Certificates of deposit (CDs) offer a fixed return on cash deposits, delivering some of the best available interest rates on savings. While most CD terms fall between six months and five years, some banks offer CDs as short as one month.
If you’re looking for the best CDs over 30 days, here are seven national, regional, and online banks (and one credit union) offering reasonable minimum deposit requirements and no monthly fees. A few even offer an attractive annual percentage APY, considering the short term.
Our recommendations
Best for: high rates
Charles Schwab Bank CD OneSource 1-Month CD
Best for: high rates
Charles Schwab Bank CD OneSource 1-Month CD
APY*
5.43%
Min. deposit
$1,000
Why we like it:
Charles Schwab is ranked as the second-largest investment broker in the U.S. in 2024 by U.S. News and World Report, and it offers some of the best one-month CD rates available anywhere. While Schwab doesn’t issue the CDs itself, the company lets you purchase one-month CDs from other banks with your Schwab investment account, allowing you to quickly compare rates and choose the best one for your needs.
Pros & cons:
Pros:
- Highest one-month APY available.
- No trading fees through the Schwab brokerage account.
- CDs are sellable on the secondary market at any time.
Cons:
- Interest does not compound (paid out at maturity).
- Must have a Schwab brokerage account.
Best for: low minimum deposit
U.S. Bank 11 Month CD
Best for: low minimum deposit
U.S. Bank 11 Month CD
APY*
4.30%
Min. deposit
$1,000
Why we like it:
U.S. Bank is a large national bank with over 2,000 branches in 26 states. It is one of the few national banks that offers one-month CDs, which you can open in person or online. Currently, U.S. Bank is offering a 0.05% APY on one-month term CDs, with a $500 minimum deposit and no additional account fees.
Pros & cons:
Pros:
- Only a $500 minimum deposit.
- Access to thousands of branches and ATMs around the U.S.
- No monthly fees.
Cons:
- High early withdrawal fee plus a $25 penalty.
- Low APY on all deposits.
Best for: online CDs
BrioDirect 1-month CD
Best for: online CDs
BrioDirect 1-month CD
APY*
0.05%
Min. deposit
$500
Why we like it:
BrioDirect is an online bank offering high savings account and CD yields. It’s the online arm of Webster Bank, which offers FDIC-insured CDs with terms ranging from 30 days to 60 months. The BrioDirect 30-day CD currently offers a 0.05% APY and a low $500 minimum deposit requirement. You can open an account online within a few minutes and deposit funds electronically.
Pros & cons:
Pros:
- Quick and easy to open an account.
- No monthly maintenance fees.
- Low minimum deposit requirement.
Cons:
- No physical branches.
- Low interest rate.
Best for: flexible terms
Key Bank 1-Month CD
Best for: flexible terms
Key Bank 1-Month CD
APY*
0.05%
Min. deposit
$2,500
Why we like it:
Key Bank is a national bank with branches and ATMs in 16 states. It offers a wide range of CDs, with terms from seven days up to 10 years. Key Bank’s one-month CD has a 0.05% APY and a $2,500 minimum deposit. Interest rates are normally tiered, with higher rates available for higher deposit amounts, but all tiers are currently paying the same rate.
Pros & cons:
Pros:
- Multiple CD terms below one month.
- All deposits earn the same rate.
- ATM access in 16 states.
Cons:
- High minimum deposit of $2,500.
- Low interest rate on one-month CDs.
Best for: in-person banking
MidwestOne Bank 1-Month CD
Best for: in-person banking
MidwestOne Bank 1-Month CD
APY*
0.20%
Min. deposit
$1,000
Why we like it:
MidwestOne Bank is a regional bank with CD accounts available to residents of Iowa, Wisconsin, Minnesota, Colorado, and Florida. If you are in one of those states, you can open a one-month CD at a branch near you. MidwestOne Bank is currently offering a 0.20% APY on one-month CDs, with a minimum deposit of $10,000 to open an account.
Pros & cons:
Pros:
- Branch access for local residents.
- Decent interest rate.
Cons:
- Must open CD account in person.
- Only available in five states.
- The very high minimum deposit for the one-month term.
Best for: regional banking
Huntington National Bank 1-Month CD
Best for: regional banking
Huntington National Bank 1-Month CD
APY*
0.50%
Min. deposit
$1,000
Why we like it:
Huntington National Bank is a regional bank with over 1,000 branches in 11 states. It offers 11 different standard rate CDs, ranging from one month to 72 months in term length. The one-month CD offers a 0.50% APY with a $1,000 minimum deposit.
Pros & cons:
Pros:
- Over 1,000 physical branch locations.
- Better APY than most.
- Many CDs from which to choose.
Cons:
- Only available in 11 states.
Best for: California residents
SchoolsFirst Federal Credit Union 1-Month CD
Best for: California residents
SchoolsFirst Federal Credit Union 1-Month CD
APY*
Up to 3.15%
Min. deposit
$500, $20,000, $50,000, $100,000 or $250,000
Why we like it:
SchoolsFirst Federal Credit Union is a member-owned financial institution for certain California public school employees and family members. Once you become a member, you can purchase a Share Certificate, which is the SchoolsFirst version of a CD. One-month CD rates start at 2.95% APY for a $500 minimum deposit and are tiered, with a maximum rate of 3.15% APY available for deposits of $250,000 or more.
Pros & cons:
Pros:
- Very high interest rate available.
- No monthly fees.
- Low minimum deposit.
Cons:
- Only available to select members in California.
- Must deposit at least $250,000 to earn the highest rate.
Best 1-month CD rates compared
| Best for | APY* | Min deposit | Monthly fee | Special Offer | |
|---|---|---|---|---|---|
Charles Schwab Bank CD OneSource | High rates | 5.43% | $1,000 | None | None |
U.S. Bank | Low minimum deposit | 0.05% | $500 | None | None |
BrioDirect | Online CDs | 0.05% | $500 | None | None |
Key Bank | Flexible terms | 0.05% | $2,500 | None | None |
MidwestOne Bank | Local banking | 0.20% | $1,000 | None | None |
Huntington National Bank | Regional bank | 0.50% | $1,000 | None | None |
SchoolsFirst Federal Credit Union | Credit union CDs | Up to 3.15% | $500, $20,000, $50,000, $100,000 or $250,000 | None | None |
*APYs as of May 20, 2024
Methodology
To find the best one-month CD rates, we first created a list of more than a dozen banks that offer one-month CDs (most bank CDs start at three months). We then narrowed the field to CDs that are insured by the FDIC or the National Credit Union Administration (NCUA).
We filtered the list by banks and credit unions with the highest one-month CD rates available. As these CD terms are very short, most banks don’t offer compelling rates, but a few offer over 1% APY. We found that the CDs available through online brokerage accounts (called “brokered CDs”) offered the best rates, but most banks and credit unions aren’t paying attractive yields on CDs with very short terms.
How to choose 1-month CD rates
If you want to park your cash for the short term, one-month CDs can offer some interest while keeping your funds in an FDIC-insured account. However, most short-term CDs don’t offer great rates; you may be better off putting your cash in a high-yield savings account or money market fund instead.
If you want to find a one-month CD that pays a high rate, consider a brokerage account if you’re comfortable. Charles Schwab offers a wide range of CD terms, including one-month CDs from various banks. This lets you choose the highest rates at a glance while knowing the FDIC insures your funds. The yield is automatically deposited in your brokerage account.
If you aren’t interested in opening a brokerage account, look for a local credit union that offers CD special rates on one-month terms.
How to open a 1-month CD account
To open a one-month CD account, you’ll want to take the following steps:
- Pick a one-month CD you’re happy with. Search for the best rates available in your area and choose one that fits your needs and has an acceptable minimum deposit requirement.
- Open an account. You’ll need to sign up for a CD at a bank or join a credit union to open an account. You can apply online or find a local branch to apply in person.
- Submit your personal and financial information. As part of the application process, you’ll submit your personal information, including name, address, phone number, and Social Security number. You may also need to submit financial information and undergo a credit check for account approval.
- Deposit your funds. Once your application is approved, you’ll fund the CD account. You must deposit at least the minimum required amount, though you can put in more if you wish. Deposits are typically made through an automated clearing house (ACH) transfer or a wire transfer.
- Don’t forget to cancel after the term is up. Once your one-month CD term is up, most accounts will automatically renew for another month. You have a limited grace period to withdraw funds if you don’t want them locked in for another month.
Alternatives to short-term CDs
While investing in some short-term CDs can net you an attractive yield, most offer a paltry return while locking your funds away. Outside of brokered CDs, there are better places to stash your cash.
High-yield savings account: A high yield savings account is similar to a regular savings account, but it pays a much higher interest rate on deposits. These accounts are insured by the FDIC or NCUA and are more accessible than short-term CDs.
Money market account. A money market account is an FDIC- or NCUA-insured savings account that pays a higher interest rate than a regular savings account. It may offer check-writing privileges and even come with an ATM card, giving you more access to your money than most other types of savings accounts.
Treasury bills. Treasury bills are short-term debt securities offered by the United States government that can be purchased at a discount and redeemed at maturity. They offer competitive interest rates and terms of four, eight, 13, 17, 26, and 52 weeks. The four-week bills can be a great alternative to short-term CDs and may offer a higher interest rate as well.
About 1-month CD rates
One-month CD rates are typically based on various factors, including the Federal Funds rate and other economic and market dynamics. Rates can change from month to month at the bank’s discretion, but once your funds are locked into a CD, it retains that rate until maturity.
Can I withdraw funds from a 1-month CD account before the maturity date?
Yes, you can withdraw funds from a one-month CD before maturity, but you will likely incur an early withdrawal penalty. For one-month CDs, the penalty is usually all of your earned interest, but in some cases, you may also lose some of your deposit. Understanding the early withdrawal penalty before investing in any CD account is important.
What is the difference between 1-month CDs and longer-term CDs?
One-month CDs are short-term savings vehicles offering lower interest rates than longer-term CDs. This is because your money is not locked away with the bank for long, and the bank can’t use those funds to earn much profit. The rates are usually more attractive for long-term CDs, but your funds are unavailable to you for much longer.
Eligibility requirements
To be eligible to open a one-month CD account, you usually need to be at least 18 years old with a valid ID. You also need to meet the minimum opening deposit requirement. In most cases, if you don’t already have a relationship with the bank or credit union, you may need to undergo a credit check to open a CD account.
Some one-month CDs are only available to select members or residents of certain states, so choosing a financial institution that allows you to open an account is important.
Tips for Maximizing Returns
If you want to maximize your returns using a one-month CD, your best bet is to open one through a brokerage account. These brokered CDs typically offer the highest rates and allow you to sell them without penalty if you need access to your funds.
If you choose to open a CD at a bank or credit union, depositing enough funds to earn the highest interest rate and avoiding withdrawing funds before the maturity date is important.
Make sure to withdraw funds at the end of your term, especially if interest rates have dropped. Most CDs renew automatically at the end of the term, which could lock your funds in for another month at a lower rate.
Key consideration for 1-month CD rates
Here are a few things you should consider before opening a 1-month CD account.
Interest rates. The most important consideration is the rate. Finding a high-paying one-month CD can be challenging, so search around.
Minimum deposit. Find a CD with a minimum deposit requirement you can afford. Some one-month CDs require up to $10,000 to open an account, so don’t be surprised.
Access to funds. Before depositing money into a one-month CD, ensure you don’t need access to those funds. Review the early withdrawal penalty to make sure you can comply and are willing to risk the loss should you end up accessing funds early. There are very few (if any) one-month CDs that don’t charge a penalty for withdrawing funds early.
Eligibility. Ensure you choose a financial institution with one-month CDs for which you are eligible. Some institutions have specific membership requirements, while others only service residents of certain states. Don’t waste your time applying for something you can’t get.
Brokered vs. bank CDs. While banks and credit unions are where investors typically choose to open a CD account, brokered CDs available through major investment companies may offer better interest rates. For example; Schwab’s brokered CDs offer much higher rates on one-month CDs than most financial institutions.
TIME Stamp: When choosing a 1-month CD, brokered is best
Most one-month CDs offer low rates for locking up your funds short-term, but there are some outliers. Your best bet is to choose a brokered CD from an online broker that offers the highest rate while still being insured.
If you choose a bank or credit union for your one-month CD, understand the account qualifications and early withdrawal penalties associated with the account in case you need quick access to your funds. Overall, there are very few one-month CDs worth looking at, but you can earn a decent rate with a few of them.
Frequently asked questions (FAQs)
Are 1-month CD rates fixed or variable?
One-month CD rates are fixed for the duration of the term, with access to your funds (and interest earnings) available at maturity. While some CDs offer variable rates that change over the agreement term, one-month CDs are of very short duration, so they don’t change rates.
How are 1-month CD rates determined?
One-month CD rates are determined by the financial institution that offers the account. Rates are chosen based on various factors, including the Federal Funds rate, economic conditions, market dynamics, and your relationship with the bank. Most one-month CDs offer lower rates due to the short duration of the deposit term.
What are some alternative short-term investment options to 1-month CDs?
If you want to earn interest on your cash in the short term, you can put your money in a high-yield savings or money market account. These savings accounts offer solid rates while giving you full access to your deposited funds. You can also choose a short-term treasury bill, such as a four-week or eight-week bill. These offer high rates, but your funds are inaccessible before maturity.
Are there any risks associated with investing in 1-month CDs?
There are a few risks associated with one-month CDs. You may be hit with an early withdrawal penalty if you need access to your funds before maturity. Another risk is that CDs are only insured up to $250,000 per depositor. If you deposit more than that, your additional funds are at risk of loss. If the financial institution goes out of business, the FDIC or NCUA will only pay back up to $250,000 of your deposit.
The information presented here is created independently from the TIME editorial staff. To learn more, see our About page.
