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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As of October 25, 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):
Alpena Alcona Area Credit Union – 7.19% APY on a 7 month CD– this one is no longer available
- Financial Partners Credit Union – 6.50% APY for 8 months ($1k min, $5k max)
- Truliant Federal Credit Union – 6.25% APY on an 11 month CD ($5k min)
- Chicago Patrolmen’s FCU – 6.18% APY on a 3 month CD
- Complex Community FCU – 6.00% APY on a 6 month CD
- Empower FCU – 6.00% APY on a 3 month CD
- Sterling United Federal Credit Union – 6.00% APY on a 12 month CD
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.
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About Jim Wang
Jim Wang is a forty-something father of four who is a frequent contributor to Forbes and Vanguard’s Blog. He has also been fortunate to have appeared in the New York Times, Baltimore Sun, Entrepreneur, and Marketplace Money.
Jim has a B.S. in Computer Science and Economics from Carnegie Mellon University, an M.S. in Information Technology – Software Engineering from Carnegie Mellon University, as well as a Masters in Business Administration from Johns Hopkins University. His approach to personal finance is that of an engineer, breaking down complex subjects into bite-sized easily understood concepts that you can use in your daily life.
One of his favorite tools (here’s my treasure chest of tools,, everything I use) is Personal Capital, which enables him to manage his finances in just 15-minutes each month. They also offer financial planning, such as a Retirement Planning Tool that can tell you if you’re on track to retire when you want. It’s free.
He is also diversifying his investment portfolio by adding a little bit of real estate. But not rental homes, because he doesn’t want a second job, it’s diversified small investments in a few commercial properties and farms in Illinois, Louisiana, and California through AcreTrader.
Recently, he’s invested in a few pieces of art on Masterworks too.
Opinions expressed here are the author’s alone, not those of any bank or financial institution. This content has not been reviewed, approved or otherwise endorsed by any of these entities.