Best 12 Month CD Rates Today: A Comprehensive Guide to Competitive Fixed Deposit Rates
Fixed deposits, or Certificates of Deposit (CDs), are time-bound savings instruments that offer higher interest rates than regular savings accounts. A 12-month CD is particularly appealing because it provides a reasonable lock-in period with better returns than shorter-term options. Investors looking for the best 12-month CD rates today must consider several factors, including the financial institution’s reputation, early withdrawal penalties, and promotional offers.
Interest rates on CDs are influenced by broader economic conditions, such as the Federal Reserve’s monetary policy.

Factors Affecting 12-Month CD Rates
Several key factors determine the interest rates offered on 12-month CDs:
- Federal Reserve Policies: The Fed’s decisions on interest rates directly impact CD yields.
- Bank Competition: Banks and credit unions compete for deposits, leading to varying rates.
- Economic Conditions: Inflation, unemployment, and GDP growth influence rate trends.
- Promotional Offers: Some institutions provide limited-time high-yield CDs to attract customers.
Top Institutions Offering Competitive 12-Month CD Rates
Below is a comparison of leading banks and credit unions offering the best 12-month CD rates as of March 2025:
Institution | APY (%) | Minimum Deposit | Early Withdrawal Penalty |
---|---|---|---|
Ally Bank | 4.50 | $1,000 | 60 days of interest |
Marcus by Goldman Sachs | 4.45 | $500 | 90 days of interest |
Discover Bank | 4.40 | $2,500 | 6 months of interest |
Capital One | 4.35 | $0 | 3 months of interest |
Navy Federal Credit Union | 4.30 | $1,000 | 90 days of interest |
How to Choose the Best 12-Month CD
Selecting the right CD involves more than just comparing interest rates. Consider the following:
- Liquidity Needs: Ensure the lock-in period aligns with your financial goals.
- Penalties: Understand the cost of early withdrawal.
- Renewal Terms: Check if the CD auto-renews and at what rate.
- FDIC/NCUA Insurance: Verify that the institution is insured.
By evaluating these factors, investors can make informed decisions and secure the best 12-month CD rates available today. For further details, visit the official websites of the institutions listed above or consult a financial advisor.
References:
Ally Bank
Marcus by Goldman Sachs
Discover Bank
Capital One
Navy Federal Credit Union