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These Credit Unions Offer CDs With APYs up to 9.5%. Do You Qualify?
By Adam Hardy MONEY RESEARCH COLLECTIVE
It’s wise to lock in a CD with a historically high interest rate before the Fed takes action.
As interest rate cuts loom, there’s still time to lock in eye-popping yields on certificates of deposit, or CDs.
Three credit unions on the West Coast are offering rates north of 6%, two of which offer APYs (annual percentage yields) of 9% or higher. These rates are available only to folks who meet the credit unions’ membership requirements — so you might not qualify, unfortunately.
There are plenty of other CDs with historically high APYs that are available now to anyone, however. And because the consensus holds that rates are bound to fall in the near future, it could be wise to invest in a CD sooner than later.
CDs with the highest interest rates
As of Wednesday, the California-based Financial Partners Credit Union is offering an eight-month CD special with a 6.5% APY. The minimum deposit for this offer is $1,000, with a maximum of $5,000. To become a member of FPCU, you must live, work or go to school in or around Los Angeles or San Francisco.
Alternatively, you can qualify if you work for or retired from one of its dozens of partnering employers. Many of these companies are based in states other than California, and several, like American Apparel and The Alzheimer’s Association, are nationwide.
Up in Washington state, Express Credit Union is running a 9% APY CD promotion in celebration of its 90th anniversary. The deposit account must be opened on the 9th of each month until the end of the year either by email, phone or at a union branch. (So: This Friday, August 9, is a possibility.) The minimum required deposit is $200, and the maximum is $5,000. Membership in this credit union is limited to those who live, work or worship in the state of Washington.
Also celebrating an anniversary is California Coast Credit Union. The financial institution is turning 95 this year and is offering a 9.5% rate for a five-month CD to members who live in San Diego or Riverside counties. Deposits at this rate-tier must be within $500 and $3,000.
These promotional rates are far above the standard APY for CDs right now. According to the FDIC, the nationwide average rate for one-year CDs is 1.85%, down slightly from earlier this summer.
Where else to find a good CD rate
The majority of Americans won’t qualify for the sky-high promotional rates mentioned above. And while the national average rate for CDs is below 2%, there are still plenty of banks across the country with CDs that have yields far above that number.
Many of the best CD rates at national banks or credit unions are in the 4% to 5% range.
For example, Discover’s highest CD rate is currently 5.1% for a nine-month term, with a minimum deposit of $2,500. Its 12-month CD has a 4.7% APY.
Over at Ally Bank, a six-month CD yields 5%, and its 12-month CD has a 4.5% rate. Ally is one of the few banks that does not have a minimum deposit requirement for its CDs with high APYs.
In anticipation of the Federal Reserve cutting benchmark rates in September (or perhaps even sooner) interest rates across the board from savings accounts to mortgage rates are beginning to edge downward.
In effect, this means the window to lock in a high-yield CD is closing. One of the best reasons to invest in CDs is that the rates are guaranteed for their term, regardless of what the Fed does with interest rate policies. Savings accounts, by contrast, generally have variable rates, and they tend to decrease in tandem with Fed rate cuts.
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Adam Hardy is Money's lead data journalist. He writes news and feature stories aimed at helping everyday people manage their finances. He joined Money full-time in 2021 but has covered personal finance and economic topics since 2018. Previously, he worked for Forbes Advisor, The Penny Hoarder and Creative Loafing. In addition to those outlets, Adam’s work has been featured in a variety of local, national and international publications, including the Asia Times, Business Insider, Las Vegas Review-Journal, Yahoo! Finance, Nasdaq and several others. Adam graduated with a bachelor’s degree from the University of South Florida, where he studied magazine journalism and sociology. As a first-generation college graduate from a low-income, single-parent household, Adam understands firsthand the financial barriers that plague low-income Americans. His reporting aims to illuminate these issues. Since joining Money, Adam has already written over 300 articles, including a cover story on financial surveillance, a profile of Director Rohit Chopra of the Consumer Financial Protection Bureau and an investigation into flexible spending accounts, which found that workers forfeit billions of dollars annually through the workplace plans. He has also led data analysis on some of Money’s marquee rankings, including Best Places to Live, Best Places to Travel and Best Hospitals. He regularly contributes data reporting for Best Colleges, Best Banks and other lists as well. Adam also holds a multimedia storytelling certificate from Poynter’s News University and a data journalism certificate from the Investigative Reporters and Editors (IRE) at the University of Missouri. In 2017, he received an English teaching certification from the University of Cambridge, which he utilized during his time in Seoul, South Korea. There, he taught students of all ages, from 5 to 65, and worked with North Korean refugees who were resettling in the area. Now, Adam lives in Saint Petersburg, Florida, with his pup Bambi. He is a card-carrying shuffleboard club member.