What if your savings could grow your wealth and drive positive social change? Community Development Financial Institution (CDFI) certificates of deposit (CDs) make this possible. CDFIs can be surprisingly high-rate payers for CDs and while some offers are geographically restricted, there are also nationwide CDFIs with attractive rates that are worth a look.
A CDFI specializes in serving low-income or underserved communities. Your CDs at a CDFI are the same as CDs at other federally insured financial institutions and you’ll know that the funds are being used to promote economic development and community growth, advance financial inclusion, and support affordable housing. It’s a way to make your money work for you and others in a meaningful way.
Check out our Ratewatcher Top CDFI Rate Picks for the top CD rates:
Credit Unions Banks
| 5.40% APY* 13-Month $1,000 minimum deposit Blue Coast FCU (FL) Insured by NCUA | 5.15% APY* 6-Month $500 minimum deposit Community Bank (TN) Member FDIC |
| 5.25% APY* 12-Month $1,000 minimum deposit Bragg Mutual FCU (NC) Insured by NCUA | 5.10% APY* 5-Month $2,500 minimum deposit Bank of Zachary (LA) Member FDIC |
| 5.15% APY* 12-Month $500 minimum deposit Acadia FCU (ME) Insured by NCUA | 4.85% APY* 12-Month posit Fidelity Bank (AR) Member FDIC |
| 5.15% APY* 7-Month $25,000 minimum deposit Alltru FCU (MO) Insured by NCUA | 4.60% APY* 6-Month $250,000 minimum deposit First Southwest Bank (CO) Member FDIC |
What is a CDFI CD?
A CDFI CD provides savers with great returns and peace of mind knowing funds are being used to promote economic development, community growth, financial inclusion, and affordable housing to low-income and underserved communities.
Where to Find the Top CDFI CD-Rates?
The majority of CDFIs offering CDs can be found on CD Valet. Ratewatchers report that 32% of the CDFIs listed on CD Valet offer rates of 4% and higher. CD Valet compares over 31,000 rates from 4,100 banks and credit unions nationwide, making it easy to find the highest yields. You can check to see if a financial institution is a CDFI by looking it up on the CDFI listing on CDFI Fund’s website.
Why Should I Consider a CDFI CD?
CDFI CDs offer competitive rates, and guaranteed returns, and are either FDIC or NCUA-insured. They allow you to make socially responsible investments while earning competitive returns on your savings.
FAQs
What are the benefits of choosing a CDFI CD?
A CDFI offers competitive interest rates while supporting community development and financial inclusion initiatives.
How often do CD Rates change?
CD rates can change frequently based on economic conditions and central bank policies. It’s best to check platforms like CD Valet for the latest rates.
Can I renew my CDFI CD after it matures?
Yes, CDFI CDs can typically be renewed once they reach maturity. It is always a good idea to review the specific renewal process, rates, and terms as they vary based on the policies of the issuing financial institution.
What happens if I need to withdraw my money before the CDFI CD matures?
You may incur an early withdrawal fee. A CD early withdrawal fee is what the financial institution charges when you withdraw funds from your CD before it reaches its maturity date. It is important to review your CD agreement before you sign to fully understand the potential for a penalty.
How does CD Valet help in choosing the best CDFI CD rates?
CD Valet publishes rates from nearly 4,100 financial institutions nationwide, providing a platform to easily find, compare, and choose the highest-yielding CDFI CDs available.
