With the target federal funds rate at highs we haven’t seen in decades, there are plenty of banks offering high interest rates on their savings and certificate of deposits.
If you’re a retiree looking to get more interest on your savings or just looking to park some of your cash somewhere save and FDIC insured, a certificate of deposit is a fantastic way to do it.
Have certificates of deposit reached 7% yet?
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Are There 7%+ CD Rates Today?
As of November 3, 2023, there are no certificates of deposit yielding more than 7%.
For several weeks, Alpena Alcona Area Credit Union, a relatively small credit union located in Michigan, offered a 7-month CD with a 7.19% APY. This offer has ended though and their highest rates are only 5%.
There are several credit unions that are offering 6% CD rates right now. They are all credit unions and have strict membership requirements, which is great if you live nearby but difficult to get into if you aren’t eligible for membership.
Here are the credit unions with rates above 6% (we left AAACU in the list for historical purposes):
There Is A 7% Rewards Checking Account
While there are no 7% CDs yet, there is a 7% APY High-Yield Checking account offered by OnPath FCU.
You earn that high rate on your balance up to $10,000. Any cash above $10,000 only earns 0.50% APY.
This is a reward checking account so you need to use your debit card multiple times in a statement cycle to get this high rate. They pay the high rate from the fees you generate from the use of the card. For OnPath, you need to use it 15 times or more each cycle!
You also need to log into your account at least once a month and enroll in e-statements. There are a few hoops to get this high rate.
Best Nationally Available CD Rates
If you don’t qualify for any of the credit unions in the above list, your next best option are CDs with banks with a national reach. Those rates are not as attractive though, in part because these banks have lots of assets and don’t need to compete as aggressively on rates. (also, with mortgage rates so high, some banks are finding it difficult to deploy the deposits they have on the books!)
Barclays – 5.50% APY
Barclays is a well known British multinational bank that has a big presence in the online banking space. They are FDIC insured and offer high yield savings and certificate of deposit accounts. Their current offer leads the way with a 5.50% APY on the 12-month CD.
Raisin – 5.40% APY
Raisin is a savings platform that helps you find the best bank rates from their partners. The rates they offer are some of the most competitive and better than what you could get directly from the banks themselves. They have a few banks on their roster that offer 5%+ on their certificates of deposit.
They have a minimum deposit of just $1 and for these no penalty CDs, there’s no penalty if you close it out early. These are also available nationwide, despite some of these offers being from a credit union:
Quontic Bank – 5.30% APY
Quontic Bank has a 12-month CD with a yield of 5.30% APY. They also have a savings account that offers 4.50% APY, a potent combination.
Quontick Bank is a CDFI (Community Development Financial Institution, which is a US Department of Treasury certification). CDFIs look to use private and public funds to help economically disadvantaged communities.
Interest compounds daily, there are no monthly fees, and a $500 minimum balance.
Will We Ever See 7% APY CDs?
Never say never! (especially if it’s been offered on a promotional basis once already)
Experts expect the Federal Reserve to continue to raise interest rates for a little while longer, perhaps with a few more pauses in between, and if that’s the case – yes, we’ll see 7% APY CDs coming along and not just for promotional periods.
In the near term, it seems like you’ll be able to find 6% CD from your local credit unions and the national and online banks are looking at staying the high 5% range.
As always, we’ll keep this updated as we hear about higher rates.