In today’s financial landscape, finding the best interest rates for your savings is crucial. While the national average interest rate for certificates of deposit (CDs) ranges from a mere 0.23% for a 1-month term to 1.42% for a 1-year term, many banks and credit unions offer CDs with competitive yields as high as 5% APY or more. These high-yield CDs can help grow your savings significantly over time, offering returns that are two to three times the national average.
Top CDs Paying 5% APY and Above
Below, we’ve compiled a list of some of the best FDIC-insured CDs currently offering 5.00% APY or higher. Please note that interest rates, fees, and account requirements are subject to change, so always verify details directly with the financial institution.
1. America First Credit Union 3- to 5-Month CDs: 5.25% APY
America First Credit Union offers short-term CDs with a remarkable 5.25% APY. The minimum deposit is $500, and interest compounds monthly. Early withdrawals incur a penalty of 60 days’ worth of dividends. To qualify, you must meet the credit union’s membership requirements.
2. CommunityWide Federal Credit Union 6-Month CD: 5.25% APY
CommunityWide Federal Credit Union’s 6-month CD offers a rate of 5.25% APY with a minimum opening deposit of $1,000. The early withdrawal penalty can be significant, depending on the remaining term of the CD.
3. Genisys Credit Union 7-Month CD: 5.25% APY
Genisys Credit Union provides a 7-month CD with a 5.25% APY, requiring a $500 minimum deposit. The early withdrawal penalty is 90 days’ worth of dividends.
4. America First Credit Union 6- to 11-Month CDs: 5.15% APY
Offering flexibility, America First Credit Union’s 6- to 11-month CDs come with a 5.15% APY and a $500 minimum deposit. Early withdrawal penalties apply.
5. Bask Bank 3-Month CD: 5.10% APY
Bask Bank’s 3-month CD offers a competitive 5.10% APY with a minimum deposit of $1,000. Interest is compounded daily, but be mindful of the 90-day simple interest penalty for early withdrawals.
6. Barclays 6-Month CD: 5.10% APY
Barclays offers a 6-month CD at 5.10% APY with no minimum deposit requirement. Interest compounds daily, and the early withdrawal penalty is 90 days’ worth of simple interest.
7. LendingClub 10-Month CD: 5.10% APY
LendingClub’s 10-month CD yields 5.10% APY with a $2,500 minimum opening deposit. The early withdrawal penalty is 90 days’ worth of interest.
8. Quontic Bank 6-Month CD: 5.10% APY
Quontic Bank’s 6-month CD offers a 5.10% APY and requires a $500 minimum deposit. However, the early withdrawal penalty is substantial, potentially affecting the principal if funds are accessed prematurely.
9. NexBank 1-Year CD: 5.09% APY
NexBank offers a 12-month CD with a 5.09% APY for deposits between $25,000 and $240,000. Early withdrawals come with a penalty of six months’ worth of interest.
10. Bank5 Connect 6-Month CD: 5.05% APY
Bank5 Connect’s 6-month CD provides a 5.05% APY with a $500 minimum deposit. The penalty for early withdrawals is three months’ worth of interest.
11. Popular Direct 3-Month CD: 5.05% APY
Popular Direct offers a 3-month CD with a 5.05% APY, but it requires a hefty $10,000 minimum deposit. Early withdrawals result in an 89-day simple interest penalty.
12. America First Credit Union 12- to 17-Month CDs: 5.00% APY
These CDs from America First Credit Union provide a 5.00% APY for terms between 12 and 17 months, with a $500 minimum deposit. The penalty for early withdrawal is 60 days’ worth of dividends.
13. Bask Bank 6-Month CD: 5.00% APY
Bask Bank’s 6-month CD earns 5.00% APY, with a $1,000 minimum deposit. The early withdrawal penalty is 90 days’ worth of simple interest.
14. LendingClub 6-Month CD: 5.00% APY
LendingClub also offers a 6-month CD at 5.00% APY with a $2,500 minimum deposit. Early withdrawals are penalized with 90 days’ worth of interest.
15. CommunityWide Federal Credit Union 12-Month CD: 5.00% APY
CommunityWide’s 12-month CD offers 5.00% APY with a $1,000 minimum deposit. The early withdrawal penalty depends on the remaining term of the CD.
16. Santander Bank 6-Month CD: 5.00% APY
Santander Bank’s 6-month CD provides a 5.00% APY with a $500 minimum deposit. The penalty for early withdrawals is three months’ worth of interest.
Conclusion: High-yield CDs provide an excellent opportunity to grow your savings faster than the national average. However, it’s crucial to consider the terms, early withdrawal penalties, and minimum deposit requirements before committing. These CDs can be particularly attractive for those looking to maximize returns while maintaining a low-risk investment approach. Always ensure to verify the latest rates and terms with the respective financial institution before opening an account.
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