penalty, which would cause you to forfeit some or all of your earned interest. This setup differs from a traditional savings account, where you can withdraw some or all of your money anytime, usually without paying an early withdrawal penalty.
How Do 1-Month CDs Work?
When you open a one-month CD and fund it, you’re allowing the bank or credit union to hold onto your money for 28 to 31 days. Your funds will earn a fixed interest rate for the time it’s held in the account. At the end of the term, you will have a window where you can withdraw the principal balance plus the interest earned without penalty. If you don’t withdraw the money during the grace period, the money may be automatically renewed into another one-month CD, depending on the financial institution guidelines.
Although you have the option to withdraw some or all of the principal balance before the term ends, you’ll typically pay an early withdrawal penalty. For a one-month CD, the penalty is anywhere from seven days of interest up to the entire month’s interest. Make sure you understand the terms and conditions on early withdrawals, earning interest and automatic renewals before opening the CD.
Who Should Get a 1-Month CD?
A one-month CD is best for someone who wants a low-risk way to save money while earning a fixed interest. As long as you don’t withdraw the money before the end of the term, you’ll earn the APY you locked in when opening the account.
Although you can earn a fixed interest rate, the APY may be lower on a one-month CD than other CD terms. It also likely won’t earn as much as a standard savings account, high-yield savings account or money market account, which won’t penalize you for early withdrawals. But most of these types of savings accounts usually have variable interest rates that can change any time.
Pros and Cons of 1-Month CDs
Here are some of the benefits and drawbacks of opening a one-month CD.
Pros
- Funds are only held for a short period
- Fixed interest rate provides guaranteed growth
- Money is usually federally insured up to $250,000
Cons
- Early withdrawal penalty may forfeit majority or all interest earnings
- Interest rates are typically low
- A higher minimum balance usually doesn’t equal a higher APY
What To Consider When Choosing a 1-Month CD
Although you have fewer options for one-month CDs than longer term CDs, knowing how to choose a short-term CD can help you find the best CD to fit your savings needs. Consider these factors when choosing a one-month CD.
Minimum Opening Deposit Requirement
The minimum opening deposit requirement is the lowest amount of money the bank requires to open and fund a CD account. The amount for a one-month CD can range from $500 to $2,500. If you pick a jumbo CD, you’ll typically need at least $100,000 to open the account.
If you’re considering a one-month jumbo CD, compare the APY to the standard one-month CD. The interest rate may not be any higher for the jumbo CD and you’ll end up locking up a much larger amount. You’ll also pay a higher early withdrawal penalty if you need the funds before the month is over.
Annual Percentage Yield
The annual percentage yield (APY), is the amount of interest you’ll earn in one year. Although you’re not locking up your money for a long time with a one-month CD, you still want to get the best interest rate available. Comparing different CD APYs across several banks or credit unions can help you find the best one-month CD rates. Although interest rates are fixed, they can change at any time, so be sure to verify the rates before opening a CD account.
Early Withdrawal Penalties
Most credit unions and banks offering CDs charge an early withdrawal penalty, but the amount can vary by financial institution. If you decide to withdraw your money before the one-month term is up, expect to forfeit at least seven days’ worth of interest. Make sure to verify the early withdrawal penalty before you open the CD; some one-month CD’s require the full month’s interest as an early withdrawal penalty, negating any interest you earn during the CD term.
Government-Insured
If the bank or credit union fails before your CD reaches maturity, you want to make sure your money is protected. Check to see if the bank is FDIC-insured or NCUA-insured if it’s a credit union. This insurance protects up to $250,000 per depositor and account category.
Renewal grace period
CDs typically renew automatically, giving you a short grace period of just a few days to withdraw your money without penalty before it’s locked away again in a same-term CD. If you want access to your money without paying a penalty after the term ends, make sure you’re aware of the CD grace period so you can withdraw your money during the renewal window.
Frequently Asked Questions
Are 1-Month CDs Worth It?
Although CDs offer guaranteed, fixed interest rates, a one-month CD may not be worth it because they tend to have lower-than-average interest rates. You can usually find a better interest rate with top savings accounts or high-yield savings accounts (HYSAs). Many HYSAs have low minimum balance requirements comparable to a CD with no maintenance fees. The best high-yield savings accounts have variable interest rates of 4.00% APY or better.
Are There 30-Day CDs?
Yes, 30-day CDs exist, though some banks refer to them as one-month CDs. It’s rare to find a 1-month CD, but some banks, like KeyBank, go as low as 7-day CDs. Most banks offer CDs from six months to six years, providing greater flexibility and the option to create a CD ladder for maximum profit.
Who Has the Best Rates on CDs Right Now?
The best rates on CDs right now depend on the type of CD you want. For example, the most competitive CD rates are through LendingClub, but if you want a no-penalty CD, consider CIT Bank. Bread Savings offers some of the most competitive renewal rates up to 5.50% APY.
Can You Lose Money in a 1-Month CD?
Yes, it’s possible to lose money in a one-month CD if you withdraw your money before the term is over. Most CDs charge an early withdrawal penalty, and in many cases, it’s a set number of days of interest. If you haven’t earned that much interest yet, the bank pulls the fees from your principal balance. However, if you wait until your term is over to make a withdrawal, you won’t lose money in a CD.
What’s the Best Alternative to a 1-Month CD?
The best alternative to a one-month CD is likely a high-yield savings account. Right now, the best savings accounts are offering over 5% interest rates, which is far higher than most of the one-month CDs we’ve curated here. In addition to earning much more interest, you’ll also have more flexibility when it comes to withdrawing and spending your money. While some savings accounts do have a six withdrawal limit each month, this limit is still better than not being able to make any withdrawals without losing money.
Newsweek writer Kristy Snyder contributed to this post.
