Best 1-Month CD Rates of September 2024
While one-month CDs generally have lower rates than longer CDs, they can still be rewarding. Annual percentage yields (APYs) and account details for the best one-month CDs are accurate as of September 4, 2024.
Charles Schwab Bank CD OneSource
5.0
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 1-month
5.12%
Minimum Deposit Requirement
$1,000
Interest Compounding Frequency
N/A
Learn More
Read Our Full Review
5.12%
$1,000
N/A
Editor's Take
You’ll be hard-pressed to find a better rate on a one-month CD, which is why Schwab topped our list. Charles Schwab’s rates on brokered CDs are highly competitive, even on one-month CDs—but one-month CDs aren’t always available on Schwab’s marketplace. A downside is that, unlike bank CDs, interest does not compound on brokered CDs. But a perk is that you can try to sell your CD before maturity.
Read our full Charles Schwab Review: Online Banking.
Pros & Cons
- Highly competitive interest rates
- Option to trade brokered CDs on the secondary market
- 24/7 customer service via phone or online chat
- $1,000 minimum deposit requirement
- Brokered CDs can lose value if sold before maturity
Details
Interest on Schwab OneSource CDs doesn’t compound. Instead, it’s paid out in intervals throughout the CD’s term. Customers can sell CDs on the secondary market without penalty before maturity, though it’s possible they can lose value. And like bank CDs, you can withdraw your full principal balance at maturity.
Regions Bank Certificates of Deposit
3.7
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 1-month
0.01%
Minimum Deposit Requirement
$500
$2,500 for terms from 7 to 89 days
Interest Compounding Frequency
Daily
0.01%
$500
$2,500 for terms from 7 to 89 days
Daily
Editor's Take
Regions Bank ranked highly on this list for its widespread branch access and excellent digital experience. The regional bank offers branches in 15 states throughout the South, Midwest and Texas. Its mobile app earns high ratings in both the App Store and Google Play. Plus, interest compounds daily on CDs, including one-month terms.
Read our full article on Regions Bank CD Rates.
Pros & Cons
- Branch access in the South and Midwest
- Highly-rated mobile app
- Daily compounding
- Higher minimum deposit required
- One-day grace period before automatic renewal
- Early withdrawal penalty equal to all interest that would have been earned
- Low APY compared to other terms
Details
For CDs that are 31 days or less, you’ll pay an early withdrawal penalty if you remove funds prior to maturity. The amount is equal to the total amount of interest you would have earned, meaning you might lose some of your principal balance if you haven’t accumulated enough interest to cover the penalty. At maturity, your CD will be re-invested in the same CD term unless you elect to withdraw within one business day.
Affinity Federal Credit Union Certificate
3.6
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 1-month
0.05%
Minimum Deposit Requirement
$500
Interest Compounding Frequency
Daily
0.05%
$500
Daily
Editor's Take
Affinity Federal Credit Union offers several types of certificates with low minimum deposit requirements of just $500, which is why its one-month CD made our list. This credit union also pays highly competitive rates on promotional certificate terms, so it’s worth joining if you open CDs regularly—especially considering how easy it is to qualify for membership.
Pros & Cons
- Easy to join
- High promotional CD rates
- Low minimum deposit
- Branch access in the Northeast
- Low interest rates on shorter-term CDs
- $2 monthly paper statement fee
Details
This CD comes with a $2 monthly fee if you receive paper statements but no monthly fee if you enroll in paperless eStatements. You’ll need to become a member to open an account, which you can do by donating $5 to the Affinity Foundation. At maturity, you have a 10-day grace period to withdraw funds before they are automatically reinvested into a CD with the same term as the previous account.
BrioDirect High-Rate Certificates of Deposit
3.5
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 1-month
0.05%
30-day term
Minimum Deposit Requirement
$500
Interest Compounding Frequency
Daily
Learn More
Read Our Full Review
0.05%
30-day term
$500
Daily
Editor's Take
BrioDirect’s one-month CD also scored highly thanks to its low $500 minimum deposit requirement and daily compounding schedule. This bank makes it easy to open a CD account online and offers its most competitive rates on limited-time promotional CDs. BrioDirect is the online arm of Webster Bank, and all deposits are FDIC-insured up to standard coverage limits.
Read our full BrioDirect Review.
Pros & Cons
- Relatively competitive APY
- Highly rated mobile app
- Relatively low $500 minimum deposit requirement
- Only offers CDs and a money market account
- No physical branch locations
Details
Interest on BrioDirect’s three-month CD account is compounded daily and is credited at maturity. The grace period to withdraw funds is seven days after maturity. If you decide to withdraw funds prior to the maturity date, there is an early withdrawal penalty for withdrawing principal that equals 90 days’ interest, whether earned or not.
Bank of America Fixed Term Certificates of Deposit
3.3
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 1-month
0.03%
Minimum Deposit Requirement
$1,000
Interest Compounding Frequency
Monthly
On Bankrate.com's Website
0.03%
$1,000
Monthly
Editor's Take
As one of the largest banks in the U.S., Bank of America offers nationwide branch access and a full suite of financial products, which is why its one-month Fixed Term CD made our list. Though Bank of America CD rates tend to be on the low end, they come in almost every term length imaginable. This bank is worth considering if you like to do all your banking in one place.
Pros & Cons
- May be a good option if you already have accounts with Bank of America
- Minimum depositis affordable for many savers
- Comparatively low APY
- Early withdrawal penalty is one year’s worth of interest
- Grace period is a comparatively short seven days
Details
Interest compounds and is credited to the account monthly. Once your CD matures, you have a seven-day grace period to close the account. Otherwise, it will automatically renew for another 10-year term. The penalty for early withdrawal is 365 days’ worth of interest.
Summary: Best 1-Month CD Rates
| Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | CD APY 1-month | Minimum Deposit Requirement | Interest Compounding Frequency | Learn More CTA text | Learn more CTA below text | Learn More |
|---|---|---|---|---|---|---|---|---|---|
| Charles Schwab Bank CD OneSource |  | 5.0 |  | 5.12% | $1,000 | N/A | Learn More | Read Our Full Review | |
| Regions Bank Certificates of Deposit |  | 3.7 |  | 0.01% | $500 | Daily | Learn More | Read Our Full Review | |
| Affinity Federal Credit Union Certificate |  | 3.6 | | 0.05% | $500 | Daily | Learn More | Read Our Full Review | |
| BrioDirect High-Rate Certificates of Deposit |  | 3.5 | | 0.05% | $500 | Daily | Learn More | Read Our Full Review | |
| Bank of America Fixed Term Certificates of Deposit |  | 3.3 |  | 0.03% | $1,000 | Monthly | Learn More | On Bankrate.com's Website |
Methodology
We reviewed 35 CD accounts at 23 financial institutions to develop this list. For the star ratings, we ranked each institution on 11 data points within the categories of APY, minimums, compound interest schedule, customer experience, digital experience, available terms and overall availability. We analyzed and ranked each account by individual term.
Here’s how we weighted each scoring category:
- APY: 35%
- Customer and digital experience: 22.5%
- Minimum deposit requirement: 17.5%
- Compound interest schedule: 10%
- Availability: 10%
- Available terms: 5%
We considered App Store and Google Play ratings, online banking access, BBB grades, TrustPilot ratings and live chat availability to analyze customer and digital experience. CD accounts with higher APYs rose to the top of the list, and accounts with daily compounding interest schedules scored higher than those with monthly or quarterly schedules. High minimum deposit requirements affected scores negatively.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.
Current 1-Month CD Rates
According to the FDIC, the average one-month CD rate is 0.23% as of August 19, 2024. It’s common to find one-month CD rates that are much lower, but there are a few one-month CDs with higher rates that bring this average up.
CD rates tend to follow the federal funds rate set by the Federal Reserve, increasing or decreasing when this rate changes. With inflation still higher than the Fed’s 2% target rate, interest rates are expected to stay high for a bit longer before dropping at some point in 2024.
How To Find the Best 1-Month CD Rates
To find the best 1-month CD rates, research a variety of traditional banks, online banks and credit unions. Take a look at your local financial institutions as well. Many banks don’t advertise all terms online, so you may need to contact customer support to learn about current rates on one-month CD accounts.
One-month CDs tend to have low rates due to their short term lengths. To find the highest one-month CD rates, brokered CDs may be your best bet. However, these CDs typically require you to open a brokerage account and function differently from traditional CDs. They don’t allow for early withdrawals, but you can sell them on the brokerage’s marketplace—if you can find a buyer. You may have to sell a CD for less than what it’s worth if demand is low, in this case.
Aside from that, look for promotional CD rates. While promotional CDs typically carry terms longer than one month, they may have shorter options and often have the best rates.
What Is a 1-Month CD?
A one-month CD is a short-term time deposit account that earns a guaranteed interest rate for the duration of the term. When opening a one-month CD, there is typically a minimum deposit amount required, and the funds you deposit are locked away for the full month.
Getting a one-month CD can be a smart way to earn interest on cash you don’t need access to without a long-term commitment. If you have more time to save, consider long-term CDs instead, which typically offer much higher interest rates.
How Does a 1-Month CD Work?
Certificate of deposit accounts are timed deposits that allow you to deposit a set amount of cash into the account and earn a fixed interest rate.
If you need access to your funds before the CD matures, you will usually incur an early withdrawal penalty. Since one-month CDs have such short term lengths, these penalty fees typically cost you all of the interest earned and possibly some of the principal invested.
Most one-month CDs automatically renew for the same term at maturity unless you withdraw funds. At the end of your CD’s term, you’ll usually have a grace period—often seven to 10 days—during which you can withdraw funds and close the account or change the CD term.
Pros and Cons of 1-Month CDs
Pros
- Short commitment. You’ll be able to access your funds again in just one month, so there’s less risk of incurring an early withdrawal penalty than there is with longer terms.
- Guaranteed interest. CDs earn fixed interest that pays out automatically and can be collected at maturity.
- FDIC insured. CDs are FDIC-insured up to the federal maximum of $250,000 per depositor, making them a safe place to stash your cash and earn interest.
Cons
- Lower rates. Most one-month CDs offer lower rates than other CD terms and even lower than some savings accounts.
- Early withdrawal penalties. If you withdraw funds from a one-month CD account early, you might lose all of your interest earned.
- Illiquid. CDs lock away your funds for the duration of the term, so they’re less liquid than a savings or money market account.
How To Choose a 1-Month CD
Choosing the right one-month CD depends on your financial goals and requirements. It’s important to understand CD account rules, penalties and rates before depositing your money.
Many financial institutions don’t offer one-month CDs, so you can quickly narrow down your list by checking with institutions you’re interested in to see if one-month terms are even available. Consider online banks and brokerage firms in addition to traditional banks and credit unions.
Opt for a one-month CD with the highest APY and low or no fees. Look at the CD’s early withdrawal penalty and renewal terms. If a CD features automatic renewal, make sure you know how long the grace period is, and make a note to close the account before it renews if you want your money back after the month is up.
1-Month CD Alternatives
One-month CDs aren’t right for everyone, and there are plenty of alternatives to consider.
Money Market Accounts
Money market accounts are a type of savings account that pays variable, often tiered, interest rates on deposited funds. The best MMA rates can be comparable to those offered on CDs and often beat savings accounts. There may be a higher minimum to open a money market account compared to a savings account, but you can access funds more readily than a CD while still earning competitive interest. These accounts often include ATM cards and checks.
High-Yield Savings Account
High-yield savings accounts (HYSAs) offer above-average interest rates on deposits but don’t lock your funds away, making them a liquid alternative to a one-month CD account. Some HYSAs offer near or above 5.00% APY, making them a lucrative and flexible alternative to CDs.
No-Penalty CDs
If you’re worried about needing your funds soon but want to earn a higher interest rate, consider a no-penalty CD. These CDs allow you to make one withdrawal without penalty, typically stipulating that you must withdraw the entire balance. The best no-penalty CDs tend to offer much better rates than one-month CDs.
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