6% CD Rates: Can You Earn Interest This High? (2023)

Shawn Plummer

CEO, The Annuity Expert

Like most people, you are looking for ways to make your money work for you. One option that might interest you is investing in certificates of deposit or CDs. CD rates have been increasing in recent months, and some banks offered 6% CD rates in the past. But can you earn interest this high in 2023? Keep reading to find out!

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Are There 6% CD Rates Available Today?

No. CD rates at banks, credit unions, online, or financial institutions haven’t had interest rates as high as 6 percent in over a decade, not to mention how low rates were in 2018, 2019, 2020, and 2021. However, fixed annuities have peaked over 5 percent in the last ten years.

Fixed Annuities Is The Best Alternative To 6% CD Rates.

Like CDs, a fixed annuity is an insurance contract guaranteeing a specific interest rate on the buyer’s contributions for a set time. Fixed annuities are ideal investments for people wanting to guarantee their premium and income while minimizing risk. Although the insurance policy does not provide inflation protection, a fixed annuity does offer other benefits that make it an attractive alternative to certificates of deposit.

Are There Any 4% CD rates?

Yes. Western Alliance is offering 5.01% APY for 12 months. CD rates at a bank, credit union, online, or financial institution haven’t had interest rates this high in over a decade and are earning over four percent on average.

Related Reading: What are the best CD interest rates today?

Earn The Highest Interest Rates On Savings Today

Fixed annuities are almost identical to Certificates of Deposit (CDs) accounts and provide higher interest rates and penalty-free withdrawals for income.

TermInsurance CompanyInterest Rate
N/AUFB Bank Savings Account5.02%
N/AGreat Lakes FCU Money Market4.40%
12 MonthsWestern Alliance Bank CD5.01%
36 MonthsOceanview Fixed Annuity5.10%
48 MonthsAmerico Fixed Annuity5.05%
5 YearsAspida Fixed Annuity5.50%
7 YearsAmerican National Fixed Annuity5.45%
*Fixed annuities are only for saving money to use in retirement.

Disclaimer: This is a review. The Annuity Expert is not associated with a bank or credit union. However, fixed annuities are sold at most financial institutions. We aim to help you find the highest interest rates for your retirement savings. We may receive a small referral fee if you purchase something using a link in this article.

Find And Compare The Highest Interest Rates

Find the highest interest rates for your savings ranging from 3 months to 10 years, all in one place.

Compare CD Rates From 423 Banks And Credit Unions

Find the highest interest rates for your savings ranging from 3 months to 5 years.

Certificates of Deposit vs. Fixed Annuity

The Top Fixed Annuities

  • 2-YEAR TERM: 4.55%
  • 3-YEAR TERM: 5.10%
  • 4-YEAR TERM: 5.05%
  • 5-YEAR TERM: 5.40%
  • 6-YEAR TERM: 5.45%
  • 7-YEAR TERM: 5.50%
  • Grow your money as fast as possible
  • Principal protection
  • The interest rate is locked for the term you select
  • Tax-deferred growth
  • Withdraw annually without penalty
  • Lump-sum death benefits
  • Accepts cash, 401(k), and IRA Funds

What’s The Difference Between a Fixed Annuity and a CD?

FeatureFixed AnnuityCD
Who OffersInsurance CompanyBanks
Premium Amounts$2,500 to $1 Million$500 – No Maximum
Terms2 Years to 20 Years3 Months to 7 Years
Guaranteed Interest RatesUp to 5.70%Up to 5.50%
Triple CompoundingYesNo
Principal ProtectionYesYes
Can You Lose Money?NoNo
Liquid After Term100%100%
How Are Gains Taxed?Tax-DeferredTaxed Annually
Annual LiquidityUp to 10% AnnuallyNo Liquidity
Who Protects My Money?Insurance Company/SGAFDIC
Accepts IRAYesNo
Accepts 401(k)YesNo
Death BenefitLump-SumLump-Sum

Are Annuities FDIC Insured?

Fixed annuities are not FDIC insured but have similar protections for your money. An annuity is an insurance policy guaranteed by the insurance company’s claims-paying ability. The insurance companies are members of the state insurance guarantee associations where they do business. Each state insurance guarantee association protects consumers if the insurance company fails and defaults on its obligations to its consumers (limits vary per state).

For example, Georgia insures up to $250,000 of the annuity’s cash value per insured life if the insurance company becomes insolvent and can not fulfill its obligations to the insured.

3-Month CD Rates

The following banks and credit unions have the highest CD rates for three months.

Best 3-Month CD RatesRateTermMinimum
Synchrony Bank2.25% APY3 Months$0.00
Popular Direct4.10% APY3 Months$10,000.00
TIAA Bank4.00% APY3 Months$1,000.00
TotalDirect Bank5.01% APY3 Months$25,000.00
Umbrella Bank3.75% APY3 Months$1,000.00
Ally2.00% APY3 Months$0.00
Bethpage Federal Credit Union2.25% APY3 Months$50.00
Citibank4.00% APY3 Months$500.00
Teachers Federal Credit Union5.00% APY3 Months$1,000.00

6-Month CD Rates

The following banks and credit unions have the highest CD rates for six months.

Best 6-Month CD RatesRateTermMinimum
CommunityWide FCU4.35% APY6 Months$1.000.00
PenFed Credit Union2.70% APY6 Months$1,000.00
Synchrony Bank4.25% APY6 Months$0.01
Popular Direct4.55% APY6 Months$10,000.00
First Internet Bank4.52% APY6 Months$1,000.00
Quontic Bank3.75% APY6 Months$500.00
Live Oak4.50% APY6 Months$2,500.00
Marcus by Goldman Sachs3.90% APY6 Months$500.00
NASA Federal Credit Union4.75% APY9 Months$10,000.00
Bank5 Connect4.75% APY6 Months$1,000.00
Vio Bank4.50% APY6 Months$500.00
Prime Alliance Bank5.00% APY6 Months$500.00
Jovia Financial Credit Union5.00% APY8 Months$100.00
TotalDirectBank5.01% APY6 Months$25,000.00

1-Year CD Rates

The following banks and credit unions have the highest CD rates for 12 months.

Best 12-Month CD RatesRateTermMinimum
Bread Savings5.00% APY12 Months$1,500.00
State Bank of Texas5.05% APY12 Months$100,000.00
First National Bank of America4.40% APY12 Months$1,000.00
CommunityWide FCU4.70% APY12 Months$1,000.00
PenFed Credit Union4.60% APY12 Months$1,000.00
Marcus by Goldman Sachs4.50% APY12 Months$500.00
Synchrony Bank4.50% APY12 Months$0.00
Popular Direct5.00% APY12 Months$10,000.00
First Internet Bank4.96% APY12 Months$1,000.00
Alliant Credit Union4.65% APY12 Months$1,000.00
Bethpage Federal Credit Union5.00% APY12 Months$50.00
Capital One5.00% APY11 Months$0.00
Umbrella Bank5.20% APY12 Months$1,000.00

2-Year CD Rates

The following banks and credit unions have the highest CD rates for 24 months.

Best 2-Year CD RatesRateTermMinimum
Synchrony Bank4.30% APY24 Months$0.01.00
First National Bank of America4.40% APY24 Months$1,000.00
Pentagon Federal Credit Union4.45% APY24 Months$1,000.00
Marcus by Goldman Sachs4.35% APY24 Months$500.00
Lafayette Federal Credit Union4.47% APY24 Months$500.00
Credit Human5.50% APY24 Months$500.00
Pen Air Federal Credit Union5.05% APY28 Months$500.00

3-Year CD Rates

The following banks and credit unions have the highest CD rates for 36 months.

Best 3-Year CD RatesRateTermMinimum
Bread Savings4.50% APY36 Months$1,500.00
Pentagon Federal Credit Union4.10% APY36 Months$1,000.00
Synchrony Bank4.30% APY36 Months$0.01%
First National Bank of America4.40% APY36 Months$1,000.00
Marcus by Goldman Sachs4.30% APY36 Months$500.00
Discover4.30% APY36 Months$2,500.00
Alliant Credit Union4.45% APY36 Months$1,000.00
CFG Bank4.60% APY36 Months$500.00
Popular Direct4.40% APY36 Months$10,000.00
Quontic Bank4.30% APY36 Months$500.00
Barclays4.30% APY36 Months$0.00
Randolph-Brooks Federal Credit Union4.60% APY36 Months$20,000.00
Genisys Credit Union4.84% APY30 Months$500.00
Summit Credit Union 4.85% APY36 Months$500.00
BMO Harris4.50% APY36 Months$1,000.00
Credit Human5.50% APY24-35 Months$500.00

4-Year CD Rates

The following banks and credit unions have the highest CD rates for 48 months.

Best 4-Year CD RatesRateTermMinimum
Bread Savings4.35% APY48 Months$1,500.00
NASA Federal Credit Union4.90% APY49 Months$10,000.00
PenFed Credit Union3.90% APY48 Months$1,000.00
Synchrony Bank4.30% APY48 Months$0.01
First National Bank of America4.35% APY48 Months$1,000.00
Marcus by Goldman Sachs4.00% APY48 Months$500.00
Credit Human4.65% APY36-59 Months$500.00
All In Credit Union4.80% APY48 Months$1,000.00

5-Year CD Rates

The following banks and credit unions have the highest CD rates for 60 months.

Best 5-Year CD RatesRateTermMinimum
Bread Savings4.25% APY60 Months$1,500.00
Popular Direct4.45% APY60 Months$10,000.00
Synchrony Bank4.30% APY60 Months$0.00
PenFed Credit Union3.90% APY60 Months$1,000.00
First National Bank of America4.35% APY60 Months$1,000.00
Marcus by Goldman Sachs3.80% APY60 Months$500.00
Discover4.10% APY60 Months$2,500.00
Connexus Credit Union3.51% APY60 Months$5,000.00
Barclays4.30% APY60 Months$0.00
Lafayette Federal Credit Union4.63% APY60 Months$500.00
BMO Harris4.50% APY59 Months$5,000.00
Seattle Bank4.70% APY60 Months$1,000.00
Credit Human4.20% APY60 Months$500.00
Randolph-Brooks Federal Credit Union4.30% APY60 Months$20,000.00
BMO Harris4.50% APY60 Months$1,000.00
First Internet Bank4.44% APY60 Months$1,000.00
Alliant Credit Union4.35% APY60 Months$1,000.00
All In Credit Union5.00% APY60 Months$1,000.00

Next Steps

Request a quote below to see how much you can save on a fixed annuity. Fixed annuities have been paying out more than CD rates in the last ten years, and with interest rates still on the rise, it’s time to start looking into this investment option. For example, a 3-year fixed annuity could offer you as much as 4 percent interest each year, significantly more than what you would earn from a CD at most banks or credit unions. So don’t wait – get started today!

Where Can I Find 6% Cd Rates? (Six Percent Cd Rates)

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Frequently Asked Questions

What will CD rates be at the end of 2022?

No one can predict the future, but if you’re looking to invest in a CD, you’ll likely want to know the interest rates. Unfortunately, there’s no easy answer. Various factors, including economic conditions and inflation, determine interest rates. Nevertheless, CD rates are in the 4-5% range at the end of 2022. So if you’re considering investing in a CD, now may be a good time. By locking in a high-interest rate now, you’ll enjoy more significant returns on your investment.

Who has the highest-paying CD right now?

Shopping around for the best CD rates can be time-consuming, but getting the most out of your savings is worth it. Luckily, a few resources can help you compare rates from over 400 banks and credit unions. One of the highest rates right now is from Western Alliance Bank offers 5.01% APY for 12 months. But remember that these rates are subject to change, so it’s crucial to compare rates regularly to ensure you’re getting the best return on your investment.

What’s the highest 6-month CD rate?

As of March 2023, Western Alliance Bank currently offers the highest 6-month CD rate at 4.60%.

Are CD rates expected to rise in 2023?

The Federal Reserve raised interest rates several times in 2022, and some experts expect them to continue to rise throughout 2023. This could mean good news for savers, as CD rates tend to follow the Federal Reserve’s lead. 

Will interest rates go down in 2023?

One of the most critical factors influencing interest rates is the actions of the Federal Reserve. The Federal Reserve can decrease or increase interest rates depending on various factors, including inflation and employment levels. Right now, it seems likely that the Federal Reserve will continue to increase interest rates through 2023 to slow down economic growth. However, our opinion is once the economy stabilizes from inflation, the Fed will lower interest rates.

Do CD rates go up with inflation?

Many people wonder if CD rates go up with inflation. Unfortunately, the answer is not always cut and dry. The Federal Reserve typically increases interest rates when inflation rises, leading to higher CD rates. However, banks are not required to pass those rate hikes to their customers. As a result, it’s always important to check with your bank to see how any changes in interest rates will affect your CDs. You can expect that CD rates will somewhat track the inflation rate.

Do CDs make sense?

CDs have been a popular investment for decades, but in recent years there has been some debate about whether or not they make sense. One argument favoring CDs is that they can help prevent market losses. When the stock market is volatile, CD rates tend to be relatively stable, which can help investors preserve the value of their portfolios. Additionally, CDs typically offer higher interest rates than savings accounts. This can be especially beneficial for savers looking to maximize their earnings in the short term. However, it’s important to remember that CDs typically have penalties for early withdrawal, so they may not be the best option for everyone. 

Are there any 3% CD rates?

As of March 2023, several banks and credit unions offer 3% CD rates.

Which bank gives 7% interest on a savings account?

No bank offers 7% interest on a savings account. However, some insurance companies offer annuities with premium bonuses of up to 20% that can mimic a fixed interest and provide a higher rate of return.

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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