Calculate the Potential Return on Your 1-Year Certificate of Deposit
Use our 12-month CD calculator to estimate your returns based on interest rates and APY before you buy. Compare rates of return and shop for the best policy, all online and with no obligation. Our brokers at The Annuity Expert are here to help you make the best financial decisions.
Our Favorite Rates To Grow Your Money
These are our preferred accounts because the savings, money market, and CDs only require $1 to open. This allows you to spread out risk in case a bank or credit union closes in the future. The fixed annuity offers one of the highest interest rates, provides penalty-free annual withdrawals for liquidity, and typically has a longer term than a CD.
| Term | Savings Account | Institution | APY |
|---|---|---|---|
| N/A | Money Market Account | Ponce Bank | 4.11% |
| N/A | Savings Account | Northpointe Bank | 4.30% |
| 6 Months | CD | Western Allicancer Bank | 4.25% |
| 12 Months | CD | Merrick Bank | 4.50% |
| 2 Years | Fixed Annuity | Oceanview Harbourview MYGA | 5.15% |
| 5 Years | Fixed Annuity | Wichita National | 6.40% |
Disclaimer: This is a comparison review. The Annuity Expert is not associated with a bank or credit union. We aim to help you find the highest interest rates for your savings. We may receive a small referral fee if you purchase something using a link in this guide.
What Is a 12-Month CD?
A 12-month certificate of deposit (CD) is a short-term deposit product that locks in your money for one year in exchange for a guaranteed, fixed interest rate. It’s issued by a bank or credit union and insured by the FDIC or NCUA up to $250,000. At the end of the 12-month term, you can withdraw the original deposit plus interest or renew for another term.
Pros and Cons of 12-Month CDs
| Pros | Cons |
|---|---|
| Guaranteed interest rate for 1 year | Penalties for early withdrawal |
| FDIC/NCUA insured up to $250,000 | Limited liquidity — funds are locked in |
| Simple, no fees in most cases | Interest rates may underperform inflation |
| Great for short-term savings goals | Rate is fixed — no benefit if market rates rise |
Who Needs a 12-Month CD and Why
Best for:
- People with a fixed savings goal within the next year.
- Risk-averse individuals seeking a stable return.
- Savers who want to avoid stock market exposure but want more than a checking account.
Why they need it:
These individuals want predictable growth on money they won’t need to access during the year. The CD gives peace of mind and a small yield boost over most savings accounts.
Who Should Avoid a 12-Month CD and Why
Not ideal for:
- Anyone who may need liquidity before the 12 months are up.
- People looking for higher returns and willing to accept market risk.
- Retirees using cash for monthly income (unless laddered properly).
Why they don’t need it:
These savers are better served with flexible access or longer-duration investments. Locking funds in a CD could limit their ability to respond to emergencies or take advantage of rate hikes.
Annuities That Compete With or Enhance a 12-Month CD Strategy
- Multi-Year Guaranteed Annuities (MYGAs): Like a CD, but often with higher fixed rates and tax-deferred growth. MYGAs are ideal for people with longer horizons than 1 year but wanting guaranteed returns.
- Fixed Indexed Annuities (FIAs): If you’re considering rolling a maturing CD into something longer-term, FIAs can provide upside potential with no downside risk.
- Funding sources: Non-qualified cash, traditional IRAs, Roth IRAs, and 401(k) rollovers.
Who Might Consider These Annuity Options?
- Savers nearing retirement who want fixed growth beyond a year.
- Retirees who need predictable income and prefer guarantees over stocks.
- High-net-worth individuals looking to keep assets growing tax-deferred.
Final Thoughts
12-month CDs are best for predictable, short-term savings goals. But if your goal is to protect principal while earning more than a CD offers — especially beyond one year — annuities may give you more control, tax advantages, and growth potential.
Contact The Annuity Expert for a free quote to compare top-rated annuities with 12-month CDs and find the safest option for your savings.
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