America First Credit Union
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Updated Sept. 3, 2024
Opening a certificate of deposit (CD) allows you to lock in an attractive fixed rate and earn higher returns compared to traditional savings accounts, while providing FDIC or NCUA insurance protection and guaranteed growth for a set period of time. Currently, the best CD rates range from 4.29 percent APY to 5.25 percent APY. This top rate is offered by America First Credit Union for a 3-month term, and is roughly four times higher than the national average of 1.83 percent on a one-year CD.
Before opening a certificate of deposit, be sure to read expert advice and tips below to ensure a financially safe decision.
Bankrate provides you with timely news and rate information on top yielding CDs for some of the most popular, and largest, FDIC-insured banks and NCUA-insured credit unions. This way you don’t have to spend time searching many bank and credit union websites. Since 1976, Bankrate has been a trusted source of banking information to help you make well-informed decisions on your finances.
Note: Annual percentage yields (APYs) shown were updated between Aug. 31 and Sept. 6. All other information is current as of Sept. 3. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
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The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
Note: Annual percentage yields (APYs) shown were updated between Aug. 31 and Sept. 6. All other information is current as of Sept. 3. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
Our banking editorial team regularly evaluates data from more than a hundred of the top financial institutions across a range of categories (brick-and-mortar banks, online banks, credit unions and more) to help you find the options that work best for you.
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At its last meeting on July 31, the Federal Reserve, once again, didn’t change interest rates but is projecting a September rate cut. The Fed’s Federal Open Market Committee kept its key benchmark, the federal funds rate, at a target range of 5.25 to 5.5 percent.
CD rates peaked in late 2023 and have been trending downward since then. This trend is a result of the Federal Reserve's interest rate hikes in 2022 and 2023 to combat high inflation. Inflation cooled from its peak of 9 percent in June 2022 to 2.9 percent in July but remains above the Fed's 2 percent target, leading to hints of potential rate cuts that are already affecting CD rates.
The Federal Reserve is widely expected to reduce interest rates in the coming months. With peak savings rates at hand, this is an opportune time to seek higher yields. But even as rates come down, it will also still be important to shop around for the best rates.— Mark Hamrick, Bankrate senior economic analyst
When looking for a certificate of deposit, seek a competitive interest rate, a term length that works for you, and FDIC or NCUA insurance coverage. Also familiarize yourself with early withdrawal penalties to avoid potentially losing money.
Currently, shorter-term CDs – with terms of six months to 18 months – generally have higher yields than longer-term CDs. But those longer-term CD yields could be peaking soon, if they haven’t already. So locking one in now could be a good decision for long-term money that you want to keep safe in an insured bank.
Researching average interest rates provides insight into the CD rate environment and can help in finding a CD with a yield that's much higher than average. Here are the current average rates as of Sep. 7, according to Bankrate's most recent survey of institutions:
CD term | CD national average APY |
---|---|
1 year | 1.83% |
2 year | 1.53% |
3 year | 1.43% |
4 year | 1.49% |
5 year | 1.43% |
Some banks have promotional CD rates. There might be certain restrictions on these CDs. For instance, you might have to bring money from outside the bank to be eligible for this APY. Promotional CDs may renew at a different term and at a different APY. (That APY is likely to not be known when you purchase a promotional CD.)
Even some of the largest banks might have some featured CD rates.
Bank name | CD product | APY | Available until* |
---|---|---|---|
U.S. Bank | 7-month CD | 4.55% APY | N/A |
Wells Fargo | 7-month CD | 4.25% APY | N/A |
PenFed Credit Union | 18-month CD | 4.00% APY | N/A |
*It’s possible for these offers to end sooner.
These promotional CDs might not be available in certain areas. APYs for some products may vary by region. The CD may renew for a different term. The promotional offers are as of Aug. 16.
When you open a CD, selecting a term is an important step. The term is the length of time that the money stays stashed in the account. For example, opening a CD with a one-year term means you’re making a commitment to the bank that you’ll keep your money in the account for one year.
Here’s where you’ll find some of the top yielding CDs by term.
Institution | APY | Min. deposit |
---|---|---|
America First Credit Union | 5.25% APY | $500 |
Popular Direct | 5.05% APY | $10,000 |
First Internet Bank of Indiana | 4.14% APY | $1,000 |
Institution | APY | Min. deposit |
---|---|---|
America First Credit Union | 5.15% APY | $500 |
Quontic Bank | 5.10% APY | $500 |
Bask Bank | 5.10% APY | $1,000 |
Institution | APY | Min. deposit |
---|---|---|
Bread Savings | 5.10% APY | $1,500 |
CIBC Bank USA | 5.06% APY | $1,000 |
America First Credit Union | 5.05% APY | $500 |
Institution | APY | Min. deposit |
---|---|---|
TAB Bank | 4.35% APY | $1,000 |
America First Credit Union | 4.30% APY | $500 |
LendingClub Bank | 4.30% APY | $2,500 |
Institution | APY | Min. deposit |
---|---|---|
SchoolsFirst Federal Credit Union | 4.35% APY | $500 |
First Internet Bank of Indiana | 4.19% APY | $1,000 |
America First Credit Union | 4.10% APY | $500 |
Note: Annual percentage yields (APYs) shown were updated between Aug. 31 and Sept. 6. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
The top three things to look for when choosing a CD are:
Banks and credit unions offer a wide range of CDs to fit different financial needs. Take some time to consider which type of CD is best for you.
Traditional CDs are the most common type of CD, and they earn a fixed APY for the entire term. These CDs usually don’t allow you to add more funds after your opening deposit, and they also tend to have strict early withdrawal penalties.
If you withdraw from a CD before it matures, the penalty is usually equal to the amount of interest earned during a certain period of time. For instance, a bank may impose a penalty of 90 days of simple interest on a one-year CD if you withdraw from that CD before the year is up.
When this CD makes sense: Traditional CDs are a good choice if you know exactly when you’ll need the money and there’s no chance of needing it before the term is up. They’re often good for CD ladders or other CD investing strategies in which timing is important.
Most CDs charge you a penalty for accessing the funds before the term is up. However, some banks offer no-penalty CDs — also known as liquid CDs — which allow you to withdraw the money early without being charged a penalty.
A bank may require that you wait at least some time after opening a no-penalty CD — generally around six or seven days — before you’re able to withdraw from the CD, and some banks don’t allow for partial withdrawals. No-penalty CD rates tend to be lower than regular CD rates, but they can be better than some high-yield savings account or money market account rates.
When this CD makes sense: Consider a no-penalty CD if you don’t plan to withdraw the money before the CD matures, but you want to keep some flexibility in case you need access to the funds. As a result, you’re willing to give up a little return for added liquidity.
Bump-up CDs enable you to request an increase in your rate during the CD term under certain conditions. Banks that offer this CD usually allow just one bump-up per term. For example, you may open a three-year CD at a given rate, and the bank offers an additional half-point rate increase when you’re one year into the term. With a bump-up CD, you can request a rate increase for the remainder of the term. Like no-penalty CDs, bump-up CDs often pay lower rates than traditional CDs.
When this CD makes sense: A bump-up CD could be a good option if rates are expected to rise significantly during the term of the CD. Otherwise, you’re likely accepting a lower rate for limited potential upside.
A CD is useful when you want to earn a consistent, fixed yield on your lump sum of cash over the term of your savings account, especially if interest rates are declining. It also encourages you to be disciplined in leaving your money untouched as it earns interest because a CD is a time deposit account and imposes an early withdrawal penalty if you withdraw your funds before the CD matures.
A good time to open a CD is when you have a lump sum of money that you want to sock away for a specific period of time in the hopes of consistently growing interest. Also, it’s worth opening a CD when you know you have a specific timeframe in mind when you think you’ll need this money. A six-month CD, for example, could be a good place to put your money aside for an insurance premium that’s due in eight months.
Before you choose a CD, weigh the pros and cons to ensure you're making the right investment choice for your financial situation.
Some CDs earn a higher APY than money market accounts or savings accounts.
CDs are a good place to store funds that you don’t want to be able to dip into too easily.
CDs can help you separate money for financial goals or future expenses.
Deposit insurance covers accounts at FDIC banks and NCUA credit unions up to at least $250,000.
A CD can diversify your savings plan with a guaranteed rate.
Your principal remains intact if you keep your money in a CD for the full term.
CDs tie up your money for a potentially long period of time.
Many CDs have early withdrawal penalties.
Money committed to a CD could end up earning a lackluster yield if rates rise substantially. The early withdrawal penalty may negate any benefit of switching to a higher-yielding CD, however.
You could potentially earn better rates of return in the stock market or by investing in other securities.
Traditional savings account
This account typically earns a low yield that’s usually at or below the national average.
High-yield savings account
This account tends to earn a yield currently of about seven times higher than the national average. At online-only banks, these accounts often won’t have monthly service fees or minimum balance requirements.
Money market account
This is an interest-bearing account available at both banks and credit unions which is similar to a savings account, but also offers some checking account features.
Short-term bond funds
These funds, be they exchange-traded funds (ETFs) or mutual funds, typically invest in government and corporate bonds. Short-term bond funds typically have durations of one to three and a half years, according to Fidelity.
Bankrate’s editorial team is made up of five banking experts. These experts have researched numerous banks and at least twice a month review bank websites to make sure readers stay up to date on the latest rates and bank products.
The banks and credit unions on this page are selected based on popularity, Bankrate’s review score and CD APYs. The listings are ordered based on Bankrate’s scoring system, and ties are broken through minimum balance requirements and then alphabetical order.
Note: Bankrate doesn’t include callable CDs or brokered CDs on this page and compares regular CDs and no-penalty CDs separately.
Estimate how much money you will earn with a fixed APY when your CD matures.
Weigh the benefits and drawbacks of CD accounts to determine if this savings strategy is right for you.
Stay informed about today's highest CD yields and what banks and credit unions offer them.