How to get a high CD promotional rate (2024)

FAQs

Can you get 6% on a CD? ›

FAQ: 6% CD rates

No banks are currently paying 6% APY on a CD. However, you can find some credit unions offering 6% CD rates. You can also get 5% CD rates at some banks or use alternative savings approaches, such as a high-yield savings account or money market account, to maximize the return on your investment.

Yes, you may be able to negotiate rates on jumbo CDs depending on how much you deposit, the term and the financial institution offering the CD. It doesn't hurt to attempt to negotiate a better interest rate for your jumbo CD. The more money you plan to deposit, the better your chances of getting a better rate.

Promotional CD rates offer annual percentage yields (APYs) far higher than average CD rates with the same low-risk profile. They're offered by many banks and credit unions and can give your short-term savings a boost.

Promotional-rate CDs: This CD offers a promotional rate that may be higher than a regular CD rate and is only offered for a certain time period. You may be able to lock in a high rate by opening this kind of CD within a promotional period, like 30 days or before the end of the month.

While longer-term CDs may tie up your funds for years, a 6-month CD allows you to access your money relatively quickly. If you suddenly need your $5,000 for an emergency or a more lucrative investment opportunity arises, you won't have to wait years to access your funds without incurring hefty penalties.

Paying an early withdrawal penalty could also make sense if your CD is earning considerably less than current interest rates. For example, if you have a long-term CD earning a 2% APY, and new CDs offer APYs in the 5% range, you should consider cashing out your long-term CD as it could mean earning 3% more on your cash.

It's important to shop around because some financial institutions offer high CD rates on a regular basis. In fact, some can be higher than the promotional rates provided by the financial institutions above and others that advertise "promotional" or "special" rates.

Right now, there aren't any financial institutions offering 7% interest on a CD.

Ramsey has referred to certificates of deposit as "nothing more than glorified savings accounts with slightly higher interest rates." Ramsey warned that you shouldn't invest in CDs because average rates won't keep pace with inflation and because they aren't a good place to grow your money.

What is the biggest negative of putting your money in a CD? ›

1. Early withdrawal penalty. One major drawback of a CD is that account holders can't easily access their money if an unanticipated need arises. They typically have to pay a penalty for early withdrawals, which can eat up interest and can even result in the loss of principal.

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

To defer taxes on CD interest until retirement, you can open a CD within a tax-deferred retirement account — whether it's an employer-sponsored plan or an IRA.

Right now, two nationally available banks offer accounts earning at least 6% interest: Digital Federal Credit Union and Mango Financial.

Primis Bank's Surprising 6% Checking Offer

The best high-yield checking accounts pay more, but usually require you to make a lot of debit card transactions. For instance, Pelican State Credit Union pays 6.05%, but you must make 15 debit transactions a month and the rate is not locked for any amount of time.

Yes, many online banks and credit unions are currently offering CDs paying 5% APY or more for a wide range of terms. Are CDs with 5% interest safe? It indicates an expandable section or menu, or sometimes previous / next navigation options. CDs that are FDIC- or NCUA-insured are safe.