Savings rates for certificates of deposit, or CDs, remained high in November, with half of the leading 10 offers this month delivering an annual percentage yield — or APY — of at least 6%. And although some of the most attractive promotional offers come with some restrictive hurdles, there are still plenty of viable options out there for just about everyone. (See some of the highest CD rates you may get now here.)
So, if you’re in the market for a CD, here’s everything you need to know about how to score the best APY in November 2023 — and 10 of the highest-paying CDs this month.
Why are rates still going up?
CD rates in 2023 continue to become more attractive, though the average national deposit rate on a 12-month CD was just 1.79% APY as of Oct. 16, up from 0.71% at the same time last year, according to Federal Deposit Insurance Corporation (FDIC) data. That said, many smaller, and online-only banks and credit unions are promising promotional rates well in excess of the national average — many of which now surpass 5.75% APY (more on that below).
Why are CD rates going up? For one, high inflation has encouraged the Federal Reserve to increase the national benchmark funds rate in an effort to bring consumer prices back down. But as the funds rate rises, so too have borrowing rates for consumers and financial institutions alike. As a result, many banks and credit unions have responded by also sweetening their savings-rate pots in order to attract and retain customers, as well as to help balance their books and pay off their own debt in the process, says Helium Financial Group’s co-head of wealth management, JJ Feldman.
“Dramatic rate increases by the Fed over the last year have pushed rates up across the fixed income world,” Feldman says, adding that “CDs are providing some of the best rates currently compared to corporate and government bonds.” (See some of the highest CD rates you may get now here.)
What to look for before making a deposit
Feldman says that potential depositors must read the fine print to ensure the promoted offers live up to their promises. “Savvy customers have recognized the benefits and are increasingly turning to high-yield savings accounts, money market funds, or CDs when they don’t need immediate liquidity,” Feldman adds, noting that “investing in CDs presents a great opportunity due to their higher yield.”
Anyone opening a CD must take a number of possible fees and restrictions into consideration. For one, just about every CD comes with an early withdrawal penalty for taking out any of your principal balance prior to the maturity date. These fees can charge a percentage of your interest or even your principal balance, depending on the institution. Find out more about CD fine print and the various types of available CDs on the market here.
10 of the best CDs rates of November 2023
Here are the 10 best deposit rates for CDs in November 2023. All of these accounts are protected by either the FDIC or NCUA, unless otherwise noted. Because some financial institutions offer better rates than others, it’s critical to read all of the fine print before opening an account to learn about any potential restrictions or hurdles.
Truliant Federal Credit Union: 6.25% APY
Truliant Federal promises its members a high 6.25% APY for opening an 11-month certificate. Just be sure to bring at least $5,000 of new money to the credit union and meet the membership requirements to get started. To join, depositors must live in either North Carolina, South Carolina, Virginia, Georgia or Tennessee, or be a member of one of a number of qualified employer groups. Other ways include having an immediate family or household member as part of the credit union.
Travis Credit Union: 6.00% APY
The 4-month share certificate at this credit union comes in at a 6% APY. Just bring a minimum opening deposit of $500 and meet the credit union’s membership requirements. It should also be noted that deposits here are restricted to $50,000, so this may not work for everyone.
Granite State Credit Union: 6.00%
New balances over $25,000 on this 11-month term-share certificate are eligible for a 6% APY. That said, you’ll have to live or work in the state of New Hampshire to become a member and open an account.
American Eagle Financial Credit Union: 6.00%
Members here can earn a high, relatively strings free 6% APY on a 6-month CD at this credit union. To join, however, you’ll have to live or work in Connecticut or Hampden, Massachusetts. Alternatively, depositors can also join if they have an immediate family member or live in the same household of someone who is already a member of the credit union.
Credit Human: 6.00%
Bring as little as $500 and you’re set for the high 6% APY available for 12- to 17-month share certificates at this credit union. Just be sure to meet the credit union’s membership requirements, which entails either living, working, worshiping or attending school in Credit Human’s designated service areas in San Antonio or New Orleans. New depositors may also join if they study at one of a select number of trade schools, colleges or universities or have a family member who is also a current member. One additional way is by joining the American Consumer Council.
RTP Federal Credit Union: 5.97%
Make the minimum $2,500 deposit with money not previously deposited at this credit union and receive a high 5.97% APY promotional rate for its 5-month certificate. That said, you will have to become a member to join — that means either working for one of 300 businesses in the greater Research Triangle Park, North Carolina region, or having a family or household member already a part of the credit union.
Associated Credit Union: 5.90%
Open a 19-month CD with a minimum deposit of $500 and earn a promotional 5.90% APY at this credit union. Like most credit unions, however, you will have to become a member. To do so, you will need a valid Georgia driver’s license, work for a qualified employer in the state, or have a qualified family member who is already a member of the credit union. This one also renews in the form of a 24-month CD, so be sure to review your terms and rates after reaching the maturity date.
My eBanc: 5.77%
For those with a larger amount of cash available to open an account, you may want to consider either the 6- or 12-month jumbo online time deposits at this online savings bank. Just come with the minimum, $100,000 deposit and you can earn a high 5.77% APY for your efforts.
TotalDirectBank: 5.75% APY
This line of CDs requires a minimum deposit via ACH transfer in the amount of $25,000. For the 6-month CD term, though, reaching that account minimum will earn you a high 5.97% APY. You’re also limited to $1 million, so this one might not work for the ultra-high-net worth.
State Bank of Texas: 5.75% APY
With a deposit of at least $50,000, this 12-month CD stands among its peers as one of the most string-free options for earning a high 5.75% APY. You’ll just need a valid driver’s license or other government issued identification, along with routing numbers or a check to fund your new account.
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