Best CD Rates of August 2023: We examine rates on a daily basis to determine which CD terms offer the best rates. If you want a no-penalty CD, a unique term duration, or if you have a small deposit amount, we’ve also included recommendations for these situations.
Best CD Rates of August 2023
Currently, credit unions provide some of the best CD rates. However, there are no restrictions on who can join these credit unions and establish CDs.
- No Punishment CD: yield to maturity of 5.30%. Commence your savings at Ponce Bank, Powered by Raisin.
- 3 Month: 5.65% APY. Begin to save with Dow Credit Union.
- 6 Month: 5.56% APY. Start your savings plan with TotalDirectBank.
- 1 Year: 5.65% APR. Start your savings plan with TotalDirectBank
- 18 Month: 5.55 percent annual percentage yield (APY). Start saving with CDs from Sallie Mae.
- 2 Year: 5.27% APY. Commence your savings with Pelican State Credit Union.
- 3 Year: 5.13% APY. Commence your savings with the US Senate Federal Credit Union.
- 4 Year: 4.85% APY. Commence your savings with GTE Financial Credit Union.
- 5 Year: 4.67% APY. Commence your savings with the Department of Commerce Federal Credit Union.
Market dominance
7.19% APY offered by Alpena Alcona Area Credit Union (7-month term)
You must be a member of Alpena Alcona Area Credit Union in order to establish a certificate of deposit. In general, you must reside, work, own property, attend school, or practise your religion in any county in Michigan; work for the credit union; or have an immediate family member who is a current member. Additionally, the CD allows a maximum deposit of $7,000.Explore more.
Our top choices for CDs are insured by either the FDIC or the NCUA. Despite the fact that multiple financial institutions were shuttered in 2023, bear in mind that federally insured financial institutions are safe havens for deposits. When a financial institution is federally insured, bank accounts can hold up to $250,000 per depositor.
Regarding the Top CD-Issuers
Seven-Month CD from Alpena Alcona Area Credit Union
The Alpena Alcona Area Credit Union offers the highest CD rate currently available. If you qualify for membership at the credit union, you can earn 7.19% APY on a 7-month CD.
To become a member, you must: 1) reside, work, own property, attend school or worship in any county in Michigan; 2) work for the credit union; or 3) have an immediate family member who is a member.
Additionally, Alpena Alcona Area Credit Union offers terms between 90 days and 5 years.
Penalties: For more information about early withdrawal penalties, please contact your local branch. The penalty could be proportional to the quantity withdrawn.
This promotional CD has particular requirements for its opening: Your deposit cannot exceed $7,000, and each member is only eligible for one CD special.
Simple CD issued by Dow Credit Union
Why it stands out: If you value credit union banking, Dow Credit Union is an excellent option. The credit union has a low initial deposit requirement of $500. The 3-month and 6-month Simple CDs, which are the credit union’s CD specials, offer the most competitive interest rates.
Simple CD terms range from three months to three years. Additionally, the bank offers traditional and bump-up CDs.
Dow Credit Union imposes the following standard penalties for early withdrawals of your principal balance:
- Interest accruing for 45 days on a 3-month term
- Interest accruing for 90 days on a 6-month term
Call a Dow Credit Union branch for information about additional penalties.
Watch out for: Opening an account at a credit union requires membership. The simplest method to join Dow Credit Union is to contribute $10 to the Midland Area Community Foundation. Other ways to join the credit union include belonging to a Select Employer Group or having a family member who is already a member.
CD Total Direct Bank
Why it stands out: TotalDirectBank, a division of City National Bank of Florida accessible exclusively online, offers the highest 1-year CD rate available nationwide.
TotalDirectBank offers terms ranging from three months to five years.
The following early withdrawal penalties may apply to TotalDirectBank certificates of deposit:
- Thirty days of interest for terms ranging from thirty days to six months
- Ninety days of interest for periods between six months and one year
- 180 days of interest for terms exceeding 12 months
Keep a sharp lookout for:The minimum initial deposit for TotalDirectBank CDs is $25,000, and the maximum is $1 million. Additionally, the online institution is not available in Florida, Somoa, Guam, the Northern Mariana Islands, or the United States Virgin Islands.
CD by Sallie Mae
Sallie Mae offers the most competitive interest rate for an 18-month term at the present time. Additionally, the online bank offers various term durations, including 15-month and 30-month terms.
Sallie Mae offers terms ranging from six months to five years.
Penalties include:Sallie Mae levies the following prepayment penalties:
- For terms of one year or less, the early withdrawal penalty consists of ninety days of interest on the amount withdrawn.
- The early withdrawal penalty for terms longer than one year is 180 days of interest on the amount withdrawn.
A minimum opening deposit of $2,500 is required for Sallie Mae certificates of deposit. Consider a different financial institution if you wish to establish a CD with more lenient initial deposit requirements.
Pelican State Credit Union Certificate of Stock
Why it stands out: Pelican State Credit Union, a Louisiana-based financial institution, offers an excellent interest rate for a two-year term. The share certificate requires a minimum initial deposit of $500.
Terms ranging from 6 months to 5 years are available.
Penalties The early withdrawal penalty at Pelican State Credit Union is as follows:
- 180 days of interest for one-year or shorter terms
- 270 days of interest for maturities ranging from 13 to 36 months
- 365 interest-free days for terms between 37 months
Keep an eye out for: To initiate a Pelican State Credit Union share certificate, you must qualify for membership. Membership in ARC Baton Rouge ($5 membership fee), the Parents Association of Northwest Support and Services ($5 membership fee), or the Pinecrest Parents Association ($20 membership fee) is the simplest method to join.
Smart Share Certificate from US Senate Federal Credit Union
Why it stands out: The US Senate Federal Credit Union’s three-year share certificate has a high interest rate.
Terms ranging from 3 months to 5 years are available.
The early withdrawal penalties at US Senate Federal Credit Union are as follows:
- 90 days of interest for terms less than a year
- 120 days of interest for terms exceeding two years and up to three years
- 360 days of interest on terms exceeding three years
Be on the lookout for: To open a bank account at US Senate Federal Credit Union, membership is required. To join, you must work for a Select Employee Group, have a family member who is a current member, or join the U.S. Capital Historical Society or the American Consumer Council (from anywhere in the United States).
GTE Financial Credit Union Certificate of Participation
Why it stands out: If you’re looking for a 4-year share certificate, GTE Financial Credit Union is an excellent option. GTE Financial may also appeal to you if you want to open a CD with average to low early withdrawal penalties.
Terms ranging from 6 months to 5 years are available.
Penalties include: Here are the early withdrawal penalties for Share Certificates issued by GTE Financial Credit Union:
- Interest accruing for 90 days on terms of one year or less
- Interest accruing for 180 days on terms longer than one year
Keep an eye out for: In order to obtain a share certificate, membership is required. Joining CUSavers with a $5 contribution is the simplest method to become a member.
Share CD from the Department of Commerce Federal Credit Union
Department of Commerce Federal Credit Union Share Certificates of Deposit may be advantageous if you seek a 5-year term.
Options for terms vary from six months to seven years.
Here are the penalties for early withdrawal at the Department of Commerce Federal Credit Union:
• 90 days of interest for periods ranging from six to eleven months
• 180 days of interest for terms ranging from one year to eighty-four months
Observe: Joining the American Consumer Council is the simplest method for a citizen of the United States to become a member. You may also be eligible for membership if you reside in the District of Columbia or work for the US Department of Commerce, the White House Management and Administration Office, or the Executive Office of the President.
Ponce Bank 4-Month No-Fee Certificate
The maximum no-penalty CD rate offered by Raisin is 5,30% APY on a 4-month Ponce Bank No Penalty CD. Additionally, if you wish to establish a CD with a low minimum opening deposit, you may find Raisin appealing. You require only $1 to get begun.
As a result of its partnerships with over 30 banks and credit unions, Raisin offers multiple terms for no-penalty and standard CDs.
There are no early withdrawal penalties associated with this account.
Keep in mind that Raisin does not have any tangible locations. Due to the inability to establish checking accounts, it is also not the best option if you want to do all of your banking at a single institution.
What makes a CD either excellent or bad?
Mykail James, MBA, certified instructor of financial education, BoujieBudgets.com:
Always consider how much money you need to get started. And then, if you can continue to invest. Check not only the interest rate but also the frequency of interest payments, such as monthly or quarterly.”
How should a CD term duration be selected?
Roger Ma, certified financial planner and author of “Work Your Money, Not Your Life” with lifelaidout®:
“I would consider when you need the money and then compare that to the current CD rates to determine what makes the most sense from a financial perspective, as well as a personal timing perspective.”
“I believe in having a plan regardless of the amount of funds. If it’s a house fund and you don’t want to acquire a house for another two years, you should keep that in mind when deciding how to spend this money.
How should one choose between a high-yield savings account, a money market account, and a certificate of deposit?
Certified financial planner at SaveLife, Tania Brown:
“I suppose we’ll begin with the amount of money you wish to invest and the number of transactions you desire. If you wish to conduct any transactions, CDs are promptly withdrawn. Then you are forced to choose between a high-yield savings account and a money market account.”
In general, I believe that a high-yield savings account or money market account could be advantageous for an emergency fund or short-term savings objectives. A high-yield savings account offers a higher rate of interest than conventional savings accounts at physical institutions. In the meantime, money market accounts are an option to consider if you desire greater account accessibility, as many offer paper checks, ATM cards, and debit cards. Since CDs have a fixed interest rate for a specific term, they may be advantageous if you don’t need immediate access to your funds.
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Methodology: How We Selected the Best CD Rates of August 2023
Personal Finance Insider’s mission is to assist savvy individuals in making the best financial decisions. In addition to highlighting the obvious benefits of a financial product or account — for instance, a high Annual Percentage Yield (APY) — we also describe its limitations. We spent countless hours comparing the features and fine print of numerous products so that you don’t have to.
Using our CD rates methodology, we evaluated CD offerings from a dozen or so national banks. All of the institutions on our list are FDIC-insured and do not charge monthly CD maintenance fees.
In the event that two banks offered the same APY on a CD product, we considered minimum deposit requirements and early withdrawal penalties.
