Photo courtesy of Karen Bennett; Illustration by Hunter Newton/Bankrate
I’ve often referred to 2024 as the year of the certificate of deposit (CD). In tracking CD rates on a daily basis, I’ve seen how yields remain at an overall high, thanks to the Federal Reserve raising rates to their highest level since 2001.
Last year, there was a lot of buzz about how you could find CDs that earned up to 7 percent annual percentage yield (APY). Since then, top CD rates have declined slightly, although some financial institutions still offer CDs that earn 6 percent APY (or even higher, in one case).
The big caveat is all of these CDs contain pretty significant restrictions. In fact, several are from credit unions that limit membership to those who live or work in certain geographic areas.
As such, I’ve also provided a list further below of widely available CDs with the highest rates.
Where to find CDs that earn 6% APY (or higher)
The following financial institutions currently offer CDs that earn 6 percent APY or higher, as of July 12. It’s important to note that not every account is available to everyone, due to restrictions.
What’s more, rates on new CDs can change at any time, at the discretion of the financial institutions offering them. However, locking in a yield today on a fixed-rate CD means you’ll earn that guaranteed APY for its entire term.
California Coast Credit Union
- Rate: 9.50 percent APY
- CD Term: 5 months
- Minimum deposit: $500
- Maximum deposit: $3,000
- Details: Called a Celebration Certificate, this CD offering marks the credit union’s 95th anniversary.
- Restrictions: Membership in the credit union is limited to those who live or work in select areas of California. The maximum opening deposit is $3,000, with one CD allowed per person.
Third Federal Savings and Loan
- Rate: 6 percent APY for the first month, 4.50 percent APY for the remaining five months
- CD term: 6 months
- Minimum deposit: $500
- Maximum deposit: N/A
- Restrictions: This Bonus CD from Third Federal earns 6 percent APY only during the first month of the term, with an APY of 4.50 percent each consecutive month. As such, the average APY over the term is 4.75 percent. While the bank only operates branches in Ohio and Florida, this CD can be opened online.
Financial Partners Credit Union
- Rate: 6.00 percent APY
- Term: 8 months
- Minimum deposit: $1,000
- Maximum deposit: $5,000
- Restrictions: This CD is only available to new members of the credit union, in select cities and counties of California.
Nuvision Federal Credit Union
- CD term: 10 months
- Rate: 6.00 percent APY
- Minimum deposit: $1,000
- Maximum deposit: $5,000
- Restrictions: Membership in Nuvision is limited, and those eligible include southern California or Mesa, Arizona Boeing employees and their household members, as well as those who work for other select employers.
Financial institutions Bankrate monitors
While they’re all offered from federally insured deposit institutions, none of the CDs listed above are from banks or credit unions Bankrate regularly monitors. Because none of our monitored institutions offer CDs with APYs of 6 percent or higher, I searched outside our official list for purposes of this article.
The editorial lists on Bankrate’s pages, such as Best CD rates and Best high-yield savings accounts, consist of widely available, federally insured banks and credit unions. Furthermore, the listings there are chosen based on popularity, APYs and Bankrate’s review score.
“There are numerous factors we employ when selecting, analyzing and rating the banks and credit unions in our research methodology,” says Marc Wojno, senior banking editor at Bankrate. “We delve deeply, from large banks to small online-only credit unions, to select those financial institutions that are widely representative of the banking industry, to give our readers a fair and accurate landscape of the banking industry.”
Best nationally available CD rates
Below are the top rates on a range of popular CD terms that Bankrate reports on daily. These selections are from the banks and credit unions Bankrate regularly monitors. (Because most CDs impose early withdrawal penalties, it’s important only to devote money you won’t need in the meantime for emergencies or living expenses.)
3 month CD
6-month CD
- Available from: Bask Bank
- APY: 5.35 percent
- Minimum opening deposit: $1,000
9-month CD
- Available from: America First Credit Union
- APY: 5.25 percent
- Minimum opening deposit: $500
1-year CD
- Available from: Bask Bank
- APY: 5.30 percent
- Minimum opening deposit: $1,000
18-month CD
- Available from: Bask Bank
- APY: 5.00 percent
- Minimum opening deposit: $1,000
2-year CD
3-year CD
- Available from: First Internet Bank of Indiana
- APY: 4.61 percent
- Minimum opening deposit: $1,000
4-year CD
- Available from: First Internet Bank of Indiana
- APY: 4.45 percent
- Minimum opening deposit: $1,000
5-year CD
- Available from: First Internet Bank of Indiana
- APY: 4.50 percent
- Minimum opening deposit: $1,000
The future of CD rates
APYs on competitive CDs tend to go up when the Federal Reserve raises interest rates, and these APYs go down when the Fed lowers rates. Since July 2023, the federal funds rate has been at a two-decade high, and yields on accounts on many CDs and savings accounts are outpacing inflation.
However, many market watchers expect the Fed will cut interest rates later this year, which could trigger banks to lower their CD rates.
Securing a high APY now on a fixed-yield CD ensures you’ll benefit from that high rate for the entire term, even if going rates on new CDs start to fall.
“With the Fed all but certain to begin cutting interest rates in the final third of the year, now is the time to lock in CDs rather than waiting,” says Greg McBride, CFA, chief financial analyst for Bankrate. “Yields will pull back in the coming months, so maximizing your return means acting sooner, not later.”
Bottom line
While 6 percent CDs are still available, they’re few and far between and carry significant restrictions. Viable alternatives include CDs from financial institutions that Bankrate officially monitors, which earn rates of up to 5.35 percent APY. Savers who lock in a high CD rate now will continue to benefit even if going rates on CDs drop further in the near future.
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