Which Bank Has The Highest Interest Rate For Savings - Since the Fed began raising interest rates last year to reduce inflation, savers have gotten more of their money.
A certificate of deposit (CD) is a type of savings account that will help you earn more. Often offered by banks (and credit unions that offer a similar account called a certificate of deposit), CDs typically pay a higher interest rate than traditional savings accounts to get your money over a certain period of time. Withdrawing money from your account before the end of the period usually means paying a penalty.
Which Bank Has The Highest Interest Rate For Savings
Choosing the right CD comes down to a few different things. Before you decide, recommendations
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Editors ranked over 40 CDs and came up with our top 10 picks. We considered factors such as low deposits, annual percentage returns (APY) for one-, three- and five-year terms, compounding frequency and customer service options.
Here's our roundup of the top 10 CDs, including the key stats you should know before opening an account. (Note: APYs are effective as of August 2, 2023, but are subject to change.)
About: Bread Savings, formerly Community Direct Bank, is an online bank that offers one- to one-year CDs as well as high-yield savings accounts.
Penalty: Early withdrawal penalty applies to Bread CD accounts. If the term is shorter than one year, the penalty is 90 days' interest. For one to three years, the penalty is simple interest for 180 days. For terms over four years, the penalty is interest for 365 days.
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Even if the opening deposit is over $1,000, Bread Savings offers its customers competitive APYs (well over 4%) on its one-, three-, and five-year CDs, with interest compounded daily and compounded monthly. Account holders are not charged for certain CD services such as monthly maintenance fees, but will be charged $25 for outgoing wire transfers, $15 for official check requests and $5 paper printing fees. Customers can bank with Bread online or via the mobile app. For assistance, they can contact a Bread Savings customer service representative by phone weekdays between and 9 p.m. CT and weekends.
**Although our methodology only looks at 1-, 3-, and 5-year CDs, here are some other CD names available if you're looking for more options:
About: Barclays is a London-based bank that offers online services to American customers. Although it has no physical locations in the United States, it offers a variety of CD terms, from 12 to 60 months.
Penalty: There is a 90-day early withdrawal penalty for simple interest on CDs with maturities of two years or less. For CDs over two years, there is a penalty of 180 days with simple interest.
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Barclays CDs have competitive APYs with no hidden monthly fees or minimum account opening balances, meaning you can earn high APYs no matter how much you save. You can choose to keep the interest earned in your CD account or have it transferred monthly to a separate Barclays savings account or to a certified overseas bank account. Customers in the US can reach a Barclays representative by calling their toll-free number between 8:00 a.m. and 8:00 p.m. ET seven days a week.
About: Quantic Bank is a digital bank that started as a community bank in New York City in 2009. It is a Community Development Finance Corporation (CDFI) and therefore provides banking services to low-income communities. Quontic is FDIC insured and offers online and mobile banking platforms as well as checking, savings and mortgage products.
Penalty: For CDs redeemed within the first year, the penalty is equal to the interest on the entire CD. CDs between 12 and 24 months will incur a penalty equal to one year's interest. For CDs of 24 months and over, the penalty is equal to two years' interest.
Quantic Bank CDs made our list for several reasons. High APYs along with low monthly fees and a $500 minimum deposit make these CDs a viable option for savers looking to earn interest on their money without surprise fees. The downside: big early withdrawal penalties mean you'll owe more if you get your money back early. Customer service representatives are only available weekdays via live chat, email and phone between 09.00. and 6:00 p.m. ET.
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About: Ally Bank is an online bank that offers checking, savings, loans, car products and more. The CD period varies from three months to five years.
Penalty: There is an early withdrawal penalty of between 60 to 150 interest days, depending on your account terms.
Ally's CD offering gives savers a variety of term options and lets them decide how much they're ready to save, with a minimum $0 deposit to open an account. Customers are not subject to any monthly maintenance fees and interest on these accounts is compounded daily. Bonus: Ally Bank offers customers 24/7 phone, chat and email support.
About: BMO Harris is one of the largest banks in North America by assets. The products and services include checking accounts, savings accounts, money market accounts, CDs, retirement accounts, credit cards and more.
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Penalty: There is an early withdrawal penalty of between 180 to 545 interest days, depending on the terms of your account.
BMO Harris CDs made our list for their competitively priced CDs. However, these prices depend on your location and how much you invest. One caveat: the early withdrawal penalty on these CDs is higher than our other options, so investors should be careful about withdrawing money early. Interest on your balance is increased daily. BMO Harris customer service is available by phone from 07.00. to 10 p.m. CT weekdays and 8 a.m. to 8 p.m. on Saturdays and Sundays.
6. Synchrony Bank: For the saver who is just starting out but wants to take advantage of higher APYs
About: Synchrony Bank is an online bank that offers a range of savings and credit products. Customers can bank online or via a mobile app. The CD period varies from three months to five years.
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Penalty: There is an early withdrawal penalty imposed on the principal amount withdrawn between 90 and 365 days with simple interest depending on the terms of your account.
Synchrony's CD accounts require no minimum deposit, meaning savers can start investing with any amount. The interest is increased daily and you can withdraw
Payable over the current term of the CD at any time without penalty. You can reach Synchrony Bank by phone or online chat, or download the mobile app.
7. CFG Bank: For the saver who wants a high APY without a large investment
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About: Founded in 2009, CFG Bank is a Maryland-based bank that offers one- to five-year CDs, as well as money market accounts, traditional checking accounts and commercial banking products. The bank offers multiple brick-and-mortar locations throughout Maryland, but customers can also bank with CFG online or via a mobile app.
Penalty: There is an early withdrawal penalty equal to 90 to 180 days of interest depending on your CD term.
CFG offers a 1-year CD with a high APY of 5.05%, and you need $500 to start investing. Customer service representatives can be reached by phone, Monday to Friday, at 9.00 am. to 5 p.m. ET and customers can also contact CFG via email.
About: Pentagon Federal Credit Union (PenFed) is a Virginia-based credit union that offers online banking options in addition to multiple brick-and-mortar locations across the United States. Customers can take advantage of their many financial products, including checking and savings accounts. , credit cards, car loans, mortgages and more.
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Penalty: For certificates (the credit union equivalent of a CD) used within the first year, all benefits will be lost. For certificates exercised after the first year, but before maturity, the penalty is equal to 30% of what would have been earned if the certificate had been held at maturity.
PenFed earned a spot on our list for its amazing APYs and above average customer score. Although the early withdrawal penalty is more severe than other options, this account can give customers all the benefits of a credit union while offering an APY that matches the big banks, plus interest on these accounts that is compounded daily. For assistance, customers can reach PenFed via email, chat or phone Monday through Friday at 07.00. to 11:00 p.m. EST, at 08:00 to 23:00 on Saturday, and 09:00. to 17:30. EST on Sunday.
9. First Internet Bank of Indiana: Savers with at least $1,000 to invest in a CD
About: First Internet Bank of Indiana was founded in 1999, operates online but is headquartered in Indiana. The bank offers savings accounts, money market accounts and CDs, among other consumer banking services.
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Penalty: For CDs with maturities from one year to 18 months, you owe 180 days of interest. If you choose a long-term CD - more than two years - you will have to pay 360 days of interest.
First Internet has some of the highest APYs – with a 1-year CD offering 5.35% APY. This account is not for everyone
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