Key Takeaways
- The best 6-month CD rate in the country is currently 4.73% APY, which is a great rate to lock in given that rates are likely to fall later this year.
- But California Coast Credit Union is offering more than double that APY, with a promotional 5-month CD paying 9.50%.
- Anyone nationwide can join Cal Coast. But this special CD is limited to a maximum deposit of $3,000, making it a great offer only if you’re in the market for a small-balance CD.
- Given the limited deposit, many CD shoppers will be better off with one of the more flexible offers in our daily ranking of the best CDs.
The full article continues below these offers from our partners.
The Fine Print of This Remarkable 9.50% Offer
If a certificate of deposit (CD) paying over 9% sounds off the charts to you, you’re right. Even at their peak in late 2023, when rates were at their highest level in more than 20 years, the top CDs in the country reached above 6% for brief periods. And now, the highest rate in our daily ranking of the best nationwide CDs is 5.00% APY.
But California Coast Credit Union is in the mood to celebrate, with its 95th anniversary prompting it to offer a promotional 5-month “Celebration Certificate” that pays a whopping 9.50% APY. Though Cal Coast generally serves residents of select cities and counties in California, a customer service representative confirmed that anyone nationwide can become a Cal Coast member.
But there’s a catch to this offer, which is why it doesn’t appear in our daily rankings of the best CDs. Most notably, you can only deposit up to $3,000 in one of these CDs (with a minimum deposit of $500). And only one Celebration CD is allowed per person.
To qualify for the 9.50% APY, you also need to hold another active Cal Coast account from the following list of eligible accounts:
- A checking account with e-statements and at least one transaction per month (e.g., direct deposit, check, ATM, debit card, bill pay, etc.)
- A new money market account with a minimum balance of $5,000
- A new regular or IRA CD with a minimum balance of $5,000
- A new (funded) consumer loan (credit cards, Share Secured loans, and Certificate Secured loans don’t count)
Important
If you don’t meet the requirements within 30 days, your CD will earn Cal Coast’s standard 3-month rate, which is a near-zero 0.10% APY.
If the amount you want to put in a CD is $500 to $3,000, this could be an excellent option for you. It pays more than double the rate of the top 6-month CD for a small deposit, where the top rate is currently 4.73% APY. But you’ll need to be fine with opening one of those other Cal Coast accounts by the 30-day deadline.
Don’t Delay, as CD Rates Will Likely Drop
Though no one can predict the future, financial markets currently expect the Federal Reserve to lower its benchmark rate more than once this year. That will in turn push CD rates down. But a CD you open now will guarantee its annual percentage yield (APY) for its full term—no matter what the Fed does.
A Top-Ranked CD—Without the Hoops—May Serve You Better
Though 9.50% is a phenomenal return, the $3,000 maximum deposit limits this offer’s value. Compounded monthly for 5 months, a deposit of that size would earn about $116. If you instead deposited the same $3,000 in the highest-paying 6-month CD, which offers 4.73% APY with no special requirements, you’d earn $58 in the first five months. That makes the value of Cal Coast’s offer just $58 ($116 minus the $58 you could earn with the next-best option).
The hassle of maintaining an additional Cal Coast account may not feel worth a $58 payoff. Or you may prefer to deposit $5,000, $10,000, or some other amount above $3,000. That’s why shopping the other top CDs in the country makes good sense.
From our daily rankings of the best nationwide CDs, the chart below shows that top rates across CD terms currently range from 4.35% to a top nationwide return of 5.00% APY, available from Mountain America Credit Union for 18 months. You can also see in a table below how much you can earn with each term-leading CD if you hold it to maturity.
| CD Term | Top Nationwide APY | Earnings at Maturity |
|---|---|---|
| 3 months | 4.60% | $34 |
| 6 months | 4.73% | $70 |
| 1 years | 4.60% | $138 |
| 18 months | 5.00% | $228 |
| 2 years | 4.50% | $276 |
| 3 years | 4.40% | $414 |
| 4 years | 4.35% | $557 |
| 5 years | 4.40% | $721 |
Since it’s likely the Fed will lower interest rates one or more times later this year, it’s a good time to lock in one of today’s high CD rates while you still can—and enjoy your boosted APY far down the road.
Daily Rankings of the Best CDs and Savings Accounts
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000.
Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.
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