A Virginia-based bank is offering a CD at 6.02% APY— the highest rate available right now

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• Old Point National Bank is offering the highest interest rate for a CD right now.
• Many more banks and credit unions are offering rates over 5% APY.
• See today's best high-interest accounts »

CD rates have broken 6%.

Old Point National Bank, based in Hampton, Virginia, is offering a 6-month CD with an interest rate of 6.02% APY, and a minimum balance of $500. Until now, NASA Federal Credit Union had claimed the title of highest CD rate, offering 5.65% APY for a 9-month share certificate.

For years, savings products like CDs and high-yield savings accounts offered rates more in the realm of 3% and 4% APY, but in recent months 5% has become the new normal for CDs. While Old Point National is the first one to break 6%, it's not unlikely that more banks and credit unions could follow.

How to get the highest interest rate on your savings

Old Point National Bank is a bank, not a credit union, meaning anyone who can afford the minimum balance can put money into its CDs. However, you must visit a branch location to open a CD. While it's offering the highest rate right now, other banks and credit unions aren't far behind:

• CFG Bank 1 Year CD: 5.42% APY
• BrioDirect High-Yield 1 Year CD: 5.35% APY
• OceanFirst Bank High Yield Savings Account, powered by Raisin: 5.11% APY
• CIT 6-month CD: 5.00% APY

A CD (certificate of deposit, technically), is a savings product best used for getting a guaranteed return on short-term savings you won't need to use in the near future. When you put money in a CD, you know upfront how long that CD will last (like one year, six months, or three years) and in most cases, you can't remove your money before then without paying a penalty fee.

If you aren't sure you can leave your money alone for the length of a CD, consider a high-yield savings account instead.