1-year fixed deposits in 2026: See what the current rates are
If you have been looking for a low-risk way to grow your savings, a 1-year fixed deposit could be worth considering. As interest rates continue to shift in 2026, understanding what financial institutions are currently offering can help you make a more informed decision about where to park your money for the short term.
Fixed deposits — also known as certificates of deposit (CDs) in the United States — offer a straightforward savings structure: you lock in a set amount of money for a defined period and earn a fixed interest rate in return. With a 1-year term, they strike a balance between accessibility and earning potential, making them a popular choice for savers who want predictability without tying up funds for years at a time.
What Are 1-Year Fixed Deposit Rates in 2026?
In 2026, interest rates on 1-year fixed deposits in the United States generally range from around 4.00% to 5.25% APY, depending on the institution. This range reflects the broader interest rate environment shaped by the Federal Reserve’s monetary policy decisions over recent years. Online banks and credit unions tend to offer more competitive rates compared to traditional brick-and-mortar banks, largely due to lower operational overhead.
It is important to note that rates can vary significantly based on the deposit amount, the financial institution, and promotional offers available at any given time. Checking directly with your bank or credit union — or using a rate comparison tool — is the most reliable way to confirm current offerings.
How Do Current Interest Rates on 1-Year Fixed Deposits Compare?
Not all institutions offer the same rates, which is why comparing options is a practical step before committing. Online banks have increasingly positioned themselves as competitive alternatives to traditional institutions by passing their cost savings on to customers in the form of higher APYs. Credit unions, which operate as member-owned nonprofits, also frequently offer rates above the national average.
Below is a general comparison of the types of rates available across different provider categories. These figures are estimates based on publicly available data and are subject to change.
| Provider Type | Example Institutions | Estimated APY (1-Year) |
|---|---|---|
| Online Banks | Ally Bank, Marcus by Goldman Sachs | 4.50% – 5.25% |
| Credit Unions | Alliant Credit Union, Navy Federal | 4.25% – 5.00% |
| Traditional National Banks | Chase, Bank of America | 0.01% – 2.00% |
| Regional Banks | Various local and regional banks | 3.50% – 4.75% |
| Brokerage CDs | Fidelity, Charles Schwab | 4.75% – 5.20% |
Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.
What Factors Influence Fixed Deposit Interest Rates?
Several elements play a role in determining the rate you will receive on a 1-year fixed deposit. The Federal Reserve’s federal funds rate is perhaps the most significant driver — when this rate rises, savings products like CDs typically follow. Inflation expectations, the overall demand for loans, and a bank’s own liquidity needs also contribute to the rate it chooses to offer depositors.
Deposit size can also matter. Some institutions offer tiered rates, where larger deposits unlock slightly higher APYs. Minimum deposit requirements vary as well, with some online banks allowing you to open a CD with as little as $500, while others may require $1,000 or more.
Are 1-Year Fixed Deposits a Safe Option for Savers?
Fixed deposits held at FDIC-insured banks or NCUA-insured credit unions in the United States are protected up to $250,000 per depositor, per institution, per ownership category. This makes them one of the more secure savings vehicles available. The main risk is not losing your principal but rather the opportunity cost of locking in a rate that may be outpaced by inflation or rising rates during your term.
Early withdrawal penalties are also worth understanding before you commit. Most institutions charge a fee — typically several months’ worth of interest — if you access your funds before the maturity date. Reading the terms carefully ensures there are no surprises down the line.
How to Find Competitive 1-Year Fixed Deposit Rates in Your Area
To find the most relevant rates for your situation, consider checking local credit unions and community banks alongside national online institutions. Comparison websites such as Bankrate, NerdWallet, and DepositAccounts aggregate current CD rates and allow you to filter by term length and deposit amount, which can save considerable research time.
Speaking directly with a financial advisor or bank representative can also help clarify any promotional rates, relationship discounts for existing customers, or special terms that may not appear in standard listings.
With rates remaining relatively elevated compared to the historically low environment of the early 2020s, 2026 continues to present a reasonable window for savers to consider locking in a 1-year fixed deposit as part of a broader savings strategy.
