Special CD Offer Is Paying 9.5% APY for 5 Months (2025)

Key Takeaways

  • For a limited time, California Coast Credit Union is paying 9.5% APY on a 5-month CD. Anyone nationwide can join the credit union.
  • But this CD has more than one catch, including a maximum deposit of $3,000. That limits how much you can earn here.
  • In addition, scoring the high APY requires having another active account with Cal Coast, such as a checking account.
  • Given the limited deposit, plus the hassle of maintaining an additional account, you're likely better off with a top-paying offer from our daily ranking of the best CDs.

The full article continues below these offers from our partners.

The Fine Print for This Remarkable 9.5% Rate

Back in October 2023, the top overall rate in our daily ranking of the best nationwide CDs reached a brief peak of 6.50% APY. Rates were at their highest level in more than 20 years. So a CD advertised at 9.5% is certainly big news.

Offered by California Coast Credit Union to honor its 95th anniversary, the 9.5% "Celebration CD" has a 5-month term. Though Cal Coast generally serves residents of San Diego, Riverside, Orange, Los Angeles, Ventura, Imperial, and San Bernardino counties, a customer service representative confirmed during a phone call that anyone nationwide can become a Cal Coast member.

But here's the rub. This promotional CD includes a list of limitations and requirements in order to earn the high 9.5% rate. Here are the details:

  • You can only deposit up to $3,000 in one of these CDs (the minimum deposit is $500). And you can only open one Celebration CD per person.
  • Within 30 days of opening the CD, you must also have another open Cal Coast account from the following list of eligible accounts:
  • A checking account with e-statements and at least one transaction per month (e.g., direct deposit, check, ATM, debit card, bill pay, etc.)
  • A new money market account with a minimum balance of $5,000
  • A new regular or IRA CD with a minimum balance of $5,000
  • A new (funded) consumer loan
  • If you do not meet the requirements within 30 days, you'll earn Cal Coast's standard 3-month CD rate, which is a near-zero 0.10% APY.

Though 9.5% is a phenomenal return, the $3,000 maximum deposit dramatically limits this offer's value. Compounded monthly for 5 months, your earnings would be about $116. If you instead deposited the same $3,000 in a 5-month CD paying 5.50% APY with no special requirements, you'd earn about $68. That makes the value of this offer just $48 ($116 minus the $68 you could earn elsewhere).

The hassle of maintaining an additional Cal Coast account you may not want probably isn't worth a $48 payoff. As a result, this offer is best suited to those interested in establishing a longer-term relationship with Cal Coast.

Fortunately, we have plenty of other excellent options for you.

A Top-Ranked CD—Without Caveats—Will Likely Serve You Better

Every business day, we track the certificate of deposit (CD) rates of over 200 banks and credit unions that offer certificates nationwide. As a result, our daily ranking of the top CD rates always provides you with 15–20 options for earning a nation-leading rate. In addition, we publish daily rankings for each major CD term so that if you're looking, for instance, to open a 2-year CD, you can find the top 15–20 rates for CDs of that specific length.

Today's top rates across terms range from 4.80% at the 5-year end of the spectrum to 5.51% in the 3-month and 6-month terms. All of these CDs are offered by nationwide institutions that are federally insured.

Daily Rankings of the Best CDs and Savings Accounts

  • Best 3-Month CD Rates
  • Best 6-Month CD Rates
  • Best 1-Year CD Rates
  • Best 18-Month CD Rates
  • Best 2-Year CD Rates
  • Best 3-Year CD Rates
  • Best 4-year CD Rates
  • Best 5-Year CD Rates
  • Best High-Yield Savings Accounts

How We Find the Best Savings and CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.

Special CD Offer Is Paying 9.5% APY for 5 Months (2025)

FAQs

How does a 5 APY CD work? ›

What Does 5% APY Mean? This means a CD (or another kind of account) that pays 5% in returns annually. If you deposit $1,000 into a savings account that pays 5% simple interest annually, you will have $1,050 at the end of the year.

How does a 5 month CD work? ›

A CD is a time deposit account, so you're making a commitment to keep your money in the CD for a set length of time. If you want to take money out of your CD before it matures, you'll pay an early withdrawal penalty. At many banks, the early withdrawal penalty is based on the amount of interest you earn in a day.

What is a special interest rate on a CD? ›

A promotional certificate of deposit (CD) rate, also referred to as a bonus CD rate, is a higher-than-normal rate of return on a CD offered by banks and credit unions to attract new deposits. This promotional rate is often limited to certain deposit amounts or for certain short periods.

What is a good CD APY rate? ›

Compare the Best CD Rates
InstitutionRate (APY)Early Withdrawal Penalty
TotalDirectBank5.51%1 month of interest
My Banking Direct5.50%1 month of interest
DR Bank5.50%6 months of interest
Vibrant Credit Union5.50%All earned interest
18 more rows

What is 5 APY on $1000? ›

For example, $1,000 put into an account with an annual interest rate of 5% would, in theory, earn $50 at the end of the year. However, if the rate is 5% with interest earned monthly, the APY would actually be 5.116%, earning you $1051.16 by the end of the first year.

How much do you make on a CD with 5%? ›

That all noted, here's how much you can expect to make with a 5% CD interest rate: $500 deposit: $25 for a total of $525 after 12 months. $1,000 deposit: $50 for a total of $1,050 after 12 months. $2,500 deposit: $125 for a total of $2,625 after 12 months.

What is the biggest negative of putting your money in a CD? ›

Banks and credit unions often charge an early withdrawal penalty for taking funds from a CD ahead of its maturity date. This penalty can be a flat fee or a percentage of the interest earned. In some cases, it could even be all the interest earned, negating your efforts to use a CD for savings.

Is it better to get a CD that pays monthly? ›

That's up to each issuer. In practice, however, most CDs compound either daily or monthly. The more frequent the compounding, the more interest your interest will earn. The frequency with which your CD compounds is reflected in the annual percentage yield (APY) that the CD's issuer promises you when you buy a CD.

Do you pay taxes on CDs? ›

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.

What is the difference between a special CD and a regular CD? ›

A promotional CD, sometimes referred to as a bonus or special CD, is a certificate of deposit with a higher-than-normal annual percentage yield (APY). Banks and credit unions may offer a promotional CD to attract new customers. These promotions can be a good deal, but they may only be available for a limited time.

What is the difference between APY and special interest rate? ›

Both are expressed as percentages. The key difference between APY and interest rate is compound interest. APY includes interest that's earned on the original balance as well as the amount of compound interest earned in one year. Interest rate only accounts for interest earned on the original amount.

How do special fixed rate CDs work? ›

A fixed-rate certificate of deposit (CD) is a type of savings account with a set interest rate over its entire term. CDs generally offer terms in increments of three months up to one year and then switch to two-, three-, and five-year terms, during which your money remains untouched in the account.

Should I lock in a CD now or wait? ›

How CDs work. Unlike traditional or high-yield savings accounts, which have variable APYs, most CDs lock your money into a fixed interest rate the day you open the account. That's why if you suspect that interest rates will soon drop, it can be a good idea to put money in a CD to preserve the high APY you would earn.

How much does a $10,000 CD make in a year? ›

The national average APY for a one-year CD is 1.74 percent, based on Bankrate research, which shows this average has increased or remained the same since March 2022. If you deposited $10,000 into a one-year CD that pays this national average rate of 1.74 percent, in one year it would be worth a total of around $10,174.

Can you get 7% on a CD? ›

Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.

What is 5% APY on $100? ›

Example of APY

If you deposited $100 for one year at 5% interest and your deposit was compounded quarterly, at the end of the year you would have $105.09. If you had been paid simple interest, you would have had $105. It pays 5% a year interest compounded quarterly, and that adds up to 5.095%.

Is 5% interest good for a CD? ›

Is 5% for a CD good? It indicates an expandable section or menu, or sometimes previous / next navigation options. Yes, 5% APY is a good CD rate. Average CD rates only pay around 0.23% to 1.86% APY, depending on the term.

How good is 5% APY? ›

A high-yield savings account that pays 5% interest is highly competitive. Not only does it significantly outpace the average savings account interest rate, but it's on the high end of the scale even for high-yield savings products.

What does 5.00% APY mean? ›

Imagine you put $10,000 in an account that earns 5% APY, compounded annually. In the first year, you'd earn $500 (5% of $10,000). Now, your total is $10,500.

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