This CD is paying a hefty 6.5% — and 9 more CDs with the highest APYs in February 2024

A stalled funds rate and expectations of cuts this year may mean a “slow retreat” is on the horizon for certificates of deposit, experts say.

If you’re looking to lock in now, here’s everything you need to know about the CDs with the best APY in February 2024.

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The top 10 CD rates for February 2024 remained at high levels, with some CDs reaching — and even exceeding — an annual percentage yield (APY) of 6%. The end these ultra-high rates however, may soon be near, says NerdWallet investing expert and writer Elizabeth Ayoola.

“Consumers should keep in mind that there’s a chance rates could begin falling in the next few months,” Ayoola says. “For this reason, before buying CDs, it’s important for consumers to assess their financial goals. This can help them determine whether CDs align with those goals, if short term or long term CDs are a better fit, and whether investing in CDs is worth the risk.” (See some of the highest-paying CDs you may get now here.)

Here’s what you need to know about the CDs with the best APY in February 2024, and our top finds below. For those who don’t meet the often highly restrictive set of requirements associated with the top-paying accounts, we’ve also listed the five most accessible CD rates this month.

What’s ahead for CD rates in 2024?

With inflation continuing to decline and move closer to the Federal Reserve’s target level of 2%, the central bank marked its sixth straight month of a stalled funds rate on Jan. 31. As a result, Bankrate Chief Financial Analyst Greg McBride suggests a cut in the months ahead is almost inevitable; a move that would likely have a direct impact on CD rates, as well.  

“CD yields have already peaked and begun a slow retreat in expectation of Fed interest rate cuts this year,” McBride says, adding that “the pace with which those yields come down will pick up as we get closer to actual Fed cuts, but if you’re shopping around for the top-yielding CDs you will still be earning returns that exceed inflation. This is a rare instance for savers, and it will be another good year as a result.”

Nevertheless, predicting what could happen to financial markets is a complex game, says Ryan Bond, principal wealth manager at Savvy Advisors. “It’s essential to remain cautious as economic conditions can change rapidly,” Bond explains. “While locking in a good rate today may protect you if rates fall, if market conditions change and rates continue to increase, you can be stuck in a less than desirable situation.” 

How to choose the right CD 

Despite the potential for future declines, the savings rates for CDs are far and beyond where they were just one year ago. To be sure, the average deposit rate for a 12-month CD reached 1.86% on Jan. 16, according to the Federal Deposit Insurance Corp. (FDIC). Just 12 months prior, however, the average was just 1.28%. 

And because many online-only banks and credit unions are able to sidestep the huge overhead costs that larger brick-and-mortar behemoths tend to face, including physical branches, tellers, and other expenses, the leading CD rates are still promising returns well in excess of the national average. 

With the clock ticking, how do you find the right place to park your investible assets? Investors, Bond says, should first look for features such as competitive interest rates, flexible terms, and early withdrawal penalties. “It’s crucial to carefully review the fine print for any potential non-starters, such as high penalties for early withdrawals or restrictions on accessing funds before maturity,” Bond says, adding that “hidden fees and automatic renewal clauses are other factors to watch out for, as they can impact the overall return on investment.”

Since CDs, by design, lock away your money and earn interest during their predetermined term lengths, McBride adds another critical deciding factor is determining how long you can afford to keep your liquid cash stowed away. “If you can live without the principal for the entire term of the CD, you have the ability to lock in inflation-beating returns on a federally-insured product,” McBride says, adding, however, “if you lack sufficient emergency savings or aren’t sure if you can tie money up for any length of time in a CD, opt for a high-yield savings account or money market account where you can earn competitive returns while maintaining access to cash when you need it.”

10 of the best CDs rates of February 2024

Here are the 10 best deposit rates for CDs in February 2024. All of these accounts are protected by either the Federal Deposit Insurance Corp. or National Credit Union Administration (NCUA), unless otherwise noted. It’s critical to read all of the fine print before opening an account to learn about any potential restrictions or hurdles. 

And since nearly all of the leading rates are found at credit unions with membership requirements that render most readers ineligible, we’ve also included a ranking of the five most accessible CD rates this month below.  

Financial Partners Credit Union: 6.50% APY 

The 8-month special certificate at Financial Partners Credit Union stands as a top-earning CD this month. That said, it only applies to balances from $1,000 to $5,000 for new members in the counties of Los Angeles, Orange, Riverside, or San Diego; the city of South San Francisco; and the city of Alameda, California.

Resource One Credit Union: 6.17% APY

You’ll need at least $500 to open this 12-month CD at Resource One. Like with most certificates, you will not be able to make additional deposits throughout the term and stand to face early withdrawal penalties for taking out your money early. Like with most credit unions, you’ll also need to become a member to take advantage of this high rate. That means either living or working in Dallas or Northwest Harris counties in Texas, or within a 10-mile radius of its Carrollton, Texas branch. Other ways to gain access is by working for one of its select employer groups or if a family member is already a member.

Dexsta Federal Credit Union: 5.90% APY

Regular certificates with 36-month maturity dates and balances of at least $1,000 are eligible for a high 5.90% APY. To become a member and open an account; you, a family member or member of your household must live, work, worship, volunteer or attend school in New Castle or Kent County Delaware, or in Cecil County, Maryland. If you meet those regional requirements, you’ll also need to make a $5 account deposit and bring two forms of identification along with proof of address to get started. 

Local Government FCU: 5.75%

You’ll only need to make the minimum $250 deposit to open a share term certificate at Local Government FCU. For accounts with 18-month maturity dates, one-time balances beyond that amount promise a high 5.75% APY. Like most credit unions, though, this rate is only available to members of this Raleigh-North Carolina-based institution. Depositors or their family members here must be an employee or volunteer of North Carolina’s local government, including both elected and appointed officials. 

Hudson Valley Credit Union: 5.67%

Bring the minimum opening deposit of $750 and you can earn a high 5.67% on a new 12-month flex certificate at Hudson Valley CU. Because this is a flex account, rates are subject to change after account opening. Also, because it’s a credit union, you’ll need to live, work, worship, volunteer or attend school in one of several select counties in upstate New York to become a member.

Hughes Federal Credit Union: 5.65%

A 17-month jumbo certificate at Hughes FCU delivers a high 5.65% APY for sticking to the full term. Like most jumbo certificates, you’ll need to deposit the minimum $99,000 to get started. Because it’a credit union, you’ll also need to meet the restrictive eligibility requirements. That means living, working, worshiping or attending school in Tucson, Ariz. You can also join if you work for an eligible employer or if your immediate family members are already members. 

Space Coast Credit Union: 5.61% APY

With a low $500 required opening deposit, the 12-month CD at Space Coast CU earns a high 5.61% APY. Whether you plan on opening an account for yourself or for a child, like with most credit unions, you will have to become a member. That means either living or working in one of several select counties in Florida, or if you have a family member who is already a member.

Lafayette Federal Credit Union: 5.61% APY

If you have a larger amount to deposit into a certificate account, this jumbo one-year term can earn a high 5.61% APY. You’ll just need to meet the minimum $100,000 requirement and become a member. Lafayette FCU is available to those who live, work or worship in the Potomac, Md. region, or in select parts of Washington D.C. You can also join if you work for one of the credit union’s select employer group businesses, if you’re a member of the American Consumer Council living in Maryland, Virginia or Washington D.C., or if you have a family member who is already a member. If you don’t meet those region-specific requirements, however, you can also join if you become a member of the non-profit Home Ownership Financial Literacy Council anywhere in the U.S.

Broadway Bank: 5.60%

You won’t have membership restrictions to take part in this high 5.60% APY for a so-called one-year super CD. Much like the name suggests, however, you will need to bring quite a bit of cash: at least $500,000 to get started. 

My eBanc: 5.57% APY

Not everyone has $50,000 available to reach the minimum deposit required to open a jumbo online time deposit at My eBanc. For those who do, they stand to earn a high 5.57% APY for a 6-month term. With no membership requirements needed, this is likely more widely accessible to savers with larger balances. There are also no maintenance fees here and free online banking accessibility through its mobile app.

5 most accessible CDs rates of February 2024

Since many of the rates associated with these top offers come with highly restrictive membership requirements, we’ve also pulled together the most accessible CDs of the month. The top five accounts below sidestep regional restrictions, membership requirements, and all include attainable opening balance requirements of $1,000 or less. 

CIBC Bank USA: 5.52% APY

Make the required $1,000 minimum deposit and you’re eligible for this 13-month CD. Unlike those some of the highest earning CDs on the market today, this modest rate is easily attainable without fees and no membership requirements. Just be sure to keep an eye on your term as this option will renew as a 12-month CD after reaching maturity. 

BMO Alto: 5.50% APY

There are no minimum balance requirements to open this high-earning 6-month CD at BMO Alto. Just sign on and fund your account within the 10-day grace period and earn a high 5.50% APY fixed rate. For a longer term certificate, the bank’s 12-month CD also offers a high 5.30% APY with the same terms. 

Western Alliance Bank, powered by Raisin: 5.46% APY 

There are no membership requirements and a low $1 deposit minimum to open a 3-month high-yield CD at Western Alliance Bank. Since this is relatively short term, it’s worth mentioning that terms here renew on the next business day after reaching maturity. 

Marcus by Goldman Sachs: 5.40% APY

You have 10 days to reach the $500 minimum deposit requirement and start earning a high 5.50% APY for this 14-month CD. CD balances at Marcus are limited to $1 million per account.

Ponce Bank, powered by Raisin: 5.40% APY

Come with the minimum $1 to open an account at this online-only bank and earn a highly competitive 5.40% APY on this 1-month CD. There are no maximum deposit requirements here so all balances are accepted. This account automatically renews on the next business day when the term ends, so be sure to keep an eye on this maturity date. The 3-month CD here also comes with a competitive 5.35% APY.