5 CDs offering rates of 5.75% or higher right now

A CD offering a rate of 5.75% or higher right now could be a smart way to grow your savings account balance.  / Credit: Getty Images

Maximizing the returns on your savings is simple right now. Not only have the Federal Reserve’s 11 rate hikes over the last 18 months helped to push many high-yield savings account rates to over 5.25%, but they have also helped to increase the APYs you can get on certificates of deposit (CDs). That gives you a few different options to choose from if you want to grow your account balance.

But where interest rates are headed in the future is still unclear, so you may want to take advantage of the high-rate environment right now. After all, inflation is lower than it was when the Fed began its rate hikes, and the Fed opted to pause rate hikes at its last three meetings. Many experts also expect the Fed to lower its benchmark rate at some point in 2024, which would almost certainly impact the rates offered on high-yield savings accounts and CDs.

Luckily, you still have time to lock in today’s great rates by opening the right CD. That’s because, unlike high-yield savings accounts, CDs have fixed rates, which means that your rate stays the same throughout the entire CD term. A fixed rate can be beneficial when you’re trying to get the most out of your interest earnings — especially if you lock in a rate of 5.75% or higher on your CD.

Explore today’s top CD rates online here.

5 CDs offering rates of 5.75% or higher right now

There are lots of good CDs to choose from right now, but if you’re looking for the options with the highest rates, it may be worth considering the following:

• West Town Bank & Trust 6-month CD – 5.88% APY: This 6-month CD from West Town Bank & Trust offers one of the highest available CD rates right now. But while the 5.88% APY makes this CD worth considering, it’s also worth noting that the CD has a $10,000 minimum opening deposit requirement, which could make it out of reach for some savers. And, if you need to withdraw your money before the CD matures, the early withdrawal fee is equal to three months of interest.
• TotalDirectBank 6-month CD — 5.76% APY: This 6-month CD from TotalDirectBank offers a high rate of 5.76% on your money, but it also has a $25,000 minimum opening deposit requirement, so you’ll have to make a hefty deposit in order to earn the APY. If you need to take your money out of the CD before it matures, the early withdrawal fee is equal to one month of interest.
• Limelight 1-year CD — 5.75% APY: This 1-year CD from Limelight not only comes with a 5.75% APY — one of the top available right now — but it also has a low $1,000 minimum opening deposit requirement. That makes it accessible to many types of savers. If you need to access your money before the CD term is up, however, the early withdrawal fee is equal to 90 days of interest.
• BluPeak Credit Union 6-month CD — 5.75% APY: This 6-month CD from BluPeak Credit Union has a 5.75% APY and just a $250 minimum opening deposit requirement. That allows all types of savers to open this CD, even those with a small deposit. There is an early withdrawal penalty to consider, though, which is equal to three months of interest.
• INOVA Federal Credit Union 6-month CD — 5.75% APY: This 6-month CD from INOVA Federal Credit Union comes with a rate of 5.75%, and if you’re looking for a CD with a very low minimum deposit requirement, this one requires just $200 to be deposited into the account. Withdrawing your money before the CD term is over, though, will result in an early withdrawal fee equal to three months of interest.

Find the top CD rates you could lock in today here.

How to decide which CD is right for you

When narrowing down CD options, it may benefit you to consider the following factors:

• Interest rate: Compare interest rates offered by different banks and financial institutions. Choose a CD with a competitive interest rate to maximize your returns.
• Term length: Determine how long you can comfortably leave your money untouched. Shorter-term CDs typically provide more liquidity but lower potential earnings, while longer-term CDs often offer the potential for big returns with less flexibility.
• Penalties for early withdrawal: Some CDs may charge a percentage of interest earned or a fixed fee for early withdrawal, so make sure you understand the penalties for withdrawing your funds before the CD matures. 
• Financial goals: Align your choice of CD with your financial goals. If you have short-term needs or are saving for a specific future expense, choose a CD with a term that suits your timeline.
• Automatic renewal: Check whether the CD automatically renews at maturity. If it does, review the terms and conditions to ensure they still meet your financial goals.
• Minimum deposit requirement: Confirm the minimum deposit required to open a CD. Some institutions have higher minimums, so choose one that aligns with your available funds.
• FDIC or NCUA insurance: Ensure that the bank or credit union offering the CD is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) to protect your investment.
• Interest payment frequency: Explore how often interest is paid on the CDs you’re considering. Some CDs pay interest monthly, quarterly, semi-annually or annually. Choose a frequency that aligns with your financial needs.
• Inflation protection: Recognize that fixed-rate CDs may be vulnerable to inflation. If inflation is a concern, explore inflation-protected or variable-rate CDs.
• The terms and conditions: Read the fine print of the CD agreement. Understand any fees, conditions or restrictions associated with the CD before making a commitment.
• Financial goals: Align your choice of CD with your financial goals. If you have short-term needs or are saving for a specific future expense, choose a CD with a term that suits your timeline.

The bottom line

If you’re looking for a CD with a rate of 5.75% or higher, there are a handful of options that may be worth considering right now. Each CD has its own requirements and restrictions, though, so it’s important to read the fine print and find an account that aligns with your individual financial situation and goals. So, whatever option you choose, just be sure to take the time to assess your needs and explore the options available to make an informed decision.