High CD Rates Offer Significant Returns Amid Federal Reserve's Increased Benchmark Rate

CD rates surge as Credit Human Federal Credit Union offers 6% APY on 1-year term, following the Federal Reserve's numerous interest rate hikes over the past 18 months.

The Federal Reserve's significant increase in its benchmark rate over the last 18 months has led to much higher returns for savers, especially those investing in certificates of deposit (CDs).
Credit Human Federal Credit Union now offers a 6% APY on its 1-year term CDs, making it one of the highest in the market.
Other banks and credit unions also offer high CD rates, including TotalDirectBank (5.76% on 6-month CD), Forbright Bank (5.75% on 9-month CD), Popular Direct (5.67% on 1-year CD) among others, each with different minimum and maximum deposit requirements and penalties for early withdrawal.
Investors looking at long-term savings could consider depositing $10,000 into a 5-year CD to capitalize on the high rates and secure a substantial return over the term; a 5-year CD currently offers an interest rate of up to 4.75%.
Investing in CDs, especially long-term CDs, allows savers to lock in high rates for a fixed duration, ensuring stable returns despite future rate changes.
While CDs offer a secure and profitable option, savers must be ready to lock their funds for the decided duration as early withdrawals can incur penalties; hence, a thorough understanding of one's financial situation and future requirements is essential before investing in CDs.