Key insights
- A new 5% APY short-term CD from Nuvision Credit Union is highlighted as an attractive option for parking tax refunds. While the deposit is capped at $5,000, it offers a guaranteed return amidst declining savings rates. This could marginally decrease risk appetite for equities as consumers allocate a small portion of funds to fixed income.
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Many Americans are about to get a tax refund—or already have—but not everyone needs or wants to use it immediately.
You might have plans for it—like a summer trip, a home project, or a big upcoming bill—but not right away. Letting that cash sit in a checking account while you wait means missing the chance to turn your refund it something a bit bigger.
If you’re in that in-between moment, a newly available CD—offering an eye-popping 5.00% APY—presents a compelling short-term option.
The key advantage of a certificate of deposit (CD) is its rate guarantee. While the APY on a savings account can drop at any time, a CD locks in a fixed return for its full term. That means the bank can’t lower your rate and you’ll know exactly what your money will earn.
That can be especially useful right now, as top savings rates have been drifting lower in recent months. Locking in a market-leading 5.00% APY for a few months gives you a strong, guaranteed return—without any stock market risk.
For money like a tax refund—where you may be waiting to use it but don’t want it sitting idle—that combination of rate stability and short commitment can be hard to match.
If you’re holding onto your tax refund for now, a short-term CD lets you lock in a strong return and have your money back in just a few months.
Nuvision Credit Union unveiled a new 5-month promotional CD on Monday with a 5.00% APY—a rate that stands well above the rest of today’s CD market. The next-best nationally available CD rate is 4.25% for a similar term, making this a rare outlier.
There is one catch with Nuvision’s high-paying CD: Deposits are capped at $5,000, and you’re limited to one account. That means it won’t work as a place to park larger cash balances.
But for many savers—especially those deciding what to do with a tax refund—that cap may not be an issue. The average tax refund this filing season is about $3,500, according to the latest IRS data, which fits comfortably within the CD’s deposit limit.
So while the cap limits how much you can lock away in this CD, it leaves plenty of room for the typical refund to take full advantage of the 5.00% return.
This CD is a strong fit if you’re comfortable setting your tax refund aside for a full five months. In return, you’ll lock in a 5.00% APY—the highest rate currently available on cash.
But it’s important to be confident in your timeline before committing. With this CD, an early withdrawal penalty of three months’ interest means cashing out early would wipe out most of your earnings.
If you’re unsure you can leave the money untouched, a high-yield savings account may be a better fit. Right now, two of today’s best high-yield savings accounts also offer 5.00% on balances up to $5,000. But they each come with certain requirements, and their APY can drop at any time.
On the other hand, if you’re comfortable parking the money for five months, this Nuvision CD offers a rare chance to lock in that same top-tier rate without ongoing conditions. It’s currently advertised as available through May 31, though offers like this can be pulled at any time.