Credit unions celebrating milestone anniversaries are rolling out eye-popping CD promotions, including a 9% APY from California's Southland Credit Union for its 90th anniversary and a 6.5% offer from a Virginia credit union marking its 65th.
Before you start calculating your earnings, though, read the fine print. Most of these deals cap deposits at a few thousand dollars, require you to qualify for membership or live in a specific area, and often come with quirky term lengths.
Still, the anniversary specials point to a broader trend worth paying attention to: CD rates are climbing.
With inflation running above 3% for four straight months, expectations that the Federal Reserve could eventually raise interest rates have prompted banks and credit unions to compete more aggressively for deposits. The median CD yield has climbed to 3.25%, nearly a full percentage point higher than six months ago, and more than 800 CDs saw rate increases ahead of last week's Fed meeting.
The Fed ultimately held rates steady, so experts expect CD yields to remain relatively stable in the near term. But if inflation stays stubborn and rate hikes return later this year, savers could see even better offers.
Translation: You don't have to chase every anniversary promotion, but now's a good time to shop around before locking up your cash. — KP
