Advertiser Disclosure

Reviews

Review of Wells Fargo CD Rates

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Review of Wells Fargo CD Rates
iStock

Wells Fargo offers numerous products and services, including savings and checking accounts, insurance and investment products. They also offer certificates of deposit (CDs), though their rates are significantly lower compared to other big name competitors. Keep in mind that their rates will differ depending on where you live. The rates you’ll see in this article are based on their headquarters in San Francisco. If you want an accurate list of Wells Fargo CD rates based on your location, head over to their rates page and type in your ZIP code.

Wells Fargo’s fixed-rate CDs

Wells Fargo’s Standard CD Rates

CD Term

Annual Percentage Yield (APY)

Minimum Deposit Amount

3 months

0.01%

$2,500

6 months

0.01%

$2,500

1 year

0.05%

$2,500

As of 2/2/2018

The Wells Fargo Standard CD ensures that you get a guaranteed return for the entire CD term. Your rate is locked in once you make an opening deposit into your account. Anyone can open an account online or in person as long as they have a minimum of $2,500 to deposit into an account.

Wells Fargo’s Standard CD Bonus Rates

CD Term

APY

Minimum Deposit Amount

3 months

0.06%

$2,500

6 months

0.06%

$2,500

1 year

0.10%

$2,500

As of 2/2/2018

You can get the Wells Fargo Standard CD bonus rates if you link your CD to a Portfolio by Wells Fargo® account and make a $2,500 minimum deposit. This product is their upgraded checking account which offers better interest rates across many Wells Fargo products. You also get certain fees waived from your account, discounts on loans, as well as additional credit card benefits. This includes avoiding the $30 maintenance fees if you have $25,000 in qualifying linked bank deposits or more than $50,000 in qualifying linked bank, brokerage and credit accounts. All you need to open this checking account is a minimum opening deposit of $25.

If your CD is no longer linked to your Portfolio by Wells Fargo® account, the bonus CD rate will revert back to the standard rate.

Wells Fargo’s Special CD Rates

CD Term

APY

Minimum Deposit Amount

9 months

0.30%

$5,000

19 months

0.55%

$5,000

39 months

0.80%

$5,000

58 months

1.01%

$5,000

As of 2/2/2018

To open a Wells Fargo’s Special CD, you’ll need a minimum opening deposit of $5,000. Additionally, these rates only apply to the initial agreed term. Once your CD matures, it’ll automatically renew to the standard rates.

Wells Fargo’s Special CD Bonus Rates

CD Term

APY

Minimum Deposit Amount

9 months

0.35%

$5,000

19 months

0.60%

$5,000

39 months

0.85%

$5,000

58 months

1.06%

$5,000

As of 2/2/2018

To be eligible for the special bonus CD rates, you’ll need to meet the same requirements as the regular Special CD, plus link your account to a Portfolio by Wells Fargo® and make a $5,000 minimum deposit. This will revert back to standard rates once it matures and you decide to renew your CD. You may be eligible for the bonus Standard CD rate upon renewal.

How to get one of Wells Fargo’s fixed-rate CDs

To open a fixed rate CD, you can apply online using their secure online application form. During the application process, you’ll be asked to choose the term you want and submit details such as your Social Security number, funding account information and a valid ID. You can fund your CD using any bank account, credit card or by mailing a check or money order after you submit your application. (Note: Using a credit card to fund a CD only makes sense if you’re paying off the credit card balance in full. Otherwise, credit card finance charges could significantly outweigh CD interest earnings.) Once you complete the application, you’ll get instant notification of your application status and possible next steps.

Wells Fargo Step Rate CDs

CD Term

APY

Minimum Deposit Amount

24 months

0.68%

$2,500

As of 2/2/2018

The Step Rate CD offers multiple rate increases and a penalty-free withdrawal every six months as long as you are able to maintain the minimum opening balance. You’re guaranteed automatic rate increases at seven, 13 and 19 months into your CD term. At these times, the interest rate (not APY) goes up as follows:

  • 1 to 6 months: 0.30%
  • 7 to 12 months: 0.55%
  • 13 to 18 months: 0.80%
  • 19 to 24 months: 1.05%

To make your penalty-free withdrawals, you’ll need to do it within five business days at the start of the days when your interest rate goes up. If the rate increase happens to fall on a weekend or on a holiday, the withdrawal period will begin on the next business day. Once your account matures, the CD will be automatically renewed and reverted to a standard 24-month fixed rate CD.

Wells Fargo Step Rate Bonus CD

CD Term

APY

Minimum Deposit Amount

24 months

0.73%

$2,500

As of 2/2/2018

To be eligible for the bonus rate, you’ll need to link your Step Rate CD to a Portfolio by Wells Fargo® account. Keep in mind that there is a monthly maintenance fee of $30 for the checking account unless you have at least $25,000 in qualifying bank deposits or $50,000 in qualifying brokerage, bank and credit balances.

You’ll also get rate increases and penalty-free withdrawals every six months as long as you keep the minimum opening balance. You are subjected to the same requirements as the regular Step Rate CD, but the interest rate increases are as follows:

  • 1 to 6 months: 0.35%
  • 7 to 12 months: 0.60%
  • 13 to 18 months: 0.85%
  • 19 to 24 months: 1.10%

Upon account maturity, your CD will automatically renew into a standard fixed rate bonus CD. If you don’t have a Portfolio by Wells Fargo® account, your rate will revert back to the standard rate.

How to Get a Wells Fargo Step Rate CD

You can only open a Step Rate CD in person at any Wells Fargo branch. You can show up at any one of their physical locations. You can also make an appointment online or by calling 1-800-869-3557.

Here’s how Wells Fargo CD rates compare to other banks

Wells Fargo rates don’t even come close to the top competitors’ offers, even with the bonus rates. Those better CD rates often also come with a lower minimum deposit than what Wells Fargo requires. However, competitors with the highest rates tend to be online-only banks, which is only a disadvantage if you prefer to bank in person. If it’s important to you to keep all your banking products in one place, then Wells Fargo may be worth considering, though that strategy isn’t a financial advantage, as far as CDs go.

Additional information about Wells Fargo CDs

Founded in 1852, Wells Fargo is considered the third largest bank in the U.S. This FDIC insured bank provides retail, commercial and corporate banking services through its branches and online in the U.S. and internationally. Wells Fargo has over 13,000 ATMs and 6,000 branch locations across the country.

All rates earned are compounded daily and interest starts to accrue as soon as you make your deposit, as long as it’s on a business day. Otherwise it’ll begin on the next available business day. Any interest earned is paid out monthly and deposited into a checking account, savings account or via check. You could also opt to leave it your CD until maturity. You can also choose to have your interest payments paid out annually, semi-annually or when your CD matures. The only exception is for CD terms 12 months or more, where you can’t choose to have your interest paid out at maturity.

There are penalties if you make early withdrawals on fixed-rate CDs. You either have to pay the early withdrawal fee or be subjected to the Regulation D penalty.

Those who may need to pay the Regulation D penalty include those who make withdrawals within seven days of account opening. This penalty also applies if you make withdrawals during the grace period and the withdrawal is more than any additional deposits during that time. Regulation D penalty means you’ll need to pay seven days’ simple interest.

Any withdrawals after the first seven days are subjected to the following early withdrawal fee:

  • 90 days or less: one month’s interest
  • 90 days to a year: three months’ interest
  • 12 to 24 months: six months’ interest
  • 24 months and over: 12 months’ interest.

If you make a withdrawal on a Step Rate CD or the Step Rate Bonus CD, the early withdrawal fee will apply if the money you take out will cause the balance to be under the minimum opening deposit. The penalty will be based on the whole amount taken out. You’ll also be subject to early withdrawal penalties if you make a withdrawal on days other than the five day withdrawal period when interest rates increase.

There are some exceptions where you may be able to get early withdrawal penalties waived. Common ones include death of the account owner, but you’ll need to contact Wells Fargo customer service to chat about your exact situation and circumstances. (This exception isn’t unique to Wells Fargo.)

Wells Fargo will send you a notice to remind you of the CD maturity date about a month before it happens. When your CD actually matures, you have a seven day grace period. You can either renew the CD or choose to change the terms (such as linking your Portfolio by Wells Fargo® account). Other options include closing the CD, making another deposit or withdrawing money as long as the remaining balance can meet minimum balance requirements.

If you choose not to do anything, the CDs renew automatically. However, no interest will be paid during the seven day grace period if you don’t choose to reinvest your CD or you take money out of the account.

Overall review on Wells Fargo CD rates

Although Wells Fargo offers a myriad of services, including the ability to link your checking account to your CD, their rates fall short compared to other financial institutions as well as national averages. There are online banks that offer much better rates and with lower minimum deposits.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Sarah Li Cain
Sarah Li Cain |

Sarah Li Cain is a writer at MagnifyMoney. You can email Sarah Li here

TAGS: , , ,

Advertiser Disclosure

Reviews

TD Bank Review: Savings, Checking, CD, Money Market, and IRA Accounts

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

td bank review
iStock

TD Bank got an early start in the 1850s. Today, it’s one of the largest banks in the nation. Even though it’s a nationwide bank, you can really go into a physical branch only if you live along the East Coast. If you are that lucky, you can take your pick from over 1,200 branches, many of which have convenient extended hours during the week and on weekends.

People living in the Midwest and on the West coast will have to suffice with online-only banking. But, rest assured, they still make it easy: they maintain a 24/7 customer service line if you do need to chat with a real person.

We’ll go over everything you need to know about TD Bank’s deposit accounts in this article. One important note: TD Bank’s rates vary depending on where you live. To compare apples to apples, we’ll look at the rates from Cherry Hill, N.J., which is where TD Bank is headquartered. However, we recommend checking your local rates when deciding whether these accounts are right for you. All rates are current as of Feb. 2, 2018.

TD Bank Savings Accounts

TD Simple Savings account

Simply low savings for a fee-heavy savings account.

APY

Minimum Balance Amount

0.05%

$0 ($300 to waive monthly maintenance fee)

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $5 ($4 if you’re signed up for online statements)
  • How to waive the account maintenance fee:
    1. Keep at least $300 in your account
    2. Have a linked TD student checking account
    3. Be under age 18 or over age 62
    4. Transfer at least $25 per month from a TD Bank account and have a linked TD Bank personal checking account (but this will only waive the fee for 12 months)
  • ATM fees: None if using a TD ATM; $3 for non-TD ATMs (plus whatever surcharge fees the ATM’s owner tacks on).
  • ATM fee refunds: None.
  • Overdraft fees: $35 for each item, up to five items per day.

You’ll need to keep an eye out for fees with this account. It’s not hard to waive the monthly account fee if you keep it stocked full of savings (which is how you should use a savings account, after all), but if you decide to empty the account, you’ll have to pay this steep monthly fee. Furthermore, the rates offered are very low, especially when compared with savings accounts at other banks.

Opening a Simple Savings account with TD Bank takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD Preferred Savings account

Moderate interest rates for high-balance savers.

 

$0.01 - $19,999.99

$20k - $49,999.99

$50k - $99,999.99

$100k - $249,999.99

$250k - $499,999.99

$500k - $999,999.99

$1M – $9,999,999.99

$10M+

APY with standard rate

0.05%

0.20%

0.35%

0.50%

0.50%

0.50%

0.50%

0.45%

APY with bump rate

0.10%

0.50%

0.75%

1.00%

1.00%

1.00%

1.00%

0.95%

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $15 ($14 if you’re signed up for online statements)
  • How to waive the account maintenance fee: Keep at least $20,000 in your account.
  • ATM fees: None. However, you may be charged a surcharge fee (i.e., the fee that the ATM’s owner tacks on) unless you keep at least $2,500 in your account.
  • Overdraft fees: $35 for each item, up to five items per day.

TD Bank does offer semi-OK returns for their Preferred Savings account, with a catch: You’ll need to keep a lot of money in it. Otherwise, you’ll face a hefty monthly account fee that will wipe away your earnings.

For example, let’s say that you have $15,000 in your account. That’s $5,000 under the $20,000 threshold needed to waive the $15 monthly fee. If you receive the rate bump for having another eligible TD Bank account, you’ll earn $1.25 in interest that month — meaning you’ll lose $13.75 after paying the monthly account maintenance fee.

You can qualify for the higher bump rates by also having one of the following types of accounts with TD Bank and making three transactions per month with it: a mortgage, a home equity loan, a credit card, or a personal or small business checking account.

Opening a Preferred Savings account with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone, or by visiting a local branch.

How TD Bank’s savings accounts compare

TD Bank’s savings accounts are pretty lackluster. They carry the potential for a lot of fees and for very little return.

Their Preferred Savings account in particular does offer high earning potential with interest rates up to five times greater than the national average. But you’ll need to have heavy pockets to be able to reach those levels, in addition to meeting a list of other requirements to waive the monthly fee and be eligible for these high interest rates.

Most people probably won’t be able to reach these high interest rates. But there’s good news: There are many other high-interest savings accounts that offer better rates without so much fine print holding you back.

TD Bank Checking Accounts

TD Premier Checking account

Earn low interest rates for keeping a high balance in your checking account.

Minimum Balance Amount

$0.01 - $2,499.99

$2,500 - $49,999.99

$50k - $249,999.99

$250k+

APY

0.00%

0.05%

0.05%

0.05%

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $25
  • How to waive the account maintenance fee: Keep at least $2,500 in your account.
  • ATM fees: None. However, you may be charged a surcharge fee (i.e., the fee that the ATM’s owner tacks on) unless you keep at least $2,500 in your account.
  • Overdraft fees: $35 for each item, up to five items per day.

If you’re looking to earn interest on the money held within your checking account, you might consider this account. Just be careful: you’ll need to keep a pretty high balance to a) earn any interest at all, and b) avoid the high monthly account fee.

A few minor side benefits of having this account also include things like free bank checks and money orders, and no service charge for more obscure things like stop payments on checks, incoming wire transfers and paper statements. You’ll also get a 0.25% interest rate reduction if you decide to apply for a home equity line of credit.

If high interest rates on your checking account with less fees are what you’re after, there are actually many other better online checking accounts to choose from.

Opening a Premier Checking account with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD Convenience Checking account

A standard-level checking account — but stay vigilant for high fees.

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $15
  • How to waive the account maintenance fee: Keep at least $100 in your account.
  • ATM fees: None if using a TD ATM. $3 for non-TD ATMS (plus whatever surcharge fees the ATM’s owner tacks on).
  • ATM fee refunds: None.
  • Overdraft fees: $35 for each item, up to five items per day.

If you can’t keep the required $2,500 in your checking account to waive the monthly fee for the TD Premier Checking account, consider this one. You still need to keep some cash in this account to waive the $15 monthly fee, but at $100, it’s much more manageable.

Unfortunately, you’ll have to sacrifice earning any return on your funds with this account, since it pays no interest. But there still are some minor perks that come with this account. You’ll get a discount on your first order of checks, and discounts on TD Bank home loans and home equity lines of credit.

Opening a Convenience Checking account with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD Simple Checking account

Simply high fees for a basic-level checking account.

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $5.99
  • ATM fees: None if using a TD ATM. $3 for non-TD ATMS (plus whatever surcharge fees the ATM’s owner tacks on).
  • ATM fee refunds: None.
  • Overdraft fees: $35 for each item, up to five items per day.

As far as checking accounts go, this isn’t really a good one. It charges a high monthly account fee and there’s no way to waive the fee. That’s a bit ridiculous with so many free checking accounts.

The only reason you might choose this checking account is if you can’t afford to keep the minimum $100 deposit in the TD convenience checking account to waive that monthly account fee. But if you’re not able to do that, you’ll pay out $100 in fees in a little over a year with this account anyway, so what’s the point?

You do get minor perks as with the other accounts — a discount on your first order of checks, and a discount on a home loan or home equity line of credit — but let’s be honest: That’s probably not going to save you a whole lot of money.

Opening a Simple Checking account with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD Relationship Checking account

Small earnings for big account requirements.

  • Minimum opening deposit: $0
  • Interest rate: 0.03% APY
  • Monthly account maintenance fee: $25
  • How to waive the account maintenance fee: Keep at least $20,000 in all of your TD Bank accounts combined (including checking, savings, loans, etc — but not credit cards).
  • ATM fees: None.
  • ATM fee refunds: You can be refunded for any ATM surcharges (the money the ATM’s owner charges) if you keep at least $2,500 in your account.
  • Overdraft fees: $35 for each item, up to 5 items per day.

If you have existing deposit (savings, checking, or CDs) or loan accounts with TD Bank, you can actually leverage them to earn at least something on the money in your checking account. It’s not much — 0.03% APY — but it’s still better than nothing.

This account also comes with a discount on home loans and home equity lines of credit, You’ll also get a few more perks than with their other checking accounts, such as free checks (not just a discount), free services that normally come with high fees (such as a stop payment order, overdraft transfers or money orders), and a fee waiver for another checking account and a savings account.

In return, just keep a close eye on your accounts to make sure you are meeting the requirements to waive the monthly fee. $25 per month is not a fee you want to pay.

Opening a Relationship Checking account with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD 60 Plus Checking account

A great checking account for seniors, but keep an eye on the account balance.

  • Minimum opening deposit: $0
  • Interest rate: 0.05% APY
  • Monthly account maintenance fee: $10
  • How to waive the account maintenance fee: Keep at least $250 in your account.
  • ATM fees: None if using a TD ATM. $3 for non-TD ATMS (plus whatever surcharge fees the ATM’s owner tacks on).
  • ATM fee refunds: None.
  • Overdraft fees: $35 for each item, up to five items per day.

If you’re over age 60, you are eligible for this account. TD Bank has generously waived many of its high fees for some account services. You’ll get free money orders, free checks and free paper statements. This account also comes with the standard rate discounts on home loans and home equity lines of credit.

Plus you’ll earn interest on your balance. Not a lot of interest, but 0.05% APY is better than 0.00% APY.

We recommend this account only if you can keep at least $250 in your account to waive the monthly fee. Otherwise, the $10 monthly fee will wipe out any interest you’ll earn.

Opening a 60 Plus Checking account with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD Student Checking account

A no-frills student checking account with no monthly fee.

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fees: None if using a TD ATM. $3 for non-TD ATMS (plus whatever surcharge fees the ATM’s owner tacks on).
  • ATM fee refunds: None.
  • Overdraft fees: $35 for each item, up to five items per day.

This is perhaps one of TD Bank’s best checking accounts, but only because it’s the only one not to come with a monthly account maintenance fee. Full-time students under age 24 are eligible to open this account. (You’ll need a joint checking account with a parent if you’re under age 18). This account will automatically transfer over to a Convenience Checking account after your 24th birthday or five years from the account opening, whichever occurs first.

You won’t earn any interest on this account, but you will get some other benefits. If you link a TD Simple Savings account alongside this checking account, you won’t have to pay the $5 monthly fee for the savings account. You’ll also get a discount on your first box of checks. You can even get a discount on a home loan or a home equity line of credit, but as a student, are you really likely to use that?

Opening a Student Checking account with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID and a way to fund your new account. You can apply online, over the phone or by visiting a local branch. You’ll also need to provide either your student ID or a student loan bill or receipt to prove you’re actually a student.

How TD Bank’s checking accounts compare

TD Bank does offer a lot of different types of checking accounts. This is nice because it offers you a wider range of ways to avoid their notorious account fees — and there are many to watch out for.

Plus, many of these accounts don’t even earn any interest, and when they do, the minimum balance requirements are often far above what you’d likely be keeping in a checking account anyway. If you’re looking for the best checking account possible, you’d be better off looking elsewhere unless you really are attached the TD Bank.

TD Bank CD Rates

TD Choice CDs

Moderate returns if you have a TD Bank Checking account.

Standard rate

 

$250 - $9,999.99

$10k - $49,999.99

$50k - $99,999.99

$100k+

3 months

0.10%

0.15%

0.15%

0.20%

6 months

0.15%

0.20%

0.20%

0.25%

9 months

0.20%

0.25%

0.25%

0.30%

12 months

0.30%

0.35%

0.40%

0.50%

18 months

0.30%

0.35%

0.40%

0.50%

24 months

0.35%

0.40%

0.45%

0.55%

3 years

0.40%

0.45%

0.50%

0.65%

5 years

0.45%

0.50%

0.60%

0.70%

Bump Rate

 

$250 - $9,999.99

$10k - $49,999.99

$50k - $99,999.99

$100k+

3 months

0.15%

0.20%

0.20%

0.25%

6 months

0.20%

0.25%

0.30%

0.35%

9 months

0.25%

0.30%

0.35%

0.40%

12 months

0.65%

0.80%

0.90%

1.10%

18 months

0.40%

0.45%

0.50%

0.60%

24 months

0.45%

0.50%

0.55%

0.65%

3 years

0.80%

1.00%

1.10%

1.30%

5 years

0.75%

0.90%

1.00%

1.10%

TD Bank’s Choice CDs are their standard line of CDs. You’ll need at least $250 to invest in them, which is a pretty low requirement and makes saving accessible for most people. Of course, you’ll earn higher rates if you put in much larger amounts of cash. You can also earn higher “bump rates” if you hold a checking account with TD Bank. You’ll also earn higher rates for larger deposits and longer terms.

Just be aware when you’re choosing longer terms, however, that you’ll pay an early withdrawal penalty if you do need to take that cash out early. You also can’t take out your cash at all for the first seven days after you initially open your CD. Early withdrawal penalties depend on the original term of the CD and are as follows:

  • < 3 months: All interest
  • 3 months < 1 year: 3 months’ worth of interest
  • 1 year < 2 years: 6 months’ worth of interest
  • 2 years < 3 years: 9 months’ worth of interest
  • 3 years < 4 years: 12 months’ worth of interest
  • 4 years < 5 years: 18 months’ worth of interest
  • 5 years: 24 months’ worth of interest

Once you open your account, you can’t add any more funds until the CD’s term is over. When that happens, your CD will automatically renew to another one of the same length with whatever the current interest rate is. But you have 10 days after this happens to decide what to do with it — withdraw the cash penalty-free, add in more funds or just let the CD continue.

Opening a Choice CD with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD No-Catch CDs

Moderate returns that give you the flexibility of making a free withdrawal once per term.

CD Term

APY

6 months

0.15%

12 months

0.20%

If the idea of having your money locked away makes you a little queasy, the No-Catch CD might be a good choice for you. It’s currently only offered in two term lengths — six and 12 months. Once per term, you’re allowed to make one withdrawal without paying an early withdrawal penalty if you need the cash. But remember, you can only make a withdrawal after the account has been open for at least seven days. If you need to make more than one withdrawal, you’ll pay a penalty for each additional transaction.

This will save you from paying a penalty of three months’ worth of interest (for the six-month CD) or six months’ worth of interest (for the 12-month CD). In return for this advantage, you’ll get a slightly lower return on the 12-month CD than the normal TD Choice CD (without the higher bump rates, that is). The interest rate is currently the same for the six-month Choice CD.

Just as with the TD Choice CD, you can open a TD No-Catch CD with at least $250. After the CD matures, it’ll roll over into another CD of the same term length (but with the current interest rate), and you’ll get 10 days to withdraw the money, add funds or let it continue in the current CD.

Opening a No-Catch CD with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD Step Rate CDs

Higher rates over time with more frequent penalty-free access to your cash.

CD Term

APY

3 years

Year 1: 0.25%
Year 2: 0.30%
Year 3: 0.45%
Composite: 0.33%

5 years

Year 1: 0.35%
Year 2: 0.40%
Year 3: 0.55%
Year 4: 0.70%
Year 5: 1.19%
Composite: 0.64%

If you really want frequent penalty-free access to your cash but want higher rates than the No-Catch CDs offer, consider the Step Rate CDs. You can open them with as little as $250.

These CDs will allow you to make one penalty-free withdrawal per year during a 10-day window around your account’s anniversary. If you make a withdrawal outside of these windows, you’ll face an early-withdrawal penalty of 12 months’ worth of interest (for a three-year CD), or 24 months’ worth of interest (for a five-year CD).

If you leave some or all of your money in the account on each anniversary, you’ll be rewarded with sequentially higher interest rates until the term of the CD ends. When that happens, it’ll automatically roll over into a 12-month Step Rate CD with the current interest rate of the day. But you’ll still have another 10-day window where you can add or withdraw funds or let the CD investment continue.

How TD Bank’s CDs compare

TD Bank does offer a nice suite of CDs that allow you more frequent access to your money. This is especially helpful for folks who want to earn higher rates than their paltry savings and checking accounts (when interest is even earned at all), but still want to be able to get their money on a more frequent basis if needed.

Compared with other banks, however, the interest rates offered on these CDs are fairly low. If higher interest rates are what you’re after, consider these CD accounts with higher rates.

TD Bank IRA Accounts

TD Simple Savings IRA

Guaranteed low rates on your retirement savings.

APY

Minimum Balance Amount

0.05%

$0.01

The TD Simple Savings IRA account is the mirror image of its regular TD Simple Savings account, but in an IRA form. And, just like the regular TD Simple Savings account, it earns peanuts for interest.

Its saving grace is that the monthly maintenance fee is waived for the IRA version of this account (which would normally cost you up to $5 per month). You’ll also need at least $300 to open this account, making it more accessible if you’re just starting to save for retirement and don’t have a lot of cash yet.

Another disadvantage of this account is that you can only open them in a local branch — so, if you’re not near any branches, this account will be unavailable to you.

TD Preferred Savings IRA

Higher (but still low) rates for having larger balances and linked TD accounts.

 

$0.01 - $19,999.99

$20k - $49,999.99

$50k - $99,999.99

$100k - $249,999.99

$250k - $499,999.99

$500k - $999,999.99

$1M - $9,999,999.99

$10M +

APY with Standard Rate

0.05%

0.20%

0.35%

0.50%

0.50%

0.50%

0.50%

0.45%

APY with Bump Rates

0.10%

0.50%

0.75%

1.00%

1.00%

1.00%

1.00%

0.95%

If you’d still like to save for your retirement using a plain-vanilla savings account but want to earn slightly higher rates, the TD Preferred Savings IRA might be for you. You’ll need at least $20,000 to open an account, but there are no monthly maintenance fees.

You can also earn higher interest rates in two ways. First, you’ll earn more by keeping larger balances in your account (the highest rates are offered on balances between $100,000 and $9,999,999). Second, you can earn higher “bump rates” if you have a another linked TD Bank account, such as a checking account, or even a mortgage or a credit card.

As with the rest of their retirement savings account, you can only open this account by going to a local branch in-person. You cannot open this account online or over the phone, so you’re out of luck if you don’t have a local branch near you.

TD Choice IRA CDs

Getting warmer… but still pretty low rates on an IRA CD.

Standard rate

 

$250 - $9,999.99

$10k - $49,999.99

$50k - $99,999.99

$100k+

3 months

0.10%

0.15%

0.15%

0.20%

6 months

0.15%

0.20%

0.20%

0.25%

9 months

0.20%

0.25%

0.25%

0.30%

12 months

0.30%

0.35%

0.40%

0.50%

18 months

0.30%

0.35%

0.40%

0.50%

24 months

0.35%

0.40%

0.45%

0.55%

3 years

0.40%

0.45%

0.50%

0.65%

5 years

0.45%

0.50%

0.60%

0.70%

Bump Rate

 

$250 - $9,999.99

$10k - $49,999.99

$50k - $99,999.99

$100k+

3 months

0.15%

0.20%

0.20%

0.25%

6 months

0.20%

0.25%

0.30%

0.35%

9 months

0.25%

0.30%

0.35%

0.40%

12 months

0.65%

0.80%

0.90%

1.10%

18 months

0.40%

0.45%

0.50%

0.60%

24 months

0.45%

0.50%

0.55%

0.65%

3 years

0.80%

1.00%

1.10%

1.30%

5 years

0.75%

0.90%

1.00%

1.10%

These CDs are also the mirror image of their regular TD Choice CD accounts, but in an IRA form. You can also open these CDs with a minimum $250 deposit, but of course you’ll earn higher rates if you put more money in. Still, if you’re just starting out and you really want a TD Bank IRA, this is one of your lowest-barrier options. You can also earn higher rates if you own another TD Bank checking account.

If you need to withdraw the money before the term is up, you’ll face the following early withdrawal penalties depending on the original term length of the IRA CD:

  • < 3 months: All interest
  • 3 months < 1 year: 3 months’ worth of interest
  • 1 year < 2 years: 6 months’ worth of interest
  • 2 years < 3 years: 9 months’ worth of interest
  • 3 years < 4 years: 12 months’ worth of interest
  • 4 years < 5 years: 18 months’ worth of interest
  • 5 years: 24 months’ worth of interest

To open this IRA CD you’ll need to go into a local TD Bank branch in person. No phone or online options exist for those away from a local branch, unfortunately.

TD IRA Add-Vantage CD

Term

APY

12 months

0.25%

One of the disadvantages of CDs is that you generally can’t add more money to them once they get started. That’s a real pain if you do come into some more money and want to take advantage of the higher rates that CDs offer. This is especially true if you’re relying on CDs as a part of your retirement savings strategy.

The TD IRA Add-Vantage CD adds a neat little feature to get around this. You can deposit more money into the account at any time, as long as you follow these two rules:

  1. You can only add money in $500 increments
  2. You can’t make more than $250,000 in deposits during the CD’s term

Thus, this IRA CD functions generally like a savings account, except you can’t withdraw your money but once per year due to the sole 12-month CD term offered. If you do withdraw the money, you’ll face an early withdrawal penalty of six months’ worth of interest.

This CD is also only available to people who can visit a local branch to open an account. You’re out of luck if you don’t live near a TD Bank branch, unfortunately.

How TD Bank’s IRA CDs Compare

The trend in low rates for TD Bank’s accounts continues. These rates are all-around low compared with the best IRA CD rates out there.

CDs already offer notoriously low returns compared with more mainstream IRA investments like mutual funds and stocks (which in general offer nonguaranteed average returns of 7.0% per year), and that’s especially the case here. If you’re relying on TD Bank’s IRAs as your primary retirement strategy, you won’t get very far.

TD Bank Money Market Accounts

TD Growth Money Market account

Earn similar rates to TD’s Preferred Savings account, but with a lower minimum balance.

 

$0.01 - $999.99

$1k - $1,999.99

$2k - $4,999.99

$5k - $9,999.99

$10k - $24,999.99

$25k - $49,999.99

$50k - $99,999.99

$100k - $249,999.99

$250k+

APY with Qualified Amount

0.05%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.35%

APY without Qualified Amount

0.03%

0.03%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.30%

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $12 (or $11 if you sign up for online statements only).
  • How to waive the account maintenance fee: Keep at least $2,000 in your account, or be age 62 or older.
  • ATM fees: None if using a TD ATM. $3 for non-TD ATMS (plus whatever surcharge fees the ATM’s owner tacks on).
  • ATM fee refunds: None.
  • Overdraft fees: $35 for each item, up to five items per day.

This account offers a nice balance between the lower balance requirements of the TD Simple Savings account and the higher rates of the TD Preferred Savings account. You only need a $2,000 minimum balance to waive the monthly fee (compared to the Preferred Savings’ $20,000 minimum balance to waive that account’s fee).

You’re also eligible to receive a higher rate if

  1. You have a linked TD Bank account
  2. You use it to make at least a $50 recurring monthly deposit into this account

How TD Bank’s Money Market account compares

Again, TD Bank comes up well short when compared with the best money market account rates available today. Plus, you need a fairly high opening deposit to even get access to this account.

This leaves savers who are just getting started high and dry, since all TD Bank offers for these folks is their Simple Savings account that offers a miniscule interest rate (and a minimum $300 deposit to avoid the monthly fee, to boot).

Overall review

We do like TD Bank’s ease of access if you’re looking to visit an in-person branch. Their local branches generally offer good hours and are open seven days per week. But for folks who don’t live near a local branch — and that’s most of the country — you’re kind of out of luck aside from the 24-hour customer service line. And if you want to open an IRA, you’re again out of luck since this must be done in person.

Furthermore, you’ll need to keep large balances in most of TD Bank’s accounts to waive high monthly fees. In return for this, you get rock-bottom interest rates. If you want to use TD Bank, we recommend you come with a hefty amount of cash.

In general, we’re left feeling rather unimpressed with these products. You can get much better rates and terms on every single one of these accounts elsewhere, without being tricked into paying out a boatload of banking fees.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

TAGS:

Advertiser Disclosure

Reviews

Review of Northwest Bank’s Deposit Rates

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Formerly called Northwest Savings Bank, Northwest Bank offers a range of personal banking products and services including loans and insurance. Headquartered in Warren, Pa., Northwest Bank has 175 locations throughout New York, Pennsylvania and Ohio.

Northwest
Northwest Bank was on Forbes’ list of the Most Trustworthy Companies in 2016. JD Power touted Northwest for the "Highest Customer Satisfaction with Retail Banking in the Mid-Atlantic Region" in the same year.Customer service and trustworthiness don’t necessarily translate to the best rate for customers, however. Compared with the rates at other banks, like Ally, Goldman Sachs Bank USA, and Synchrony Bank, Northwest Bank’s deposit account rates are significantly lower for similar products.

When learning about the various accounts available at Northwest Bank, keep in mind that their rates vary depending on where you live. The rates listed below are based on the area closest to the bank’s headquarters. To get list of rates based on your region, please head over to the rates section of the bank’s official website and enter your ZIP code.

Northwest Bank CD Rates

The CDs at Northwest are locked in based on the term you choose, and interest earned can be compounded or paid out via check or direct deposit into a Northwest Bank account.

Term

APY

Minimum Deposit Amount

12-17 Months

0.30%

$500

18-23 Months

0.35%

$500

24-29 Months

0.45%

$500

30-35 Months

0.55%

$500

36-47 Months

0.60%

$500

48-59 Months

0.75%

$500

60-71 Months

0.90%

$500

72-120 Months

1.00%

$500

Rates current as of 2/2/2018

Northwest Bank’s CD accounts offer higher rates for longer terms. When a CD matures, you have a seven-day grace period where you can opt to roll over the account or take it out in cash.

There are early withdrawal penalties which vary depending on the term:

  • Account terms up to 181 days: one month of interest
  • Account terms 182 days to 364 days: three months of interest
  • Account terms 24 to 47 months: six months of interest
  • Account terms 48 months or longer: 12 months of interest

To withdraw money, you can do so easily using online or mobile banking or by calling your local branch. Early withdrawals will require you to call Northwest Bank; as long as you acknowledge and understand the penalties involved, you can access your cash.

How Northwest Bank’s CDs compare

Compared with competitors, Northwest Bank falls short in terms of APY. With its highest APY at 1.00%, it lags other banks offering almost double that. There are much better CD rates elsewhere and ones with shorter terms. However, the minimum deposit requirement at Northwest Bank is significantly lower than what you’ll find at many competitors, making this account more accessible to those who do not have large amounts to invest.

How to get a Northwest Bank CD

To open an account, you can call Northwest’s toll-free number at 1-877-672-5678, apply online or do so at your local branch.

Northwest Bank Savings Account Rates

Northwest Bank offers two different savings account options. The Statement Savings account is best for those who do not intend to keep a large balance in their accounts and don’t want to pay a monthly fee. The Insured Money Fund is best for those who seek more interest, want access to a Visa debit card and intend to keep larger sums banked.

Statement Savings

You can get access to free online and mobile banking and over 55,000 ATMs, but at the cost of a low APY.

APY

Minimum amount to open

Minimum balance requirement

0.05%

$50

$100

As of 2/2/2018

Interest earned on Northwest Bank’s Statement Savings account compounds and deposits monthly. In order to earn interest, you need to keep an average balance of at least $100.

With your account, you get access to eStatements and a free ATM card. If you already have a checking account with Northwest, you can link your account to your Visa debit card.

You can make deposits or withdrawals using your ATM card, online, via a mobile app or at a branch. However, you can only make unlimited withdrawals in person, by mail or at an ATM. Online withdrawals are limited to six withdrawals a month.

Insured Money Fund

Northwest Bank's Insured Money Fund provides access to a Visa debit card and unlimited ATM and in-person transactions.

Minimum balance requirement

APY

Minimum amount to open

Up to $2,499.99

0.05%

$50

$2,500.00-$9,999.99

0.10%

$50

$10,000.00-$74,999.99

0.15%

$50

$75,000-$4,999,999.99

0.25%

$50

$5,000,000.00 and over

0.25%

$50

As of 2/2/2018

Compared with Statement Savings, you need to keep a higher balance but you get a higher APY that’s compounded monthly. As long as you keep an average daily balance of $2,500, you will not be charged a service fee. Any lower than that and you’ll have to pay $10 every month.

This account gives you a free Northwest Visa debit card. You can also write checks, deposit money at a qualifying ATM, and have access to monthly statements and direct deposit. You can access your money online, in person or through Bankline, a 24/7 automated telephone banking service. You also get unlimited ATM or in-person transactions.

How Northwest Bank’s Statement Savings a Insured Money Fund compare

The minimum opening balance is on par with some similar offerings from other competitors. However, the rates are much lower compared with what’s out there. You can easily find a savings account with 1.30% APY these days, some with no minimum requirements to open an account.

However, Northwest Bank offers more access to your money compared with others that only allow ACH transfers and check-writing capabilities. Many comparable banks also do not offer in-person customer service or debit cards. You can also make unlimited withdrawals at ATMs, compared with six per month with some of the other banks out there.

Other Northwest Bank Savings Accounts

Club Accounts

Club Accounts are designed to help you reach short-term savings goals, but you can do the same with money market accounts from competitors.

Account name

APY

Minimum amount to open

Term

Holiday Club

0.05%

$1.00

Nov.-Oct.

Vacation Club

0.05%

$1.00

May-Apr.

As of 2/2/2018

The Club Accounts are designed to help you reach your short-term savings goals for the busiest times of the year, whether for a vacation or gift giving. These as sub-accounts are designed for a specific purpose similar to a one-year CD. You choose the type of account based on when you want to access your savings, as both accounts offer the same APY and minimum opening deposit.

You fund your account in person, online, via direct deposit or by setting up an automatic transfer. Once the money is in the account, you cannot access it for the duration of the account. At the end of the savings period, you can have a check mailed to you or have it automatically transferred to a Northwest savings or checking account.

Compared with a one-year CD, this account falls short. For one, the rates are significantly lower, with some banks offering at least 1.75% APY for a 12-month CD with a minimum deposit of $500. However, you can access the cash earlier if you’re willing the face the penalties. If you have less than a few hundred dollars for an opening deposit, then the Club Accounts may be a good alternative.

Health Savings Account

Northwest Bank's Health Savings Account allows you to access pretax funds easily for your medical needs, but at a lower rate compared with some competitors.

Minimum balance requirement

APY

$1,000.00-$4,999.999

0.05%

$5,000.00-$14,999.99

0.10%

$15,000.00 and over

0.15%

As of 2/2/2018

Opening a Health Savings Account (HSA), can help you set aside money for out-of-pocket medical expenses. As long as you’re covered under a qualified high-deductible health plan, you can use this account for pre-tax savings to help you cover health care costs.

Northwest Bank’s HSA account requires that you maintain an average daily balance of at least $1,000 if you want to earn interest and avoid a $3 monthly service fee. Like other accounts offered, you get access to online and mobile banking and ATMs. You also get a Northwest HSA debit card which is accepted by Visa merchants worldwide.

Competitors offer similar services with higher rates. However, some of these banks have mandatory monthly service fees of up to $4. With these accounts, you can access your cash the same way, except some offer Mastercard debit cards instead.

How to get a Northwest Bank savings account

You can open an account by phone, online or in person. You’ll need your social security number, personal information and a government issued ID.

Northwest Bank Checking Account Rates

MyNorthwest Interest Checking

This account offers one of the lowest interest rates, but has unlimited ATM transactions and a GO! Rewards account.

APY

Minimum balance requirement

Minimum amount to open

0.01%

$1,500

$50

As of 2/2/2018

MyNorthwest Interest Checking requires a minimum daily balance of $1,000 or else you face a $10 monthly service charge. There is also an overdraft fee of $35 with no grace period. However, you can opt in to a premium service that costs $12 a year. This service links your checking and savings accounts so that any possible drafts from one account will be withdrawn from the other.

Like the savings account, you get access to free ATMs, electronic statements, and online and mobile banking. You also get access to online bill pay and a Northwest Visa debit with Go! Rewards. With this program you earn points with each purchase to redeem for merchandise as well as the ability to use Apple, Android, and Samsung Pay.

How MyNorthwest Interest Checking compares

Compared to other banks' checking accounts, Northwest’s checking account has a much lower rate. However, it offers free access to ATMs and rises above its competition with its Visa debit card. Not many banks offer GO! Rewards, which could be a huge advantage if you’re interested in earning rewards and plan on using your card often.

How to get a Northwest Bank checking account

To open a checking account, you’ll need your Social Security number, government-issued ID, and account information for existing bank accounts you want to transfer to Northwest Bank.

Northwest Bank IRA Account Rates

IRA CDs

Northwest Bank's IRA CDs offer one of the lowest minimum deposit amounts, at the expense of a lower APY.

Term

APY

Minimum deposit amount

12-17 Months

0.30%

$500

18-Month Variable

0.35%

$25

18-23 Months

0.35%

$500

24-29 Months

0.45%

$500

30-35 Months

0.55%

$500

36-47 Months

0.60%

$500

48-59 Months

0.75%

$500

60-71 Months

0.90%

$500

72-120 Months

1.00%

$500

As of 2/2/2018

With the IRA CD, you can deposit money any time and in any increment you wish. Interest is compounded and credited every quarter. However, the interest rate is not fixed, meaning that the interest rate may fluctuate on the last day of each quarter.

When your IRA matures, you have a seven-day grace period in which to make withdrawals or roll it over. Early withdrawals are subject to the same penalties as their regular CD accounts

How Northwest Bank’s IRA CDs compare

The minimum opening deposit is one of the lowest out there, compared with some other IRA CDs that ask for a $1,000 minimum for an 18-month IRA CD. Like Northwest Bank’s other products, their IRA CDs offer a much lower rate, at least half of what its competitors offer.

How to get an IRA CD from Northwest Bank

You will need to apply for an IRA CD at the nearest branch.

IRA Tiered Money Fund

This account offers higher rates than their IRA CD, but still falls short compared with other banks.

Minimum balance requirement

APY

Up to $2,499.99

0.10%

$2,500.00-$9,999.99

0.10%

$10,000.00-$74,999.99

0.10%

$75,000.00 and over

0.25%

As of 2/2/2018

Like the IRA CD, you only need a minimum of $25 to open an account and deposit money as often as you want. There is a tiered interest based on balance, and interest is compounded and deposited every month. As well, there are no withdrawal restrictions, unlike the IRA CD where you may be penalized for early withdrawals.

If you’re looking for a similar product else with higher rates, you can consider a savings or checking account that may have tiered APYs.

How to get an IRA Money Fund from Northwest Bank

Visit your local branch to open an IRA Money Fund. You cannot open one online.

Bottom line

Although Northwest Bank offers free ATM access as well as a wide variety of customer service options, its rates are significantly lower than you’ll find with competitors. If you’re looking for a bank that offers more competitive rates with similar services, you may be better off looking elsewhere.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Sarah Li Cain
Sarah Li Cain |

Sarah Li Cain is a writer at MagnifyMoney. You can email Sarah Li here

TAGS:

Advertiser Disclosure

Reviews

PNC Bank Reviews: Checking, Savings, CD, Money Market, and IRA Rates

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

pnc bank reviews
iStock

PNC Bank is one of the oldest and largest banks in the country, founded shortly after the American Revolution. Although it is based out of Pittsburgh and its 2,600 branches are mostly located across the Eastern U.S., that doesn’t mean you’re out of luck if you’re in the western U.S.

PNC Bank offers a robust online banking platform with plenty of helpful features. But is it the right bank for you? How do its rates compare with those of other banks? Let’s walk you through the different types of PNC Bank account offerings.

It’s important to note that PNC Bank charges different rates across the country. To keep things consistent for comparison purposes, we’ll present you with the rates closest to their headquarters in Pittsburgh using the ZIP code 15222. To see rates for your local area, click here.

PNC Bank’s Virtual Wallet®

Wouldn’t it be great if you could get a super-easy holistic account package when you decide to switch banks? That’s what PNC Bank aims to offer with its Virtual Wallet® kit. It’s a complete set of accounts for everything you need to do, including:

  • Spend : An everyday checking account.
  • Reserve : A savings account for short-term goals, like a vacation or Christmas gifts.
  • Growth : A savings account for long-term goals, like a down payment on a house.

Virtual Wallet® accounts also come with different tiers of interest rates, depending on whether you meet certain qualifications. We’ll do a deeper dive on that later.

What’s really neat about PNC Bank’s Virtual Wallet® is that it comes with all sorts of tools to help you manage your money better. Within the checking account, you can take advantage of the following tools:

  • Calendar : Allows you to see scheduled bills and amounts due.
  • Online bill pay : Will pay your bills for you automatically on their due dates.
  • Danger Day : Shows you when you might run out of money for the month.
  • Spending Zone : Allows you to set up and track your spending in a budget.
  • Money Bar : Shows you how your money is divvied up: savings, scheduled for bills, or free to spend.

The Virtual Wallet® even makes it easier to save in Reserve and Growth savings accounts with the following features:

  • Punch The Pig : Gamifies your savings when you hit a pig icon to transfer money to your Growth account.
  • Wish List : Allows you to set up and track individual savings goals separately from each other.
  • Early closure fee: $25 if you close the account within 180 days of opening.
  • Savings Engine : Automatically puts money into savings when you’re paid, or if you pay a bill.

PNC Checking Accounts

PNC Bank’s checking accounts are, overall, pretty lackluster. The only advantage of using them is that you get access to the Virtual Wallet® account package, which actually does offer some nice money management tools. But you can still get access to budgeting tools and savings apps elsewhere that can do all the same jobs as the Virtual Wallet®.

The rewards structure for these checking accounts is confusing. There’s no way to know whether you’ll earn good rewards, since you have to log into a portal and manually activate them ahead of time. Furthermore, once you do earn those rewards points, you have to redeem them through another portal. Some checking accounts do come with discounts, but they’re mostly on more obscure banking products you probably aren’t going to use much anyway, like cashier’s checks or safety deposit boxes.

These accounts carry a lot of red tape and fees. They also don’t pay much interest, if any. If earning the highest interest rates possible (with the least amount of fine print and fees) is your goal, there are much better checking accounts elsewhere.

Read on to find out more about all of PNC’s checking account offerings:

Checking accounts with Virtual Wallet®

Virtual Wallet® Basic

A basic account for lower-income earners who want to use Virtual Wallet® features to manage their money.

If you’re looking to take advantage of PNC Bank’s Virtual Wallet® account package but don’t earn a huge income, this basic account is where you’ll want to start.

Just beware of fees; there are plenty that come with this product, including the following:

  • Minimum opening deposit : $25
  • Interest rate : The Spend account does not earn interest. The Reserve and Growth accounts earn 0.01% APY. If you meet qualifications (such as making at least five debit transactions per month from your Spend account), you can earn up to 0.10% APY with your Growth account.
  • Monthly account maintenance fee : $7
  • How to waive the account maintenance fee :
    1. Keep at least $500 in your Spend and/or Reserve accounts
    2. Have at least $500 direct-deposited into your Spend account
    3. Be 62 or older
    4. Provide proof of active enrollment in a qualifying education institution (expires six years after the account is enrolled in the student banking program).
  • ATM fees : No charge at PNC Bank ATMs. $3 for every domestic non-PNC Bank ATM transaction, and $5 for every international non-PNC ATMS.
  • ATM fee refunds:None.
  • Overdraft fees : $36 per charge, up to four charges per day. $7 per day for each day the account remains overdrawn. Any overdraft fees will be refunded if the overdrafted amount is less than $5. They will not charge you if you set up Overdraft Protection Transfer from your Reserve or Grow accounts.
  • Early closure fee : $25 if you close the account within 180 days of opening.

This checking account does come with a rewards program, but we’ll be honest: it is confusing.

To earn rewards points, you’ll need to log into the PNC Bank Rewards Portal to see and manually activate customized offers just for you, based on your spending history.

You can redeem your rewards through the online rewards catalog or receive cash back directly into your account. If you link up a PNC Points Visa credit card with your account, you can also earn 25 percent more rewards points for your purchases.

Because of the complexity of assessing the value of the rewards program before you sign up, we think that this is a nice bonus feature but not one you should base your decision on. If you’re looking for cashback rewards, there are many better, more transparent options for you.

If you decide to open a basic Virtual Wallet® account with PNC Bank, the process is relatively straightforward.

You can do it online, over the phone, or in a local branch if one is nearby. Simply provide some basic information (name, address, Social Security number and the like), have a government-issued photo ID ready, and a way to make an opening deposit with your existing bank’s routing and account numbers, or with a debit or credit card.


Virtual Wallet® with Performance Spend

A low-interest-earning account for those who earn a higher income and want to use the Virtual Wallet® package.

The Virtual Wallet® with Performance Spend works exactly like the basic Virtual Wallet® accounts, albeit with some extra threshold levels for higher rewards.

  • Minimum opening deposit : $25
  • Interest rate : 0.01% APY on balances over $2,000 for your Spend account or $1 for your Reserve account. Up to 0.35% APY on balances on your Growth account if you meet certain qualifications (such as making at least five debit purchases per month).
  • Monthly account maintenance fee : $15
  • How to waive the account maintenance fee :
    1. Keep at least $2,000 in your Spend and/or Reserve accounts
    2. Have at least $15,000 in another PNC Bank account or loan
    3. Have at least $2,000 direct-deposited into your Spend account each month ($1,000 for military members).
  • ATM fees : No charge at PNC Bank ATMs. It’s $3 for every domestic non-PNC Bank ATM transaction, and $5 for every international non-PNC Bank ATMS.
  • ATM fee refunds : Two refunds per statement. However, ATM surcharges from the originating financial institution ATMs may not be refunded.
  • Overdraft fees : $36 per charge, up to four charges per day. $7 per day for each day the account remains overdrawn. Any overdraft fees will be refunded if the overdrafted amount is less than $5. You won’t be charged if you set up Overdraft Protection Transfer from your Reserve or Grow accounts.
  • Early closure fee : $25 if you close the account within 180 days of opening.

The rewards program is structured the same way as with the basic Virtual Wallet package. You’ll need to log into a portal to view and activate different rewards offers for purchases you make. When you’ve accumulated enough rewards, you can redeem them for an unknown amount of cash back or other rewards.

The Performance Spend also adds in a few extra rewards: You get up to two ATM fee refunds per month. You’ll also get discounts on check designs, an annual safe deposit box rental,`free cashier’s checks, and higher rates on certain CDs and IRA CDs You do have the potential to earn slightly higher (but still paltry) interest rates on your savings accounts.


Virtual Wallet® with Performance Select

A low-interest-earning account for high earners who want to take advantage of Virtual Wallet® features.

This Virtual Wallet® package is built to be used by high-income earners. After all, you do not want to be paying a $25 monthly account fee, especially when you can get a much better rates at another bank.

  • Minimum opening deposit : $25
  • Interest rate : 0.01% APY on balances over $2,000 for your Spend account or $1 for your Reserve account. Up to 1.00% APY on balances over $1 on your Growth account if you meet certain qualifications (such as making at least five debit purchases per month).
  • Monthly account maintenance fee : $25
  • How to waive the account maintenance fee :
    1. Keep at least $5,000 in your Spend and/or Reserve accounts
    2. Have at least $25,000 in another PNC Bank account or loan
    3. Have at least $5,000 direct-deposited into your account each month.
  • ATM fees : None for PNC Bank ATMS and non-PNC Bank ATMS.
  • ATM fee refunds : Up to $10 per month in non-PNC Bank surcharges (i.e., the fees the ATM owner tacks on).
  • Overdraft fees : $36 per charge, up to four charges per day. $7 per day for each day the account remains overdrawn. Any overdraft fees will be refunded if the overdrafted amount is less than $5. They will not charge you if you set up Overdraft Protection Transfer from your Reserve or Growth accounts.
  • Early closure fee : $25 if you close the account within 180 days of opening.

The Performance Select package comes with added bonus perks. In addition to all the perks from the Performance Spending package, you also will have fees waived for more obscure services, such as Stop Payment and ATM statements. You’ll also be eligible for savings on home equity lines of credit and personal lines of credit, and up to $10,000 in identity theft protection reimbursement.

Overall, though, we’re left feeling underwhelmed by the bonus perks that this account offers for all of the requirements.

Bonus: New checking account offer

PNC Bank is currently offering sign-up bonuses with the Virtual Wallet® account package. If you open a new account and meet the requirements, you could be eligible for a lucrative sign-up bonus.

The bonus amount and the requirements depend on which account tier you open.

For a basic-level Virtual Wallet account, you’ll need to set up at least $500 of direct deposits into the account and make at least 10 purchases with your debit card. If you do those things, you’ll earn a $50 sign-up bonus.

The next level up is the Performance Spend account. To get the $200 sign-up bonus for this account, you’ll need to set up $2,000 of direct deposits and also make 10 purchases with your debit card.

Finally, you can earn a $300 sign-up bonus by opening a Virtual Wallet package with the Performance Select level. To earn this hefty bonus, you’ll need to schedule a $5,000 direct deposit into your account and make 10 debit card purchases.

PNC checking accounts without Virtual Wallet®

Performance Select Checking

A basic interest-earning checking account for high-income earners who don’t need all the fancy Virtual Wallet® features.

The Virtual Wallet® account package is nice for people who want an all-inclusive money management experience. But what if you’re a high-income earner who just wants a simple, no-frills checking account?

That’s where the base Performance Select Checking account comes in. It has the same fees, reward program, requirements and interest-earning structure as the Virtual Wallet®’s Performance Select, just without the extra two Reserve and Growth savings accounts.

Signing up for the Performance Select checking account is easy and takes just a few minutes. You can go to a local branch if you’re near one, call or sign up online. You’ll need that photo ID, a way to fund your new account, and all the basic info, like Social Security number.


Performance checking

A basic interest-earning checking account for medium-income earners who don’t want Virtual Wallet® features.

PNC Bank’s Performance checking account is its lowest-requirement interest-earning checking account. But with an interest rate of 0.01% APY that only applies to balances over $2,000, the amount of money you’ll earn with this account will be peanuts.

Furthermore, if you don’t meet all the same requirements (keeping at least $2,000 in your account, having $2,000 of direct deposits, or having $15,000 in another PNC Bank account or loan) as the Virtual Wallet with Performance Spend, you’ll have to pay a $15 monthly account fee.

This account does come with the same reward structure and banking discounts as the Virtual Wallet® with Performance Spend account, however. If this sounds like the right account for you, you can easily sign up online, via phone or by visiting a local branch.


Standard checking

A basic-reward checking account for lower-income or retired consumers.

If you’re not interested in taking advantage of PNC Bank’s Virtual Wallet® money management features but still want a reward checking account without all the red tape, the Standard account might be for you.

This non-interest-earning account, which carries the same fee, reward, and requirement structure as the basic Virtual Wallet® account package, is easy to sign up for. All you need is a photo ID, basic personal information and a way to fund your account. You can sign up in just a few minutes online, over the phone or at a local branch.


PNC Savings Accounts

While you can save money with PNC Bank’s savings accounts, they’re not an effective way to earn interest. Their rates are well below the national average of around 0.20% APY and there are many hidden fees that can trip you up if you aren’t a model customer.

The “S” is for Savings account for children is an exception if you’re looking to teach your youngsters about money, however. With its neat interactive interface and “Sesame Street” characters, it can get any child excited about savings.

That doesn’t mean it’s the best tool for the job, though. There are many other savings accounts that offer better rates for both you and your children.

Read on to learn more about PNC’s savings account offerings.

Standard savings

Low interest rates for a fee-heavy savings account.

PNC Bank’s basic savings account does technically earn interest — but that’s about all we can say about it. Though national savings account rates average around 0.20% APY, the best you can hope for with this account is 0.10% APY—-and only if you have more than $2,500 in your account and qualify for relationship rates.

To do this, you can set up a direct deposit into another account in one of the following amounts:

  1. $500 to a Standard checking account
  2. $2,000 to a Performance checking account
  3. $5,000 to a Performance Select checking account

Alternatively, you can also qualify for the higher rates by making at least five purchases with your PNC Bank credit or debit card.

If you’re not able to meet these requirements for the higher relationship interest rates, you’ll only earn a measly 0.01% APY on your savings. That’s as low as you can go while still technically saying it does earn interest.

Furthermore, there are many hidden-fee traps with this account. For example, if you don’t meet another set of requirements to waive the monthly account fee, you’ll pay a $5 monthly account fee.

  • Minimum opening deposit : $25
  • Interest rate : 0.01% APY on balances over $1.00
  • Relationship interest rate : 0.05% APY on balances between $1.00 and $2,499.99. 0.10% APY on balances over $2,500.
  • Monthly account maintenance fee : $5
  • How to waive the account maintenance fee :
    1. Keep $300 in your savings account
    2. Be under age 18
    3. Transfer at least $25 from this account to an Auto Savings account
  • ATM fees : No charge at PNC Bank ATMs. $3 for every domestic non-PNC Bank ATM transaction, and $5 for every international non-PNC Bank ATMS.
  • ATM fee refunds : None
  • Overdraft fees : $36 per charge, up to four charges per day. $7 per day for each day the account remains overdrawn. Any overdraft fees will be refunded if the overdrafted amount is less than $5.
  • Early closure fee : $25 if closed within 180 days of opening
  • Regulation D violation fee : You get six free transactions per month, as per Federal Regulation D. After that, you’ll pay $15 per transaction.

At least the bank does make it easy to open an account if you decide you want to go this route. You can do it online, over the phone, or at a local branch. You’ll need just a few minutes of your time along with a photo ID, basic personal information and a way to fund your new account.

“S” is for Savings

Fun savings tools for children, but don’t expect to teach them about earning interest.

It can be tough to teach young ones about money, but this savings account can help in a few ways. Children can set savings goals for things like a new bike or a toy.

When money is deposited into the account, children are presented with a visual of three buckets that they can choose to put the money in:

  1. Saving (for later)
  2. Sharing (to be given to charity or other people)
  3. Spending (to be spent right away)

Even cooler is an interactive learning center where young savers can learn about basic money management from “Sesame Street” characters.

These features are great for teaching basic financial concepts, except for one thing: how compound interest works. This account earns a rock-bottom interest rate of 0.01% APY. Since your child probably isn’t going to be saving hundreds of thousands of dollars in this account, he or she won’t really be able to see compound interest in action.

  • Minimum opening deposit : $25
  • Interest rate : 0.01% APY on balances over $1
  • Monthly account maintenance fee : $5
  • How to waive the account maintenance fee :
    1. Be under age 18
    2. Keep at least $300 in this account
    3. Transfer at least $25 from this account to an Auto Savings account each month
  • ATM fees : No charge at PNC Bank ATMs. $3 for every domestic non-PNC Bank ATM transaction, and $5 for every international non-PNC Bank ATMS.
  • ATM fee refunds : None
  • Overdraft fees : $36 per charge, up to four charges per day. $7 per day for each day the account remains overdrawn. Any overdraft fees will be refunded if the overdrafted amount is less than $5.
  • Early closure fee : $25 if you close the account within 180 days of opening.

Luckily, this account is pretty easy to open. All you need is a photo ID for yourself (not your child), a way to fund the account, and your child’s personal information. It only takes a few minutes to complete an application, which you can do online, in person at a local branch or over the phone.

PNC CD Rates

PNC Bank offers a diverse set of CDs, which is great because it provides you with the most flexibility for your personal situation. Not everyone is able or willing to use a one-size-fits-all CD.

The rates offered for these CDs fall well short of national averages, however. If you’re looking to maximize the amount of return for your money, there are many better options.

Read on for more on PNC’s CD offerings:

Fixed-rate CDs

Large amounts of cash needed for below-average returns.

To get started with a PNC Bank Fixed Rate CD, you’ll need a deposit of at least $1,000. The bank will notify you and give you a 10-day grace period when your CD term is due to allow you to decide what to do with it (withdraw, or renew?). If you do nothing, the CD will automatically renew with the same term.

Although PNC Bank does allow CDs with a deposit of as little as $1, there’s a hidden catch: deposit amounts between $1 and $999.99 are only available for CDs that are being renewed — which means you can’t start out at this level with your first deposit amount.

Furthermore, the rates offered for their CDs are again very low.

For example, the average national rates for a 1-year and 5-year CD are 0.69% APY and 1.62% APY with a $1,000 deposit, respectively. But PNC Bank? They’re just 0.13% APY and 0.60% APY, respectively—less than half the national average.

Standard CD rates

 

$1.00 - $999.99

$1k - $9,999.99

$10k - $24,999.9

$25k - $99,999.99

$100k - $499,999.99

$500k +

1 month

0.04%

0.05%

0.05%

0.05%

0.05%

0.05%

3 months

0.04%

0.05%

0.06%

0.07%

0.08%

0.09%

6 months

0.04%

0.06%

0.08%

0.10%

0.12%

0.14%

12 months

0.04%

0.13%

0.15%

0.18%

0.20%

0.22%

18 months

0.04%

0.18%

0.25%

0.28%

0.30%

0.35%

24 months

0.04%

0.25%

0.30%

0.35%

0.38%

0.43%

36 months

0.04%

0.30%

0.35%

0.38%

0.40%

0.45%

48 months

0.04%

0.50%

0.55%

0.65%

0.70%

0.75%

60 months

0.04%

0.60%

0.70%

0.90%

0.95%

1.00%

84 months

0.04%

0.90%

0.95%

1.05%

1.15%

1.25%

120 months

0.04%

1.10%

1.20%

1.30%

1.40%

1.50%

Promotional rates

$1.00 - $999.99

$1k - $9,999.99

$10k - $24,999.99

$25k - $99,999.99

$100k - $499,999.99

$500k +

9 months

0.04%

0.06%

0.08%

0.10%

0.12%

0.15%

Rates as of Feb. 1, 2018

  • Minimum deposit amount : $1,000
  • Interest compounded : Monthly
  • How interest is paid : Deposited into your CD account monthly
  • Grace period : 10 days to decide whether to renew or withdraw the CD
  • Early withdrawal penalties : For CDs with terms between 3 months and one year, you’ll lose the amount of interest you would have earned. For CDs with terms over one year, you’ll lose six months’ worth of interest.

If you do decide to open a Fixed Rate CD, you’ll need a bit more information than with a standard checking or savings account. You’ll need current personal and employment information, and a photo ID. You can apply online, at a local branch, or over the phone.

Ready Access CDs

A better option to earn higher interest rates and skirt around the rules of PNC Bank’s savings account.

CDs can be tough to invest with. On one hand, they offer higher rates than a savings account. But, if something comes up and you need the cash, you generally can’t withdraw it without paying an early withdrawal fee that could wipe out your earnings.

You can withdraw the money from this CD at any time penalty-free after the account has been open for at least seven days. These CDs will also automatically renew, meaning they’re a great option to store your emergency savings to earn a higher interest rate. In a worst-case scenario, you won’t be able to pull the money out within a brief seven-day period each year without incurring an early withdrawal fee.

Otherwise, it’s a great way to skirt around the rules and fees of their savings account while still earning a higher rate.

Term

APY

Minimum Balance Amount

3 months

0.05%

$1,000

12 months

0.15%

$1,000

Rates as of Feb. 1, 2018

  • Minimum deposit amount : $1,000
  • Interest compounded : Monthly
  • How interest is paid : Deposited into your CD account monthly
  • Grace period : 10 days to decide whether to renew or withdraw the CD
  • Early withdrawal penalties : You will forfeit any interest earned.

You can open a Ready Access CD online, over the phone or in-person at a local branch. You’ll need a photo ID, employment and personal information, and a way to fund your new account.

Callable CDs

Higher rates that still underperform national averages with added fine print.

If the rates of PNC Bank’s Fixed Rate CDs left you feeling a bit underwhelmed, you do have an opportunity to earn a slightly higher rate with Callable CDs. Still these rates are around half of what national averages are for these CD term lengths.

The way it works is a little confusing. PNC Bank has the right to call back its CD if it decides the interest rate isn’t working in its favor. This just means that it’ll pay out what you’ve already earned instead of paying a higher interest rate for the full term length of the CD. It can only call back the CD after you’ve had it open for 12 months (for a 36-month Callable CD), or 24 months (for a 60-month Callable).

If this happens, you’ll get an advance notice of the actual “call date” of the CD. After this date, you’ll have 10 full days to decide whether you want to withdraw the cash or renew it into another CD. If you do nothing, the bank will automatically roll the funds over into a 12-month fixed-rate CD.

Term

APY

Minimum Balance Amount

36 months

0.50%

$10,000

60 months

1.10%

$10,000

Rates as of Feb. 1, 2018

  • Minimum deposit amount : $10,000
  • Interest compounded : Monthly
  • How interest is paid : Deposited into your CD account monthly
  • Grace period : 10 days to decide whether to renew or withdraw the CD
  • Early withdrawal penalties : Six months’ worth of interest.

Getting a Callable CD is relatively straightforward, but you’ll need a few pieces of information. You can open an account over the phone, in person at a local branch or online. You’ll need a photo ID, employment and personal information, and a way to fund your new CD.

Variable-rate CDs

Earn fair rates through a changing interest rate environment.

You’ve probably heard all the kerfuffle surrounding the Federal Reserve changing interest rates. That can cause banks to change their own CD rates, and if you’re locked into a long-term CD, that change might not be in your favor.

Instead, PNC Bank offers an option for these scenarios. You can choose from just one term length — 18 months — and the interest rate you earn will be tied to the current price of a three-month Treasury Bill. Right now, as of February 2018, that’s running at 1.44% APY.

After the 18-month period is up, your variable-rate CD will renew into another CD of the same type.

  • Minimum deposit amount: $1,000
  • Interest compounded: Monthly
  • How interest is paid: Deposited into your CD account monthly
  • Grace period: 10 days to decide whether to renew or withdraw the CD
  • Early withdrawal penalties: You’ll lose six months’ worth of interest.

To open a Variable Rate CD, you’ll need a few things. You’ll need to provide personal information and employment history, as well as a photo ID. You can apply in person at a local branch, over the phone or online.

Step-rate CDs

Frequent access to your cash with an unknown earning potential.

If you want more frequent access to your money but don’t want to commit to a Ready Access CD, then a step-rate CD might be right for you. This CD is available in 36-month term lengths, which are further subdivided into six six-month terms.

Every six months you’re given a 10-day period where you can withdraw your cash penalty-free if you wish. If you choose to leave it in the account, the interest rate will be bumped up a notch each time.

The downside of this CD is that the bank won’t tell you what the interest rates for each step are until you sign up for an account. So, it’ll be a surprise!

  • Minimum deposit amount : $2,500
  • Interest compounded : Monthly
  • How interest is paid : Deposited into your CD account monthly
  • Grace period : 10 days to decide whether to renew or withdraw the CD
  • Early withdrawal penalties : You’ll lose six months’ worth of interest.

To open a Step Rate CD, simply go online, call PNC Bank, or visit them in person if you live near a local branch. You’ll need to provide them with basic personal and employment information, and a photo ID.

PNC Bank Money Market Accounts

For most products, PNC Bank offers below-average rates. Its money market account is one exception — if you can meet the added requirements. Otherwise, you’ll earn measly rates and might actually lose money if you have to pay the monthly account fee.

The higher rates offered for customers who qualify are actually right on par with national averages. But, as with the rest of their products, you can still find better account rates and terms with other banks.

PNC Bank’s basic money market account isn’t anything to write home about on its own. But, if you can take advantage of the higher rates offered if you have a Performance Checking or Performance Select Checking account, you can actually earn decent returns on your savings.

To qualify for these higher interest rates, you’ll need to meet at least one of these other requirements in addition to having the extra checking account:

  1. Set up a monthly direct deposit amount ($2,000 to a Performance Checking account, or $5,000 to a Performance Select Checking account)
  2. Make at least five purchases a month with your PNC credit or debit card

Just be sure to watch out for the hidden fees, especially the monthly account maintenance fee. If you’re not able to keep $5,000 in your account, it’ll be a $12 fee each month.

  • Minimum opening deposit : $100
  • Maximum opening deposit : $10,000
  • Monthly account maintenance fee : $12
  • How to waive the account maintenance fee : Keep at least $5,000 in your account.
  • ATM fees : No charge at PNC Bank ATMs. $3 for every domestic non-PNC Bank ATM transaction, and $5 for every international non-PNC Bank ATMS.
  • ATM fee refunds : None
  • Overdraft fees : $36 per charge, up to four charges per day. $7 per day for each day the account remains overdrawn. Any overdraft fees will be refunded if the overdrafted amount is less than $5.
  • Early closure fee : $25 if closed within 180 days of opening
  • Regulation D violation fee : You get six free transactions per month, as per Federal Regulation D. After that, you’ll pay $15 per transaction.

Balance to earn interest

Standard APY

APY when linked to Performance Checking

APY when linked to Performance Select Checking

$1.00 - $9,999.99

0.03%

0.25%

0.60%

$10k - $24,999.99

0.09%

0.27%

0.60%

$25k - $49,999.99

0.11%

0.30%

0.70%

$50k - $99,999.99

0.13%

0.32%

0.80%

$100k - $249,999.99

0.15%

0.35%

0.85%

$250k - $499,999.99

0.15%

0.35%

0.85%

$500k - $999,999.99

0.17%

0.35%

1.00%

$1M and above

0.17%

0.35%

1.00%

Rates as of Feb. 1, 2018

To sign up for a PNC Bank Money Market account, you’ll need to apply either online, in person at a local branch, or over the phone. You’ll need a photo ID, and be able to provide bank account or credit card numbers to provide an opening deposit. Finally, you’ll also need to provide PNC Bank with basic personal information.

PNC IRA CDs

Unfortunately, PNC Bank falls short of the mark for Fixed Rate IRA CDs as well. The rates offered are measly compared with those of competitors, even when you look at the longest-running CDs with the highest deposit amounts. If you’re looking to grow your money, you can find better rates and terms for IRA CDs elsewhere.

Furthermore, there are fees to watch out for with this account. Unless you come to the table with a $2,000 minimum deposit, you’ll have to pay an annual account fee. If you ever want to transfer your money out of the bank, you’ll need to pay another fee. These fees could really eat into your already-tiny earnings.

Fixed-rate IRA CD account

Low rates for high-fee retirement savings.

This is one of the safest options around for growing your savings. PNC Bank offers multiple term lengths and rate tiers depending on how much money you want to invest and for how long.

Although it does offer IRA CDs in amounts from $1.00-$999.99, you actually can’t start your account with these. You can only renew existing IRA CDs in this amount, meaning that you’ll need to bring at least $1,000 to the table if you want to open an account.

  • Minimum opening deposit : $1,000
  • Annual custodian fee : $25
  • How to waive the annual custodian fee : Keep at least $2,000 in your account.
  • Interest compounded : Monthly
  • How interest is paid : Deposited into your CD account monthly
  • Transfer fee : $25 if transferring money to another PNC savings or checking account, or to another bank.
  • Grace period : 10 days to decide whether to renew or withdraw the CD
  • Early withdrawal penalties : For Fixed Rate IRAs with terms between three months and one year, you’ll lose the amount of interest you would have earned. For CDs with terms over one year, you’ll lose six months’ worth of interest.

Standard rates

 

$1.00 - $999.99

$1k - $9,999.99

$10k - $24,999.99

$25k - $99,999.99

$100k - $499,999.99

$500k +

6 months

0.04%

0.06%

0.08%

0.10%

0.12%

0.14%

12 months

0.04%

0.13%

0.15%

0.18%

0.20%

0.22%

18 months

0.04%

0.18%

0.25%

0.28%

0.30%

0.35%

24 months

0.04%

0.25%

0.30%

0.35%

0.38%

0.43%

36 months

0.04%

0.30%

0.35%

0.38%

0.40%

0.45%

48 months

0.04%

0.50%

0.55%

0.65%

0.70%

0.75%

60 months

0.04%

0.60%

0.70%

0.90%

0.95%

1.00%

84 months

0.04%

0.90%

0.95%

1.05%

1.15%

1.25%

120 months

0.04%

1.10%

1.20%

1.30%

1.40%

1.50%

Rates as of Feb. 1, 2018


Promotional rates

9-month fixed term

Fixed rate only

Fixed rate with Choice/Premium plan

Fixed Rate with Performance/Performance Select/VW Performance

$1.00 - $999.99

0.04%

0.24%

0.29%

$1k - $9,999.99

0.06%

0.26%

0.31%

$10k - $24,999.99

0.08%

0.28%

0.33%

$25k - $99,999.99

0.10%

0.30%

0.35%

$25k - $99,999.99

0.12%

0.32%

0.37%

$500k+

0.15%

0.35%

0.40%

Rates as of Feb. 1, 2018

If you’d like to open a fixed-rate IRA CD account with PNC Bank, you’ll need to block out about 15 minutes of time from your day. You can apply over the phone, online or in person at a local branch.

New IRA account offer

PNC Bank is offering a nice promotion when you sign up for a new IRA Account until Dec. 31, 2017. First, you’ll need to sign up to receive the sign-up bonus coupon. After that, you’ll need to call up PNC Bank or visit a local branch in-person to open your account. You cannot take advantage of this sign-up bonus by signing up for an account online.

You’ll also need a hefty deposit amount to be able to take advantage of this offer. You’ll earn the following sign-up bonus based on your deposit amount:

  • $50 sign-up bonus for a $20,000 deposit
  • $100 sign-up bonus for a $50,000 deposit
  • $200 sign-up bonus for a $100,000 deposit
  • $600 sign-up bonus for a $250,000 deposit
  • $1500 sign-up bonus for a $500,000 deposit

PNC Bank’s Student Virtual Wallet® Review

Great account package for young adults to learn money management skills.

PNC Bank offers all the functionality and perks of its regular Virtual Wallet® package (Spend, Reserve, and Growth accounts) with added bonuses for students. One of these great features is parental alerts, so parents can also see, along with students, when the account balance is low.

This account package also comes with helpful financial education. It provides in-person financial education seminars if you’re lucky enough to have a local branch on your campus.

  • Minimum opening deposit : $25
  • Interest rate : The Spend account does not earn interest. The Reserve and Growth accounts earn 0.01% APY. If you meet qualifications (such as making at least five debit transactions per month from your Spend account), you can earn up to 0.10% APY with your Grow account.
  • Monthly account maintenance fee : None if you provide proof that you’re actively enrolled in an educational institution. Status expires 6 years from when you open the account.
  • ATM fees : No charge at PNC Bank ATMs. $3 for every domestic non-PNC Bank ATM transaction, and $5 for every international non-PNC Bank ATMS.
  • ATM fee refunds : Two per month. ATM surcharges (i.e., the extra fee the ATM’s owner tacks on) are not refunded.
  • Overdraft fees : $36 per charge, up to four charges per day. $7 per day for each day the account remains overdrawn. Any overdraft fees will be refunded if the overdrafted amount is less than $5. They will not charge you if you set up Overdraft Protection Transfer from your Reserve or Grow accounts.
  • Overdraft fee courtesy pay : Your first overdraft fee within 12 months of account opening will be refunded.
  • Early closure fee : $25 if you close the account within 180 days of opening.
    Opening an account is the same as for the regular Virtual Wallet® accounts. In addition, you’ll need some way to prove that you actually are a student for this particular account.

Overall review of PNC Bank

We’ll be honest. PNC Bank really does offer some neat money management tools, especially with its Virtual Wallet® and “S” is for Savings® accounts. These accounts come with seamless tools that help you to simplify your hectic financial life.

But that doesn’t mean these are the only places you can get these tools. Other financial products such as Mint or FamZoo can also do just about everything that the Virtual Wallet® does. You’ll have to do research and piecemeal these tools together to create a custom package for you, but it is possible to replace all the functionality of the PNC offerings with other products.

Furthermore, PNC Bank offers rock-bottom rates and super-high fees for most of its banking products. Unless you’re a model customer, these fees have the potential to wipe out your meager earnings.

Instead, you can search for higher-earning, more transparent checking and savings accounts elsewhere and finding your own budgeting and savings tools to help you manage your money. That way, you’ll have the best of both worlds: custom ways to simplify your finances and, with luck and due diligence, the highest-earning accounts possible.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

TAGS:

Advertiser Disclosure

Earning Interest, Reviews, Strategies to Save

Review of Chase Bank’s CD Rates

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Review of Chase CD rates
iStock

 

Chase Bank is a consumer and commercial bank operated by JPMorgan Chase & Co., an international business firm dating back to 1799 that currently has $2.6 trillion in assets and operations worldwide. The bank, insured by the Federal Deposit Insurance Corporation (FDIC), has 5,100 branches and 16,000 ATMs across the United States. Its products include credit cards; checking, savings and CD accounts; and auto and home equity loans.

But Chase’s CDs are the subject of this article; they can be opened at a branch or completely online at term lengths ranging from one to 120 months.

How Chase CD rates compare with those of other banks

We compared Chase’s CD offerings with entries on our current list of the Best CD Rates. On the positive side, you’ll need less money to qualify for a Chase CD than you might at other banks. Chase allows customers to open their CDs with a minimum deposit of $1,000, which is slightly lower than qualifying amounts at some other institutions. Chase CDs are also open to applicants who do not bank with Chase, in contrast with the practices of some banks and credit unions that require member checking or savings accounts.

However, Chase CD rates are far from the most competitive rates out there. You can easily get find better APY rates at other institutions, particularly for one-year CDs. If you decide to go with Chase, look into so-called “relationship rates” with a higher APY. Relationship rates are offered to customers who link their CDs to a Chase personal checking account.

On a 12-month CD for under $10,000, for example, you’ll currently draw twice the percentage rate offered on the standard CD.

As mentioned, a minimum of $1,000 is required to open a Chase CD account, and interest is compounded daily. Depending on the term, your earned interest may be paid monthly, quarterly, semi-annually, annually — and at maturity.

Here’s an overview of the rates Chase currently offers on its CD products. All rates were reviewed at Depositaccounts.com, another LendingTree-owned company, and are current as of Feb. 1, 2018.

CD term

APY

Min. deposit amount

1-Month

0.01%

$1,000

2-Month

0.01%

$1,000

3-Month

0.01%

$1,000

6-Month

0.01%

$1,000

9-Month

0.01%

$1,000

12-Month

0.01%

$1,000

15-Month

0.01%

$1,000

18-Month

0.05%

$1,000

21-Month

0.05%

$1,000

24-Month

0.05%

$1,000

30-Month

0.05%

$1,000

36-Month

0.05%

$1,000

42-Month

0.10%

$1,000

48-Month

0.10%

$1,000

60-Month

0.25%

$1,000

84-Month

0.25%

$1,000

120-Month

0.70%

$1,000

Source: DepositAccounts.com, Feb. 1, 2018

Chase CD relationship rates

Chase CD relationship APY rates are extended to customers who have a linked Chase checking account. You can apply online and if you use a transfer from your account to open the CD, the account can be opened the same day. The minimum deposit is, again, $1,000.

CD term

$1,000 - $9,999

$10K - $99,999

$100k+

1-Month

0.02%

0.02%

0.02%

2-Month

0.02%

0.02%

0.02%

3-Month

0.02%

0.02%

0.02%

6-Month

0.02%

0.02%

0.02%

9-Month

0.02%

0.02%

0.02%

12-Month

0.02%

0.02%

0.05%

15-Month

0.05%

0.15%

0.20%

18-Month

0.15%

0.25%

0.30%

21-Month

0.15%

0.25%

0.30%

24-Month

0.15%

0.25%

0.30%

30-Month

0.15%

0.25%

0.30%

36-Month

0.40%

0.60%

0.65%

42-Month

0.40%

0.60%

0.65%

48-Month

0.50%

0.70%

0.75%

60-Month

0.60%

0.80%

0.85%

84-Month

0.60%

0.80%

0.85%

120-Month

1.16%

1.26%

1.30%

Source: DepositAccounts.com, Feb. 1, 2018

Here’s a sample comparison between the APY on standard and relationship CDs on new accounts. To calculate on earnings at maturity, we assumed an account balance of $5,000.

Chase standard CD APY

Earnings at maturity

Chase relationship CD

Earnings at maturity

12 months at 0.01%

$.50

12 months at 0.02%

$1.00

24 months at 0.05%

$5.00

24 months at 0.15%

$15.01

48 months at 0.10%

$20.03

48 months at 0.50%

$100.75

120 months at 0.70%

$361.23

120 months at 1.15%

$605.69

Important information about Chase CDs

Fees

There are no monthly service fees, however there are $15 fees for inbound domestic and international wire transfers (waived if from another Chase account) and outbound domestic wire transfer fees. Accounts can be opened online. Deposits of more than $100,000 must be opened at a Chase branch office.

Non-Chase customer access

You do not need to have a Chase checking or savings account to open a standard Chase CD account. You’ll need to provide a Social Security number, driver’s license and contact information. Deposits must be made from a checking or savings account through your existing bank.

Maturity date and grace period
Law requires banks to alert consumers before the maturation date on CDs. Chase considers the maturity date as the last day of the term. It offers a 10-day grace period on all CDs with terms 14 days or longer. During the grace period, you can withdraw the funds without penalty or roll over the account to another term.

Automatically renewable CDs versus single-maturity CDs

Account holders have the option of opening an automatically renewable or single-maturity CD account.

With an automatically renewable CD, the account renews on the maturity date for the same term as the original one, making the new maturity date the last day of the new term. The standard rate will apply unless the owner qualifies for a relationship CD.

The single-maturity CD does not automatically renew and earns no interest following the maturity date. You may want to see if Chase is offering any promotional rates during the 10-day grace period if you plan to invest in another Chase CD using a ladder strategy.

Earning interest on a Chase CD

Interest on Chase CDs begins to accrue on the first business day of deposit into your account and is calculated on a daily balance, 365 days a year. Paid or credited interest can be withdrawn during the term or at maturity without incurring penalties. For maturities of more than one year, interest will be paid at least annually, according to the bank. If the CD matures and automatically renews, the interest in the account is rolled over into the new principal.

Early-withdrawal penalties and fees
According to Chase, early-withdrawal penalties are deducted from your principal and do not exceed the total amount of earned interest. The penalty is 1 percent of the amount withdrawn if the term of the CD is less than 24 months. The early-withdrawal penalty is 2 percent for terms of 24 months or more.

Chase CD early-withdrawal penalties can be waived upon:

  • Death of a CD owner
  • Disability of a retirement CD owner
  • Retitling of a CD
  • A court ruling that the CD owner is incompetent

The bottom line:

Chase’s CD rates are likely best for customers who link the CD to their personal checking accounts because they can qualify for those juicier relationship rates. The rates improve for longer terms and larger deposit amounts. Chase’s online tools allow you to apply for relationship CDs and track your investments. The minimum amount to open a standard CD account ($1,000) is on par or slightly lower than those required by other institutions. Overall, the APY rates are not as good as you can get from some competing banks and credit unions.

LEARN MORE Secured

on Chase’s secure website

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Gabby Hyman
Gabby Hyman |

Gabby Hyman is a writer at MagnifyMoney. You can email Gabby here

TAGS: ,

Advertiser Disclosure

Earning Interest, Reviews, Strategies to Save

Review of Live Oak Bank’s Deposit Rates

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Review of Live Oak Bank
iStock

Chances are you haven’t heard of Live Oak Bank. After all, this lender, based mostly on the web, has only been around since 2008, and it mostly focuses on giving out small business loans to businesses in specific industries, such as veterinary practices or craft breweries.

That’s no reason to pass it up for your personal banking needs, however. In fact, this little gem of a bank has one of the best-kept secrets in the personal banking world: it has one of the highest savings account interest rates you’ll find from an online bank. (More on that below.) And, most of its other personal deposit accounts offer relatively high rates as well.

Let’s take a more in-depth look at its deposit accounts to see if they’re right for you.

How do Live Oak Bank’s savings accounts compare?

APY

Minimum Deposit

1.60%

Up to $5 million

(but only up to $250,000 is FDIC-insured)

Rates current as of Feb. 1, 2018.

When it comes to the best savings accounts with high interest rates, Live Oak Bank currently has the highest rate. This means that Live Oak Bank is lowering the bar and allowing anyone to take advantage of these high interest rates, no matter how much is in his or her pocket right now.

What else do I need to know about Live Oak Bank’s savings account?

Live Oak Bank wants you to use your savings account, and use it often, which is one reason why it has no monthly maintenance fee. If there is no activity on your account for 24 months and your balance is less than $10.01, Live Oak Bank will take the remainder of your balance as a Dormant Account Fee and close your account.

Getting money into a Live Oak Bank savings account from an external bank account can take a little bit of time depending on how you do it. If you request the money through Live Oak Bank’s online portal, the funds won’t be available for up to five or six business days. But if you opt instead to send the money to Live Oak Bank from your current bank, the money will be available as soon as it’s received. Your Live Oak Bank savings account will start earning interest as soon as the money posts to your account.

You can easily withdraw your money at any time via ACH transfer. Simply log into your Live Oak Bank savings account and electronically transfer it to whichever bank account you wish. It’ll be available in two to three business days.

You are limited to making just six transactions (deposits or withdrawals) per month with this savings account. That’s not a Live Oak Bank thing; that’s a federal regulation imposed upon savings accounts in the U.S. If you absolutely can’t wait until next month to make another deposit or withdrawal past your allotted six per month, you’ll be charged a $10 transaction fee for each additional action.

LEARN MORE Secured

on Live Oak Bank’s secure website

Member FDIC

How Live Oak Bank CD rates compare?

Live Oak Bank currently offers the highest CD rates.

This bank’s minimum deposit requirements also seem to be right on par with other bank’s minimum deposit requirements. The current best CDs out there have minimum deposit requirements both above and below Live Oak Bank’s $2,500 benchmark.

Term

APY

Minimum Deposit

6-month CD

1.65%

$2,500

1-year CD

2.10%

$2,500

18-month CD

2.30%

$2,500

2-year CD

2.35%

$2,500

3-year CD

2.40%

$2,500

4-year CD

2.45%

$2,500

5-year CD

2.55%

$2,500

Rates current as of Feb. 1, 2018

What else do I need to know about Live Oak Bank’s CDs?

Only U.S. citizens and permanent residents are eligible to open these accounts. It’s a relatively straightforward process to open a CD: Simply complete the forms online, provide any needed documentation (such as your current bank account details), and wait for an account approval. Once your account is open, you can transfer over your deposit, where it will be held for five days before officially launching your CD.

If you need to take out your deposit early, bad news: As with many CDs, you’ll face an early-withdrawal penalty at Live Oak Bank. If your original CD term was for six months, one year or 18 months, you’ll be charged 90 days’ worth of interest. If your original CD term was for longer than that, you’ll be charged a higher rate of 180 days’ worth of interest.

If you are able to resist the urge to withdraw your money early, congratulations! Your CD will automatically renew into a second CD with the same term length. However, don’t panic if that’s not what you want: You have up to 10 days after the CD has matured to withdraw your money penalty-free and park it in your own bank account (whether it’s with Live Oak Bank or not).

Overall review of Live Oak Bank

It’s easy to overlook Live Oak Bank for other larger, more established consumer banks like Ally or Discover Bank. But Live Oak has some of the best CD rates around, and the best savings account available on the market today.

Lest you be scared away by its smaller name, consider this: This tiny-but-growing bank is getting rave reviews from customers and employees alike. It carries an “A” health rating, and has a top-notch online banking portal. About the only thing missing is a checking account to let you seamlessly do all of your daily banking with this great company.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

TAGS: ,

Advertiser Disclosure

Reviews, Strategies to Save

BB&T CD Rates and Review

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Trying to find BB&T CD rates
Source: iStock

As you may know if you’ve done a search for BB&T CD rates, their website is not a helpful place to turn for information. Beyond a basic overview of their CDs on their website stating that they have CDs with terms ranging from seven days to five years, they do not give details on their current rates. BB&T did not respond to email and phone inquiries from MagnifyMoney asking why the bank does not publish its CD rates online. When we called their customer service number, a representative said BB&T’s CD rates change on a daily basis and said the best way to learn about CD rates is to call or visit a local branch.

So that’s what we did.

We called BB&T branches on February 1st. After conducting this research, it’s not surprising BB&T makes their CD rates hard to find — they’re terrible.

BB&T CD rates and products

BB&T offers CD terms ranging from as short as seven days to as long as five years. They have eight CD options, each with different investment goals.

7-day to 60-month

For short-term investments, BB&T offers CDs ranging from seven days to 60 months. These personal CDs offer a fixed rate of return along with the flexibility to focus on developing either a short- or long-term investment.

BB&T CD Term

APY

Minimum Deposit Amount

3 Months

0.03%

$1,000

6 Months

0.05%

$1,000

1 Year

0.10%

$1,000

18 Months

0.15%

$1,000

2 years

0.20%

$1,000

3 Years

0.40%

$1,000

4 Years

0.45%

$1,000

5 Years

0.50%

$1,000

Rates as of Feb. 1, 2018

Not only can you find better CD rates at other banks and credit unions for each of the terms BB&T offers, you can get those better rates with smaller minimum deposits. BB&T’s offerings are far from the best in every term length above — you can see some of the top options in our monthly roundup of the best CD rates.

With the seven-day to 60-month BB&T CDs, there are no penalty-free options for withdrawing your funds prior to the CD reaching maturity. The early withdrawal penalty is the lesser of $25 or 12 months of interest for longer-term CDs. So with smaller initial deposits, early withdrawal penalties will negate any interest you may have earned.

Can’t Lose

As the name of this CD implies, whether rates go up or down, you can’t lose. Well, actually, you can: The APY is so low, you’re almost certainly going to lose money to inflation.

At the 12-month mark of the CD’s term, you may make one withdrawal without paying any fees. So if the market rate is higher than what you’re currently getting, simply withdraw the money and reinvest at the higher rate.

If, however, the interest rate you’re receiving is better than what’s currently available, you also have the option of making a second deposit into the Can’t Lose CD, up to $10,000. This locks in the rate for the new investment amount for the remainder of the term. So whether rates go up or down, you’ll lock in the higher rate.

CD Term

APY

Minimum
Deposit Amount

Withdrawal
Penalties

30-month "Can't Lose"

0.25

$1,000

No penalty for one
withdrawal after 12 months

As of Feb. 1, 2018

Still, you can find many CDs with better APYs than BB&T’s Can’t Lose, whether you’re looking for a 12-month investment or longer.

Stepped Rate

Laddering is a way to stagger your CD investments so you’re able to take advantage of increasing rates. With the Stepped Rate option from BB&T, laddering is built into the CD product. The initial CD starts out at a lower rate and increases each year. For example:

Months

APY

12

0.30%

24

0.40%

36

0.55%

48

0.75%

As of Feb. 1, 2018

This product also allows you to make an additional deposit each year (up to $10,000). So if the interest rate you’re receiving is better than the market, you can invest more money into your existing CD to make a higher return. But if the current CD market is offering better rates than your existing CD, you can simply take advantage of that offer and still make a higher return.

In addition, you may make a withdrawal from what you initially deposited into your Stepped Rate CD after two years. So, again, if the market changes dramatically, you may withdraw your money with no penalty and reinvest in a better option.

Or you could create a CD ladder on your own, choosing CDs with better rates than BB&T’s — higher rates are certainly available.

Add-on

The Add-on CD option from BB&T offers a 12-month CD at 0.10% and an opening deposit of $100. You’ll need a BB&T checking account and a $50/month automatic deposit from your checking account into the CD. To get a personal account, you’ll just need to set up direct deposit or maintain a $1,500 balance.

CD Term

APY

Minimum
Deposit Amount

Withdrawal
Penalties

12-month Add-on

0.10%

$100

Greater of $25 or
6 months’ interest

As of Feb. 1, 2018

Home Saver

If you’re in the market for a new home, and you want to earn a little more interest on the money you’re saving, consider the Home Saver CD. Starting with as little as $100, you’ll be able to deposit money earmarked for your new home every month and earn 0.40% APY. With this CD, as long as you’re withdrawing the money for use toward the purchase of your new home, you won’t pay any penalties for the withdrawal. But you will need a BB&T checking account set up for a monthly deposit of $50 into your Home Saver CD.

CD Term

APY

Minimum
Deposit Amount

Withdrawal
Penalties

36-month Home Saver

0.40%

$100

No penalty for
home purchase

As of Feb. 1, 2018

College Saver

Similar to the Home Saver CD, the College Saver CD is meant for parents or students saving for college. It offers the benefit of starting at a higher APY (0.40%) with the flexibility of withdrawing the money up to four times per year to pay for the cost of attending school. As with the Home Saver, you’ll need to have a BB&T checking account with an automatic monthly deposit of $50. The College Saver offers terms of 36, 48, and 60 months.

CD Term

APY

Minimum
Deposit Amount

Withdrawal
Penalties

36-month College Saver

0.40%

$100

No penalty for
school costs

48-month College Saver

0.45%

$100

No penalty for
school costs

60-month College Saver

0.50%

$100

No penalty for
school costs

As of Feb. 1, 2018

Treasury

This CD offers the ability to make additional deposits of at least $100 into your CD at any time and one monthly withdrawal without penalty. The CD has a six-month term with a variable interest rate tied to the U.S. Treasury Bill — if the rate goes up, you’ll make more money, but if the rate declines, you’ll make less. Right now, rates start at 0.05% and adjust quarterly. Throughout 2016, Treasury Bill rates increased almost every month and have continued to rise in 2017, reaching 1.035% in August. So this is a great option if you have the $5,000 minimum deposit amount and want a short-term investment with the option to add or remove funds from the CD.

CDARS

CDARS stands for Certificate of Deposit Account Registry Service and protects your principal and interest by making sure your money is placed into multiple CDs across a network of banks to keep your CDs insured by the FDIC (maximum limit for each CD is $250,000).

Other things to know about BB&T CDs

Does BB&T allow customers to take advantage of rising rates once they’ve opened a CD?

BB&T has two CD options that allow you to take advantage of rising rates: the 30-month Can't Lose CD and the 48-month Stepped Rate CD. Both allow you to make a withdrawal before the CD comes to maturity in case rates increase (terms apply). They also allow additional deposits in case rates drop and you want to invest more at the existing rate of your CD. However, the current rates on those products are very low, negating the value of their flexibility.

About BB&T

BB&T (Branch Banking and Trust Co.) is a North Carolina-based bank with locations in 16 states and the District of Columbia, including Alabama, Florida, Georgia, Indiana, Kentucky, Maryland, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington and West Virginia.

BB&T offers a mobile app for both iOS and Android. While their website is easy enough to use, finding specific information, particularly about rates, is impossible. Their customer service number isn’t much help in that regard either, with most questions answered with a suggestion to visit a branch location. As a result, if you don’t live in an area with a branch, we don’t recommend using BB&T’s CDs. To find the BB&T branch closest to you, use their branch locator.

Pros and cons of CDs

A certificate of deposit (CD) may offer a higher return than you’ll get with your savings accounts, without the risk of loss that accompanies other investment options with higher return rates. The drawbacks associated with CDs are the inability to access your funds during the term of the investment without suffering a penalty and the risk of interest rates increasing while your money is locked into a CD for a specified term.

The bottom line: Are BB&T CDs right for you?

BB&T does offer some flexible deals to its customers, but in general, better CD rates can be found at both banks and credit unions with comparable terms. You can find them on our list of the best CD rates, which we update every month.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Ralph Miller
Ralph Miller |

Ralph Miller is a writer at MagnifyMoney. You can email Ralph here

TAGS: , ,

Advertiser Disclosure

Auto Loan, Reviews

The 6 Best Auto Loans for Buying a Used Car

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Source: iStock

Shopping for used cars can be tricky. Not only are you trying to avoid buying a lemon, you are looking for just the right model year, mileage, and price.

While all of these variables can make car shopping stressful, there are a couple of things you can do to simplify the process.

First, decide exactly how much you can afford to spend on a used car. Look at your budget and determine the absolute maximum your monthly payment can be. Also be aware of your total debt payments when compared to your income. Generally speaking, the total of all your debt payments - auto loans, student loans and mortgage - should not exceed 50% of your income. Make sure to factor your auto payment into the calculation.

Next, shop online for the best used-auto loan rates and get preapproved for the most attractive offer for which you are eligible. In order to strike the best deal possible on your used auto, it is best to walk into the dealership with financing already in hand.

Once you get to the dealership and find the car you want, negotiate the price of the car before telling the salesperson that you are approved for financing.

[Borrow Before You Buy a Car]

How To Apply

When shopping online for a used auto loan, the application process is very similar to that of a brick-and-mortar bank, but more streamlined. In general, be prepared with:

  • Your contact information: Name, address, phone number, email address
  • Vehicle information (if known - required for lenders that do not offer online preapproval) Make, model, mileage, VIN, dealership information.
  • Financial Information: employment information, gross income and expenses

The Best Auto Loans for Used Cars

LendingTree

With LendingTree, you can fill out one short online form and see real interest rates and approval information instantly. There are hundreds of lenders on LendingTree ready to compete for your business.

It is important to note that some lenders will do a hard pull on your credit and this is normal within the auto lending space. Keep in mind that multiple hard pulls will only count as one pull, so the best strategy is to have all your hard pulls done at one time.

Disclosure: LendingTree is the parent company of MagnifyMoney.

LendingTree

LEARN MORE  

LightStream

LightStream offers auto loans for used cars online with APRs ranging from 2.49% to 9.29%. It’s terms range from 24 to 84 months, it can finance up to $100,000, and it charges no origination fee. It does offer the ability to obtain preapproval online, before setting foot in a dealership, and if you are approved, you could receive funds into your bank account in as little as 1 business day. The funds can be used on any vehicle, from any dealership, with no restrictions concerning the year, make, model, or mileage of the vehicle you buy.

The 2.49% APR is dependent upon enrolling in AutoPay. If you choose not to enroll in AutoPay, your rate will be 0.50% higher, starting at 2.99%. While rates from LightStream start at 2.49%, they do depend upon the amount financed, and the financing term.

Because LightStream offers no telephone customer support, it offers a guarantee that you will love its service, from start to finish. If you aren’t completely satisfied with your experience, $100 will be deposited into your account, provided you fill out a questionnaire about your experience within 30 days of closing on your loan.


PenFed

Pentagon Federal (PenFed) Credit Union offers rates as low as 2.99% on used auto loans up to $100,000. It will finance terms of 36 to 72 months and charges no origination fee. Rates are dependent upon the amount financed, and the terms financed for, as shown in the chart below:

APR as low as*

Term

Loan Amount

Approx.
Loan Pmt.($20,000 Loan)

2.99% APR

36 months

$500 to $100,000

$581.54

3.24% APR

48 months

$7,500 to $100,000

$444.81

3.74% APR

60 months

$10,000 to $100,000

$365.99

4.24% APR

72 months

$15,000 to $100,000

$319.03

Rates as of February 1, 2018

Because PenFed is a credit union, you will need to join in order to apply for an auto loan through it, but anyone can join by making a one-time donation to Voices for America’s Troops ($14) or National Miliary Family Association ($15). Also important to note is that even though the loan is entirely online, PenFed does not offer online preapproval.

In order to apply, you’ll need the following information about the vehicle you will be purchasing:

  • Year
  • Make
  • Model
  • Mileage
  • VIN
  • Dealer or private party information

Once approved, the loan proceeds will go directly to the vehicle’s seller, rather than into your bank account.


Capital One

Capital One offers auto loans with rates as low as 3.24% for new vehicles and 3.94% for used vehicles. Their terms range from 36 to 72 months. It can finance up to $40,000, and has no origination fee. Capital One also offers online preapproval through its Auto Navigator. You can then use the funds at any of 12,000 approved dealers. Proceeds from the loan will be sent directly to the seller, rather than deposited into your bank account.

Rates are dependent upon the financing terms, and subject to credit approval, as seen in the chart below:

Financing Type

36 mos

48 mos

60 mos

72 mos

Purchase New Vehicle

APR as low as

3.24%

3.24%

3.24%

3.24%

Purchase Used Vehicle(Dealer)

APR as low as

3.94%

4.14%

4.14%

4.44%


NEFCU

NEFCU is a credit union offering auto loan for used cars with rates as low as 2.240% for used vehicles. It can finance up to $70,000 for 12 to 84 months with no origination fee. NEFCU does not offer online preapproval.

NEFCU offers a $300 coupon offer valid at select dealers on your new or used auto.   You can apply online, at a branch or by telephone by calling 1-800-99-NEFCU. Your rate will be determined by creditworthiness, loan amount, year of the vehicle, and loan term, as per the rate chart.

In order to apply for an auto loan from NEFCU, you must be a member. You are eligible for membership with NEFCU if you:

  • Live in Nassau and/or Suffolk Counties
  • Work in Nassau and/or Suffolk Counties
  • Worship in Nassau and/or Suffolk Counties
  • Attend school in Nassau and/or Suffolk Counties
  • Regularly conduct business in Nassau and/or Suffolk Counties
  • Family Sponsorship - An existing NEFCU member can sponsor in an immediate family member (mother/father, brother/sister, child, grandparent or grandchild) or any household member
  • Membership is not open to individuals who live, work, worship, attend school and do business exclusively in East Hampton, Southampton and Shelter Island.
  • If you have any questions on membership or eligibility, please contact us at 516.561.0030 or at 800.99.NEFCU outside LI/NYC or send an email to info@myNEFCU.org. 


Navy Federal Credit Union

Navy Federal Credit Union offers auto loans for used cars with rates as low as 2.29% with terms of 12 to 96 months. It can loan up to $100,000 and charges no origination fee. Navy Federal Credit Union does offer online preapproval.

Rates from Navy Federal Credit Union are determined by the car’s model year, as well as the loan term, as seen in the chart below:

Auto Loan Rates

As of: February 1, 2018, 1:00 AM EST

Loan Type

up to 36 mos.
APR as low as*

37-60 mos.
APR as low as*

61-72 mos.
APR as low as*

73-84 mos.
APR as low as*

85-96 mos.
APR as low as*

New Vehicle

2.29% 

2.69% 

2.99% 

4.39% 

5.29% 

Late Model Used Vehicle

2.29% 

2.99% 

3.79% 

Used Vehicle

3.99% 

4.29% 

5.59% 

In the rate chart, new vehicles are year models 2016, 2017, and 2018 with 7,499 miles or less, and the minimum loan amount is $30,000 for terms 85-96 months. Late model used vehicles are described as 2016, 2017, or 2018 models with 7,500 - 30,000 miles. Used vehicles are vehicles (up to 20 years old) with 30,001 miles or more.

In order to apply for an auto loan from Navy Federal Credit Union, you must become a member. You are eligible if you are Active Duty Army, Navy, Marines, Air Force, Coast Guard, Army or Air National Guard, a member of the Delayed Entry Program, a Department of Defense (DoD) Officer Candidate/ROTC, a DoD Reservist, or a retiree from any of these service branches. You are also eligible as a civilian if you are a DoD civilian employee, a U.S. government employee assigned to a DoD installation, a DoD contractor, or a DoD retiree. Finally, if you are the immediate family member of anyone eligible to join, you are also eligible to become a member.

After loan approval, the proceeds will be sent directly to the dealership, rather than deposited into your bank account.


 You Should Shop Around

Often concerns arise about the effect of shopping around for auto loans on your credit score. However, all inquiries within a 30-day period count as one inquiry on your credit report, so as long as your shop used auto loan rates within a 30-day period, those inquiries will only have a minimal impact on your credit score

Check other auto loan offers here.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Gretchen Lindow
Gretchen Lindow |

Gretchen Lindow is a writer at MagnifyMoney. You can email Gretchen at gretchen@magnifymoney.com

TAGS: ,

Advertiser Disclosure

Best of, Credit Cards, Reviews

Best Credit Cards for Small Businesses February 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities. This site may be compensated through a credit card partnership.

Note from the Editor: The information related to Chase Ink Business Preferred Card credit card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

 

As a small business owner you know you need to manage your cash flow and plan for financing. Credit cards can be an ideal way to meet those needs. But business owners need to be savvy cardholders. Small business credit cards come with unique risks that personally affect entrepreneurs.

 

In this roundup we cover the risks and advantages of small business credit cards. And we’ll show you what card fits your business needs.

 

Best Cards for Financing

If credit cards are an important source of financing and capital for your business, then you need to be a savvy borrower. Look for cards with compelling terms, and take the time to understand the fine print. Remember, the card may be in the business’s name, but you’re personally liable for the debt. Don’t take on more debt than you can handle.

Best 0% Financing

The Blue Business℠ Plus Credit Card from American Express

The Blue for BusinessSM Plus Credit Card from American Express

The Blue BusinessSM Plus Credit Card from American Express offers an introductory 0% for 15 months for financing. If you fail to pay back your purchases within 15 months, your interest rate will move to a variable rate 12.49%, 16.49% or 20.49%, depending on creditworthiness. You lose access to the introductory rate if you make a late payment.

The intro period is one of the most generous offers available. On top of generous financing, you earn rewards for spending.

The card offers perks including secondary car rental insurance, purchase protection, extended warranties, baggage insurance, trip accident insurance, and travel hotline help.

The Fine Print
  • Introductory rate: intro 0% for 15 months. You must pay on time, or you lose this rate.
  • APR: 12.49%, 16.49% or 20.49% Variable, depending on your creditworthiness. See Rates & Fees.
  • Annual fee: $0 annual fee
  • Rewards: 2X Membership Rewards® points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter.
  • Terms Apply.

The information related to The Blue BusinessSM Plus Credit Card from American Express has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

Low Interest Rates

If you and your business have excellent credit, the Bank of America Platinum Plus® for Business Mastercard® offers low ongoing financing. This is a great card for businesses with periodic short-term borrowing needs. Besides interest rates from 10.49% to 21.49% variable, it offers a seven-billing-cycle 0% APR promo rate and $200 statement credit if you spend $500 in the first 60 days.

Plus, the card offers travel accident insurance, secondary rental insurance, and automatic downloads to QuickBooks.

Remember, it’s not wise to use a small business credit card for long-term financing. Many credit unions will offer low rates on installment business loans.

The Fine Print
  • Introductory rate: 0% APR financing for seven billing cycles.
  • APR: 10.49%-21.49% variable APR, depending on your creditworthiness (after seven billing cycles)
  • Annual fee: No annual fee
  • Late fee: $19-$49 (depending on your balance)
  • Returned payment fee: $39
  • Cash advance fee: Greater of $10 or 4%
  • Cash advance APR: 25.49% variable
  • Sign-up bonus: $200 statement credit if you spend $500 in your first 60 days
  • Rewards: None
APPLY NOW Secured

on Bank Of America’s secure website

Cash Flow Management

The Plum Card® from American Express OPEN

The Plum Card® from American Express

Managing cash flow can be one of the most difficult problems facing small business owners. The Plum Card® from American Express makes cash flow easier. You can pay no interest if you take up to 60 days to pay the balance in full. You effectively get a 0% working capital line of credit if you can make your payments within 60 days. And if you are able to pay back your balance sooner - within 10 days - you get a 1.5% early pay discount.

This card is one of our favorites because (a) it has one of the most generous grace periods in the market (60 days), which can really help businesses that have customers who pay on a Net-60 basis. But it is also our favorite because (b) if you pay the balance in full and on time, you are still able to earn really good rewards (a 1.5% discount).

The Fine Print
  • On-time payment bonus: 1.5% discount if you pay balance within 10 days of statement closing
  • Annual fee: $0 for the first year, $250 thereafter
  • Terms Apply. See Rates & Fees.

The information related to The Plum Card® from American Express has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

 

Imperfect Credit

If you’re struggling to get approved for a small business credit card, the Capital One® Spark® Classic for Business offers an excellent option. The card has a high variable APR (24.24%) and mediocre rewards (1% cash back). But Capital One will approve business owners with just average credit.

This isn’t a great card for borrowing, even in the short term. However, the Capital One® Spark® Classic for Business will give you some working capital, and it will help your business build its credit. Just remember to pay your bill on time each month and to keep your credit use low.

The Capital One® Spark® Classic for Business also offers perks like purchase protection, free extended warranties, and travel and emergency assistance. These protections offer tremendous value to business owners.

The Fine Print
  • APR: 24.24% variable APR
  • Annual fee: No annual fee
  • Late fee: Up to $39
  • Cash advance fee: Greater of $10 or 3%
  • Cash advance APR: 24.24% variable
  • Rewards: 1% cash back on all purchases
APPLY NOW Secured

on Capital One’s secure website

Cards for Service Members

Former and current members of any branch of the military can join Navy Federal Credit Union and apply for these high-quality credit cards. The Visa and MasterCard have the same fees and conditions, but they offer different perks.

 

Navy Federal Credit Union’s Visa for Business credit card gives former service members access to low interest rates and rewards spending. This can be an excellent choice for service members with excellent credit who may have to borrow for short-term needs.

The card gives access to the Visa SavingsEdge program, which gives up to 15% off business purchases at qualifying retailers. However, the card doesn’t offer extended warranties or other protections, so it isn’t always the best choice.

The Fine Print
  • APR: 9.99%-18.0% variable
  • Annual fee: No annual fee
  • Late fee: Up to $20
  • Returned payment fee: Up to $20
  • Cash advance fee: $0 at Navy Federal Credit Union branch ATM, 50 cents domestic, $1 foreign
  • Cash advance APR: APR + 2%
  • Rewards: 1 point per dollar spent
APPLY NOW Secured

on Navy Federal Credit Union’s secure website

Navy Federal Credit Union’s MasterCard for Business credit card gives former service members access to low interest rates and rewards. The low interest rates make it a compelling choice for service members with short-term borrowing needs.

The card gives access to the MasterCard Easy Savings program, which gives automatic 10% rebates at a network of gas stations, auto repair shops, and shipping companies. This can lead to significant savings. The card also connects to the MasterCard Business Network, which makes expense reports easy. However, the card doesn’t offer extended warranties or other protections.

The Fine Print
  • APR: 9.99%-18.0% variable
  • Annual fee: No annual fee
  • Late fee: Up to $20
  • Returned payment fee: Up to $20
  • Cash advance fee: $0 at Navy Federal Credit Union branch ATM, 50 cents domestic, $1 foreign
  • Cash advance APR: APR + 2%
  • Rewards: 1 point per dollar spent
APPLY NOW Secured

on Navy Federal Credit Union’s secure website

Best Cards for Rewards

Many small business credit cards offer compelling rewards to cardholders. These rewards can allow you to reinvest in your business, or you can take them for personal use. If you choose to use a rewards credit card, try to avoid paying interest. Most of these cards are not good choices for short-term borrowing.

Travel Perks

If you’re a frequent traveler, these small business credit cards give you access to incredible perks. But be sure to read the fine print. These cards have a few gotchas attached.

 

Business Platinum Card from American Express

The Business Platinum® Card from American Express

The Business Platinum® Card from American Express is a charge card with a premium price tag ($450 per year) and premium benefits. Please note, it is not a credit card; you should not plan to borrow money with this card. These are the most significant perks:

  • Get 5X Membership Rewards® points on flights and prepaid hotels on amextravel.com.
  • Get 50% more Membership Rewards® points.1.5 Points per dollar on each eligible purchase of $5,000 or more. Up to 1 million additional points per calendar year. 1 point for every dollar you spend on eligible purchases.
  • Global Lounge Collection access, which includes access to Delta Sky Club lounges and American Express Centurion lounges
  • $200 airline fee credit (for checked bags, inflight refreshment, etc.)
  • One free Global Entry or TSA Pre-check application fee (allows you to expedite security at select airports and U.S. Customs)
  • 10 free passes per year to inflight Gogo Wi-Fi and unlimited Boingo (land-based Wi-Fi) access
  • Starwood Preferred Guest Gold Elite Status, which also gets you Marriott Rewards Gold status for room upgrades and free breakfast. It also gets you access to the Fine Hotels and Resorts Program (perks like in-room WiFi, complimentary breakfast, and other hotel perks at participating luxury hotels).
THE FINE PRINT
  • Annual fee: $450
  • Rewards: Earn Membership Rewards® points
  • Terms Apply. See Rates & Fees.

The information related to The Business Platinum® Card from American Express has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

As a business owner, little incidentals can add up in a big way. The Chase Ink Business Preferred Card mitigates these costs by providing high-value insurance protection to you and your employees. Not only will you earn rewards (outlined in the fine print), you’ll enjoy these perks, too.

  • Trip Cancellation/Trip Interruption Insurance: If your trip is canceled or cut short by sickness, severe weather, or other covered situations, you can be reimbursed up to $5,000 per trip for your pre-paid, non-refundable travel expenses, including passenger fares, tours, and hotels.
  • Trip Delay Reimbursement: If your common carrier travel is delayed more than 12 hours or requires an overnight stay, you and your family are covered for unreimbursed expenses, such as meals and lodging, up to $500 per ticket.
  • Travel Accident Insurance: When you pay for your air, bus, train, or cruise transportation with your card, you are eligible to receive accidental death or dismemberment coverage of up to $500,000.
  • Auto Rental Collision Damage Waiver: Decline the rental company's collision insurance and charge the entire rental cost to your card. Coverage is primary when renting for business purposes and provides reimbursement up to the actual cash value of the vehicle for theft and collision damage for most cars in the U.S. and abroad.
  • Baggage Delay Insurance: You are reimbursed for essential purchases like toiletries and clothing for baggage delays over six hours by passenger carrier up to $100 a day for five days.
  • Lost Luggage Reimbursement: If you or an immediate family member check or carry on luggage that is damaged or lost by the carrier, you're covered up to $3,000 per passenger.
  • Extended Warranty Protection: This warranty extends the time period of the U.S. manufacturer's warranty by an additional year on eligible warranties of three years or less.
  • Cellphone Protection: Get up to $600 per claim in cellphone protection against covered theft or damage for you and your employees listed on your monthly cellphone bill when you pay it with your Chase Ink Business Preferred Credit Card. There is a maximum of three claims in a 12-month period with a $100 deductible per claim.
The Fine Print
  • APR: 16.99%-21.99% variable
  • Annual fee: $95 per year
  • Late fee: $15-$39, depending on balance
  • Returned payment fee: $39
  • Cash advance fee: Greater of $15 or 5% of transaction
  • Cash advance APR: 25.99% variable
  • Sign-up bonus: 80,000 points when you spend $5,000 in the first three months
  • Rewards: 1 point per dollar spent, 3 points per dollar spent on travel, shipping purchases, internet, cable or phone services, or online advertising (social media or search engines)
  • Bonus: Points worth 25% more when you redeem through Chase Ultimate Rewards (Chase’s travel website)

Big Introductory Bonuses

Business owners who know they’ll spend a lot in a short period of time should take note of these cards. These bonuses provide excellent value if you can meet the spending requirements. But be wary: these cards have high interest rates. You won’t come out ahead if you end up financing a big purchase with these cards.

The Business Platinum Card offers excellent travel perks, but it offers an unparalleled Welcome Offer, too. Right now, you can earn 50,000 Membership Rewards® points after you spend $10,000 within three months of card membership. You’ll also earn 25,000 more points after spending an additional $10,000 within your first three months (See Rates & Fees).

If you plan to spend $20,000 or more in the next three months, this bonus is worth the highest value when redeemed for travel rewards. Depending on which option you choose, this bonus may offset annual fees. You need to churn through a lot of money to meet the spending minimums, but this is a lucrative bonus.

Click here to see details including perks and the fine print.

The Chase Ink Business Preferred Card offers ideal perks for frequent travelers, but right now you can get a great sign-up bonus, too. By spending $5,000 in three months, you’ll earn 80,000 points. This bonus is worth $1,000 if you spend your points through Chase Ultimate Rewards for travel or $800 if you redeem for cash back. You can also transfer the points to airline partners like United and Virgin Atlantic and hotel partners like Marriott and Hyatt.

In addition to the lucrative bonus, you can earn everyday spending rewards (including 3 points per dollar spent in certain categories) and valuable trip insurance.

Click here to see details including perks and the fine print.

Cash Back Rewards

Every business owner can benefit from more cash in their pocket. These cards give you the best cash back offers for everyday spending. You can find better rewards if you use multiple cards, but these have excellent rewards for those who don’t want to mess around with multiple cards. Plus, these cards have excellent protections, too. But be careful when you finance with these cards; they don’t offer great terms for borrowing.

 

The Capital One® Spark® Cash for Business offers unlimited 2% cash back on all purchases, and it is free for the first year. Plus, if you spend more than $4,500 in the first three months of holding the card, you get a $500 cash bonus. After the first year, you’ll pay $59 to hold the card. After the first year, if you spent more than $3,000 per year, it’s worth it.

The Capital One® Spark® Cash for Business also offers valuable protective features like purchase protection, free extended warranties, primary auto rental collision coverage, and more. Overall, the Capital One® Spark® Cash for Business gives straightforward rewards to business owners with excellent credit.

The Fine Print
  • APR: 18.24% variable APR
  • Penalty APR: 30.65% (applied if you make a late payment)
  • Annual fee: Free for the first year, $59 per year afterward
  • Late fee: Up to $39
  • Cash advance fee: Greater of $10 or 3% of transaction
  • Cash advance APR: 24.24% variable
  • Sign-up bonus: $500 cash bonus when you spend $4,500 in the first three months
  • Rewards: 2% cash back on all spending
APPLY NOW Secured

on Capital One’s secure website

The Capital One® Spark® Cash Select for Business offers a rare combination of friendly financing terms and rewards. You’ll earn an unlimited 1.5% cash back rewards on all purchases, and you’ll receive a $200 sign-up bonus if you spend $3,000 or more in your first three months.

On top of that, you’ll have a 0% APR financing rate for nine months, and an APR as low as 14.24 - 22.24% variable afterward.

This isn’t the most lucrative rewards card, but you won’t pay an annual fee. This makes it a great card for businesses that don’t spend as much on a credit card.

The Fine Print
  • Promo APR: 0% for nine months
  • APR: 14.24%-22.24% variable, depending on your creditworthiness
  • Penalty APR: 30.65% variable (applied if you make a late payment)
  • Annual fee: $0
  • Late fee: Up to $39
  • Cash advance fee: Greater of $10 or 3% of transaction
  • Cash advance APR: 24.24% variable
  • Sign-up bonus: $200 cash bonus when you spend $3,000 in the first three months
  • Rewards: 1.5% cash back on all spending
APPLY NOW Secured

on Capital One’s secure website

Best Category Bonuses

If you and your employees spend a lot of money in a limited number of categories, you might want to consider a rewards card with heavy bonuses in those categories. These cards offer at least 3 points for every dollar you spend in a given category. That’s the equivalent of a 3% reward.

Remember, rewards cards aren’t usually a good choice for financing purchases. Look to pay off these cards every month.

Online Advertising

Businesses that regularly advertise on social media networks (Facebook, Twitter, etc.) or via search engines (Google, Bing) can earn impressive rewards on their marketing spending. These are the best cards for heavy online advertisers.

 

You’ll earn 3 points for every dollar you spend on online advertising. In addition, you’ll be eligible for travel perks, sign-up bonuses, and more.Click here to see details including perks and the fine print.

The Business Gold Rewards Card from American Express OPEN

The Business Gold Rewards Card from American Express OPEN

The American Express Business Gold Rewards Card allows you to choose to earn 3 points per dollar spent on any one of the following categories: airfare purchased directly from airlines, U.S. advertising in select media, U.S. gas stations, U.S. shipping, or U.S. computer hardware, software, and cloud computing purchases made directly from select providers. You’ll earn 2 points per dollar on the four remaining categories.

All other spending earns 1 point per dollar you spend.

As a Welcome Offer, you’ll earn 50,000 Membership Rewards® points after you spend $5,000 in qualifying purchases on the Card within your first 3 months of Card membership. In addition to the rewards, you get trip accident insurance, extended warranties, and purchase protection.

Since the Business Gold Rewards Card is a charge card, you shouldn’t plan to borrow with the card. But the rewards for online advertisers are excellent. Just watch out for the $175 annual fee that kicks in after the first year.

The Fine Print
  • Annual fee: $0 introductory annual fee for the first year,
    then $175
  • Rewards: 1 point per dollar spent
  • Bonus rewards: 3 points in one category (pick between airfare purchased directly from airlines, U.S. advertising in select media, U.S. gas stations, U.S. shipping, or U.S. computer hardware, software, and cloud computing purchases made directly from select providers).
  • 2 points rewards on remaining four categories.
  • Terms Apply. See Rates & Fees.

The information related to The Business Gold Rewards Card from American Express credit card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

Dining and Travel

Dining and travel cost a lot, but these cards offer enticing rewards. The cards we recommend offer more than 3% cash back on restaurant spending, travel, or both. Plus, they have other compelling perks. But most of these cards aren’t great for borrowing, so check the fine print.

 

Looking to thin down your wallet? A Sam’s Club Business MasterCard, doubles as your membership card. But it’s not just for wholesale shopping. Spending on the Sam’s Club Business MasterCard gives you the opportunity to earn 3% cash back rewards on all restaurant spending worldwide. It also gives 5% cash back rewards on gas (except when purchased at other wholesalers) and 1% on all other spending.

Road warriors and frequent business entertainers will love this card. Plus, the $45 statement credit (if you spend $100 the day you open it) pays for your annual Sam’s Club membership.

The Fine Print
  • APR: 15.90%-23.90% (assigned upon aproval)
  • Penalty APR: 29.99% (applied if you make a late payment)
  • Annual fee: $0 (requires $45 Sam’s Club membership)
  • Late fee: Up to $39.99
  • Cash advance fee: Greater of $5 or 3% of transaction
  • Cash advance APR: 20.90%-26.90%
  • Sign-up bonus: $45 statement credit when you spend $45 on a single-receipt purchase the same day you open your account.
  • Rewards: 1% cash back on all spending. Maximum of $5,000 back in a given year.
  • Bonus rewards: 3% on dining and travel expenses. 5% on gas (up to $6,000 in gas purchases). Gas cannot be purchased from other wholesale clubs.
APPLY NOW Secured

on Sam's Club’s secure website

If you prefer Costco to Sam’s Club, the Costco Anywhere Visa® Card by Citi offers similar terms. Their 4-3-2-1 program includes 4% on eligible gas purchases for the first $7,000 per year and then 1% thereafter, 3% cash back on restaurants and eligible travel purchases, 2% on Costco and Costco.com purchases, and 1% on all other purchases.

While the rewards are sweet, the terms can be expensive. This is not a good card for borrowing, so be sure to pay it off each month.

The Fine Print
  • APR: 16.49% variable
  • Penalty APR: up to 29.99% variable (applied if you make a late payment)
  • Annual fee: $0 with your paid Costco Membership
  • Late fee: Up to $37
  • Returned payment fee: Up to $37
  • Cash advance fee: Either $10 or 5% of the amount of each cash advance, whichever is greater
  • Cash advance APR: 26.49% variable
  • Bonus rewards: 4% on eligible gas for the first $7,000 per year then 1% thereafter (Gas cannot be purchased from other wholesale clubs). 3% cash back at restaurants and eligible travel purchases. 2% rewards on all purchases from Costco and Costco.com, and 1% cash back on all other purchases.
APPLY NOW Secured

on Citibank’s secure website

If you’re a frequent business traveller, Chase Ink offers the best rewards. You earn 3 points for every dollar you spend on travel, but you get a travel bonus. Every point is worth 1.25 points when you book through Chase Ultimate Rewards.

Travel perks also include trip insurance, auto rental collision damage waivers (this is primary coverage), and more.

Click here to see details including perks and the fine print.

Gas

 

As a small business owner, you know that driving can be an economical choice, but you can also earn rewards for all those miles on the road. Sam’s Club Business MasterCard gives 5% cash back rewards on gas (except when purchased at other wholesalers), and 1% on all other spending.

Even if you don’t frequent Sam’s Club, this is the best category for rewards for gas purchases.

Click here to see details including perks and the fine print.

Learn More

Risks of Using Small Business Credit Cards

Many business owners see credit cards as an easy solution to their capital needs. But small business credit cards have unique risks. Savvy entrepreneurs will consider the risks before opening a new line of credit. These are the most important considerations.

 

1. Personal Liability

As a small business owner, you’re personally liable for credit card debt. Business bankruptcy won’t protect you. Whether your business succeeds or fails, you have to pay back the debt.

 

The only way to get rid of small business credit card debt is to declare personal bankruptcy. Bankruptcy destroys your credit history for a few years, and it stays on your report for 7-10 years.

 

Don’t treat a credit card like venture capital. It’s not. You need to repay it.

 

2. Credit Bureau Reporting

Small business cards don’t report to the credit bureaus the same way personal cards do. Depending on which card you choose, if you pay your credit card on time, you may not see any information on your personal report. For most business owners, that is a good thing. It will keep your personal credit utilization low.

 

However, an unpaid bill will show up on your personal credit report. A bill that goes unpaid for 60 days will generally appear on your personal credit report. Some banks offer more generous reporting and some less. You can speak with a banker to determine your bank's reporting standards. Still, your personal credit score can take a hit at the same time that your business credit runs afoul.

 

When you take out a business credit card, put precautions in place to protect yourself. You can limit employee spending, and remove authorized users. You can also set up automatic payments each month.

 

3. Not Protected by the Credit CARD Act

In 2009, Congress passed the Credit CARD Act. The act curtailed predatory lending behaviors, including raising interest rates on existing balances. It also required credit cards to be more transparent about rates and fees.

 

This act does not apply to business credit cards. With a small business card, banks can raise the interest rate on your existing balance at any time. A higher interest rate means a bigger minimum payment and a longer time to pay off your debt. If you’re using your small business credit card to finance something, you could be at risk.

 

Still, many banks will not raise your rate if you have an excellent history of on-time payments. It is simply a risk to understand.

 

Another risk related to the Credit CARD Act is the possibility of double-cycle billing. Business credit cards do not require an interest accrual grace period. This means you may begin accruing interest on purchases right away. We only recommend cards that have a grace period of at least 23 days built in. If you choose a different card, be sure to check for this in the rates and fees schedule.

 

4. Employee Risk

Small business credit cards make it easy to watch employee spending. Still, they pose serious risks. You’re personally liable for any employee spending on a credit card. If you wouldn’t trust an employee with your wallet, don’t trust them with a company card. Employees can rack up debt and leave the company. That leaves you with a bill and no recourse to get the money back.

 

The Best Ways Use Small Business Credit Cards

Once you understand the risks of small business credit cards, you can also understand their best uses. Over 65% of small businesses use credit cards on a regular basis. Some use them for rewards, and some for financing. In fact, close to 10% of all small business financing comes from credit cards.

Here are some of the best ways to use a small business credit card.

 

1. Earning Rewards and Protection

If you pay your small business credit card in full each month, you can earn substantial rewards. Many business credit cards offer perks, including cash back, travel rewards, extended warranties, trip insurance, and more. As a business owner, you can reinvest the rewards into your business or take them for personal use.

 

2. Managing Cash Flow

Cash flow problems destroy small businesses, but credit cards provide short-term working capital. If you have a sales cycle that lasts 30 days or less, a credit card can fund inventory purchases. By the time your bill comes due, you'll have money to pay it off. If you follow this practice, you’ll pay no interest, and you’ll manage your cash flow.

 

Credit cards can simplify employee monitoring, too. Most business credit cards allow you to place individual restrictions on employee use. That means you can limit how much and where employees can use company cards. But your employees may manage to misuse the cards. If they do, you will be stuck with the bill.

 

3. Building Business Credit

Businesses have credit reports just like people. Business credit cards can help you build your score. To build your business credit, hold the card under your employer identification number (EIN).

 

When your EIN establishes a record of paying its bills on time, it makes your business creditworthy. That means you’ll have an easier time finding long-term loans at great rates.

 

63% of all small businesses carry debt. Having a lower interest rate on that debt could make the difference between success and failure. This means every small business should take their credit history seriously from the outset. Small business credit cards may allow you to build that history without paying interest or fees.

 

4. Short-Term Borrowing

Small business credit cards have high interest rates, but they can work for short-term borrowing. If you know that you’ll only carry debt for a few months, you may want to finance something with a credit card.

 

Credit cards do not have origination fees or prepayment penalties. Sometimes this means that they offer the best terms for short-term borrowing. Just be careful when you borrow, and pay it back quickly. High interest debt compounds over time.

 

If possible, borrow on a card with a 0% introductory offer. Remember, failing to pay off 0% interest purchases may result in back interest. Be sure you understand the risks before you borrow.

 

The Worst Ways to Use Small Business Credit Cards

Small business credit cards aren’t always the best tool to get the job done. These are a few times when you should avoid using credit cards.

1. Personal Expenses

Bad accounting sinks many entrepreneurs. Always keep your personal spending off of your business credit cards. This will simplify bookkeeping, and it will keep your business credit utilization low. If you need to borrow for personal expenses, look for a low-interest credit card instead.

 

2. Long-Term Financing

Due to the high interest rates, most businesses should not finance long-term commitments using credit cards. Instead, consider an installment loan from a local credit union or a bank.

 

Applying for an installment loan can be a pain, but the lower interest rate will be worth it in the long run. Keep money in your pocket and avoid small business credit cards for long-term financing.

 

3. Cash Advances

Cash advances are the most expensive way to use a credit card. Banks begin charging interest right away, and the advance has a higher interest rate. Cash advances also have high fees of up to 10% of the amount you withdraw.

 

If you need cash, withdraw it from your business checking account instead, or take out a traditional loan.

 

4. Financing a Failing Business

Do not use credit cards to help a failing business limp along. Too many people will not give up on their idea even when the execution doesn’t work out. Credit card debt will bury a failing company and erode your personal wealth.

 

Remember, negative credit behavior will show up on your personal credit report. Plus, courts hold you liable for all credit card debt your business incurs. Use an objective lens to decide whether you need to shut down your business.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Hannah Rounds
Hannah Rounds |

Hannah Rounds is a writer at MagnifyMoney. You can email Hannah at hannah@magnifymoney.com

TAGS: ,

Advertiser Disclosure

Best of, Reviews

10 Best NO ANNUAL FEE Rewards Credit Cards of February 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities. This site may be compensated through a credit card partnership.

There are an abundance of no fee rewards credit cards available, so how do you best determine which one to keep in your wallet? Most earn a measly 1% on your spending, while others have no rewards at all. To help, we’ve dug deep into our database of thousands of rewards cards to find the very best no annual fee rewards credit cards of 2017 for each category.

While you might find rewards credit cards with an annual fee can give you the best rewards, we're sticking to no fee cards that are available even if you don't have truly excellent credit (good credit should be fine for most of these).

The first cards we list here offer unlimited double rewards on everything you purchase, while the remaining offer 3% or better rewards on spending in popular categories so you can mix and match to maximize your rewards, or they offer the chance for better earning if you use your rewards for travel.

1. Double Rewards on Everything, NO FEE - Citi® Double Cash Card

Citi<sup>®</sup> Double Cash Card – 18 month BT offer

Annual fee

$0*

Cashback Rate

1% when you buy, 1% when you pay

Regular Purchase APR

14.74%-24.74%

Variable

APPLY NOW Secured

on Citibank’s secure website

Citi offers you rewards twice. First, you get 1% cash back when you make a purchase. Then, you get another 1% cash back as you pay it off. All with no annual fee and no spending cap. This lets you earn rewards twice as good as standard reward cards. Read our review for more details on the Citi® Double Cash Card.

If you like to maximize things and want to earn more rewards in special spending categories, consider pairing this with one of the no fee cards we list below.

2. Honorable Mention: 2% Fidelity Rewards Visa Signature, NO FEE

Fidelity<sup>®</sup> Rewards Visa Signature<sup>®</sup> Card

Annual fee

$0

Cashback Rate

2% on all spend

Regular Purchase APR

15.24%

Variable

APPLY NOW Secured

on Fidelity’s secure website

Fidelity provides no annual fee 2% cash rewards on purchases if you deposit the cash you earn into a Fidelity account. But you don't need to have any stocks or investments to have an account. Fidelity has no fee cash accounts where you can deposit your rewards, then withdrawal when you're ready to spend. Be aware this card is designed for people with excellent credit, while the Citi® Double Cash Card might be easier to get.

Both cards offer you the flexibility to earn double rewards on anything you purchase; so either one of these is a nice addition to a rewards strategy. The advantage of the Fidelity card over the Citi® Double Cash Card is that its foreign transaction fees are just 1% versus 3% for the Citi® Double Cash Card. But setting up the Fidelity card and rewards is more cumbersome than the dead simple Citi® Double Cash Card. Read our review of the Fidelity Rewards Visa Signature card.

If you want to earn more than 2% rewards here's a rundown of the best no fee rewards credit cards that earn 3% or more in the most popular categories. You can click on each category for our take and details:

And if you're interested in traveling, here are the best no fee rewards credit card deals:

If you like to dig, we also have a complete (and long) list of cards that earn more than 3% on purchases in many more special categories, including cards with an annual fee.

3. Restaurant Spending: Uber Visa Card - 4% Rewards, NO FEE

Uber Visa Card

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

4% back on dining, 3% back on hotel and airfare, 2% back for online purchases, and 1% on everything else

Regular Purchase APR

16.24%-24.99%

variable

If you frequently dine out, the Uber Visa card offers a great 4% back on dining purchases which includes restaurants, takeout, bars and UberEATS. You also get 3% back on hotel and airfare, including vacation home rentals; 2% back for Uber, online shopping, video and music streaming services; and 1% on everything else. To learn more about the Uber Visa card, check out our review.

4. Travel Spending: AAA Member Rewards Visa Signature® Card - 3% Rewards, NO FEE

AAA Member Rewards Visa Signature® Card

Annual fee

None

Rewards

3 points for eligible travel & AAA purchases, 2 points on gas, grocery store, and drugstore purchases, and 1 point per $1 for all other purchases

Regular Purchase APR

14.24%-24.24%

Variable

No need to be an AAA member to take advantage of this rewards card. You earn points when you shop at travel merchants including airlines, car rental agencies, hotels, cruise lines and travel agencies. Along with the 3 points for eligible travel & AAA purchases, you earn 2 points on gas, grocery store, and drugstore purchases, and 1 point per $1 for all other purchases. Learn about the  AAA Member Rewards Visa Signature® Card here.

5. Gas Spending: Fort Knox Credit Union Visa Platinum - 5% Rewards

Fort Knox Federal Credit Union Visa<sup>®</sup> Platinum Card

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

5% back on all gas station spending, 1% on all other purchases

Regular Purchase APR

10.25%-15.25%

Variable

APPLY NOW Secured

on Fort Knox Federal’s secure website

Spend a lot of cash at the pump? The Fort Knox Credit Union Visa Platinum offers 5% cash back for gas. On all other retail purchases, you get 1% cash back. Anyone can join the Fort Knox Credit Union by becoming a member of the American Consumer Council for $5.

Another option to consider is the NRA Complete Rewards® Visa® Card which also offers unlimited 5% cash back on gas purchases. You do not need to be an NRA member to apply.

6. Supermarket Shopping: Blue Cash Everyday® Card from American Express - 3% Rewards

Blue Cash Everyday® Card from American Express

Annual fee

$0

Cashback Rate

3% at U.S. supermarkets, on up to $6,000 per year in purchases (then 1%), 2% at U.S. gas stations & select U.S. department stores, 1% on other purchases

Regular Purchase APR

14.24%-25.24%

Variable

APPLY NOW Secured

on American Express’s secure website

Terms Apply

Rates & Fees

The Blue Cash Everyday® Card from American Express offers 3% cash back on U.S. supermarket purchases up to $6,000 per year. You also get 2% cash back at U.S. gas stations and select U.S. department stores. On everything else you earn 1% rewards. Read our review of the card for more detail.

7. Honorable Mention: Golden 1 Credit Union Platinum Rewards - Unlimited 3% Grocery Rewards

Golden 1 Platinum Rewards Credit Card

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

3% cash-rebate on gas, grocery, and restaurant purchases, plus 1% cash rebate on all other purchases

Regular Purchase APR

7.79%-13.79%

APPLY NOW Secured

on Golden 1 Credit Union’s secure website

If you live in California, the Golden 1 Credit Union Platinum Rewards card will give you 3% cash rewards for purchases on groceries without the caps on the Blue Cash Everyday, along with gas and restaurants and 1% rewards on all other purchases. Also in California, the JCB Marukai Premium card offers unlimited 3% cash rewards on all purchases after your first $3,000 in spending each year. The catch is there's a $15 annual fee on the card.

5% Cash Rewards in Rotating Categories: NO FEE

Cards with a rotating reward program can give you 5% cash rewards with no annual fee, but you’re limited to spending in special categories each quarter and there's a cap on how much spending earns the 5%. You also have to opt into the 5% cash back rewards program each quarter.

8. Chase Freedom® - 5% in rotating categories, $0 ANNUAL FEE

Chase Freedom<sup>®</sup>

Annual fee

$0

Cashback Rate

5% on certain categories, 1% on everything else

Regular Purchase APR

16.24%-24.99%

Variable

APPLY NOW Secured

on Chase’s secure website

Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter. Unlimited 1% cash back on all other purchases. Check out our review for more benefits of the Chase Freedom®.

9. Discover it® Cashback Match™ - 5% in rotating categories, $0 ANNUAL FEE

Discover it<sup>®</sup> - Cashback Match<sup>TM</sup>

Annual fee

$0

Cashback Rate

5% on certain categories up to the quarterly maximum each time you activate, 1% on everything else

Regular Purchase APR

13.24%-24.24%

Variable

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

With the Discover it® Cashback Match™, earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate. All other purchases get 1% cash back. You can redeem your cash back for any amount at any time. And your cash back never expires. Discover will match ALL the cash back earned at the end of your first year, automatically - only for new cardmembers. Our review explains the other features of this card.

10. Platinum Cash Rewards Visa from the Nusenda Credit Union - 5% in rotating categories, NO FEE

Visa® Platinum Cash Rewards credit card from Nusenda

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

5% cash back on purchases in quarterly rotating categories

Regular Purchase APR

10.25%-14.25%

Variable

APPLY NOW Secured

on Nusenda ’s secure website

5% cash rewards on groceries, gas expenses, movies, restaurants, home improvement, education and travel. This quarter, cardholders will earn cash back on restaurants, hotels and airfare purchases. There’s a cash back cap of $1,500 per quarter. Anyone can join the Nusenda Credit Union by donating $10 to the New Mexico Wilderness Alliance; contact a customer representative for details. The advantage of this card is that its categories tend to be more broad, and not store-specific like those on the Chase Freedom® and Discover it® Cashback Match™, so it's a great way to get you closer to 5% rewards on everything you spend.

If you’re going to go through the effort of enrolling in a rewards program, consider all three cards to see which categories will benefit you the most. But, if you’re looking for freedom to spend without restrictions, sticking with the Citi® Double Cash Card may be your best simple bet.

Honorable mentions for travelers

No foreign transaction fees with plain cash back: Capital One® Quicksilver® Cash Rewards Credit Card - 1.5% Rewards

Capital One<sup>®</sup> Quicksilver<sup>®</sup> Cash Rewards Credit Card

Annual fee

$0

Cashback Rate

Earn unlimited 1.5% cash back on every purchase, every day

Regular Purchase APR

14.24%-24.24%

Variable

APPLY NOW Secured

on Capital One’s secure website

The Capital One® Quicksilver® Cash Rewards Credit Card gives you 1.5% cash back on all purchases. And like all Capital One credit cards, there are no foreign transaction fees. Even though you earn less rewards than the Citi® Double Cash Card or Fidelity American Express, this card is a better option for your international spending, since you avoid fees of 1 to 3%. To learn more, read our review.

Real airline miles: The Amex EveryDay® Credit Card from American Express

The Amex EveryDay® Credit Card from American Express

Annual fee

$0

Rewards

2X points at US supermarkets on up to $6,000 per year in purchases, 1X on other purchases

Regular Purchase APR

14.24%-25.24%

Variable

APPLY NOW Secured

on American Express’s secure website

Terms Apply

Rates & Fees

The Amex EveryDay® Credit Card from American Express is a $0 annual fee rewards credit card that earns Amex Membership Rewards points, which you can turn into real airline miles with several airlines, including Delta SkyMiles, Virgin Atlantic Flying Club, JetBlue True Blue, and Virgin America Elevate. It's the only no annual fee card you can apply for online that can net you real Delta SkyMiles. When you want to convert points to Delta miles, just go to the Amex site, and transfer your points to Delta or the other participating airline programs any time. Read our review for more information.

Beyond the rewards program, The Amex EveryDay® Credit Card from American Express has the longest 0% intro period for purchases of any no-fee travel card on this list at intro 0% for 15 months (after, 14.24%-25.24% Variable APR). This gives you the opportunity to not only pay for new purchases over the course of many months without accruing interest, but also earn rewards on those purchases that can be redeemed in a wide variety of ways, like the real airline miles mentioned earlier.

Points for travel on any airline: Bank of America® Travel Rewards Credit Card

Bank of America® Travel Rewards Credit Card

Annual fee

$0

Rewards

1.5 points per dollar spent

Regular Purchase APR

16.24%-24.24%

Variable

APPLY NOW Secured

on Bank Of America’s secure website

The Bank of America® Travel Rewards Credit Card earns a base 1.5 points per dollar spent, and you can use the points to erase travel purchases from your statement. Every 10,000 points is worth $100 when you use them for travel, so each point is worth one cent. Where the card gets interesting is if you're a Bank of America customer with a checking, savings, or IRA account. If you are, you'll get a 10% bonus on what you earn each year, so the card effectively earns you 1.65x points per dollar. Even better, if you're a Platinum level member of Bank of America Preferred Rewards (which you get by keeping a lot of your money with them), you can earn up to 2.625x points per dollar, which is an incredible deal. There are also no foreign transaction fees to worry about.

How can you get the most value from a rewards credit card?

In order to best benefit from no annual fee rewards credit cards, follow these tips:

  • Narrow your focus: Before choosing a no annual fee rewards credit card (or cards), take a look at your budget and several months’ worth of bank statements. Then, pick cards that’ll offer you the most cash back for things you already buy. You shouldn’t change your spending habits to match a rewards program.
  • Give your rewards cards a job: Don’t spread out your spending onto too many cards without a purpose or you risk making less cash back overall. Choose a few cards and assign them a job so you know what purchases to make on each one to maximize your cash back.
  • Don’t get overzealous: Rewards shouldn’t justify overspending, especially if you’re struggling with debt. It’s a reward for making legitimate purchases. After all, you won’t make enough back to put a big dent in your monthly statement. For instance, $2,500 spent on the Fidelity American Express card equals a $50 deposit. It’s a great perk, but it shouldn’t be your sole reason for buying something.
  • Read the fine print: Understand the implications of each rewards program. For the rotating category cards, you get a huge amount of cash back, but you’ll have to strategize your spending each quarter to earn it. And you have to enroll into the program by the deadline to qualify. Set a reminder on your smartphone or calendar if necessary. You don’t want to miss out on a cash back category for an entire quarter.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor at taylor@magnifymoney.com

TAGS: , ,