A certificate of deposit (CD) provides a great way to earn interest on your savings with fewer risks compared to investment vehicles like stocks. It provides a nominal interest rate in exchange for being able to hold your funds for a specific time period, known as the term length.
If you know you’ll need to spend money soon but still want to earn a great interest rate in the meantime, a 1-month CD may be a great fit. Your money only remains tied up for a month and, in turn, you earn more interest than you’d receive in a standard savings account—though it’s still a modest amount compared to long-term CDs.
The best 1-month CD rates: Our 5 top picks*
*APYs are current as of April 15, 2024, and are subject to change.
The 5 best 1-month CDs of April 2024
Bank of America
| 1-month APY | 0.03% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | The greater of all interest earned or seven days’ interest on the amount withdrawn |
Why we picked it
Bank of America offers fixed-term CDs with $1,000 minimum opening balances. You won’t pay any annual fees although, like most CDs, you will pay an early withdrawal penalty if you take your money out early.
You can access your account via a mobile app, where you can see the interest you’ve accrued and your account balances wherever you are. If you have more than $20,000 in combined accounts at Bank of America, you can qualify for Preferred Rewards. This gives you benefits such as better rates on savings, foreign currency exchanges, and loans.
BrioDirect
| 1-month APY | 0.05% |
| Minimum Deposit | $500 |
| Early withdrawal penalty | 1 month of interest, even if it hasn’t been earned |
Why we picked it
When you get a high-yield CD from BrioDirect, your interest compounds daily and will be added at maturity. Its 1-month CD rate is 0.05%, and it has one of the lowest minimum deposits offered, at $500.
Even though it’s an online bank, you get the same protections you’d find in a brick-and-mortar bank: FDIC deposit insurance. Because BrioDirect is an online bank, you’ll need a smartphone to get started. However, opening an account takes only minutes and, from there, you can fund your CD via automated clearing house (ACH), check, or wire.
PNC
| 1-month APY | 0.01% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | Equal to the interest you would’ve earned if held to term |
Why we picked it
If you have a large sum to invest, consider PNC Bank as you’re rewarded for having a larger sum invested. With a fixed-rate CD, there’s a minimum opening deposit of $1,000. However, if you’re renewing the CD, you can renew with as little as $1 to earn interest. Interest rates on renewals below $1,000 are 0.01%. For deposits of $1,000 to $24,999.99, your interest rate is 0.02%. When depositing more than $25,000, your interest rate is 0.03%.
JPMorgan Chase
| 1-month APY | 0.01% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | Interest earned during CD term (not exceeding 1 month) |
Why we picked it
If you have an established relationship with JP Morgan Chase Bank, such as by having a credit card or checking account already with them, you’re going to have a better rate than a nonrelationship client will have. For nonrelationship CDs, you’re only earning 0.01%. If you have a relationship with JP Morgan Chase, your rate is 0.02%, no matter the amount invested.
U.S. Bank
| 1-month APY | 0.05% |
| Minimum Deposit | $500 |
| Early withdrawal penalty | Greater of full-term interest or 1% of the amount withdrawn, plus a $25 fee |
Why we picked it
U.S. Bank’s 1-month CD, requiring only a $500 minimum opening deposit, offers one of the best interest rates at 0.05%. While a 0.05% APY will only earn you $0.02 on $500 after a month, it still beats many standard checking or savings account rates you’ll find. Be sure you won’t touch the money during the 1-month term, as it’s got a hefty $25 fee, plus 1% of the amount withdrawn.
Pros & cons of a 1-month CD
If you’re considering a 1-month CD, you should know what you’re getting into. Here are some advantages and disadvantages to consider before investing.
Pros
- Your money is only tied up for 30 days
- The interest you’ll earn is often more than a standard checking or savings account
- It’s one of the lowest-risk options available
Cons
- Returns not as high as investing in stocks or some other asset classes
- You may have better rates and fewer restrictions by putting the money into a high-yield savings account
- Withdrawing your money before maturity often has fees or penalties
How to choose the best 1-month CD
Before putting your money into a 1-month CD, know what to look for. Here is a general guide to choosing the best option for you:
- Compare interest rates: Not only should you compare interest rates across available 1-month CD terms, take a look at interest rates on other products with fewer restrictions.
- Check the minimum deposit requirement: Most deposits have a minimum requirement of $1,000, although some let you invest as little as $500.
- Understand early withdrawal penalties: Emergencies happen, so finding a 1-month CD with a reasonable early withdrawal penalty is important. Some charge only the interest you would’ve earned if kept to term, however, some charge a fee on top of that interest.
- Check the bank reliability: Many banks and credit unions require you to have an account with them to open a CD. Check the reviews to ensure this is a financial institution you’d want to do business with. This includes seeing what accessibility you have. Can you view your accounts online? What if you need to visit a branch?
Alternatives to 1-month CDs
There are several savings options available to you if you want to consider an alternative. These include:
- Savings account: Generally, a standard savings account has fewer restrictions than you’d find with a 1-month CD.
- High-yield savings account: A high-yield savings account is like a supercharged standard savings account, with some of the best rates hovering around 5.00% APY.
- Money market account (MMA): Think of an MMA as a savings account with check-writing privileges.
Best CD rates for more terms
When searching for competitive CD rates beyond the 1-month term, it’s important to recognize that some banks with potentially higher rates might not be available nationwide. While our focus is on widely accessible options, local or regional banks might offer attractive rates but with limited availability.
More CDs to consider:
Frequently asked questions
Are 1-month CDs a good idea?
If you want a safe, short-term way to park your money while earning slightly more interest than you would on a savings account, a 1-month CD might be a good choice. However, what you’ll earn is modest compared to what you might get in a high-yield savings account, and you’ll have a penalty if you take your money out early.
How much does a 1-month CD pay?
The APY on a 1-month CD is relatively low and varies by bank and current market rates. These rates are often below 0.05% APY and will vary by the amount invested.
Should I buy a CD now or wait?
In a high-interest rate environment like we’re in now, you’ll find some of the highest rates on CDs compared to a low-interest rate environment. Whether you should buy a CD now or wait depends on your individual circumstances. However, if interest rates are a main concern, now is a great time.
