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The Best Credit Union CD Rates in July 2021

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Credit unions are member-owned financial institutions that provide banking services — including certificates of deposit (CDs) — to their members. CDs are interest-bearing deposit accounts that have fixed durations and APYs. They typically offer better APYs than other types of deposit accounts, but they also have penalties for early withdrawals.

MagnifyMoney assessed which credit unions offer the best rates on 1-year CDs with information sourced from DepositAccounts.com. The top credit union is Signature Federal Credit Union, which offers a strong 1.00% APY on balances less than $10,000. The next-best credit union, CommunityWide Federal Credit Union, offers 0.85% APY on all balances.

Top credit union CD rates

Table of Contents

Signature Federal Credit Union — 1.00% APY

1 Year EZ Save Certificate from Signature Federal Credit Union

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on Signature Federal Credit Union’s secure website

NCUA Insured

  • 1-year CD rate: 1.00% on balances under $10,000; 0.10% on balances above $10,000
  • Minimum opening deposit: $50
  • Early withdrawal penalty: 180 days of dividends

Signature Federal Credit Union offers the EZ Save Certificate — it has the best APY rate of any credit union 1-year CD, but there are some conditions. Only balances under $10,000 earn the advertised rate of 1.00%, while any balance above that amount (including paid dividends) earns just 0.10% APY. limits Members are also limited to just one EZ Save Certificate per account.

Signature FCU also offers other kinds of CDs through its Share and IRA categories. The Share account is Signature FCU’s standard CD offering: For one year, the APY is 0.50%, and the minimum balance to open an account is $500. Signature FCU’s jumbo CD (minimum of $100,000 deposit) offers the same rate for a 1-year term.

Signature FCU was founded in 1970 and is based in the Washington, D.C. area.

CommunityWide Federal Credit Union — 0.80% APY

12 Month Share Certificate from Communitywide Federal Credit Union

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on Communitywide Federal Credit Union’s secure website

NCUA Insured

  • 1-year CD rate: 0.80% on balances $1,000 and over
  • Minimum opening deposit: $1,000
  • Early withdrawal penalty: Varies based on amount of withdrawal and remaining term on the CD

CommunityWide Federal Credit Union offers one certificate, called the Term Share certificate, with terms ranging from six months to five years. IRA certificates are also available. There’s no automatic renewal, and CW claims that they will “do their best” to match other CD rates.

CW was founded in 1967 and is based in Northern Indiana.

Lafayette Federal Credit Union — 0.80% APY

1 Year Fixed CD from Lafayette Federal Credit Union

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on Lafayette Federal Credit Union’s secure website

NCUA Insured

  • 1-year CD rate: 0.80% on balances $500 and over
  • Minimum opening deposit: $500
  • Early withdrawal penalty: 180 days of dividends

Lafayette FCU offers a few types of certificates: These include fixed rate and variable rate CDs, as well as IRA certificates. The fixed rate CDs have terms ranging from seven months to five years; the variable rate CDs only have three terms — 18 months, 3 years, and 5 years. Currently, the one-year fixed rate term has an APY of 0.80%.

Lafayette FCU was founded in 1935 and is based in the Washington, D.C. area.

State Department Federal Credit Union — 0.60% APY

12 Month Certificate from State Department Federal Credit Union

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on State Department Federal Credit Union’s secure website

NCUA Insured

  • 1-year CD rate: 0.60% on balances of $500 and over
  • Minimum opening deposit: $500
  • Early withdrawal penalty: Lesser of 180 days of dividends on the amount withdrawn or the amount of dividends earned since the date of issuance

State Department Federal Credit Union offers different kinds of CDs: Share Certificates, Bump-Up Certificates (which allow you to change the rate of the certificate once during the original term) and Jumbo Certificates. The Share Certificate has terms ranging from six months to five years, and the current APY on a 1-year term is 0.60% for balances of $500 and more. The Bump-Up Certificate has more limited term durations.

SDFCU was founded in 1935 and is based in the Washington, D.C. area.

Affinity Plus Credit Union — 0.55% APY

12 Month CD from Affinity Plus Federal Credit Union

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on Affinity Plus Federal Credit Union’s secure website

NCUA Insured

  • 1-year CD rate: 0.55% on balances $500 and over
  • Minimum opening deposit: $500
  • Early withdrawal penalty: 180 days of dividends

Affinity Plus Credit Union offers a standard Basic Certificate, the more unconventional Certificate Builder (a 12-month CD that allows unlimited deposits) and the Wahoo Certificate (this account has no minimum balance and allows one no-penalty withdrawal, in addition to an unlimited number of deposits up to the maximum balance of $25,000). At 0.55% on balances $500 and over, the APY for the 1-year Basic Certificate is higher than the same term length for the Certificate Builder or the Wahoo Certificate.

Affinity was founded in 1930 and is based in Minnesota.

Chevron Federal Credit Union — 0.55% APY

12 Month CD from Chevron Federal Credit Union

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on Chevron Federal Credit Union’s secure website

NCUA Insured

  • 1-year CD rate: 0.55% on balances between $500–$99,999.99
  • Minimum opening deposit: $500
  • Early withdrawal penalty: Three months of dividends

Chevron Federal Credit Union offers Share Certificates with various term lengths and minimum deposit requirements. For 1-year terms, the certificates with a minimum deposit of $500 and $50,000 have the same APY: 0.55%; the CDs with minimum deposits of $100,000 and $250,000 have higher APY rates (0.60% and 0.65%, respectively). All of them have term durations ranging from a year to five years, but the $500 minimum deposit certificate also has term durations of three, six and nine months.

Chevron FCU was founded in 1935 and is based in Oakland, Calif.

US Alliance Financial — 0.55% APY

12 Month Certificate from USALLIANCE Financial

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on USALLIANCE Financial’s secure website

NCUA Insured

  • 1-year CD rate: 0.55% on balances $500 and over
  • Minimum opening deposit: $500
  • Early withdrawal penalty: 180 days of dividends

US Alliance Financial offers various CDs to its members: They have Certificate Specials that include an 11-month CD with no early withdrawal penalty (and a 0.55% APY on balances over $500), fixed rated certificates ranging from three months to five years and Step-Up Certificates that allow members to request a one-time rate increase prior to maturity. The 1-year APY for the fixed rate CD is currently 0.55% for balances $500 and over.

US Alliance Financial was founded in 1966 and is located in the New York metro area.

PenFed Credit Union — 0.55% APY

12 Month Money Market Certificate from PenFed Credit Union

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on PenFed Credit Union’s secure website

NCUA Insured

  • 1-year CD rate: 0.55% on balances $1,000 and over
  • Minimum opening deposit: $1,000
  • Early withdrawal penalty: All dividends

PenFed Credit Union offers three types of CDs: Money Market Certificates are its most standard certificate, the IRA Certificates are for retirement savings and its Coverdell Education Savings Certificates are for educational expenses. The 1-year Money Market Certificate has a minimum opening deposit of $1,000 and an APY of 0.55% on balances at least that amount. If you’re willing to wait just a few months longer, you’re rewarded with a slightly better APY — PenFed’s 15-month Money Market Certificate offers an APY of 0.55% on balances of $1,000 and over.

PenFed Credit Union was founded in 1935 and is located in the Washington, D.C. area.

Credit union pros and cons

Pros

  • Credit unions are generally able to offer higher rates and better terms than banks on deposit accounts
  • Owned by the members and operated as a not-for-profit organization, credit unions can prioritize the service of their members first and foremost
  • Credit unions are often focused on the communities that they call home, especially with their support of affiliated charities and nonprofits

Cons

  • Banks can have a greater infrastructure dedicated to customer support
  • Some credit unions may not offer membership eligibility that’s universally available through a charitable donation or membership

Methodology

Using data from the DepositAccounts.com database, we examined dozens of National Credit Union Administration-insured credit unions and the APYs for their 1-year CDs. We then factored in other criteria that would impact customers such as minimum deposit, early withdrawal penalties, accessibility and user experience.

All of our picks are available nationwide. However, if APY is most important to you, consider regional- or state-specific credit unions, which sometimes offer more competitive APYs.

Average Percentage Yield: We prioritized this factor by highly ranking credit unions that offered the highest APYs for 1-year CDs.

Eligibility: We included only credit unions available to customers nationwide, excluding regional or local credit unions.

Minimum deposit: We excluded any credit unions that require $5,000 or more as minimum to open an account. If multiple credit unions offer the same APY, the institution with a lower minimum requirement is ranked higher.

Maximum to open: We disqualified credit unions with required opening deposits of $50,000 or higher.

Early withdrawal penalties: We didn’t exclude any credit unions that have early withdrawal penalties; however, if there were credit unions that had the same APY and same minimum to open, we ranked them by lowest early withdrawal penalty.

Customer experience: All of these credit unions offer online banking. A lot of factors remain similar across credit union CDs, so we found it important to note the qualitative experience when needing to differentiate similar CDs. Wire transfer fees are included.

Bottom line

Key takeaways

Credit unions offer a variety of CD types, but the most standard offerings typically have the best interest rates. Signature Federal Credit Union’s EZ Save Certificate is a strong option for lower balances, but those who want to deposit more than $10,000 should consider a different credit union.

Frequently asked questions

CDs are a very safe way to ensure that your deposit will be worth a predetermined return, especially if your credit union is NCUA-insured.

Credit unions are not-for-profit entities, which enable them to invest excess funds into higher interest rates for their customers than those of privately owned banks.

A CD ladder is a savings mechanism in which you stagger the start dates of separate CDs and invest the principal periodically. This allows you to withdraw a portion of your funds more frequently than you’d otherwise be able to if you had your funds in one CD.

Your ideal CD term depends on your financial goals. Longer terms provide better interest rates, but you’ll have to wait longer to be able to withdraw your money.

Interest rates are expressed as an annual percentage, while APY factors in the compounding schedule in providing the yearly return on a deposit.

Standard savings and money market accounts are common alternatives to CDs that provide lower interest rates but better liquidity.

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The Best Options for Rebuilding Your Credit Score in 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

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The Best Options for Rebuilding Your Credit Score

A strong credit score is a vital part of your overall financial health. But rebuilding a damaged (or non-existent) credit score can feel impossible. Don’t despair. There are plenty of avenues you can take in order to rehabilitate your credit score and it all begins with identifying your starting point.

How Bad is Your Bad Credit Score?

Before you start to panic about rehabilitating your bad credit score, let’s determine if it’s even bad. Where do you fall in the range of FICO® credit scores? Below you’ll find what your credit score is considered, with ranges from Experian.

  • Above 740: Excellent Credit
  • 670 – 739: Good Credit
  • 580 – 669: Fair Credit
  • Below 579: Bad Credit or No Credit Score/Thin File

Your credit score isn’t the only thing that will keep you from being approved for credit. These factors are common reasons for being declined.

  • Your debt-to-income ratio is above 50%
  • You have no credit score
  • You have been building up a lot of debt recently
  • You are unemployed

In order to focus on rehabilitating your credit score, you’ll need to start with getting a line of credit. This may sound impossible because you’re constantly getting declined. Fortunately, there are options tailored specifically for people looking to re-establish credit.

Rehabilitating a Bad Credit Score (579 and under)

Get a Secured Card

You’ll use your own money as collateral by putting down a deposit, which is often about $150 – $250. Typically, the amount of your deposit will then be your credit limit. You should make one small purchase each month and then pay it off on time and in full. Once you prove you’re responsible, you may be able to get back your deposit and upgrade to a regular credit card.

Check out two of our favorite secured cards below, and more options for a secured credit card here.

The Discover it® Secured

Perhaps our favorite secured card, the Discover it® Secured, has numerous benefits for those looking to rebound from a bad credit score. There is a $200 minimum security deposit that will become your line of credit, which is typical of secured credit cards.  An additional perk is the rewards program (very rare for secured cards) that offers 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically. This card has another great feature: Discover will automatically review your account, starting at month eight, to see if your account is eligible to transition to an unsecured card. Discover will decide if you’re eligible based on a variety of credit factors, and if you are, you will receive notification and get your security deposit back.

The Secured Mastercard® from Capital One

The Secured Mastercard® from Capital One is another option for those who want to strengthen their credit score. This card offers a potentially lower minimum security deposit than other cards, starting as low as $49. Be aware the lower deposit is not guaranteed and you may be required to deposit $99 or $200. You can deposit more before your account opens and get a maximum credit limit of $1,000. There is a feature that will assist your transition from a secured to an unsecured card. Capital One automatically reviews your account for on time payments and will inform you if you’re eligible for an upgrade. However, there is no set time period when they will review your account — it depends on several credit activities. If you receive notification that you’re eligible, you will be refunded your security deposit and will receive an unsecured card.

Rebuilding from a Fair Credit Score (580 – 669)

Apply for a Store Credit Card

You might be used to checking out at a store and being asked if you’d like to open a credit card. While these credit cards come with really high interest rates and are great tools to tempt you into buying items you don’t need, there is a big perk to store credit cards: they’re more likely to approve people with low credit scores. Just be sure to only use the card to make one small purchase a month and then pay it off on time and in full. Unsubscribe to emails about deals and don’t even carry it around everyday in your wallet if you can’t resist the desire to spend. Read more here. 

Those unable to get a store credit card should apply for a secured card to build credit. With proper credit behavior, you can see your score rise and then you may qualify for a store card.

Here are our picks for two store credit cards:

The Walmart Rewards Card

Walmart Rewards Card

The information related to Walmart Rewards Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Walmart Rewards Card

Regular Purchase APR
26.99% variable
Annual fee
$0
Rewards Rate
5% back on purchases made at Walmart.com and on the Walmart app, 2% back on Walmart purchases in stores outside of the introductory offer, and 2% back at Walmart Fuel Stations.

The Walmart Rewards Card offers a great rewards rate. Earn 5% back on purchases made at Walmart.com and on the Walmart app, 2% back on Walmart purchases in stores outside of the introductory offer, and 2% back at Walmart Fuel Stations. The sign-up bonus has the potential to be an excellent value, too. Get 5% back for the first 12 months when you use your card with Walmart Pay for in-store purchases, upon approval. Just remember that your cashback rate on purchases in Walmart stores will go down after the intro offer ends, so after your first year with the card, make sure to do most of your shopping on Walmart.com or in the Walmart app to take advantage of the higher rate you get for shopping that way. Note that this is a store card, so you can’t use it outside the Walmart ecosystem.

The Target REDcard™ Credit Card

Target REDcard™ Credit Card

The information related to Target REDcard™ Credit Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Target REDcard™ Credit Card

Regular Purchase APR
25.15% Variable
Annual fee
$0
Rewards Rate
5% at Target & Target.com

The Target REDcard™ Credit Card offers great perks that are sure to please frequent Target shoppers. You receive a discount of 5% at Target & Target.com off every eligible transaction. The discount automatically comes off your purchase — no redemption needed. Other benefits include free shipping on most items, early access to sales and exclusive extras like special items, offers, and 10% off coupon as a gift on your REDcard anniversary each year.* Recently, cardholders received early access to Black Friday deals. Reminder: This card can only be used at Target and on Target.com.

Check If You Pre-Qualify

If you’re on the higher end of the spectrum, you may want to consider checking to see if you’re pre-qualified for any cards. This may help minimize your chance of rejection upon applying because pre-qualification performs a soft pull on your credit. This doesn’t harm your credit score.

Your goal in this credit range should be to use no more than 20% of your total available credit. Pay your bills on time and in full. And keep pumping that positive information onto your credit report until you reach the 700+ category. 

Who You Need to Avoid

Access to credit and loans may come easier than you expect, but that should also be a danger sign. There are several lenders who are willing to provide lines of credits or loans to people with poor credit. These options are often very predatory. If you’re simply trying to rebuild your credit history and improve your credit score, then there is no need to take these offers.

Here are the options you need to avoid when trying to rebuild credit:

1. Payday and Title Loan Lenders – There is never a need to take out a payday or title loan if you’re trying to merely rebuild or establish credit history. Most of these lenders don’t report to the bureaus and you’ll likely end up in a painful vicious cycle of borrowing and being unable to pay it down.

[How to get out of the payday loan trap.]

2. First Premier – The bank claims to want to offer people a second chance when it comes to their finances, but its fee structure and fine print prove the exact opposite. First Premier charges you a processing fee of up to $95 just to apply for a credit card. Then it levies a $75 annual fee on the credit cards and most cards only come with a $300 limit. You’re paying $170 for a $300 credit line! The APR is a painful 36%. In year two the annual fee reduces to $45, but then you’re charged a monthly servicing fee of $6.25. And to top it all off, you’ll be charged a 25% fee if your credit limit is increased. Stay away from this card! Use the $170 it would take to open the card and get a secured card instead.

3. Credit One – Credit One does an excellent job of confusing consumers into thinking they’re applying for a Capital One card. The logos are eerily similar and easily confused.

Creditone

Capital one

While Credit One is not as predatory as First Premier or payday loans, there is really no need to be using one of its cards to rebuild your credit score. Credit One cards can have annual fees that range from $0 to $95 for the first year, then $0 to $99 in subsequent years. If you’re approved for a card with an annual fee, it will be deducted from your initial credit limit. For example, receiving a $300 credit limit and $75 annual fee means you’ll only have access to an initial $225 credit limit. Rather than take the chance of being charged a high annual fee, we recommend saving your money and using a secured card with no annual fee to begin rebuilding your credit score.

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The Best 2-Year CD Rates in July 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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When it comes to saving and growing your money, you want to make sure you’re doing it efficiently. This is especially true if you’re building a CD ladder, where every component should be optimized for your savings goals. CD ladders are typically built from accounts that mature within a year of each other. For many savers, that means finding the best 1-year CD rates, the best 2-year CD rates, the best 3-year CD rates – and so on.

To help you find the best CD rates on 2-year accounts, we sifted through data from DepositAccounts.com. To start, we sorted by highest APY on 2-year CDs APY. We also took into consideration the minimum deposit requirement for each account.

The 10 best 2-year CD rates in July 2021

1. Lafayette Federal Credit Union — 0.90% APY, $500 minimum deposit

Lafayette Federal Credit Union offers a handful of certificates, including its 2-Year Fixed Rate Certificate, which requires $500 to open. Interest is compounded and paid quarterly. An early withdrawal from this account will trigger a penalty equal to 270 days’ worth of dividends.

Chartered in 1935, Lafayette is headquartered in Rockville, Md. It has branches in Maryland, Virginia and the District of Columbia, in addition to CO-OP Shared Branches throughout the country. Membership is open to those who live or work in its serviced areas, are employed by approved agencies or companies or are an immediate family member of a current member. You can also join Lafayette if you are an existing member of or become a member of the Home Ownership Financial Literacy Council.

SEE DETAILS Secured

on Lafayette Federal Credit Union’s secure website

NCUA Insured

2. CommunityWide Federal Credit Union — 0.85% APY, $1,000 minimum deposit

CommunityWide Federal Credit Union offers a 0.85% APY on its 24-month term share certificate. You’ll need at least $1,000 to get started. CommunityWide term share certificates do not renew automatically. Withdrawing any part of the principal amount before maturity will trigger a penalty equal to the amount of the withdrawal times the remaining term (in days) of this certificate at the rate of two times the current APR (divided by 365) paid on this certificate. The penalty amount will be deducted from the amount withdrawn.

CommunityWide Federal Credit Union was founded in 1967 as the West Washington Association Federal Credit Union, assuming its current name in 1985. CommunityWide is based in South Bend, Ind., and opens up membership to members, employees and retirees of select organizations; spouses of persons who died while within the credit union’s field of membership; and immediate family household members. Members of three charities — Michiana Goodwill Boosters, Marine Corps League of St. Joseph Valley, and Habitat for Humanity Helpers — are also eligible.

SEE DETAILS Secured

on Communitywide Federal Credit Union’s secure website

NCUA Insured

3. Evansville Teachers Federal Credit Union — 0.85% APY, $1,000 minimum deposit

This 2-year certificate from Evansville Teachers Federal Credit Union offers a high APY at a relatively low minimum opening deposit. As with all the credit union certificates, this is a fixed rate for the length of the term.

Evansville Teachers Federal Credit Union was started by a group of Evansville, Ind., teachers in 1936 as a way of generating loans for fellow teachers post-Depression. You no longer need to be an educator in the district to take advantage of the credit union; joining the credit union is as easy as making a $5 donation to the Mater Dei Friends and Alumni Association.

SEE DETAILS Secured

on Evansville Teachers Federal Credit Union’s secure website

NCUA Insured

4. Veridian Credit Union — 0.80% APY, $1,000 minimum deposit

Take advantage of Veridian Credit Union’s 21-month special certificate at this rate that earns even more than the credit union’s 24-month option. Alongside the low minimum opening deposit, you’ll also need a $5 minimum share deposit to open this CD. Interest is compounded and credited quarterly on the CD, which automatically renews. You’ll forfeit 180 days’ interest on early withdrawals, whether you’ve earned it or not; if not yet earned or interest has already been paid out, the amount will be subtracted from the principal.

Veridian was originally founded in Iowa as John Deere Employees Credit Union in 1934. If you live outside the Iowa communities it serves, you are eligible to join if you are a member of Dwolla, a financial technology company.

SEE DETAILS Secured

on Veridian Credit Union’s secure website

NCUA Insured

5. Comenity Direct — 0.75% APY, $1,500 minimum deposit

At Comenity Direct, you can start growing your money in a 2-year CD with just $1,500. Interest accrues and compounds daily on all balances up to $10 million. There are no fees on the account, but there is an early withdrawal penalty of 180 days’ simple interest.

Comenity Direct is a brand of Utah-based Comenity Capital Bank. It traces its roots back to 1986.

SEE DETAILS Secured

on Comenity Direct’s secure website

Member FDIC

6. NexBank — 0.75% APY, $10,000 minimum deposit

You’ll need $10,000 to score the high rate on this solid, simple 24-month CD from NexBank, but you won’t pay any monthly fee. (The maximum amount you’re allowed to contribute is $240,000.) The certificate can be easily opened online and will automatically roll over at the end of the term. There is a penalty of 6 months’ interest if you withdraw funds before the maturity date.

In addition to its personal banking options, NexBank offers institutional, mortgage and commercial banking. The bank is headquartered in Dallas.

SEE DETAILS Secured

on NexBank’s secure website

Member FDIC

7. MapleMark Bank — 0.75% APY, $25,000 minimum deposit

To snag MapleMark Bank’s high 24-month CD rate, you’ll need to deposit at least $25,000. If that’s too high, you can deposit $1,000 instead, but your money will grow at a fraction of that rate. Interest is compounded and credited monthly on the certificate and will automatically renew at maturity.

Founded in 1909, MapleMark Bank has a presence in Texas and Oklahoma with one branch in each state.

SEE DETAILS Secured

on MapleMark Bank’s secure website

Member FDIC

9. USALLIANCE Financial — 0.75% APY, $500 minimum deposit

Among USALLIANCE Financial’s wide spread of account options is this high-rate, low-deposit 24-month CD special. Dividends are compounded daily and credited monthly, and you only need $500 to open an account. But try not to make an early withdrawal from this account, as it’ll cost you 360 days of interest on the amount withdrawn.

USALLIANCE Financial was founded in 1966 by IBM employees. Today, USALLIANCE Financial membership depends on your employer, residence, place of worship, school or organizational membership. You also qualify for membership if you join an organization out of the few they offer, which is free for you and set up by USALLIANCE.

SEE DETAILS Secured

on USALLIANCE Financial’s secure website

NCUA Insured

9. Quontic Bank — 0.75% APY, $500 minimum deposit

You’ll need to fund this CD with a minimum of $500 and also maintain that amount to earn this rate. A penalty of two years’ worth of interest will be assessed if you make a withdrawal before the CD matures, so make sure you fund this with money you can afford to not touch for two years. If you haven’t accrued enough interest to cover the penalty, the rest will come out of your principal.

Founded in 2005, Quontic is a largely digital bank with headquarters in New York City and a few branches in New York and Florida. Quontic Bank is a designated Community Development Financial Institution (CDFI), which means it serves low-income communities and receives federal funding to continue providing banking products and services to those communities.

SEE DETAILS Secured

on Quontic Bank’s secure website

Member FDIC

10. Connexus Credit Union — 0.71% APY, $5,000 minimum deposit

Connexus Credit Union offers this high APY on its 24-month certificate, which you can open with $5,000 or more. Dividends are compounded and credited quarterly. An early withdrawal from this account will trigger a penalty equal to 180 days’ dividends on the amount withdrawn.

Connexus Credit Union serves members across the country, including employees, retirees, family members, members, students or student alumni of select groups; residents of select communities and counties; family and household members of existing members; and members of the Connexus Association, which requires a one-time $5 donation. Connexus was founded in 1935 and is based in Wausau, Wisconsin.

SEE DETAILS Secured

on Connexus Credit Union’s secure website

NCUA Insured

The best 2-year CD rates vs. the national average 2-year CD rate

As we’ve said, the key to maximizing your savings is finding the right accounts for stashing your money with the highest CD rates. Luckily, the best 2-year CD rates above all earn at substantially higher interest rates than the average 2-year CD rate. On average, 2-year CD rates earn just 0.44% APY, as of July 2021.

Let’s say you deposit $5,000 into a CD earning at the national average. At the end of your 24-month CD, you’ll have earned $74 in interest. Boost that APY to 3.00%, and your earned interest grows to $305, a much better return on your cash.

It’s also helpful to check out how often a bank compounds interest. Most often, you’ll see CDs with monthly or daily compounding interest. In basic terms, compounded interest is the interest you earn on already-earned interest. For example, with daily compounding, your balance earns interest today. Then tomorrow, that new, higher balance will earn even more interest, and so on. It’s a simple change that can grow your savings a little bit more efficiently.

Using the above example, a $5,000 deposit into a 24-month CD at 3% APY grows by $309 with interest compounded daily. If you compound it monthly, you’ll earn $308 instead, while quarterly compounding drops that amount by nearly another dollar, and so on. While that might not seem like much, it can prove useful if you’re looking to maximize your savings down to every last dollar.