One year CDs pay interest rates that are just above the leading rates offered on online and branch-based savings and money market accounts. There is a very slight premium for having the money locked up for one year. Your own circumstances and tax rate will help you to determine if that premium provides adequate compensation to you for your loss of liquidity.
The deposited money is committed for one year.
The account must be opened online and all inquiries must be conducted online or via the phone.
Depending on the bank, the opening and funding process can take several days to weeks although the bank generally locks the rate once the application has been received and approved.