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Advertiser Disclosure
On This Page
- Key Takeaways
- Our top picks for the best CDs
- Can you get 6% on a CD?
- Where can I get 6% on a CD?
- How much can I earn with a 6% CD?
- Pros and cons of a 6% CD
- CD factors to consider
- Alternatives to 6% CDs
- Compare high-yield CD rates
- FAQ: 6% CD rates
- Related topics
On This Page
- Key Takeaways
- Our top picks for the best CDs
- Can you get 6% on a CD?
- Where can I get 6% on a CD?
- How much can I earn with a 6% CD?
- Pros and cons of a 6% CD
- CD factors to consider
- Alternatives to 6% CDs
- Compare high-yield CD rates
- FAQ: 6% CD rates
- Related topics
By Alana Luna (Musselman) - Writer & Content Strategist + 1 other
Reviewed By Blake Esken - Los Angeles Times
Updated on SEP 12, 2024 8 Min Read Why Trust Us?
- You can find certificates of deposit (CDs) with rates as high as 6% at a few financial institutions. However, these rates aren’t available at traditional banks.
- Typically, these high-yield 6% CDs come with maturities of 12 months or less.
- Pros of a 6% CD include locked-in interest rates and high returns. Cons include needing credit union membership and penalties for early withdrawal.
- Some financial institutions that currently offer high-yield CDs include Gainbridge, Marcus, Sallie Mae, Valley Direct, Alliant and Synchrony.
- If you’re looking for alternatives to 6% CD rates, consider 5% CDs from online banks. High-yield savings accounts and money market accounts are other good options you may want to check out.
Our top picks for the best CDs
Advertiser Disclosure
Featured offer
Gainbridge
Backed by issuing insurance company
rates_last_updated
APY disclosure
apy
Term Length
5 years
Minimum Opening Deposit
min_deposit
Why We Like It
Editor's take
Gainbridge offers an annuity savings product that operates somewhat like a CD. You can earn 6.15% APY with the FastBreak Annuity product on terms of five to 10 years (the APY for a 3-year term is 6.00%). However, unlike with a traditional CD, you can withdraw up to 10% of the value of your account each year without any penalties or giving up your high-yield APY.
PROS
- 6.15% APY
- Can withdraw up to 10% of your account without penalties in the first year
- Rates are locked in
- Terms range between three to 10 years
CONS
- Financially backed by insurance company rather than FDIC
- No short-term options
- Withdrawal penalties after the first year
Can you get 6% on a CD?
You can secure a 6% CD rate right now, but you’ll need to either qualify for membership with a smaller credit union or explore other types of financial institutions, as these rates aren’t currently offered by traditional banks.
These 6% rates are usually for CDs that mature in 12 months or less. Financial institutions use these high rates to attract customers, but they prefer not to lock in such high rates for extended periods.
Even if you find a credit union that offers CDs with high returns, you’ll need to meet their eligibility requirements to join. Many credit unions restrict membership to people who work for certain employers, live in specific areas, or meet other criteria, such as being a military veteran or attending a local college.
As a credit union member, you still might have to meet additional conditions to earn the 6% rate, like maintaining a minimum deposit or keeping your total deposit below a certain limit. Also, some of these rates are promotional and are only available to new members.
If you aren’t eligible to join a credit union that offers a 6% CD rate, all is not lost. Some of the best CDs offer a 5% rate of return, and that’s still a very respectable ROI.
Where can I get 6% on a CD?
No banks are currently offering 6% CDs, but some credit unions and other financial institutions are providing them.
Gainbridge
Gainbridge offers an annuity savings product called the FastBreak Annuity. It functions similarly to a CD but with more flexibility. You can earn a 6.15% APY on terms of five to ten years, and a 6.00% APY on a three-year term. Unlike a traditional CD, this product allows you to withdraw up to 10% of your account value each year without incurring penalties or losing your high-yield APY.
Financial Partners Credit Union
With over eight decades of service and some $2 billion in assets, Financial Partners Credit Union is a solid institution trusted by 85,000 members.
To get its 6.00% APY CD offering, you must:
- Be a new FPCU member (membership is only open to residents of six listed counties or cities in California, and you must also be a new or retired employee of a partner company or an immediate relative of such an employee)
- Open an eight-month regular share CD
- Deposit between $1,000 and $5,000 (the minimum and maximum deposit amounts set by FPCU)*
*New members who open an eight-month regular share CD with the maximum deposit allowed of $5,000 may be eligible for an extra-premium rate of 6.50% APY.
California Coast Credit Union
California Coast Credit Union is celebrating its 95th anniversary in 2024. As part of the festivities, the institution is offering a special celebration certificate investment with a whopping 9.50% APY.
This is a limited-time offer, and investors must meet these requirements:
- Be a member of CCCU, which requires living or working in San Diego, Los Angeles, Ventura, Riverside, Orange, Imperial and/or San Bernardino counties
- Deposit between $500 and $3,000
- Agree to a five-month CD term
- Use new money (no account transfers) to open the CD
- Have an active checking account with eStatements or a different type of account (money market, regular certificate or IRA certificate) with a minimum balance of $5,000
How much can I earn with a 6% CD?
How much you’ll earn with a 6% CD depends on a few factors, such as the amount of money you deposit and the length of the CD term. To give you an idea of how much you could make, we used a CD calculator to calculate some examples.*
The first example shows how much you could earn with a $1,000 CD over different terms.
Earnings on a 6% CD with a $1,000 deposit
| Term length | Interest earned at maturity | Total ending balance |
|---|---|---|
| 5 months | $24.58 | $1,024.58 |
| 8 months | $39.61 | $1,039.61 |
| 1 year | $60.00 | $1,060.00 |
| 3 years | $191.02 | $1,191.02 |
This next example shows how much you could earn with a $5,000 CD.
Earnings on a 6% CD with a $5,000 deposit
| Term length | Interest earned at maturity | Total ending balance |
|---|---|---|
| 5 months | $122.88 | $5,122.88 |
| 8 months | $198.05 | $5,198.05 |
| 1 year | $300.00 | $5,300.00 |
| 3 years | $955.08 | $5,955.08 |
*The calculations shown in the tables above are just simple examples. Always seek advice from a qualified professional before making important financial decisions or long-term agreements.
Pros and cons of a 6% CD
Pros
- You get a very high return on your money
- 6% is much higher than the national average rate for a 12-month CD of just 1.85%
- CD funds are protected by the National Credit Union Administration for up to $250,000 (similar to FDIC protection available for bank deposits)
- Certificates of deposit are a fairly low-risk investment, with rates locked in and your funds less vulnerable to market shifts
Cons
- All current 6% CDs are offered by credit unions, which require membership
- You may have to meet other requirements to qualify for a top-tier 6% rate
- Money put into a CD is locked in for the duration of the CD’s term
- There may be penalties for withdrawing money from your CD before it matures
CD factors to consider
It’s important to consider these CD features before opening an account:
- CD term: This is how long you’re agreeing to leave your funds locked into the certificate of deposit. For instance, a one-year CD will mature after 12 months. You’ll usually find better rates on short-term CDs versus long-term CDs. That means you’re more likely to get that 6% rate on a CD that matures in 12 months or less. Longer CDs, such as those that mature in five or 10 years, often have interest rates of 3.00% or lower.
- Minimum deposit: Every institution has the right to set a minimum deposit amount, which is the lowest amount required to open the CD.
- Maximum deposit: Some high-rate CDs have deposit caps that limit how much you can invest. But these caps are usually still relatively generous, with some capping out at $25,000 or even $50,000.
Alternatives to 6% CDs
One important thing to note is that CDs with 5% and 6% rates are usually limited to short-terms like three-month CDs or six-month CDs. And those rates could disappear altogether once your CD has matured. Whether you’re looking for noncredit union investment options today or want to put a plan in place in case 6% CD rates dry up down the road, these alternatives may be just the ticket.
5% CDs
While 6% CDs are still relatively hard to find, 5% CDs are far more prevalent, especially at credit unions and online-only banks. This 1% dip in interest isn’t desirable, but neither is it a total disappointment. It’s still well above the national average 12-month CD interest rate of 1.85%, and it’s comparable to or slightly higher than many interest rates tied to money market and high-yield savings accounts.
Here are some examples of financial institutions offering CDs with a minimum of 5.00% APY:
- Synchrony: 9-month CD with 5.15% APY
- Climate First Bank: six-month no-penalty CD with 5.34% APY
- TotalDirectBank: three-month CD with 5.15% APY
High-yield savings accounts
High-yield savings accounts pay out higher-than-average interest rates. This often tiptoes into 4.00% APY or higher, with some online banks offering APY of over 5.00%. These rates line up with many of the advertised interest rates for CDs, but the two investment options have very different terms.
While a certificate of deposit is a termed account, meaning you’re essentially locking up your money for the duration of the investment, savings accounts offer more accessibility. You can make regular deposits and withdrawals without penalty, though you may be assessed fees if you exceed your institution’s monthly or yearly transaction limit.
Another difference between CDs and savings accounts is how stable your interest rate is. The interest rate you’re given when you open a CD will remain the same until the investment matures. However, saving accounts with variable APY might have interest rates that go up or down depending on the market.
Here are some of the best high-yield savings accounts of September 2024:
- CapitalOne: 4.25% APY
- Barclays: 4.20% APY (4.50%-4.80% Tiered savings rate)
- SoFi: 4.50% APY
- UFB Direct: 5.15% APY
- EverBank: 5.05% APY
Money markets
Money market accounts combine the best aspects of checking and savings accounts. You’re free to make transactions, and you’ll usually get a debit card to use at ATMs and for point-of-service purchases. But there may be transaction limits you’ll need to abide by in exchange for interest rates that are significantly higher than you’d get with a regular checking or savings account.
The biggest advantage of a money market account vs. a CD is freedom. You can access your money and add to the account at will. But CDs have those locked-in interest rates and typically offer higher APY than you’d get with an MMA.
Here are some of the best MMA rates as of September 2024:
- American First: 5.18% APY
- CFG Community Bank: 5.23% APY
- Sallie Mae: 4.55% APY
Annuity accounts
Another alternative to CDs offering enticing interest rates is an annuity account. Annuity accounts are offered by insurance companies and are primarily aimed at those saving to generate a fixed stream of income during their retirement. Insurance provider Gainbridge recently launched a product called FastBreak, which offers a 6.15% APY on terms from five to 10 years. FastBreak allows you to withdraw up to 10% of the account value annually. It’s important to bear in mind that the interest you earn each year will be liable for taxation and, like all annuity accounts, is backed only by the insurance company rather than the FDIC.
Compare high-yield CD rates
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Financial institution
APY
Term length
Minimum opening deposit
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apy
disclosure
5 years
min_deposit
Backed by issuing insurance company
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apy
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12 months
min_deposit
FDIC Insured
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apy
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6 months
min_deposit
FDIC Insured
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apy
disclosure
12 months
min_deposit
FDIC Insured
Rates rates_last_updated
FAQ: 6% CD rates
What bank is paying 6% on CDs?
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.
What are the eligibility requirements for a 6% CD?
Eligibility requirements for a 6% CD differ depending on the institution. Typically, 6% CD offers are attached to credit unions, so you’ll need to become a member of that credit union to make a deposit. You may also have to meet other guidelines, such as making a minimum deposit or agreeing to a shorter CD term.
Are there early withdrawal penalties with a 6% CD?
All certificates of deposit are considered locked investments, meaning there’s a penalty for withdrawing funds before the investment matures. The amount of that penalty can range significantly.
The minimum penalty amount is set by the federal government, but there’s no maximum penalty, meaning each institution can set top fees at whatever rate it wishes. Some banks offer no-penalty CDs, but currently, no penalty-free CDs have a 6% interest rate.
What is the highest-paying CD right now?
The highest-paying CD rate right now can be found at California Coast Credit Union. To celebrate its 95th year in business, CCCU is offering a 9.50% APY celebration certificate. This CD is only available for a five-month term, deposits must be between $500 and $3,000, and you must deposit new money (no account transfers) to open the CD.
Financial Partners Credit Union also has a favorable eight-month CD rate of 6.00% APY available to members who meet certain requirements.
Is a 6% CD worth it?
Securing a 6% CD rate is quite advantageous, especially considering the national average interest rate on a 12-month CD is around 1.82%. You’d be stacking up more than triple the interest you’d earn on a standard account with an average APY.
The potential downsides of a 6% CD include required membership to an associated credit union and the inability to withdraw deposited funds without penalty until the CD matures.
About the Author
Alana Luna (Musselman) Writer & Content Strategist
Alana Luna (Musselman) is a versatile storyteller with over a decade of writing experience. She is passionate about helping people build their business through unique and engaging content.
Some examples of her current freelance projects include building content strategies for small businesses, completing industry research to build case studies, crafting buyer guides and more.
She has a passion and keen ability to simplify complex ideas through storytelling to make it easier for readers to understand hard-to-digest information. To accomplish this, Alana’s writing holds strong three principles – content that educates, engages and entertains.
About the Reviewer
Blake Esken Los Angeles Times
Blake Esken has over 15 years of experience in product management and has been a member of the Los Angeles Times staff for over five years.
As part of his role at the Los Angeles Times Commerce Team, Blake acts as the in-house reviewer and fact checker for LA Times Compare. He supervises all content for compliance and accuracy and puts to use skills he has honed through years of experience managing high-stakes projects for a range of industry-leading companies.
He has a strong background in data analysis, compliance, and communication, which allows him to support LA Times Compare through fact-checking in an effort to provide up-to-date and factual information across our content.
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