When it comes to managing your money, you’ve got options. While stocks offer growth potential but come with risks, and savings accounts can lose value to inflation, Certificates of Deposit (CDs) offer a secure way to earn stable returns.
These accounts typically offer higher annual rates of return (APY) than most savings accounts. You agree to retain funds for a certain period of time (i.e. “term”). The term usually ranges from three months to five years or longer.
1. Bask Bank, an online bank with low overhead, provides appealing interest rates, especially on their CDs. For terms of a year or less, their APYs are highly competitive. If you’re seeking good returns without a long-term commitment, Bask Bank is an excellent choice, with their three-month CDs offering a 4.25% APY and one-year CDs hitting 4.30% APY, according to our analysis. They offer terms from 3 to 18 months, plus 1 and 2-year options, with a minimum deposit of $1000.
This bank makes managing your CD at maturity incredibly simple. Your funds will automatically roll into a new CD at the current interest rate unless you decide otherwise. Bask Bank even gives you a generous 10-day grace period after maturity, with a 30-day advance reminder. During this grace period, you can add funds, partially withdraw, or close the account without penalty. However, early withdrawals before maturity do incur a penalty: 90 days of interest for CDs of a year or less, and 180 days for those over a year. Bask Bank doesn’t offer CDs longer than two years or special types.
2. **Bread Savings**: Bread Savings quickly gained fame in the industry. People seeking high-yield accounts have found them. Their highly competitive products also confirm this reputation. The interest rate of this online bank’s certificate of deposit product is extremely attractive. The high annual interest rate of 4.45% for 6-month certificates of deposit is particularly noteworthy. It ranks among the top in specific maturity certificates of deposit. The interest rates of all its certificates of deposit are highly competitive. Especially this 6-month certificate of deposit, it is even more valuable than expected. Bread Savings offers a wide range of deposit maturity options and can meet the needs of different maturities.
The term covers short-term deposits, such as 3 months, 6 months, 9 months, and 18 months. The term also covers long-term deposits, such as 1 year, 2 years, 3 years, 4 years, and 5 years. Such a wide range of maturity options allows depositors to use CD laddering for deposit certificates. Alternatively, you can adjust the deadline based on specific financial goals. However, please note the minimum deposit requirement. Opening a deposit certificate here requires $1500.
This minimum deposit requirement is higher than the $500 or $1000 often seen elsewhere, which might be a consideration for some savers. Like most CDs, early withdrawals come with a penalty based on the term. For CDs under a year, the penalty is 90 days of interest.
For CDs maturing between one and three years, you’ll face a penalty of 180 days’ worth of interest. If you opt for a CD with a four-year or longer term, the penalty jumps to a full 365 days of interest, which is quite substantial for longer-term CDs.
Bread Savings automatically renews your deposit certificate when it matures, unless you explicitly close your account or instruct them not to. They provide a standard 10-day grace period for you to make any decisions after maturity.
3. **First Internet Bank**: The first online bank is another online bank that offers multiple savings accounts. This can help clients with short-term fund storage. However, the APY for three-month fixed deposits is lower than that for CD. The first online bank offers a wide range of options for CD terms, including common terms such as 3 months, 6 months, and 18 months, as well as longer terms such as 1 year, 2 years, 3 years, 4 years, and 5 years. Customers can choose the appropriate deadline according to their own plan. The minimum deposit amount for opening a CD is $1000.
Interest is compounded daily and credited to the account on a monthly basis. This constitutes the total return on your deposit. The penalty for early withdrawal isrelatively high, which differs greatly from the penalties of many other banks. The penalty for a three-month certificate of deposit is 90 days of interest. The penalty for certificates of deposit from six months to eighteen months is 180 days of interest. The penalty for certificates of deposit of two years or more is 360 days of interest. The penalty for some selected certificates of deposit does not exceed 180 days. Even if the deadline is longer, the fine is the same.
4. Limelight Bank, part of Capital Community Bank, is an online platform that offers attractive rates, particularly on certain CD terms, with APYs ranging from 3.80% to 4.40% across their four CD options, which have terms from six months to three years. Their one-year CD stands out with a 4.40% APY, making it a top contender for competitive returns on a one-year investment.
Rates are competitive, but term selection is limited. They compare to some other institutions list. Limelight Bank offers terms of 6 and 18 months. Also 1 and 3 years are offered. No shorter terms like three-month CD exist. No special CD types provided, like bump-up. To open any available CD, $1,000 minimum needed. Account management is convenient online. Use parent company CCBank’s mobile app too. Need to withdraw funds before maturity? Early withdrawal penalty applies. For six, 12, and 18-month CDs, penalty is 90 days interest. For the longer 36-month CD, penalty is 180 days interest. At CD maturity date, Limelight Bank provides standard 10-day grace period. This allows withdrawing funds penalty-free. This happens before CD auto-renews same term. It uses current interest rate then.
5. **Live Oak**: Live Oak looks like a good choice. It is suitable for individuals seeking multiple options for certificate of deposit maturities, especially those who wish for short-term certificates of deposit. Their interest rates are the most competitive. They offer APY ranges with different maturities, allowing you to choose the appropriate maturity based on your savings goals. For example, the APY of a one-year certificate of deposit is 4.10%, which is highly competitive. The annual interest rate for a nine month certificate of deposit is 4.00%. The annual interest rate for both six-month and eighteen month certificates of deposit is 3.90%. Even the annual interest rate for three-month certificates of deposit is quite good, reaching 3.00%.
If you need to access your funds early from Live Oak, there’s a penalty that varies based on the term length. For terms under two years, the penalty is 90 days of interest, while for terms of two years or more, it’s 180 days. Your CD will automatically renew upon maturity for the same term length unless you choose to withdraw your funds. You’ll have a 10-day grace period after expiration to manage your funds without penalty.
6. Marcus by Goldman Sachs boasts a strong CD investment portfolio with a wide variety of terms available, including options like 6, 7, 9, 11, 13, 18, and 20 months.
We also offer 1-year, 2-year, 3-year, 4-year, 5-year, and 6-year terms. The wide range of options allows clients to accurately find the appropriate deadline and match their investment horizon. The product range is extensive, but it does not offer a three-month fixed deposit. Worth mentioning advantage: Low minimum deposit requirement.
You only need $500 to open a fixed-term deposit account. This is easier to accept than any other account with a minimum deposit of $1000 or higher. In addition to traditional CDs, Marcus also offers other special options to make you more flexible. In addition, a non penalty CD is also provided. Provide options for a period of 7 months, 11 months, and 13 months.
7. **NASA Federal Credit Union**: People seeking diversified savings believe that NASA Federal Credit Union has strong capabilities. They offer highly competitive interest rates, especially suitable for short-term certificates of deposit. You need to become a member of a credit union to open an account. Qualification can usually be obtained by joining cooperative organizations, such as the National Space Association. This provides a pathway for non NASA employees to access services through this method.
NASA Federal Credit Union offers a wide range of deposit maturity options, surpassing many banks’ standard choices. The deposit terms they offer include 6 months, 9 months, 15 months, and 49 months, in addition to various options such as 1 year, 2 years, 3 years, 4 years, and 5 years. It is worth mentioning that they also offer unique 15 month and 49 month maturity certificates of deposit. The minimum deposit amount is 10000 US dollars. The minimum deposit amount for most other maturities is $1000. They also offer traditional certificates of deposit, as well as special types of certificates of deposit, including two-year and three-year upgrade options. The minimum deposit amount for a one-year additional certificate of deposit is only $250, and the maximum monthly deposit amount is $2500. In addition, there is a particularly attractive option for young depositors, suitable for those aged 23 and below. The minimum deposit amount for a one-year ‘early savers’ certificate of deposit is very low, only $50.
Should you need to withdraw funds before your CD matures, a penalty applies, which is determined by the term length. For CDs maturing in less than two years, expect a penalty of 182 days of interest, and for those maturing in two years or more, it’s 365 days of dividends. You have a 10-day grace period upon maturity to decide what to do with your funds without incurring fines, as the CD is set to automatically renew unless you opt out. Make sure to act within this grace period to manage your savings as intended.
