A more frequent compounding rate means interest accumulates more quickly. Banks can compound CD interest differently, with some compounding daily and others compounding monthly. The higher the APY, the faster your money can grow. It's wise to compare one-year CD rates to see which banks pay the most interest. It's important to choose a CD with a minimum deposit requirement that won't strain your budget. Some banks allow you to open a CD with as little as $1, while others might require $1,000 or more to get started. As you compare CDs from different banks, here are a few things to keep in mind: There are lots of one-year CDs to choose from, but some may be a better fit for your needs than others. The CDs that made it into the final rankings rated the best overall in each of these categories. In finalizing our rankings, we consider minimum deposit requirements, interest rates, fees, and how frequently interest compounds. We compared one-year CD accounts at multiple banks and credit unions to find the best CD rates. You'll also need to open a Share Membership Savings Account, which has a low opening deposit requirement of just $5. Agree to join the American Consumer Council.government stationed at the Naval Research Laboratory Are a civilian or military employee of the U.S.Are a contractor or employee of a contractor who works at the Naval Research Laboratory.Live in a household with a current member.You'll need to join the credit union first to open a CD account. IRA CDs combine the savings aspects of a certificate of a deposit with the tax benefits of an Individual Retirement Account. Spectra Credit Union features a 12-month IRA CD with a solid rate and a low minimum deposit requirement of $500. Credit unions can sometimes offer CD rates that are on par with the higher APYs you'll find at online banks.

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