This 8-Month CD Has a 6.50% APY. Should You Get One?

Just when you thought the good CD rates were coming to an end, out jumps one of the best CD rates we've come across: an 8-month CD from Financial Partners Credit Union that pays out at an eye-popping 6.50% APY. But before you get too excited, there's a catch: Like most super lucrative CD offers, this one has restrictions that exclude most people and may even put off those who are eligible from applying. Let's delve into the fine print and see what it requires.

Who can apply for the 8-month CD and who can't?

First, the good. Yes, Financial Partners Credit Union does have an 8-month CD that pays out at a 6.50% APY, making it one of the highest-paying CDs we've found. But that CD is only available to new members of the credit union who live, work, or go to school in one of the following counties or cities of California:

• Alameda
• City of South San Francisco
• Los Angeles County
• Orange County
• Riverside County
• San Diego County

But, wait, there's more.

Even if you are eligible, you should know this CD will earn 6.50% up to a maximum deposit of $5,000. Since the 6.50% is annualized, that means the most you'll earn is $27 monthly, or about $217 after eight months. The Financial Partners Credit Union also limits these CDs to one per household. So if you have more than $5,000 to invest in CDs, you'll have to open another CD account, either at Financial Partners or somewhere else, to lock in today's high rates.

Darn, I'm not eligible. I guess I'll just keep my money in a savings account...

Not so fast.

Even if you're not eligible for membership into the Financial Partners Credit Union, you still have plenty of great CD offers at your fingertips.

Right now, the top CDs are still paying out at about 5.50%. While that's not as high as 6.50%, it's also not as low as 0.13%, which was what 12-month CDs were paying in January 2022 before the Federal Reserve started hiking the federal fund rate. Better yet, many banks and credit unions will let you earn that APY for deposits way above $5,000 -- some even as high as $1 million.

For example, the following are just a handful of great CD offers on the market today (current as of Jan. 24, 2024).

• Western Alliance Bank CD (via Raisin): 3-month CD, 5.26%
• Ponce Bank High-Yield CD from Raisin: 1-month, 5.20%
• Sallie Mae Bank CD: 12-month, 5.25%
• Popular Direct CD: 12-month CD, 5.37%
• LendingClub CD: 6-month CD, 5.00%
• Bread Savings CD: 1-year, 5.25%
• Discover® Bank CD: 1-year, 4.70%
• Freedom Bank High-Yield CDs from Raisin: 9-month CD, 4.95%
• Golden 1 Credit Union CD: 16-month CD, 5.10%
• Arvest Bank CD: 1-year, Up to 4.80%

Financial Partners Credit Union also has 7-month and 11-month CDs that pay out at a 5.25% APY. That's a great rate, but again, you'll have to be a member of the credit union to get one. That means living in the countries or cities listed above, or being employed by one of several (mostly California-based) companies.

But if you're not eligible, don't sweat it. There are still plenty of ways to earn a high APY. Take a look at the top-paying CDs listed above and snag a great CD rate before it's too late.