Best Short-Term CDs Under One Year for Parking Cash

You have cash you will need inside a year, a down payment, a tax bill, an emergency buffer that outgrew your checking account, and you want it to earn something without locking it up for five years. Short-term CDs are built for exactly this, but the headline APY is a trap if you ignore two lines of fine print: what happens the day the CD matures, and what it costs to get out early. Here are the strongest sub-12-month rates right now, where the terms quietly claw the yield back, and why a 12-month CD now pays as much as the best of them.

Rates as of September 2026, from each bank's own CD page.

The APY is the bait; the exit terms are the deal

Two clauses decide whether a short-term CD actually pays you.

The first is auto-renewal. When your term ends, most banks give you a short grace period and then roll the balance into a new CD at whatever rate is posted that day. The EverBank Performance CD is the clearest example: the 4.10% APY 7-month automatically renews into a 6-month CD, which paid 3.60% as of September 18, 2026, so the rate that got you in the door does not carry over. Sleep through the grace window and you can be locked back up at a worse number.

The second is the early-withdrawal penalty, the cost of needing your money before maturity. On short terms it can be brutal in relative terms. The First Internet Bank CD pays 3.76% APY on a 6-month CD with an early-withdrawal penalty of 180 days of interest, the full length of the term, which means an early break can bite into principal, not just interest. Amex charges 90 days' interest on terms under 12 months, and Barclays charges 90 days of simple interest on terms up to 24 months. On a 12-month CD a penalty of a few months' interest is annoying; on a 6-month CD it can wipe the entire return.

The strongest sub-12-month picks

For pure yield under a year, the American Express National Bank CD leads at 4.25% APY on a 10-month term with no minimum deposit (as of September 25, 2026). Top rate plus no minimum plus a sub-12-month lock is the combination most people parking cash want. The catch is scope: Amex's 11- and 12-month CDs pay 3.50%, so this one term is the reason to show up, not the lineup.

If you need a shorter horizon, the trade-off is real. EverBank's 7-month at 4.10% sits closest to the top: a strong rate for a short lock, as long as you put the maturity date on your calendar and move the money before it auto-renews. First Internet's 6-month at 3.76% gives you faster access, but at a lower rate and with a penalty that punishes an early exit hard. For three months, EverBank's own 3-month CD pays 3.60% on the same page, and Quontic also sells a 3-month CD; compare its current rate and penalty on Quontic's site before you choose it.

When to just take the 12-month

If your "under a year" is flexible and you can live without the cash for a full 12 months, the Barclays Online CD pays 4.25% APY on its 12-month term with no minimum opening deposit (September 2026). That now ties Amex's 10-month rate exactly. The difference is two months of lock-up: Amex gives your money back sooner for the same yield, while Barclays keeps earning that rate for two extra months.

That tie changes how to read the shorter options. Any sub-12-month CD you pick should either match 4.25% or buy you flexibility you will actually use. EverBank's 7-month comes close on rate. The 3- and 6-month options do not, so choose them only when you genuinely need the money sooner.

Bottom line

For parking cash you will need inside a year, Amex and Barclays tie for the top rate at 4.25% with no minimum. Pick the Amex 10-month if you want the money back sooner, and the Barclays 12-month if a full year works and you want two more months at that rate. Take EverBank's 4.10% 7-month if you want out sooner still, but only if you will mark the maturity date and stop the auto-renewal. Reach for 3- or 6-month options only when your timeline demands it, because their lower rates and penalties can erase the very yield you opened the CD to earn.

FAQ

What counts as a short-term CD?
Generally any CD with a term under 12 months. In this roundup that covers the 6-month, 7-month and 10-month options, with 3-month CDs mentioned for very short horizons; the Barclays 12-month is included as the one-year benchmark to measure them against.

Will my CD automatically renew?
Usually yes. Most banks roll a matured CD into a new term at the current posted rate after a short grace period. EverBank's 7-month, for example, renews into a lower-paying 6-month CD, so set a reminder for the maturity date if you do not want to re-lock.

What happens if I withdraw early?
You pay an early-withdrawal penalty. First Internet's 6-month carries a 180-day interest penalty, as long as the term itself, meaning an early exit can cut into principal. Amex and Barclays charge 90 days of interest on these terms. Read the penalty before you deposit, not after.

Is Amex's 10-month or Barclays' 12-month the better CD?
They pay the same 4.25% APY. Choose Amex if you need the money within 10 months, and Barclays if you can wait a full year and want the rate locked for longer.

Are these CDs FDIC insured?
These are all offered by FDIC-member banks, so deposits are insured up to the standard limits. Confirm the current limit and your total balance at each bank before you move a large sum.