Certificate Of Deposit (CD)

A blog about certificates of deposit (CD's)
and other popular money-market instruments.

Saturday, February 03, 2024

www.FedPrimeRate.com: The Pros And Cons Of Using Multiple Banks

The Fed has all but succeeded at bringing inflation down to a comfortable level here in the USA.

So, at this point in the inflation cycle, with short-term rates at their peak, the next rate move by the Fed will almost certainly be down.

That's why you may have noticed a lot of buzz about certificates of deposit right now. It's a very good time to lock-in great yields from banks and credit unions all across the nation.


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www.FedPrimeRate.com: The Pros And Cons Of Using Multiple Banks, According To Banking Experts
CDs | Money | Banks
The Pros And Cons Of Using Multiple Banks, According To Banking Experts

By: > Andrew Lisa

Modern banks are one-stop-shop financial institutions. Many offer the convenience of checking, savings, money market, brokerage, retirement, loan, and credit card accounts all unified under one roof -- regardless of whether that roof is real or digital.
Although modern consumers can handle nearly all their financial needs with one bank, they certainly don’t have to. So, does it make sense for most people to consolidate their financial services with the same institution, or would it be wiser to spread their money around to different accounts at different banks?

The answer is that it depends. No two financial consumers are the same, and both strategies have benefits and drawbacks.

GOBankingRates.com consulted experts in the banking and financial sectors to determine the pros and cons of using more than one bank.


Gary Zimmerman is the founder and CEO of MaxMyInterest, a cash-management platform that automatically directs money between bank accounts based on which is paying a higher interest rate at a given time. The money stays in the account holder’s name throughout and retains full liquidity and the protection of FDIC insurance.

In his experience, the primary benefit of maintaining accounts at different banks is to enjoy the old-fashioned service and attention of tellers at physical branches as well as the convenience, feature-rich apps and far superior savings yields of online-only banks. So savvy savers might want to open multiple accounts — a core brick-and-mortar checking account plus higher-yielding online savings accounts.


Benefiting from the best traits of physical and digital banking is not the only perk of opening accounts at different banks. Experts also suggest putting some of your money in your local bank or credit union and some in a big, corporate bank with national or even global reach.

This strategy allows you to support your neighborhood institution, whose employees are familiar faces and members of your community, while also having access to thousands of ATMs and other services no matter where you go through your account with a brand-name corporate bank.


In 2023, several high-profile bank failures reinforced the importance of FDIC insurance. Deposits under the insured limit were quickly made whole, but every dollar over the maximum was at risk of being lost forever. If you have significant deposits, you must do your banking with insurance in mind.

“There’s a safety aspect,” said David Rafalovsky, CEO of Oxygen, a banking services and financial technology platform. “Spreading your money across different banks can protect you under the FDIC insurance limits.”

It’s essential to understand that multiple accounts at the same bank will not keep your money safe.

According to the Federal Deposit Insurance Corporation, “The standard deposit insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC insures deposits that a person holds in one insured bank separately from any deposits that the person owns in another separately chartered insured bank.

“For example, if a person has a certificate of deposit at Bank A and has a certificate of deposit at Bank B, the amounts would each be insured separately up to $250,000. Funds deposited in separate branches of the same insured bank are not separately insured.”


“Brick-and-mortar banks typically pay rates that are well below the rate of inflation, which means you’re losing purchasing power every day,” said Zimmerman. “While you might want to keep your main checking account at a brick-and-mortar bank, online banks have lower operating costs, and so they’re able to pay higher rates on savings.”

When you keep all your accounts in the same place, you can check in with them all at once at a glance. You have only one password to remember, one app to download and you receive only one set of alerts and communications.

On the other hand, managing money scattered across multiple institutions can be frustrating and time-consuming.

“It can become increasingly more difficult to keep track the more you have under your name,” said Matt Gromada, head of family banking at Chase.


The added difficulty of keeping up with accounts strewn across multiple institutions goes beyond just convenience — mismanagement can lead to costly errors. “Managing multiple accounts requires more time and effort,” said Rafalovsky. “There’s a higher risk of incurring fees, especially if you’re not meeting minimum balance requirements. And let’s not forget the potential for confusion and stress. Balancing several accounts can be overwhelming, leading to errors like missed payments or oversights in budgeting.”


The main attraction of spreading out your accounts is buffet banking — you get to take what you like and leave what you don’t from each institution. But if you have too many savings accounts, you can hobble your own yields and forfeit precious compounding power.

“In addition to the need for more upkeep, you can lose out on savings interest by having multiple accounts,” said Gromada. “Generally, you will typically earn less interest on several smaller accounts than one big one."

Not only is it harder to keep up with changing rates among several accounts, but many banks have a tiered rate structure, and with your dollars spread thinner, it can be harder to meet the minimum balance that you need to get the best rates.


SOURCE: https://www.gobankingrates.com/banking/banks/banking-expert-pros-cons-of-using-multiple-banks/


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Saturday, January 22, 2022

Best "No Penalty" CD Rates for January 2022

Best "No Penalty" CD Rates for January 2022:

  • Ally Bank: 0.50% APY, $0 minimum deposit
  • Marcus by Goldman Sachs: 0.25% to 0.45% APY, $500 minimum deposit
  • America First Credit Union: 0.30% APY, $500 minimum deposit
  • CIT Bank: 0.30% APY, $1,000 minimum deposit
  • Investors eAccess: 0.15% APY, $500 minimum deposit
  • PurePoint Financial: 0.10% to 0.15% APY, $10,000 minimum deposit
  • TD Bank: 0.05% APY, $250 minimum deposit
  • Citibank: 0.05% APY, $500 minimum deposit
  • Citizens Access: 0.05% APY, $5,000 minimum deposit


1. Ally Bank: 0.50% APY, $0 minimum deposit

Ally is an online bank that was formed out of the GMAC Bank. Ally offers an 11-month no-penalty CD with no minimum opening deposit.

Ally also offers a Raise Your Rate CD in terms of two years and four years, as well as standard CDs in different terms.

TermAPYMinimum balance to earn APY

2. Marcus by Goldman Sachs: 0.25% to 0.45% APY, $500 minimum deposit

Marcus by Goldman Sachs offers three terms of no-penalty CDs: seven months, 11 months and 13 months.

Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA. Marcus offers a variety of CDs terms and a savings account.

TermAPYMinimum balance to earn APY

3. America First Credit Union: 0.30% APY, $500 minimum deposit

America First Credit Union was founded in 1939 in Salt Lake City. It has more than 100 locations and is among the top 10 largest credit unions in the U.S., based on assets. It has more than 1.2 million members.

America First offers a Flexible Certificate account, which is a bit different from a traditional no-penalty CD, because it allows you penalty-free access to your money only during the first five calendar days of each quarter. Those looking to withdraw their money without incurring a penalty at any time should search for another no-penalty CD.

America First Credit Union offers a regular checking, Premium Checking, Money Market Checking, share savings and money market accounts, along with CDs and other products.

TermAPYMinimum balance to earn APY

4. CIT Bank: 0.30% APY, $1,000 minimum deposit

CIT Bank is CIT's national direct bank and it's an online bank. CIT Bank NA is a subsidiary of CIT Group Inc. CIT Bank offers one no-penalty CD with an 11-month term. CIT Bank also offers eight terms of CDs and jumbo CDs.

In addition to CDs, CIT Bank offers two savings accounts and a money market account.

TermAPYMinimum balance to earn APY

5. Investors eAccess: 0.15% APY, $500 minimum deposit

Investors eAccess is an online bank and a trade name of Investors Bank. It offers three CDs: a six-month no-penalty CD, a 10-month no-penalty CD and a 10-month regular CD.

You need to deposit at least $500 to open any CD.

TermAPYMinimum balance to earn APY

6. PurePoint Financial: 0.10% to 0.15% APY, $10,000 minimum deposit

PurePoint Financial is a division of MUFG Union Bank NA. It offers nine regular CD terms and three terms of no-penalty CDs. It also has a savings account that offers a competitive yield. But, like all of PurePoint Financial's products, it comes with a $10,000 minimum deposit to open the account.

TermAPYMinimum balance to earn APY

7. TD Bank: 0.05% APY, $250 minimum deposit

TD Bank has a broad variety of CD terms, including a no-penalty CD in either six-month or 12-month terms. The no-penalty account requires a $250 opening deposit. If you're looking for the best APYs, however, you will have to look elsewhere.

TermAPYMinimum balance to earn APY

8. Citibank: 0.05% APY, $500 minimum deposit

Citibank is one of the largest banks in the U.S. It offers fixed-rate CDs, a step-up CD and a no-penalty CD.

Citi also has a savings account with a competitive yield. But that account, the Citi Accelerate Savings, is only available in certain markets.

TermAPYMinimum balance to earn APY

9. Citizens Access: 0.05% APY, $5,000 minimum deposit

Citizens Access is the online division of Citizens Bank. It launched in July 2018 with a savings account and CDs.

The bank offers competitive yields on its CDs and savings account. All of its products require a $5,000 minimum deposit.

TermAPYMinimum balance to earn APY

No-Penalty CD FAQs

What is a No-Penalty CD?

A no-penalty CD usually doesn't have a penalty if you withdraw the funds before the term ends. Early withdrawal isn't permitted within the first week of funding or opening a no-penalty CD, but after that a penalty-free withdrawal is possible.

No-penalty CDs may be a good fit for people who aren't sure when they'll need access to their money, but still want to earn a possible higher APY.

Are CDs Safe?

CDs are safe if they are either at a Federal Deposit Insurance Corp. (FDIC) bank or at a National Credit Union Administration (NCUA) credit union and within insurance guidelines and limits.

Both FDIC and NCUA accounts are backed by the full faith and credit of the U.S. government.

Advantages of No-Penalty CDs

  • Peace of mind: You generally don't have to worry about incurring early withdrawal penalties with no-penalty CDs. Usually, withdrawing during the first week is the only time you'll face a fee.
  • Possible higher APY than a savings account: Some no-penalty CDs may carry a higher yield than a savings account.
  • A fixed APY: Savings accounts usually have a variable APY, while CDs offer fixed rates for the duration of the term.
  • Flexibility: Should yields rise, you are able to close a no-penalty CD and put your money into a higher rate savings account or CD.

Disadvantages of No-Penalty CDs

  • They might have lower APYs than other CDs: You may be sacrificing a higher APY with a no-penalty CD. CDs that have a penalty for early withdrawals tend to offer higher yields.
  • Savings accounts may have higher APYs: Some savings accounts may have comparable or higher APYs than a no-penalty CD.
  • They might not have long terms: No-penalty CDs tend to have short terms, usually between six months and 14 months. Terms may be longer or shorter than that range.
  • You might not be able to make a partial withdrawal from a no-penalty CD. The bank may require you to take out the entire balance and close the CD, if you wish to withdraw money early.
NB: Annual percentage yields (APYs) shown are as of Jan. 20, 2022.


www.FedPrimeRate.com: Best "No Penalty" CD Rates for January 2022

www.FedPrimeRate.com: Best "No Penalty"
CD Rates for January 2022


>>> VIA: MSN <<<


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Friday, August 06, 2021

Why Certificate of Deposit (CD) Yields Have Been So Low, for So Long...

In case you've been wondering why the annual percentage yields (APY) on CD's have been extremely low for so long, the answer is simple: The Fed.

Why do people looking for the safest investments hate it when the Fed keeps rates as low as they can go for a long time?  Because the returns are paltry.

Here a perfect example: Let USAA Federal Savings Bank hold onto $1,000 of your money for 7 years, and your return is $28.04.


NB: USAA Bank also offers Jumbo and Super Jumbo CD's, with $95,000 and $175,000 minimum deposits, respectively.


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Wednesday, July 15, 2020

The Best 5-Year Cd Rates Of July 2020 (www.BusinessInsider.com)

The good folks at www.BusinessInsider.com have shared their Best 5-Year CD Rates Of July 2020:

APY Opening deposit

delta community credit union logo
Delta Community Credit Union
1.75% $1,000 Learn more

navy federal credit union
Navy Federal Credit Union
1.25% - 1.30% $1,000 Learn more

america first credit union
America First Credit Union
1.25% $500 Learn more

synchrony logo
Synchrony Bank
1.20% $2,000 Learn more

tiaa bank logo
1.35% $5,000 Learn more

nbkc bank logo
nbkc bank
1.20% $1,000 Learn more

first internet bank logo
First Internet Bank
1.31% $1,000 Learn more

vystar credit union logo
VyStar Credit Union
1.40% - 1.50% $500 Learn more

golden 1 credit union logo
Golden 1 Credit Union
1.30% - 1.40% $500 Learn more

quontic bank logo
1.28% $500 Learn more

first national bank logo
First National Bank of America
1.40% $1,000 Learn more

connexus credit union logo
Connexus Credit Union
1.56% $5,000 Learn more

rbfcu logo
Randolph-Brooks Federal Credit Union
1.21% $1,000 Learn more

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Monday, April 06, 2020

Citibank Waives Early CD Withdrawal Penalties for Those Affect by Coronavirus

Citi® Certificate of Deposit
Citi® Certificate of Deposit
Citibank® waives early CD withdrawal penalties for those affected by Coronavirus (COVID-19.)  Here's a clip from the Citibank website:

Retail Bank
Fee waivers on safe deposit box fees and non-Citi
® ATM usage fees, effective April 3, 2020. We are also extending fee waivers on monthly service fees as well as penalty waivers for early Certificate of Deposit withdrawals for an additional thirty days, to May 8, 2020. For help, please call the number on back of your debit card or recent bank statement.

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Tuesday, May 21, 2019

Bank of Iowa Certificate of Deposit (CD) Calculator

Click here to visit The Bank of Iowa's nifty certificate of deposit calculator...

Bank of Iowa Certificate of Deposit (CD) Calculator
Bank of Iowa Certificate of Deposit (CD) Calculator

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Saturday, November 24, 2018

Washington Trust: 3.00% APY On A Promotional 18 Month Certificate Of Deposit

Right now, Washington Trust is offering a phenomenal  3.00% APY on a promotional 18-month certificate of deposit.  Poke around and see if you can find a better rate on an 18-month CD.  I doubt you'll find one.



Washington Trust: 3.00% APY On A Promotional 18 Month CD
Washington Trust: 3.00% APY On A Promotional 18 Month CD


  • The 3.00% APY promotional rate is effective as of  November 24, 2018.
  • Minimum balance: $500.00.
  • Interest rate: 2.96683%.
  • More Information.


Washington Trust
Washington Trust

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Tuesday, August 21, 2018

Colorado's Advantage Bank: 2.30% APY On A 24 Month CD

If you are lucky enough to live in Colorado, Advantage Bank has an extremely competitive certificate of deposit (CD) rate for you: 2.30% APY (2.29% interest rate) on a 24 month CD.  To get this rate, your minimum deposit must be $9,999.01.

Click here for more information on Advantage Bank's CD rates.

Click here for branch locations and contact information.


Advantage Bank: 2.30% APY 24 Month CD
Advantage Bank: 2.30% APY 24 Month CD


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Friday, February 23, 2018

Wells Fargo CD Goes Dormant

From NBC Bay Area: Mike Wentz fights Wells Fargo for 8 years over a certificate of deposit that should have renewed every 30 months, but instead goes missing...

Here's a clip from the NBC Bay Area segment:

"...In 1983, Mike Wentz and his wife had a daughter, Amanda. So, they bought a $1,000 certificate of deposit for her. Mr. Wentz remembered making the decision.

'I have a new baby, so let me make an investment,' he recalled.

Fast forward to 2009, when Mike surprised his daughter with the CD and quickly found himself quite surprised.

'She calls me the next day, and she says, ‘Dad, I went to the bank. They don’t know anything about it,’' he said.

Mike said he logged eight years fighting Wells Fargo when he finally called NBC Bay Area Responds for help.

'I had actually tried – I hate to say this – with another local station, and they turned me down,' he said.

We stepped up. Mike showed us a CD that should have renewed every 30 months.

'It says right on here, with automatic renewal provision,' he read from the paper certificate.

Mike stopped getting statements in the 80’s, but figured as long as he kept his checking account open and held the certificate he was set.


Wells Fargo says the certificate is just a receipt. Also, it only keeps records seven years.

So, Mike gets nothing for a CD issued 34 years ago.

'I wanted to go public,' Mike insisted. 'I wanted to create some noise about this.'

'His complaint was very detailed, to a ‘T,’' said Lindsey Boyd from our NBC Bay Area Responds team.

Boyd contacted Wells Fargo headquarters, while Mike kept applying pressure at the branch -- where he said workers offered the most sympathy.

It wasn’t long before the bank paid the CD in full, plus interest. It was a grand total of more than $5,000.

'He said it took him about eight years until he came to us,' Boyd said.  'Once we got involved, they solved it in three weeks.'

Wells Fargo declined to discuss details, citing privacy. However, a spokesperson indicated Mike's auto-renewing CD had somehow gone dormant.

'To make sure a CD does not become dormant, be sure to keep your contact information up to date with the bank,' she wrote. 'Respond to communications from the bank in a timely manner.'

Mike insists he had, and accused Wells Fargo of changing its story over the years.

'At one point they tried to tell me the CD never even existed,' he said.

Mike isn’t alone. Each year, hundreds of people file formal federal complaints about CD’s.

The trend is upward. 832 people complained to the Office of the Comptroller of the Currency in 2017. That was more than double the number filed in 2015.

'We have received some similar questions from consumers,' said Kimberly Palmer, a Nerdwallet finance writer. Palmer said federal law only requires banks to keep records five years. So, the burden is on you to keep a paper trail.

If your account statements suddenly stop, Palmer said you need to take action. 

'Immediately, you want to call your bank right away if you haven’t heard from them or if you’re not sure of the standing of your CD,' she said.

Money from dormant bank accounts is supposed to be transferred to the state’s unclaimed property division. Mike says that did not happen with his missing CD. Wells Fargo didn’t have records of that either. Yet another reason to keep your bank records yourself.

Mike Wentz is keeping his Wells Fargo account open, despite the drama. However, he does fear some bad actors in banking are pinching good savers.

'If it were me, and I worked for a bank, I would be looking into my systems to figure out why this is going on,' he said..."


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Thursday, February 15, 2018

Rates on Sallie Mae Bank High-Yield Savings, Certificate of Deposit, and Money-Market Accounts Now Among Most Competitive in the Marketplace

Here's a clip from today's press release:

"...Sallie Mae Bank -- the retail banking arm of Sallie Mae, the nation’s saving, planning, and paying for college company -- today announced new, competitive interest rates on its high-yield savings, certificate of deposit (CD), and money market accounts, increasing them to some of the most favorable yields available in today’s marketplace.

Sallie Mae Bank’s money market account now carries a 1.50 percent annual percentage yield (APY), which is 16 times higher than the Bankrate.com national average. The account requires no minimum balance to open the account and has no monthly maintenance fees. Customers can transfer money free of charge, and easily manage their accounts online.

Sallie Mae Bank’s high-yield savings account now carries a 1.35 percent APY -- 11 times higher than the Bankrate.com national average -- with no minimum balance to open the account and no monthly maintenance fees. Customers can also transfer money free of charge and easily manage their accounts online.

In addition, Sallie Mae Bank’s 12-month CD is now available at a 2.00 percent APY, while the 18-month CD offers a 2.05 percent APY, the 24-month CD carries a 2.30 percent APY, the 36-month CD now has a 2.20 percent APY, and the 60-month CD offers a 2.50 percent APY. Sallie Mae Bank’s CDs have no monthly fees and guaranteed rates over the life of the account, with a minimum balance of $2,500.

'We are committed to helping our customers save for college and other financial goals with responsible, sound, and competitively priced banking products and services,' said Paul Thome, president, Sallie Mae Bank. 'Our new savings rates -- which are some of the most competitive in the market today -- can help families do just that.'..."



Term Interest Rate§* APY§*
60 months 2.86% 2.90% APY
36 months 2.81% 2.85% APY
30 months 2.81% 2.85% APY
24 months 2.76% 2.80% APY
18 months 2.57% 2.60% APY
15 months 2.47% 2.50% APY
13 months 2.42% 2.45% APY
12 months 2.47% 2.50% APY
11 months 2.18% 2.20% APY
9 months 1.83% 1.85% APY
6 months 1.29% 1.30% APY

* = Advertised Interest Rate and Annual Percentage Yield (APY) for Certificates of Deposit may change after maturity, apply to personal accounts only, and are accurate as of 02/09/2018. A penalty may be charged for early withdrawal. Fees could reduce earnings. Please refer to the Account Terms and Conditions Agreement for details.

§ = Rates listed in this table were updated on August 21, 2018.


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