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!
- Are There 6% CD Rates Available Today?
- Fixed Annuities Is The Best Alternative To 6% CD Rates.
- Are There Any 4% CD rates?
- Next Steps
- Frequently Asked Questions
- Related Tools
- Earn The Highest Interest Rates On Savings Today
- Certificates of Deposit vs. Fixed Annuity
- The Top Fixed Annuities
- What’s The Difference Between a Fixed Annuity and a CD?
- Request A Quote
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.
- Related Reading: Find all fixed annuity rates today.
- Related Reading: What is an annuity?
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.
| Term | Insurance Company | Interest Rate |
|---|---|---|
| N/A | UFB Bank Savings Account | 5.02% |
| N/A | Great Lakes FCU Money Market | 4.40% |
| 12 Months | Western Alliance Bank CD | 5.01% |
| 36 Months | Oceanview Fixed Annuity | 5.10% |
| 48 Months | Americo Fixed Annuity | 5.05% |
| 5 Years | Aspida Fixed Annuity | 5.50% |
| 7 Years | American National Fixed Annuity | 5.45% |
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.
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?
| Feature | Fixed Annuity | CD |
|---|---|---|
| Who Offers | Insurance Company | Banks |
| Premium Amounts | $2,500 to $1 Million | $500 – No Maximum |
| Terms | 2 Years to 20 Years | 3 Months to 7 Years |
| Guaranteed Interest Rates | Up to 5.70% | Up to 5.50% |
| Triple Compounding | Yes | No |
| Principal Protection | Yes | Yes |
| Can You Lose Money? | No | No |
| Liquid After Term | 100% | 100% |
| How Are Gains Taxed? | Tax-Deferred | Taxed Annually |
| Annual Liquidity | Up to 10% Annually | No Liquidity |
| Who Protects My Money? | Insurance Company/SGA | FDIC |
| Accepts IRA | Yes | No |
| Accepts 401(k) | Yes | No |
| Death Benefit | Lump-Sum | Lump-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 Rates | Rate | Term | Minimum |
|---|---|---|---|
| Synchrony Bank | 2.25% APY | 3 Months | $0.00 |
| Popular Direct | 4.10% APY | 3 Months | $10,000.00 |
| TIAA Bank | 4.00% APY | 3 Months | $1,000.00 |
| TotalDirect Bank | 5.01% APY | 3 Months | $25,000.00 |
| Umbrella Bank | 3.75% APY | 3 Months | $1,000.00 |
| Ally | 2.00% APY | 3 Months | $0.00 |
| Bethpage Federal Credit Union | 2.25% APY | 3 Months | $50.00 |
| Citibank | 4.00% APY | 3 Months | $500.00 |
| Teachers Federal Credit Union | 5.00% APY | 3 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 Rates | Rate | Term | Minimum |
|---|---|---|---|
| CommunityWide FCU | 4.35% APY | 6 Months | $1.000.00 |
| PenFed Credit Union | 2.70% APY | 6 Months | $1,000.00 |
| Synchrony Bank | 4.25% APY | 6 Months | $0.01 |
| Popular Direct | 4.55% APY | 6 Months | $10,000.00 |
| First Internet Bank | 4.52% APY | 6 Months | $1,000.00 |
| Quontic Bank | 3.75% APY | 6 Months | $500.00 |
| Live Oak | 4.50% APY | 6 Months | $2,500.00 |
| Marcus by Goldman Sachs | 3.90% APY | 6 Months | $500.00 |
| NASA Federal Credit Union | 4.75% APY | 9 Months | $10,000.00 |
| Bank5 Connect | 4.75% APY | 6 Months | $1,000.00 |
| Vio Bank | 4.50% APY | 6 Months | $500.00 |
| Prime Alliance Bank | 5.00% APY | 6 Months | $500.00 |
| Jovia Financial Credit Union | 5.00% APY | 8 Months | $100.00 |
| TotalDirectBank | 5.01% APY | 6 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 Rates | Rate | Term | Minimum |
|---|---|---|---|
| Bread Savings | 5.00% APY | 12 Months | $1,500.00 |
| State Bank of Texas | 5.05% APY | 12 Months | $100,000.00 |
| First National Bank of America | 4.40% APY | 12 Months | $1,000.00 |
| CommunityWide FCU | 4.70% APY | 12 Months | $1,000.00 |
| PenFed Credit Union | 4.60% APY | 12 Months | $1,000.00 |
| Marcus by Goldman Sachs | 4.50% APY | 12 Months | $500.00 |
| Synchrony Bank | 4.50% APY | 12 Months | $0.00 |
| Popular Direct | 5.00% APY | 12 Months | $10,000.00 |
| First Internet Bank | 4.96% APY | 12 Months | $1,000.00 |
| Alliant Credit Union | 4.65% APY | 12 Months | $1,000.00 |
| Bethpage Federal Credit Union | 5.00% APY | 12 Months | $50.00 |
| Capital One | 5.00% APY | 11 Months | $0.00 |
| Umbrella Bank | 5.20% APY | 12 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 Rates | Rate | Term | Minimum |
|---|---|---|---|
| Synchrony Bank | 4.30% APY | 24 Months | $0.01.00 |
| First National Bank of America | 4.40% APY | 24 Months | $1,000.00 |
| Pentagon Federal Credit Union | 4.45% APY | 24 Months | $1,000.00 |
| Marcus by Goldman Sachs | 4.35% APY | 24 Months | $500.00 |
| Lafayette Federal Credit Union | 4.47% APY | 24 Months | $500.00 |
| Credit Human | 5.50% APY | 24 Months | $500.00 |
| Pen Air Federal Credit Union | 5.05% APY | 28 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 Rates | Rate | Term | Minimum |
|---|---|---|---|
| Bread Savings | 4.50% APY | 36 Months | $1,500.00 |
| Pentagon Federal Credit Union | 4.10% APY | 36 Months | $1,000.00 |
| Synchrony Bank | 4.30% APY | 36 Months | $0.01% |
| First National Bank of America | 4.40% APY | 36 Months | $1,000.00 |
| Marcus by Goldman Sachs | 4.30% APY | 36 Months | $500.00 |
| Discover | 4.30% APY | 36 Months | $2,500.00 |
| Alliant Credit Union | 4.45% APY | 36 Months | $1,000.00 |
| CFG Bank | 4.60% APY | 36 Months | $500.00 |
| Popular Direct | 4.40% APY | 36 Months | $10,000.00 |
| Quontic Bank | 4.30% APY | 36 Months | $500.00 |
| Barclays | 4.30% APY | 36 Months | $0.00 |
| Randolph-Brooks Federal Credit Union | 4.60% APY | 36 Months | $20,000.00 |
| Genisys Credit Union | 4.84% APY | 30 Months | $500.00 |
| Summit Credit Union | 4.85% APY | 36 Months | $500.00 |
| BMO Harris | 4.50% APY | 36 Months | $1,000.00 |
| Credit Human | 5.50% APY | 24-35 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 Rates | Rate | Term | Minimum |
|---|---|---|---|
| Bread Savings | 4.35% APY | 48 Months | $1,500.00 |
| NASA Federal Credit Union | 4.90% APY | 49 Months | $10,000.00 |
| PenFed Credit Union | 3.90% APY | 48 Months | $1,000.00 |
| Synchrony Bank | 4.30% APY | 48 Months | $0.01 |
| First National Bank of America | 4.35% APY | 48 Months | $1,000.00 |
| Marcus by Goldman Sachs | 4.00% APY | 48 Months | $500.00 |
| Credit Human | 4.65% APY | 36-59 Months | $500.00 |
| All In Credit Union | 4.80% APY | 48 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 Rates | Rate | Term | Minimum |
|---|---|---|---|
| Bread Savings | 4.25% APY | 60 Months | $1,500.00 |
| Popular Direct | 4.45% APY | 60 Months | $10,000.00 |
| Synchrony Bank | 4.30% APY | 60 Months | $0.00 |
| PenFed Credit Union | 3.90% APY | 60 Months | $1,000.00 |
| First National Bank of America | 4.35% APY | 60 Months | $1,000.00 |
| Marcus by Goldman Sachs | 3.80% APY | 60 Months | $500.00 |
| Discover | 4.10% APY | 60 Months | $2,500.00 |
| Connexus Credit Union | 3.51% APY | 60 Months | $5,000.00 |
| Barclays | 4.30% APY | 60 Months | $0.00 |
| Lafayette Federal Credit Union | 4.63% APY | 60 Months | $500.00 |
| BMO Harris | 4.50% APY | 59 Months | $5,000.00 |
| Seattle Bank | 4.70% APY | 60 Months | $1,000.00 |
| Credit Human | 4.20% APY | 60 Months | $500.00 |
| Randolph-Brooks Federal Credit Union | 4.30% APY | 60 Months | $20,000.00 |
| BMO Harris | 4.50% APY | 60 Months | $1,000.00 |
| First Internet Bank | 4.44% APY | 60 Months | $1,000.00 |
| Alliant Credit Union | 4.35% APY | 60 Months | $1,000.00 |
| All In Credit Union | 5.00% APY | 60 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!
Request A Quote
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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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