If you’re looking for a safe and reliable way to grow your money, certificates of deposit (CDs) might be a good option for you.
CDs are deposit accounts that offer a fixed interest rate for a set period of time, usually ranging from a few months to several years. Unlike regular savings accounts, CDs lock in your money until the maturity date, and typically, you will face a penalty if you withdraw early. The tradeoff is a higher interest rate compared to traditional savings accounts, making them ideal for long-term savings goals.
Credit unions often offer better APY on their CDs compared to traditional banks due to their not-for-profit structure, as credit unions are owned and operated by their members rather than shareholders. This means they prioritize the best interests of their members and aim to provide higher returns on their savings products. It can be worth it to seek out a credit union which you qualify for in order to earn these higher returns.
We’ve compiled a list of banks and credit unions which offer CDs with a high APY. Here’s a look at some of the best CD rates that are currently being offered.
NASA Federal Credit Union
NASA Federal Credit Union offers a variety of CD options, with terms ranging from six months to 60 months. You can open a CD with as little as $1,000, and enjoy competitive rates. The best rate, as of July 2023, is on a nine month term with a $10,000 minimum, and returns 5.65%.
However, you do have to be eligible to join the credit union, which means you have to be affiliated with NASA (or one of its partner organizations) or be related to someone who is.
The USAlliance Financial share certificate offers one of the highest rates in the market: 5.7% APY for an 18-month term, with a minimum deposit of just $500.
Membership at USAlliance Financial was originally created for employees of IBM. Today, it is additionally available to employees of American Express and Pepsi, as well as members of organizations such as ASCAP or the New York Historical Society, and residents of certain areas of Connecticut, New York, New Jersey, or Massachusetts. If any of those apply to you, their CD might be the right choice for you.
Mountain America Credit Union
This credit union offers a six-month CD with a 5.5% APY, which is one of the highest rates on the market. However, this CD requires a minimum deposit of $500 and is only available for members who have an active checking account and direct deposit. Additionally, membership at this credit union is restricted to residents of the Utah counties of Salt Lake, Duchesne, Wasatch, or Uintah; or to the families of existing Mountain America members.
Nutmeg State Financial Credit Union
This credit union offers a six-month CD with a 5.5% APY, which is also a very competitive rate. However, this CD requires a minimum deposit of $500 and is only available for members who have an active checking account and direct deposit. Membership is open to residents of specific areas of Connecticut.
Northern Bank Direct
Northern Bank Direct is an online division of Northern Bank, which is located in Woburn, Massachusetts. And unlike the above credit unions, membership here is unrestricted. The 11 month CD from Northern Bank Direct has an APY of 5.6%, and there is a minimum deposit of $500.
Ally bank is an online-only bank that offers competitive rates on its CDs. The 9 month CD from Ally bank has an APY of 5%, and there is no minimum deposit. Plus, Ally bank has a 10-day best rate guarantee, which means that if the rate goes up within 10 days of opening or renewing your CD, you’ll get the higher rate automatically.
High-Interest Savings Accounts
What if you want to earn a high interest rate without tying your money up for months at a time? Here are some options for traditional savings accounts that are currently paying a high APY.
If you’re looking for a high-interest savings account that can help you grow your money faster, you might want to check out milli.bank. Milli.bank is an online-only, app-only bank that offers a savings account with a very high 5.25% APY. Plus, milli.bank has no fees, and no minimum balance requirements.
Headquartered in Utah, TAB Bank (aka Transportation Alliance Bank) is open to everyone and offers a savings account with a 5.02% APY. This account has no fees, and no minimum balance requirements.
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