July 2023’s Best CD Rates (Up to 7.19% APY)

July 2023's Best CD Rates (Up to 7.19% APY)

Unveiling the Best CD Rates: Where to Park Your Savings

As technology and innovation continue to shape the financial world, it’s important to stay up-to-date with the latest information and opportunities to maximize your savings. At Insider, our experts are always on the lookout for the best banking products and CD rates available. We understand the importance of unbiased reviews and comprehensive analysis to help you make informed decisions about your financial future. In this article, we’ll dive deeper into the world of CDs, exploring the current top rates, unique terms, and additional options to suit your needs.

Meet the Market Leader

When it comes to CD rates, Alpena Alcona Area Credit Union takes the lead with an impressive 7.19% APY on a 7-month share certificate. To become a member and take advantage of this high rate, you must meet certain requirements. Eligibility includes living, working, owning property, going to school, or worshiping in any county in Michigan, working at the credit union, or having an immediate family member who is already a member. It’s important to note that the maximum opening deposit for this CD is $7,000. If you don’t meet the membership criteria or are looking for alternative options, there are other institutions offering competitive rates as well.

A World of Opportunities with Raisin

For those seeking exclusive savings opportunities, Raisin provides a platform to open a no-fee account and access over 30 FDIC-insured banks and NCUA-insured credit unions. By spreading your savings across this extensive network, you can earn top savings rates and manage all your accounts with a single secure login. Currently, Raisin’s top CD rate stands at 5.51% APY. Whether you’re looking for a no-penalty CD, unique term length, or have a low deposit amount, Raisin offers a variety of options to cater to your specific circumstances.

Choosing the Perfect CD

CDs offer a secure and reliable way to grow your savings, but it’s essential to consider certain factors before diving in. Accessibility, timing, and withdrawal penalties all play a crucial role in determining the best CD for you. Before making a decision, consider the length of time you can commit to leaving your money untouched in the account without incurring any penalties. It’s also important to familiarize yourself with the necessary steps to take once your CD term ends.

To assist you in finding the ideal CD, we’ve compiled a comprehensive list of the top rates categorized by term. Here are our expert picks:

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Top CD Rates by Term

• 3 Month: 5.23% APY at Oklahoma State Bank (available through Raisin)
• 6 Month: 5.35% APY at Popular Direct
• 9 Month: 5.75% APY at Andrews Federal Credit Union
• 1 Year: 5.51% APY at Pacific Western Bank (available through Raisin)
• 18 Month: 5.70% APY at USAlliance Financial
• 2 Year: 5.00% APY at Bread Savings
• 3 Year: 4.85%-4.95% APY at Quorum Federal Credit Union
• 4 Year: 4.65% APY at First National Bank of America
• 5 Year: 4.65% APY at First National Bank of America
• No Penalty: 5.26% APY at Technology Credit Union (available through Raisin)

All of our top CD picks provide FDIC or NCUA insurance, ensuring the safety of your funds. Although First Republic Bank has recently been shut down, it’s important to note that your money remains secure at a federally insured financial institution, with up to $250,000 per depositor guaranteed in a bank account.

Unraveling the Best CD Issuers

Now that you have an overview of the top CD rates available, let’s delve into the details of some of the standout issuers. Each issuer brings unique qualities and benefits to the table, providing you with a diverse range of options to consider.

Alpena Alcona Area Credit Union CD

Why it stands out: Alpena Alcona Area Credit Union boasts the highest CD rate currently available in the market. With a 7.19% APY on a 7-month CD, this credit union offers an attractive opportunity for growth. However, membership requirements must be met, including residing, working, owning property, going to school, or worshiping in any Michigan county, working at the credit union, or having an immediate family member who is a member. Alpena Alcona Area Credit Union also offers a variety of other term lengths ranging from 90 days to 5 years.

Oklahoma State Bank 3-Month Certificate

Why it stands out: This CD, available through Raisin, offers the highest 3-month CD rate on the market. Oklahoma State Bank provides an impressive option for short-term savings. While this account is accessible nationwide, it’s important to note that early withdrawal penalties may vary depending on the partner bank through Raisin.

Popular Direct CD

Why it stands out: Popular Direct stands out in terms of high rates and daily compound interest. This institution offers some of the industry’s highest rates, providing an opportunity for substantial growth. With term lengths ranging from 3 months to 5 years, Popular Direct caters to a variety of savings goals. Keep in mind that the early withdrawal penalties for this CD can vary based on the duration of the term.

Andrews Federal Credit Union Share Certificate

Why it stands out: Andrews Federal Credit Union is a Black-led financial institution with branches spanning multiple states. The credit union presents a competitive 9-month share certificate special with attractive interest rates. The terms offered range from 6 months to 84 months, allowing for flexibility in planning your savings goals. Early withdrawal penalties differ based on the term length, so it’s important to review the specific terms before making a decision. To become a member of Andrews Federal Credit Union, you must meet specific requirements related to residency, employment, or membership in designated organizations.

Pacific Western Bank CD

Why it stands out: Pacific Western Bank, available through Raisin, offers a one-stop solution for finding and managing high-yield savings accounts and CDs across various banks and credit unions. With the highest-yielding 1-year CD rate currently on offer, Pacific Western Bank stands as an attractive option. The platform provides a range of term lengths from different financial institutions, ensuring flexibility based on your savings goals. Early withdrawal penalties on a 12-month Pacific Western Bank CD, powered by Raisin, total 90 days of interest.

USAlliance Financial Share Certificate

Why it stands out: USAlliance Financial presents the most competitive interest rate for an 18-month term. Additionally, the credit union offers a great rate on a 1-year share certificate. Term options range from 3 months to 5 years, accommodating a wide range of savings preferences. It’s important to note that early withdrawal penalties at USAlliance Financial are slightly higher compared to other institutions. To become a member, specific qualifications related to residence, employment, or membership in designated organizations must be met.

Bread Savings High-Yield CD

Why it stands out: Bread Savings CDs excel with their competitive interest rates for 2-year terms. With options ranging from 1 year to 5 years, Bread Savings provides flexibility to align with your savings goals. It’s crucial to be aware of the penalties for withdrawing your principal balance early, which vary depending on the term length. Keep in mind that the minimum opening deposit for Bread Savings CDs is $1,500, which is higher than some other banks.

Quorum Federal Credit Union Term Savings

Why it stands out: Quorum Federal Credit Union offers high interest rates on term accounts, with the 3-year term standing out as the most competitive. Term options span from 3 months to 5 years, providing a comprehensive selection for your savings needs. Penalties for early withdrawals vary based on the term length and amount withdrawn. Membership requirements must be met to open a CD at Quorum Federal Credit Union, which includes affiliation with specific organizations or employment within designated industries.

First National Bank of America CD

Why it stands out: First National Bank of America allows you to open CDs online from any location in the US. The bank offers high CD rates for 4-year and 5-year terms, making it an attractive option for long-term savings goals. However, it’s important to note that early withdrawal penalties are higher compared to some other institutions. If early withdrawal flexibility is a priority, you may want to explore other options on our list.

Technology Credit Union 5-Month No Penalty CD

Why it stands out: Technology Credit Union offers the highest no-penalty CD rate at 5.26% APY through Raisin. This option eliminates any early withdrawal penalties, providing flexibility for your savings. Raisin’s platform also offers a low minimum opening deposit of just $1, making it accessible to a wide range of savers. However, it’s important to be aware that Raisin does not have physical locations and does not offer checking accounts.

Trusting Our Expertise: Insights on Choosing the Best CD

At Insider, we are committed to providing reliable and expert advice. To ensure the utmost accuracy and relevance, we consult with banking and financial planning professionals who share their insights and guidance. Here’s what they have to say about CDs:

• Mykail James, MBA, certified financial education instructor at BoujieBudgets.com, emphasizes the importance of considering requirements, interest payout frequency, and the ability to add funds continuously when evaluating the attractiveness of a CD.

• Roger Ma, certified financial planner and author of “Work Your Money, Not Your Life,” suggests considering your financial needs and timing when choosing a CD term. Aligning your savings goals with the prevailing CD rates and your personal circumstances is key to making the right decision.

• Tania Brown, certified financial planner at SaverLife, and Sophia Acevedo, certified educator in personal finance and banking reporter at Personal Finance Insider, advise comparing high-yield savings accounts, money market accounts, and CDs based on the amount of money you want to invest and the level of account accessibility you require.

A Methodology Rooted in Trust

At Personal Finance Insider, our methodology ensures we provide accurate and insightful information. We meticulously compare and analyze various banking products, considering additional factors beyond just high APY rates. The accounts listed in our top picks are insured by the FDIC, ensuring the safety of your deposits. Our selection process involves an in-depth review of each institution’s minimum deposit requirements, early withdrawal penalties, and other relevant terms.

FAQ: Unlocking the Secrets of CDs

Curious about the ins and outs of CDs? We’ve compiled answers to some frequently asked questions to help you gain a deeper understanding of this financial tool. From the basics to more specific inquiries, we’ve got you covered.

Exploring Alternative Options

While our top picks represent the cream of the crop, there are other CDs worth considering. Institutions such as America First Credit Union, Connexus Credit Union, CIT Bank, Alliant Credit Union, and many more offer competitive rates and terms. Although these options may not have made it to our expert recommendations, they might align better with your specific preferences and financial circumstances.

In the ever-evolving world of finance, staying informed about the best options for growing your savings is paramount. Whether you’re looking for short-term gains, a long-term strategy, or flexible access to your funds, CDs provide a reliable tool to achieve your financial goals. Start exploring the opportunities available today and make the most of your savings journey.

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