Best 1-month CD rates for September 2024

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If you’re looking for a quick guaranteed return on your money, then a 1-month CD might be right for you. However, they may be hard to come by.

The best 1-month CD rates are often found at smaller banks, credit unions, or online platforms, rather than large traditional banks. However, high-yield savings accounts and money market accounts may provide better liquidity and competitive interest rates for short-term savings goals.

What are the best 1-month CD rates?

Here’s a look at some of the best CD rates across various financial institutions. 

Raisin: Up to 5.34% APY

• APY: up to 5.34% 
• Minimum deposit requirement: varies by partner
• Early withdrawal penalty: varies by partner

Raisin is not a bank in the traditional sense but rather a marketplace that banks and credit unions use to promote their savings products, including 1-month CDs, to a wider audience. 

The Raisin marketplace enables these partner banks and credit unions to use that money to offer exclusive above-market interest rates — often exceeding 5.00% APY, which is incredibly uncommon for one-month CDs.

Bank or credit union product terms on the Raisin marketplace may vary, but it’s pretty common for minimum requirements to be as low as $1, making this an excellent opportunity for savers of all sizes.

Merchants Bank of Indiana: 3.67% APY

• APY: 3.67%
• Minimum deposit requirement: $1,000
• Early withdrawal penalty: may apply

Merchants Bank of Indiana advertises a 1-month CD with a 3.67% APY; however, they try to guide you toward their 3-, 6-, or 12-month CDs upon application. You may have to make a special request to apply for the 1-month CD.

They also offer FDIC insurance through IntraFi SM Network Deposits (Insured Cash Sweep), meaning they can protect up to $100 million in CD accounts rather than the usual $250,000 per depositor.

SchoolsFirst Federal Credit Union: 3.00% APY

• APY: Up to 3.00%
• Minimum deposit requirement: $500
• Early withdrawal penalty: 30 days of dividends

SchoolsFirst Federal Credit Union is a non-profit organization that provides financial products and services to California school employees and their families. Unfortunately, that means you must meet one of their eligibility requirements to join.

But if you are eligible and want to contribute to a good cause, they offer a 1-month CD called a 30-day share certificate. The interest rate for balances between $500 and $20,000 is 2.95% APY, with upwards of 3.15% APY possible for larger balances.

Colorado Federal Savings Bank: 1.00% APY

• APY: 1.00%
• Minimum deposit requirement: $5,000
• Early withdrawal penalty: 1 month of interest

“Check Out Our Great Rates” is the motto Colorado Federal Savings Bank uses to promote their personal savings accounts and CDs. Knowing what we know about 1-month CDs, we’d say they deliver on that promise with 1.00% APY — relatively speaking.

A 1-month CD at Colorado Federal Savings Bank requires a minimum deposit of $5,000 to open, far above the market standard of $1,000. So, you’ll need a little more cash upfront to apply for this offer online or in person. 

Huntington National Bank: 0.50% APY

• APY: 0.50%
• Minimum deposit requirement: $1,000
• Early withdrawal penalty: may apply

Huntington Bank is one of the more nationally recognized banks that offers a reasonable interest rate on a one-month CD: 0.50% APY. 

While we tried to focus more on online-eligible offers with this list, it does appear you’ll have to visit one of their branch locations to open a CD. Fortunately, Huntington Bank does have over 1,000 branch locations throughout the country, mainly in the Midwest.

Northpointe Bank: 0.35% APY

• APY: 0.35%
• Minimum deposit requirement: $1,000
• Early withdrawal penalty: 30 days of interest

Northpointe Bank doesn’t technically have a standard one-month CD, but it does offer 0.35% APY on CDs ranging from 7 to 182 days. You should be able to designate the term length of your CD upon opening.

With branch locations in 22 states, you can apply for your one-month CD in person. A select few of their bank accounts are available online, but you may need to email or call them to open your one-month CD remotely. 

U.S. Bank: 0.05% APY

• APY: 0.05%
• Minimum deposit requirement: $500
• Early withdrawal penalty: varies by withdrawal amount, plus a $25 fee

Many traditional big banks only offer 0.01% to 0.02% on their 1-month CDs, if they have them. So, as the fifth-largest bank in the United States by total assets, we thought the 0.05% APY that US Bank offers on their 1-month CD was worth mentioning. The $500 minimum deposit requirement is also more manageable.

However, their early withdrawal penalty also includes a $25 fee. Meeting the 1-month term requirement should not be too hard to achieve, but this creates a little more incentive.

Pros and cons of a 1-month CD

The purpose of a CD is to ensure a guaranteed and competitive rate of return—this helps the bank manage its liquidity more effectively. Objectively speaking, a one-month term doesn’t really help either party achieve its goals.

Even if you do find a 1-month CD, you’ll likely encounter more cons than pros, as we outline below:

How to choose the best 1-month CD

Plenty of alternative bank accounts produce better returns and have fewer requirements. But, if you have your heart set on a 1-month CD, here’s what you should consider before purchasing:

• Interest rate: Most big banks and other financial institutions offer 1-month CDs with an APY of 0.01% to 0.05%. However, as this list reveals, there can be outliers, so make sure to compare rates. 
• APY: It’s important to note that APY stands for Annual Percent Yield or the interest you’ll earn in a year.
• Minimum deposit requirement: Almost all 1-month CDs require a minimum deposit to open. The industry average hovers around $1,000.
• Early withdrawal penalties: Withdrawing your money from your 1-month CD before maturity can result in penalties, typically 30 days of interest.
• Accessibility: Depending on the bank or financial institution, opening a 1-month CD may require a visit to a branch location. Only some are available online.

Alternatives to 1-month CDs

While 1-month CDs can offer guaranteed returns, they may not always be the best choice for your short-term savings goals. Here are some other options:

• Longer-term CDs: Most banks offer their best interest rates on their 6-month and 1-year CDs, sometimes exceeding 5.00% APY. These CDs are worthwhile if you can lock your money up for the entire term. 
• High-yield savings accounts: For short-term savings, high-yield savings accounts often offer a better combination of competitive interest rates, easy access to funds, and flexibility than one-month CDs. 
• Money market accounts: Money market accounts can be a good alternative if you value check-writing abilities. These accounts typically offer rates between 2.00%-4.00%.

What determines CD rates? 

CD rates are influenced by several factors, including:

1. Federal Reserve: When the Federal Reserve raises or lowers interest rates, it affects the cost of borrowing for banks, which in turn impacts the rates they offer on CDs and other savings products.
2. Bank's financial health: Banks with strong financial positions and ample deposits may offer lower CD rates, while those seeking to attract more deposits may provide higher rates.
3. Competition: Banks often adjust their CD rates based on what their competitors offer to remain attractive to customers.
4. CD term: Generally, longer CD terms (ex., 1-year, 5-year) offer higher rates than shorter terms (e.g., 1-month, 3-month) because the bank can use the funds longer.
5. Economic conditions: Banks may offer higher CD rates in a strong economy with low unemployment and steady growth. Conversely, rates may be lower during economic downturns or periods of uncertainty.

The bottom line 

Very few 1-month CDs offer a reasonable interest rate, mainly because banks would rather you commit to a longer-term CD. However, under current market conditions, there are other more effective ways to earn in the short term, either through a high-yield savings account or a money market account.

Frequently asked questions 

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.