The new market-leading CD rate is 7.19% APY at a Michigan-based credit union — other accounts also aren't far behind
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- Alpena Alcona Area Credit Union is offering a 7-month CD special paying over 7% APY.
- You must become a member of Alpena Alcona Area Credit Union to open a CD.
- Popular online financial institutions with the best CD rates also offer APYs well over 5% APY.
The best CD rates have hit above 7% APY. Alpena Alcona Area Credit Union, a financial institution with branches in Michigan, has a 7-month CD special paying 7.19% APY.
The CD special has a minimum opening deposit of $500 and a maximum deposit of $7,000. There is also a limit of one CD special per member.
If you aren't familiar with this credit union, note that Alpena Alcona Federal Credit Union is federally insured by the NCUA. The NCUA is a government agency that insures deposits at credit unions, and it makes sure your money is safe even if it is shut down. Up to $250,000 is protected in an NCUA-insured bank account.
How to get 7.19% APY on a CD
To open a CD at Alpena Alcona Area Credit Union, you must qualify for membership. Generally, you must 1) live, work, own property, go to school, or worship in any county in Michigan; 2) work at the credit union or 3) have an immediate family member who is an existing member.
You can open a CD online, by phone, or at a branch if you meet one of the membership requirements. Alpena Alcona Area Credit Union has ten branches in Michigan (Alpena, Ossineke, Posen, Lincoln, Rogers City, Atlanta, Oscoda, Tawas City, and Cheboygan).
Other financial institutions also have appealing CD options right now. If you'd like to bank with a national brand that's available nationwide, some of the best online banks also pay high CD rates:
- Raisin, a digital marketplace that offers high rates through partner banks, offers some of the best rates out there; right now, its highest CD rate is 5.51% APY on a 1-year CD through Pacific Western Bank
- Crescent Bank CDs (Terms range from 1 year to 5 years): 4.40% to 5.45% APY
- Synchrony CDs (Terms range from 3 months to 5 years): 2.25% to 5.10% APY
- Ally CDs (Terms range from 3 months to 5 years): 2.50% to 5.00% APY
- Barclays CDs (Terms range from 12 months to 5 years): 0.10% to 5.00% APY
All of these financial institutions are either FDIC-insured or NCUA-insured for up to $250,000 per depositor, per ownership category. Hence, your money is safe for the insured in the rare event something happens to the financial institution.
When you're choosing a CD, be aware of the opening requirements and early withdrawal penalties of each financial institution. Experts also recommend selecting a CD based on the timeline of your goals.