Looking to Put a Small Deposit in a CD? This 9.50% Offer Is Still Available (2024)

The full article continues below these offers from our partners.

The Fine Print Below This Eye-Popping 9.50% Rate

A certificate of deposit (CD) paying 9.50% is off the charts. Just how much? Last fall, the top overall standard rate in our daily ranking of the best nationwide CDs briefly touched a peak of 6.50% APY at a time when rates were at their highest level in more than 20 years.

Offered by California Coast Credit Union to honor its 95th anniversary, the 9.50% "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 that anyone nationwide can become a Cal Coast member.

But this promotional CD doesn't just have a catch—it has three, which is why it doesn't appear in our daily rankings of the best CDs. Here are the details:

• You can only deposit up to $3,000 in one of these CDs (the minimum deposit is $500).
• You can only open one Celebration CD per person.
• Within 30 days of opening the CD, you must also have another active 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 (credit cards, Share Secured loans, and Certificate Secured loans don't count)
  

If the amount you want to put in a CD is $500 to $3,000, this could be a good option for you. It pays a remarkable 4 percentage points more than the top 6-month CD for a small deposit, where the top rate is currently 5.50% APY. But you'll need to be fine with opening one of those other Cal Coast accounts by the 30-day deadline.

A Top-Ranked CD—Without the Hoops—Will Be Better for Most Savers

Though 9.50% is a phenomenal return, the $3,000 maximum deposit dramatically limits this offer's value. Compounded monthly for 5 months, a deposit of that size would earn 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).

Not only that, but unless you're already a Cal Coast member, joining the credit union will also cost you a one-time $5 fee. That pushes the value of this offer down to $43 ($48 in extra earnings minus the $5 expense to become a member).

Having to jump through the hoop of opening and maintaining an additional Cal Coast account you may not want probably isn't worth a $43 payoff. Fortunately, we have plenty of other excellent options for you.

Our daily ranking of the best CD rates always provides you with 15–20 options for earning a nation-leading rate. We also publish daily rankings for each major CD term so if you're looking to open a 2-year CD, for instance, you can find the top 15–20 rates for CDs of that specific length. See below for links to every term ranking.

Today's top CD rates range from 4.70% for long-term CDs to the leading rate of 6.00%, available for a 10-month term. All of these CDs are offered by nationwide banks and credit unions that are federally insured.

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.