This Credit Union Is Still Offering CDs With a 6% APY

Interest rates on savings accounts and certificates of deposit (CDs) aren't what they were a few months ago. Many of the top banks had been offering APYs of 5.00% or higher, but some have already begun gradually dropping their rates in anticipation of Fed rate cuts later this year and into 2025.

Dropping rates is great news for borrowers, but it's a tough pill for savers to swallow. Fortunately, high rates are still out there if you know where to look. Here's one credit union that's still offering an incredible 6.00% APY on one of its CDs.

This CD could earn you 6.00% APY -- but only if you qualify for it

Financial Partners Credit Union, based in Southern California, is offering an especially competitive 8-month CD right now with a 6.00% APY. But there are a few things you should know before you open an account.

First, there's a $5,000 maximum deposit. If you contributed that much, you'd earn $198.05 in interest over the eight months. That's a great CD return, but it's not going to make you ultra wealthy.

Our Picks for the Best High-Yield Savings Accounts of 2024

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of January 10, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of January 10, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

Second, this offer is only available to new Financial Partners Credit Union members. And to become a member, you must meet the following criteria:

• Live, work, or go to school in Los Angeles, Orange, Riverside, or San Diego County; in addition to the City of South San Francisco and Alameda, California, or
• Be an employee or retiree of select employer groups

If you check one of these boxes, you must open a savings account with at least a $25 deposit. Then, you'll be free to open its special 8-month CD.

For most people, this isn't going to be an option, simply because most of us don't live in Southern California. Even those who are eligible for this offer may want to think carefully before going ahead with it. They'll be locking their money up for eight months, and accessing it early carries a penalty.

Alternatives to the 6.00% APY CD

You'll have a tough time finding 6.00% APYs with other banks, even those known for their high yields. But there are still several banks offering close to 5.00% APY on 1-year CDs. If you invested $5,000 in a 1-year CD with a 5.00% APY, you'd earn $250 in interest -- over $50 more than what you would've gotten with Financial Partners Credit Union's 6.00% APY CD.

You could also opt for a high-yield savings account if you're not comfortable locking your cash away. Unlike CDs, these accounts generally don't charge you penalties for taking your money out. But the tradeoff is that your rate isn't locked in for the full term. It can fluctuate over time, so you could wind up earning less with a savings account when interest rates drop.

You always have the option to split your savings between a savings account and a CD too. Put your emergency fund and cash you think you'll need before the CD term ends in a savings account to keep it accessible. Then, toss the rest of your cash in a CD where you can lock in a high rate for the next few months or even years.