Best 12 Month CD Rates Today: A Guide to High-Yield Savings Accounts
High-yield savings accounts and certificates of deposit (CDs) are popular choices for individuals seeking to grow their savings with minimal risk. These accounts typically offer higher interest rates compared to traditional savings accounts, making them an excellent option for short-term and medium-term financial goals. The best 12-month CD rates today provide a balance between liquidity and yield, allowing savers to earn competitive returns without locking their money away for extended periods.
When comparing high-yield savings accounts and CDs, it’s important to consider factors such as APY, minimum deposit requirements, early withdrawal penalties, and the reputation of the financial institution. Some accounts may offer promotional rates or additional perks, such as no monthly fees or easy access to funds. Understanding these features can help you choose the right account for your financial situation.
Below, we break down the key aspects of high-yield savings accounts and CDs, followed by a detailed comparison table of the top options available in the U.S. as of March 2025.
Key Features of High-Yield Savings Accounts
High-yield savings accounts are designed to offer better interest rates than standard savings accounts. They are typically offered by online banks, which have lower overhead costs and can pass the savings on to customers in the form of higher yields. Here are some of the key features to look for:
- Annual Percentage Yield (APY): The APY represents the actual rate of return, including compound interest. Look for accounts with the highest APY to maximize earnings.
- Minimum Deposit Requirements: Some accounts require a minimum deposit to open or maintain the account. Ensure the minimum is within your budget.
- Monthly Fees: Avoid accounts with monthly maintenance fees, as they can eat into your earnings.
- Access to Funds: While high-yield savings accounts are liquid, some may limit the number of withdrawals per month.
Understanding Certificates of Deposit (CDs)
CDs are time-bound deposits that offer fixed interest rates for a specified term, such as 12 months. They generally provide higher yields than savings accounts but require you to lock in your money for the duration of the term. Here’s what to consider:
- Term Length: CDs come in various terms, from a few months to several years. A 12-month CD strikes a balance between yield and accessibility.
- Early Withdrawal Penalties: Withdrawing funds before the term ends usually incurs a penalty, which can negate your earnings.
- Fixed vs. Variable Rates: Most CDs offer fixed rates, but some may have variable rates tied to market conditions.
Comparison of Top High-Yield Savings Accounts and CDs
Below is a comparison table of the best 12-month CD rates and high-yield savings accounts available in the U.S. as of March 2025. The table includes APYs, minimum deposits, and other key details to help you make an informed choice.
| Financial Institution | Account Type | APY | Minimum Deposit | Notes |
|---|---|---|---|---|
| Ally Bank | 12-Month CD | 4.50% | $0 | No monthly fees, early withdrawal penalty applies |
| Marcus by Goldman Sachs | High-Yield Savings | 4.25% | $0 | No fees, unlimited withdrawals |
| Discover Bank | 12-Month CD | 4.60% | $2,500 | Competitive rates, FDIC insured |
| Synchrony Bank | High-Yield Savings | 4.30% | $0 | No minimum balance, 24/7 customer service |
Final Considerations
Choosing between a high-yield savings account and a CD depends on your financial goals and liquidity needs. If you require frequent access to your funds, a high-yield savings account may be the better option. However, if you can afford to lock in your money for a year, a 12-month CD could provide a higher return.
Always verify the latest rates and terms directly with the financial institution, as offerings can change. Additionally, ensure the bank is FDIC-insured to protect your deposits up to the legal limit.
For more information, visit the official websites of Ally Bank , Marcus by Goldman Sachs , Discover Bank , and Synchrony Bank .