This 12-Month CD Offers a 6% APY — But You’ll Want to Lock in Rates Soon
CD rates won't stay this high forever, so lock in rates while you can.
CD rates are exceptionally high — but they won’t stay this way forever. Rates on savings vehicles like CDs and high-yield savings accounts have skyrocketed since 2022, with many of the top accounts offering rates of return of over 4% to 5%. If you wait too long to lock in rates, however, you could miss out on these high rates of savings.
The Federal Reserve has been raising interest rates over the last 18 months in an effort to fight high inflation, lifting the federal funds rate a total of 11 times. The fed funds rate, a key overnight bank lending rate that impacts all kinds of other rates, is currently set at a target range of 5.25% to 5.5%, which is the highest its been in 22 years. The bright side, however, is that when interest rates rise, savings rates typically do as well.
At its last meeting, the Federal Reserve decided to hold off on another rate hike and keep the federal funds rate steady. However, the possibility of another rate hike later this year is on the table. If that happens, rates on savings accounts could inch a little bit higher. On the other hand, as inflation starts to cool, the Federal Reserve may decide to hold rates steady once again and rates on savings accounts could drop. For this reason, it's a good idea to lock into a CD account while rates are still outstandingly high.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
12-month CD, Credit Human — 6% APY
Credit Human — 12-Month CD
- APY: 6%
- Minimum Balance Requirement: $500
- No monthly service fee
Currently, Credit Human is offering one of the highest rates available on the market. The 12-month CD from Credit Human offers a 6% APY, a rate you aren't likely to find elsewhere. Plus, you won’t have to meet any steep deposit requirements, you’ll just need to maintain a balance of $500 to earn the APY. Deposits at Credit Human are federally insured up to $250,000 by the National Credit Union Administration (NCUA), letting you keep your savings safe.
Normally, longer-term CDs offer higher rates of return than shorter-term CDs. However, the market is experiencing what is called an "inverted yield curve," meaning you’ll earn more from a 1-year CD compared to a 5-year CD. Plus, if you're hesitant about locking away your cash for too long, a 12-month CD can provide a good middle ground between shorter-term and longer-term CDs.
Use our tool below, in partnership with Bankrate, to compare the best CD, widely available rates for you today. It's updated daily.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.
-
Living Beyond Age 100: A Possibility With Financial Impact
Living longer raises important financial and lifestyle questions.
By Dennis McNamara Published
-
What's Going On With the SALT Deduction?
The Tax Letter The state and local tax (SALT) deduction is a key sticking point in President Trump's tax plan.
By Joy Taylor Published
-
Is a Joint Bank Account Romantic or Risky?
Considering a joint bank account with your partner? Discover the advantages and potential pitfalls to determine if it's the right choice for your relationship.
By Dori Zinn Published
-
Why a 5-Year CD is Your Best Bet After the Fed Meeting
With no rate cut at the Fed meeting in January, you still have time to lock in historically high interest rates with a 5-year CD.
By Rachael Green Published
-
How to Cushion Your Tax Refund From Inflation
If you're planning on receiving a tax refund, there are a variety of strategies you can employ to protect it from rising costs.
By Sean Jackson Published
-
After the Fed Meeting, Seven High-Yield Savings Accounts Worth Your While
The Fed didn't cut interest rates during their meeting this week. These high-yield savings accounts offer attractive rates to beat continuing inflation.
By Sean Jackson Published
-
Are You Really Prepared for a Financial Emergency?
High inflation and interest rates have impeded the ability of many people to save more. How do you save more with less? We'll show you a few options.
By Sean Jackson Published
-
Where to Store Your Cash in 2025
Take a fresh look at budgeting and savings opportunities for where to store your cash this year, to ensure you leave no stone unturned.
By Sean Jackson Published
-
Callable CDs: Was Your High-Yield CD Called Back Before It Matured?
Here's what you need to know about callable CDs, which let banks redeem your CD before its official maturity date.
By Erin Bendig Last updated
-
Where To Put Your Money As Interest Rates Drop
Earning 5% returns on your money is slowly coming to an end. Even so, there are places to put your money that still make sense.
By Kathryn Pomroy Last updated