Stearns Bank Cd Rates (2024)

FAQs

Can you get 6% on a CD? ›

FAQ: 6% CD rates

No banks are currently paying 6% APY on a CD. However, you can find some credit unions offering 6% CD rates. You can also get 5% CD rates at some banks or use alternative savings approaches, such as a high-yield savings account or money market account, to maximize the return on your investment.

Financial markets don't expect CD rates to go up in 2024. The Federal Open Market Committee (FOMC) is expected to issue a rate cut in the last half of 2024, which would likely lower CD interest rates.

The best CD rate right now is 5.35% APY from DR Bank for a 6-month term. That APY is nearly three times the FDIC's national average rate of 1.82% on a 6-month term and is one of 15 or more top-ranked offers you can find in our best CD rankings below.1 The best CD rates range from 5.20% APY to 5.35% APY.

While there aren't any financial institutions paying 7% on a CD right now, there are other banks and credit unions that pay high CD rates. Compare today's top CD and savings rates.

Higher interest rates

A $500 deposit into a CD with 5.5% APY would only grow to $527.50 over 12 months. But a $1,000 deposit would grow to $1,055, and a $5,000 deposit would increase to $5,275.00. That's almost $300 more earned simply by moving your money out of one account and into another.

See how we rate banking products to write unbiased product reviews. A 7% interest savings account is hard to come by. The only institution we found offering such a high rate is Landmark Credit Union.

The cons of CDs

With a savings account, the money is easily accessible in case of a financial emergency or a change in spending priorities. With CDs, you typically can't withdraw the money whenever you want—at least not without paying a penalty.

While we don't yet officially know when, and by how much, interest rates could drop in 2024, it's safe to say we've reached peak savings rates today and now is the time to lock one in with a CD.

If you're in a position to save in today's higher interest rate environment, investments like CDs could help accelerate your savings. CD rates have skyrocketed since 2022: 1-year CD rates have increased more than twelve-fold, with 3-year and 5-year CDs up nearly six-fold and five-fold, respectively.

In summary, a certificate of deposit gives you steady and safe returns. Investing $15,000 in a CD could lead to substantial gains, regardless of the CD's length. However, make sure you won't need that money while the CD is active because withdrawing early usually incurs hefty penalties.

Are there any 6% CDs? ›

There are three credit unions paying 6% APY on a CD: Financial Partners Credit Union, BP Federal Credit Union, and Geismar Complex Federal Credit Union. You'll have to meet certain eligibility requirements to join each of these credit unions, though. Why do some banks offer much higher CD rates than others?

Key takeaways. Interest earned on CDs is considered taxable income by the IRS, regardless of whether the money is received in cash or reinvested. Interest earned on CDs with terms longer than one year must be reported and taxed every year, even if the CD cannot be cashed in until maturity.

Benefits of 6% interest savings accounts

Currently, there's only two accounts that pay 6% APY — Digital Federal Credit Union's savings account and Boeing Employees' Credit Union's savings account — and they only pay 6.17% APY on a small portion of your balance.

A good APY on a CD depends on how the CD's rate compares to rates offered by competing banks. The best CD rates offer APYs 5.00% and higher. Compare CDs with similar deposit requirements and maturity terms, as a good rate on a six-month CD will likely not be the same as a good rate on a five-year CD.

What Is the Minimum Deposit for a CD? Minimum deposits vary based on account and financial institution, but a required deposit of around $500 to $1,000 is typical when opening a CD.