6.5% APY CD: High-yielding CDs

Certificates of Deposit (CDs) are now popular for anyone looking to grow their savings in this high-rate environment. Some returns approach 7% annual yield, exceeding most high-yield savings accounts.

We’ve found that the highest CD yield on the market is currently being offered by Financial Partners Credit Union for eight-month CDs at 6.50% APY with a minimum deposit of $1,000. To get a sense of how high this yield is compared to the average, the highest national average for CD is over a one-year period at just 1.86% APY.

But there’s a big problem with Financial Partners’ eight-month CD: The high APY rate of 6.50% is only offered for up to a $5,000 balance, and credit union membership is quite possibly the biggest hurdle, and it’s only open to those who They live, work or attend school in certain parts of California (Los Angeles, Orange, Riverside, San Diego County, the City of South San Francisco and Alameda), or for employees and retirees of certain employer groups.

Fortunately, there are other CD options for savers looking to maximize the return on their money.

If you don’t qualify for Financial Partners Credit Union, you’re out of luck. Although it may not be quite as high, there are other CDs with strong APYs that have no maximum balance limits, allowing almost anyone to open an account and have longer CD terms, allowing you to earn more interest.

For those who are comfortable locking up a certain amount of their savings for 12 months, the 1-year CD from CIBC Bank USA offers 5.51% APY to anyone. There is a minimum deposit of $1,000, which is on par with what many high APY CDs require. Although this particular CD has a lower APY than Financial Partners’ eight-month CD, it will earn you more interest overall since the CD term is four months longer — giving your money more time to accumulate. Plus, there’s no cap on earning interest, so you can deposit as much as you want and still earn a 5.51% annual return.

If you were to maximize Financial Partners’ eight-month CD offer and deposit the maximum $5,000, an APY of 6.50% would net you $214.38 in interest earnings over the eight months. However, the same $5,000 balance in a CIBC 1-year CD at 5.51% APY will net you $275.50 in interest earnings over one year.

However, you may not want to tie up your savings for one year. In this case, consider a shorter CD term such as nine months. Both Signature Federal Credit Union (FCU) and Marcus by Goldman Sachs® currently offer nine-month CDs with good APYs: 5.45% APY and 5.30% APY, respectively.

Sticking with the example above, a $5,000 balance in a Signature FCU nine-month CD with 5.45% APY would net you $203.01 in interest earnings or $197.46 in a Marcus nine-month CD with 5.30% APY – which is It’s not far from the benefit you get. D Earn with our eight-month Financial Partners CD.

Both Signature FCU and Marcus require a minimum deposit of $500 and have no maximum balance limits. Additionally, anyone can become a Signature FCU member by depositing $5 into the Signature FCU Basic Savings Account.

The record-high CD APY rates we’re seeing today won’t last forever, so now is the time to make a good rate. If the Fed starts lowering interest rates, which it is expected to do in 2024, savings rates will fall as well. Consider the CDs in this article if you want to maximize your interest earnings.

At CNBC Select, our mission is to provide our readers with quality service journalism and comprehensive consumer advice so they can make informed decisions about their money. Each banking article is based on accurate reporting by our team of expert writers and editors with extensive knowledge of savings products. While CNBC Select receives a commission from affiliate partners on many offers and links, we create all of our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Follow CNBC Select’s in-depth coverage of credit cards, Banking services And moneyAnd follow us Tik Tok, Facebook, Instagram And Twitter To stay informed.