In exchange, your bank promises to pay you a fixed APY for the entire year. When you invest your money in a one-year CD, you make a deposit, known as the principal, into an account and agree to keep that money in the account for one year. To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks. To appear on this list, the account must be nationally available. Accounts with daily compounding interest schedules were scored higher than those with monthly or quarterly schedules. Minimum deposit requirements of $10,000 or higher affected scores negatively. The following is the weighting assigned to each category:ĬD accounts with higher APYs rose to the top of the list. We also analyzed and ranked each institution by individual term. For the star rating, 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. To create this list, Forbes Advisor analyzed 142 CD accounts across 84 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions.

Read our full PenFed Credit Union Review. You can join PenFed Credit Union by opening a savings account with an initial deposit of $5. You can use the funds to renew your certificate, transfer the funds into another PenFed account or have a check mailed to you. This gives you additional flexibility to decide what you’ll do with the funds in your account when it matures. With PenFed, you choose your maturity option-whether or not to have the certificate automatically renew-when you open your certificate account and can change it at any time before maturity. The credit union gets excellent customer satisfaction scores, and it offers a highly rated mobile app for iOS and Android. Overall, PenFed offers competitive yields on nine different certificate terms, ranging from six months to five years. And don’t let the “money market” in this certificate’s name confuse you this is a share certificate, not a money market account. Dividends compound daily, allowing you to get the most for your money.

PenFed Credit Union’s one-year Money Market Certificate pays a highly competitive 5.25% APY, with a reasonably low $1,000 minimum deposit required to open a certificate.

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