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Banking

Credit Karma Savings Account Review 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Credit Karma is the latest fintech company to jump on the mobile banking bandwagon. The company is offering a free high-yield savings account, which is somewhat of a departure from the product it’s most famous for: providing consumers with access to free credit checks.

Credit Karma Savings offers a generous 1.80%  APY, and the company says it will leverage technology to keep its rates competitive. Credit Karma is partnering with a network of banks to hold your deposits and gain Federal Deposit Insurance Corporation (FDIC) insurance.

What is Credit Karma Savings?

Credit Karma Savings is a high-yield savings account that is accessible through the company’s app. Credit Karma claims it will take consumers just “four clicks” to get started.

Once signed up, deposits will collect an APY of 1.80%. That’s 22 times more than the current national average of 0.09% for savings accounts. Credit Karma says it will leverage technology to keep that rate moving competitively, so that consumers won’t have to monitor rates themselves to ensure they’re getting the most for their money.

There are no fees or minimums required to open a Credit Karma Savings account, and deposits up to $5 million are insured by the Federal Deposit Insurance Corporation (FDIC). To achieve this, Credit Karma partnered with MVB Bank to provide banking services, and it will be utilizing a network of over 800 banks to hold deposits.

However, it’s important to note that the amount that is actually insured is dependent on whether you already have a balance in a partner bank and how much that balance is: “Actual insured amounts may be lower or adversely affected based on any balances you hold at a network bank,” Credit Karma said.

Credit Karma Savings vs. other cash management accounts

Credit Karma joins the ranks of other fintech companies that have recently launched high-yield savings accounts or cash management accounts for consumers, all boasting no fees and no minimum balance requirements. Here’s how Credit Karma Savings stacks up against companies with similar products.

Bank APYNumber of partner / network banks Amount FDIC insured

Credit Karma Savings

1.80%1 partner bank with network of 800+ banks$5 million

SoFi Money

1.60%7 program banks$1.5 million

Betterment Everyday Cash Reserve

1.83%11 program banks$1 million

Wealthfront Cash Account

1.78%9 program banks$1 million

Savings accounts with higher interest rates than Credit Karma Savings

Credit Karma Savings’ 1.80%  APY is certainly nothing to sneeze at, especially when looking at other fintech companies that offer similar high-yield accounts for stashing your cash. But other savings accounts—particularly those at online banks—boast even higher rates. Vio Bank, for example, currently has an online high-yield savings account with an impressive APY of 1.95% , while HSBC Direct Savings touts a 2.00% APY.

The bottom line on Credit Karma Savings

Credit Karma Savings offers a number of attractive incentives, like a competitive APY, no fees and a high maximum amount of $5 million that’s eligible for FDIC insurance. If you already have a Credit Karma account, the convenience and ease of being able to open a Credit Karma Savings account isn’t a bad perk, either. If your main goal is to rack up as much interest as possible on your savings, though, a number of online banks offer higher-yielding savings accounts.

Advertiser Disclosure: The products that appear on this site may be 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 financial institutions or all products offered available in the marketplace.

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Reviews

Review of Chase Bank’s CD Rates

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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. Chase Bank has nearly 5,000 branches and 16,000 ATMs across the U.S., and offers a full range of financial products and services.In this article, we’ll concentrate on Chase Bank’s certificates of deposit (CDs). They can be opened at a branch or online, with terms ranging from 1 month to 120 months. And although there are multiple ways to open a Chase Bank CD, if you want to open one online, you will need to be an existing Chase Bank checking customer.

Chase Bank standard CD rates

Term

APY

Minimum Deposit to Open

1 month

0.01%

$1,000

2 months

0.01%

$1,000

3 months

0.01%

$1,000

6 months

0.01%

$1,000

9 months

0.01%

$1,000

12 months

0.01%

$1,000

15 months

0.01%

$1,000

18 months

0.01%

$1,000

21 months

0.30%

$1,000

24 months

0.30%

$1,000

30-Months

0.30%

$1,000

36 months

0.30%

$1,000

42 months

0.50%

$1,000

48 months

0.75%

$1,000

60 months

0.30%

$1,000

84 months

0.30%

$1,000

120 months

0.30%

$1,000

Chase Bank CD relationship rates

Chase Bank’s CD relationship annual percentage yields (APYs) are extended to customers who have a linked Chase Bank checking account. You can apply online, and if you use a transfer from your account to fund the CD, the account can be opened the same day. The minimum deposit is, again, $1,000. If you want to open a CD for than $1 million, you will need to visit a branch.

CD term

$1,000 - $9,999

$10K - $24,999.99

$25K - $49,999.99

$50K - $99,999.99

$100K - $249,999.99

$250K+

1 month

0.02%

0.02%

0.02%

0.02%

0.02%

0.02%

2 months

0.02%

0.02%

0.02%

0.02%

0.02%

0.02%

3 months

0.02%

0.02%

0.02%

0.02%

0.02%

0.02%

6 months

1.01%

1.50%

1.50%

1.50%

1.50%

1.50%

9 months

0.50%

1.01%

1.01%

1.01%

1.01%

1.01%

12 months

0.02%

0.02%

0.02%

0.02%

0.05%

0.05%

15 months

0.05%

0.15%

0.15%

0.15%

0.20%

0.20%

18 months

1.00%

1.00%

1.00%

1.00%

0.01%

0.01%

21 months

0.75%

1.01%

1.01%

1.01%

1.01%

1.01%

24 months

0.75%

1.01%

1.01%

1.01%

1.01%

1.01%

30 months

0.75%

1.01%

1.01%

1.01%

1.01%

1.01%

36 months

0.75%

1.01%

1.01%

1.01%

1.01%

1.01%

42 months

0.75%

1.01%

1.01%

1.01%

1.01%

1.01%

48 months

1.01%

1.01%

1.01%

1.01%

0.30%

0.30%

60 months

0.75%

1.01%

1.01%

1.01%

1.01%

1.01%

84 months

0.75%

1.01%

1.01%

1.01%

1.01%

1.01%

120 Months

1.39%

1.44%

1.44%

1.44%

0.45%

0.45%

How Chase Bank CD rates compare with those of other banks

You’ll need less money to qualify for a Chase Bank CD than you might at other banks. Chase Bank allows customers to open their CDs with a minimum deposit of $1,000, which is lower than at many other institutions. Chase Bank 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 Bank CD rates are well below the best seen on our round-up of the best CDs. You can easily find higher interest rates at other institutions, particularly for 1-year CDs. If you decide to go with Chase BAnk, look into its relationship rates for a higher APY.  Relationship rates are offered to customers who link their CDs to a Chase Bank personal checking account.

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 — or at maturity.

Important information about Chase Bank CDs

Chase Bank CD fees

There are no monthly service fees, but there are $15 fees for inbound domestic and international wire transfers (waived if they are from another Chase Bank account) and outbound domestic wire transfer fees. Accounts can be opened online if you are an existing checking customer with Chase Bank. Deposits of more than $1,000,000 must be opened at one of its branches.

Non-Chase Bank customer access

You do not need to have a Chase Bank checking or savings account to open a standard Chase Bank 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 at your existing bank.

Maturity date and grace period

Law requires banks to alert consumers before the maturation date on CDs. Chase Bank considers the maturity date as the last day of the term. It offers a 10-day grace period on all CDs with terms of 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 vs. single-maturity CDs

Account holders have the option of opening an automatically renewable or a 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 Bank is offering any promotional rates during the 10-day grace period if you plan to invest in another Chase Bank CD using a ladder strategy.

Earning interest on a Chase Bank CD

Interest on Chase Bank 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. The accrued interest can be withdrawn during the term or at maturity without incurring penalties. For maturities of more than 1 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

If you wish to withdraw money before your CD matures, Chase Bank will charge penalties. According to Chase Bank, early-withdrawal penalties are deducted from your principal and do not exceed the total amount of earned interest. The amount that is deducted is below, listed by the length of the CD:

  • Less than 6 months: 90 days of interest
  • 6 months to 24 months: 180 days of interest
  • 24 months or more: 365 days of interest

Chase Bank CD early-withdrawal penalties can be waived upon:

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

Overall Review of Chase Bank’s CD products

Chase Bank’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 Bank’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.

Advertiser Disclosure: The products that appear on this site may be 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 financial institutions or all products offered available in the marketplace.

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Reviews

Review of Wells Fargo CD Rates

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Wells Fargo
Wells Fargo offers numerous financial products and services, including savings and checking accounts, insurance and investment products. The bank also offers certificates of deposit (CDs), though their rates are significantly lower compared to those from other big-name competitors.

Keep in mind that Wells Fargo CD rates will differ depending on where you live. The rates in this article are based on the bank’s headquarters in San Francisco. If you want an accurate list of Wells Fargo CD rates based on your location, go to its rates page and type in your ZIP code.

Wells Fargo’s Fixed Rate CDs

Wells Fargo’s Standard CD rates

CD Term

APY

Minimum Deposit to Open

3 months

0.05%

$2,500

6 months

0.30%

$2,500

1 year

0.15%

$2,500

The Wells Fargo Standard CD ensures that you get a guaranteed return for its entire term. Your annual percentage yield (APY) 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.

Early withdrawal penalties, which depend on the original term of the CD, are:

  • Less than 3 months: 1 month of interest
  • 3 – 12 months: 3 months of interest
  • 12 – 24 months: 6 months of interest
  • Over 24 months: 12 months of interest

Wells Fargo’s Standard CD bonus rates

CD Term

Bonus APY

Minimum Deposit to Open

3 months

0.10%

$2,500

6 months

0.35%

$2,500

1 year

0.20%

$2,500

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 Portfolio product is the bank’s upgraded checking account, which offers better interest rates for many linked Wells Fargo products. You also get certain fees waived from your account, discounts on loans and additional credit card benefits.

All you need to open this checking account is a minimum opening deposit of $25. However, it has a $30 monthly maintenance fee, which is waived if you have $25,000 in qualifying linked bank deposits or more than $50,000 in qualifying linked bank, brokerage and credit accounts.

If your CD stops being linked to your Portfolio checking account, the bonus CD rate will revert to the standard rate.

Wells Fargo’s Special CD rates

CD Term

APY

Minimum Deposit to Open

9 months

1.45%

$5,000

29 months

1.15%

$5,000

39 months

1.15%

$5,000

To open a Wells Fargo’s Special CD and the higher rates, you’ll need a minimum opening deposit of $5,000. Additionally, these APYs only apply to the initial agreed term. Once your CD matures, it’ll automatically renew but with different terms. The 9-month CD renews for six months, the 29-month CD renews for 24 months and the 39-month CD renews for 36 months.

Wells Fargo’s Special CD bonus rates

CD Term

APY

Minimum Deposit to Open

9 months

1.50%

$5,000

29 months

1.20%

$5,000

39 months

1.20%

$5,000

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

How to get Wells Fargo’s Fixed Rate CDs

To open a Fixed Rate CD, you can apply online using Wells Fargo’s 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 a Wells Fargo account, a non-Wells Fargo bank account, or by mailing a check or money order after you submit your application. Once you complete the application, you’ll get instant notification of your application status and possible next steps.

VISIT SITE 

Wells Fargo's website is secure

Member FDIC

Wells Fargo Step Rate CDs

CD Term

APY

Minimum Deposit to Open

24 months

1.16%

$2,500

The Step Rate CD offers multiple APY increases and a penalty-free withdrawal every six months as long as you are able to maintain the minimum opening balance. At the date of publishing, you get an automatic rate increases at 7, 13 and 19 months into your CD term, as you can see below:

  • 1 – 6 months: 1.00%
  • 7 – 12 months: 1.10%
  • 13 – 18 months: 1.20%
  • 19 – 24 months: 1.30%

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 revert to a standard 24-month fixed-rate CD.

Wells Fargo Step Rate Bonus CD rates

CD Term

APY

Minimum Deposit to Open

24 months

1.21%

$2,500

To be eligible for the bonus rate, you’ll need to link your Step Rate CD to a Portfolio by Wells Fargo checking 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 interest-rate increases and requirements as the regular Step Rate CD. The bonus rates for the Step Rate CD are below at the time of publishing, and increase the same way as the Step Rate CD does:

  • 1 – 6 months: 1.05%
  • 7 – 12 months: 1.15%
  • 13 – 18 months: 1.25%
  • 19 – 24 months: 1.35%

Upon maturity, your CD will automatically renew into a standard fixed-rate bonus CD. If you don’t have a Portfolio checking account at the time, your rate will revert to the standard rate.

How to Get a Wells Fargo Step Rate CD

Unlike the Fixed Rate CD option that can be opened online, you can only open a Step Rate CD in person at a Wells Fargo branch. You can go to any of Well Fargo’s 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 compete well with their competitors’ offers, even with the bonus rates. Those better 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.

Check out the Best CD Rates page to see the most current offers available listed on MagnifyMoney .

Additional information about Wells Fargo CDs

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 CDs with terms of 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 other penalties.

People who may have to pay a penalty include those who make withdrawals within seven days of account opening. This penalty also applies if you make a withdrawal during the grace period that exceeds the allowed number of deposits during that time.

Any withdrawals after the first seven days are subjected to the following early withdrawal fee, based on the CD term:

  • 3 months or less: 1 month’s interest
  • 3 months to a year: 3 months’ interest
  • 12 to 24 months: 6 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

Wells Fargo offers myriad services, including the ability to link your checking account to your CD to get a higher APY, but the bank’s rates fall short compared to that at other financial institutions as well as national averages. There are online banks that offer much better rates and with lower minimum deposits. Unless you are already banking with Wells Fargo and want to keep all your accounts in one place, its CD options are probably worth passing over.

Advertiser Disclosure: The products that appear on this site may be 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 financial institutions or all products offered available in the marketplace.

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