Best 1-Year CD Rates May 2024

High-yield 1-year CDs are growing in popularity. We look at the options on the market.

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(Image credit: Getty Images)

CD rates have risen over the last two years in tandem with rising interest rates, as the Federal Reserve attempted to moderate inflation. But the central bank has taken its foot off the pedal lately, holding interest rates steady for a fifth time in a row at its March meeting. CD rates are likely to start to decline when the central bank begins lowering interest rates later this year.

Since 2022, the Federal Reserve has raised interest rates in an attempt to lower inflation, hiking the federal funds rate to its highest rate in over two decades. While these rate increases have driven mortgage rates to record highs and pushed many into credit card delinquency, there is one silver lining. Rates on high yield savings accounts and CDs have also increased. 

Erin Bendig
Personal Finance Writer

Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.