A credit union is now offering up to 7.00% APY on a CD, and rates from big-name banks aren't far behind

 

• Priority One Credit Union has 12-month and 24-month special certificates; you may be able to earn up to 7.00% APY.
• A minimum of $50,000 is needed to open a Super 7 Certificate and $25,000 for a Super 6 Certificate.
• You or an immediate family must meet the credit union's eligibility requirements to open a CD.

Priority One Credit Union, a financial institution with three branches in Southern California, is offering special share certificates paying up to 7.00% APY. Share certificates are pretty much the same as certificates of deposits (CDs). The main distinction between these accounts is that share certificates are issued by credit unions, and CDs are offered by banks.

You'll be able to earn 7.00% APY on a 12-month Super 7 Certificate, or 6.00% on a 24-month Super 6 Term Certificate. A minimum of $50,000 is needed to open this special 12-month term, and at least $25,000 is required for the 24-month term. 

If you need to take out money before the end of a term, be aware that certificates have early withdrawal penalties. You'll need to contact the nearest branch to learn more about specific penalties for a term.

Other financial institutions with high CD rates

A certificate that pays 7.00% is hard to beat — but not everyone qualifies to bank with Priority One. If you aren't eligible for Priority One Credit Union certificates or want to consider other options, there are other financial institutions with competitive CD rates right now. Here are some accounts that are available nationwide and featured in our best CD rates guide: 

• CFG Bank 1 Year CD: 5.20% APY
• Crescent Bank 1 Year CD: 5.15% APY
• Popular Direct 1 Year CD: 5.15% APY
• Bread Savings 2 Year High-Yield CD: 5.10 % APY
• Crescent Bank 2 Year CD: 5.10% APY

Keep in mind that the bank with the highest rates may not necessarily be the right fit for you. Choosing the right CD also may depend on how much money you can deposit and how long you can keep money in the account without potentially facing early withdrawal penalties.

These financial institutions are popular savings options nationwide, and they have $0 minimum opening requirements:

• Ally High-Yield 1 Year CD: 4.50% APY
• Ally Raise Your Rate 2 Year CD: 3.75% APY
• American Express 1 Year CD: 4.50% APY
• American Express 2 Year CD: 4.25% APY
• Barclays 1 Year CD: 5.00% APY
• Barclays 2 Year CD: 4.35% APY

All the banks mentioned above are FDIC insured. The FDIC is another government agency that protects consumers if a financial institution fails. The FDIC oversees banks, while the NCUA manages credit unions.

Best savings rates

If you're simply after the best possible rate and aren't set on opening a CD, consider these high-yield savings accounts:

• UFB Preferred Savings: 5.02% (as of 03/13/2023) APY
• CIT Bank Platinum Savings: 0.25% or 4.75% (minimum balance of $5K required, see site for details) APY
• Salem Five Direct eOne Savings: 4.61% APY

How Priority One Credit Union works

Priority One Credit Union is a financial institution with branches in Southern California. Its main office is located in South Pasadena, and it has one branch in Los Angeles and one branch in Van Nuys. The credit union is also part of the CO-OP Shared Branch and ATM networks, which provide access to over 5,500 shared branches and 30,000 surcharge-free ATMs throughout the US. 

In order to open a Priority One Credit Union certificate, you have to qualify for membership first. To be eligible to become a member, you or an immediate family member must meet one of the following requirements:

• You are a Los Angeles, Riverside, or San Bernardino County postal employee
• You live, work, worship, or go to school in Santa Clarity Valley, San Fernando Valley, or the City of South Pasadena
• You are a General Service Administration (federal government agency) employee
• You are a Providence Medical Group Employee
• You work 
• at a Select Employee Group (Call Priority One Credit Union customer support to see if you are eligible.)

All members have to open a Priority One Share Savings Account. This savings account has a $5 minimum opening deposit, and there's a $5 one-time membership fee. 

Your deposits are federally insured by the NCUA for up to $250,000 per depositor in an account. Federal share insurance is important because it guarantees that money in your account is safe even if a credit union fails. If a financial institution fails, the NCUA will transfer your money to another credit union that's federally insured or you'll get a check for the money that was in your account. 

Customer support is available by phone on weekdays from 8 a.m. to 5 p.m. PT.