How Much Does a 1-Year CD Earn?
A 1-year (12-month) CD is the sweet spot of certificate-of-deposit investing — long enough to earn a strong rate, short enough that your money is not locked away for years. The calculator above is preset to a 12-month term; enter your deposit and APY for an exact figure.
Here is what a 1-year CD earns at a typical 2026 rate of 4.75% APY (compounded daily):
| Deposit | Interest Earned (1 year) | Maturity Value |
|---|---|---|
| $1,000 | $48.65 | $1,048.65 |
| $5,000 | $243.23 | $5,243.23 |
| $10,000 | $486.46 | $10,486.46 |
| $25,000 | $1,216.15 | $26,216.15 |
| $50,000 | $2,432.30 | $52,432.30 |
Note that the effective return is slightly higher than the nominal 4.75% because of daily compounding — $10,000 earns $486.46, an effective APY of about 4.86%.
1-Year CD Rates in 2026
The 12-month CD is the most competitive term in 2026. Rates typically range from 4.50% to 5.00% APY, with the best offers from online banks, credit unions, and brokered CDs. This term often carries the highest rate on the entire CD menu, because banks compete hardest for 1-year deposits.
If you believe the Federal Reserve will cut rates later in 2026, a 1-year CD lets you lock in today's high rate for a full year before any decline — a popular move among savers who want to protect their yield.
When a 1-Year CD Makes Sense
A 12-month CD is the right fit when:
- You want the best CD rate available — the 1-year term frequently pays the highest APY of all terms.
- You expect rates to fall — locking for a full year protects you from rate cuts, unlike a 3- or 6-month CD that matures sooner into a lower-rate environment.
- You have a 1-year goal — saving for a down payment, wedding, or large purchase about a year out.
- You want simplicity — one CD, one year, one predictable payout. No laddering complexity required.
If you might need the money in under a year, a 6-month CD or no-penalty CD offers more flexibility. If you can commit longer and want to lock a rate for the long haul, compare a 5-year CD — though in 2026's inverted yield curve, longer terms often pay less.