‘A smart time to lock in.’ This one-year CD is paying 5.5% — and 9 more of the best APYs for 12-month CDs

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All of the 12-month certificates of deposit with the very best yields this month promise more than twice the national average — with one account from Civic Credit Union touting an annual percentage yield of 5.50%. (You can see some of the best CD APYs from our partner Bankrate here.)

While all of the CDs with the best yields for 1-year terms exceed 4.40% APY, many also include some significant hurdles: high opening balance minimums, limiting deposit caps or membership requirements, to name a few. “Early withdrawal penalties can vary greatly by institution,” adds Sean Carraher, head of Treasury at Cambridge Savings Bank, noting that depositors should also be “particularly alert for CDs that could invade principal. That is, some CDs could have an early withdrawal penalty that not only claws back accrued interest, but could claw back the deposit itself if a minimum outstanding term is not met.”

Determining whether you qualify for a high-APY CD — not everyone will — and assessing your own personal financial standing are key first steps before anyone should consider opening an account, says Bankrate chief financial analyst Greg McBride. “The risk is if you misjudge your timeframe and need the money sooner than 12 months,” McBride says, adding that, “the early withdrawal penalty will chew up a chunk of your interest earnings.”

Here’s everything you need to know about what’s ahead for 12-month CD rates, how to pick the best option for your money and the best-paying accounts of June 2025.

What’s ahead for 12-month CDs?

CD yields experienced steady growth over the past five years, with averages climbing to 1.75% as of May 16 from nearly zero in 2020, government data show. But with the Federal Reserve pausing rate cuts in its last four general meetings, there is now an ever-decreasing incentive for many of the same institutions to attract new customers with high APYs, says WalletHub writer and analyst Chip Lupo. “[CD rates] may start slipping if the Fed cuts rates later in 2025,” says Lupo, adding that “now’s a smart time to lock in a solid 12-month return. Just make sure the terms fit your financial timeline.” (You can see some of the best CD APYs from our partner Bankrate here.)

How do you know if what‘s being offered by a bank or credit union is enough? NerdWallet lead investing writer Sam Taube says to look to government debt obligations fo guidance. “One benchmark would be the yield on the 1-year Treasury bill, which is slightly more than 4%,” says Taube, adding that “T-bills compete with CDs somewhat in the fixed-income market, and T-bill interest has the additional benefit of being exempt from state taxes. So to really be worthwhile — a CD should probably pay a higher rate than a T-bill of similar duration.”

10 highest-paying 12-month CDs of June 2025

Below are the 10 CDs with the best rates for 12-month terms in June 2025. All of these accounts are protected by either the Federal Deposit Insurance Corp. or National Credit Union Administration, unless otherwise noted. It’s critical to read all the fine print for any account before opening it, to ensure you’re aware of potential restrictions or hurdles.

Civic Credit Union : Up to 5.50% APY

So-called Choice Certificates with 12-18 month terms at Civic CU promise an industry leading 5.50% APY. Here you’ll need just $250 dollars to open. But, like most credit unions, this rate is only available to members of this Raleigh-North Carolina-based institution. Depositors or their family members here must be an employee or volunteer of North Carolina’s local government, including both elected and appointed officials.

Merchants Bank of Indiana : Up to 4.86% APY

Also one of the highest available rates among all CDs this month, Merchants Bank of Indiana’s 12-, 24- or 36-month flex index CD terms — where rates are flexible based on financial market conditions — all currently promise the same high 4.86% APY. There is a $1,000 opening deposit requirement to open an account and accounts here are based on the prime rate index, which means they can increase if the Fed raises rates.

5Point Credit Union : Up to 4.76% APY

Share certificate rates at 5Point CU are based on a tier, with the biggest deposits earning the highest available yields. For 12-month terms, balances from $1,000 to $49,999.99 earn a highly competitive 4.55% APY. Balances exceeding $99,000, however, earn a fixed rate of 4.76% APY. That said, membership requirements here include living, working or attending school in one of a number of eligible locations in Texas, or through a family or household member who is already a member.

Blaze Credit Union : Up to 4.50% APY

The 12-month jumbo certificate at Blaze CU is the top-earning account at this credit union. Like the name suggests, you’ll need at least $100,000 to open this account.  What may be more limiting, however, are the membership requirements. That’s because at Blaze, members must live, work, worship, volunteer, attend school, or do business in select Minnesota and Wisconsin counties as well as open and maintain a savings account.

My eBanc : Up to 4.45% APY

There are no membership requirements to open a 12-month CD at My eBanc and earn a fixed 4.45% APY, however raking in that yield is only accessible to those with minimum opening balances of $50,000 or more. Balances of at least $5,000, though, still earn a competitive 4.35% APY.

EECU : Up to 4.41% APY

Locking in 4.41% APY at EECU also requires a minimum balance of $50,000. To qualify, you‘ll have to meet the membership requirements at this credit union, which include either living, working, worshiping or attending school in select Texas counties. You can also join by working for various educational institutions, businesses, associations, hospitals or municipalities in Fort Worth; if you’re related to someone who is already a member or who meets those requirements; or if you work for one of the credit union’s select employer groups.

NexBank : Up to 4.40% APY

To earn 4.40% APY with a promotional online 12-month CD at NexBank, depositors here must come with at least $25,000 — balances from $10,000 to $24,999 also earn a competitive 4.35% APY. This industry-leading rate is limited to deposits of up to $240,000, however, unlike most of the very best available rates, there are no membership requirements.

Signature Federal Credit Union : Up to 4.40% APY

It takes just $50 to get started with Signature FCU’s EZ Save Certificate. This promotional 12-month term also earns a fixed 4.40% APY and allows depositors the ability to transfer into another share certificate at maturity. Although this CD is limited to just $25,000, the credit union allows additional deposits to be added to the account by mailing a check to meet that deposit cap. If you don’t meet the membership requirements — which requires members working for a qualified organization, the United States Postal Service, or by being sponsored or referred by a current member — you can also join by becoming a member of the American Consumer Council.

First Internet Bank of Indiana : Up to 4.40% APY

There are no membership requirements and a minimum opening balance requirement of just $1,000 to earn the 4.40% APY with a 12-month CD at First Internet Bank of Indiana. Like many of the other very best available rates this month, this is an online-only institution, so all banking here will have to be done without the help of a branch location.

Popular Direct : Up to 4.40% APY

It takes at least $10,000 to open a 12-month CD at Popular Direct. That said, this high 4.40% rate is among the best and comes without membership requirements. Also like many of the others in this ranking, this is an online-only institution.