Advertiser Disclosure

Reviews

Capital One Review: Savings, Checking, CD Rates, Money Market, and IRA Accounts

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.

Written By

Reviewed By

Capital One savings accounts

Capital One 360 Performance Savings®

A savings account with a slightly lower APY compared with that at other online options, and no ATM access.

APY

Minimum Balance to Earn APY

1.00%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: No access to ATMs

Capital One’s 360 Performance Savings account is designed to help you earn a high interest rate while giving you some liquidity. Interest earned is compounded and deposited into your account monthly.

Unfortunately, you don’t get an ATM card with a savings account. As with all savings accounts, Federal Reserve’s Regulation D mandates certain types of telephone and electronic withdrawals, including transfers from savings accounts up to 6 per statement cycle. You can only make transactions online, via mobile app, by calling customer service or by visiting a branch. If you want to write checks and/or have ATM access, you can open a Capital One 360 Checking account, which easily links to your savings account.

You are not allowed to overdraw this account, and outgoing wires cost $30. This account does seem somewhat restrictive but it is a high-yielding account with a strong annual percentage yield (APY), so features like ATM access and overdraft protection can easily be managed with a linked checking account.

How to get a Capital One 360 Performance Savings account

You can open this account online or in a branch or Capital One Cafe with a Taxpayer Identification Number. (Capital One Cafes are located in major cities, offering co-working space with Wi-Fi, ATMs and banking services; Capital One customers get 50% off beverages.) To open an account online, go to the Capital One website and fill out an online application. You’ll be prompted to enter personal details such as your address, Social Security Number and home address. Afterward, you’ll need to link a personal checking account from Capital One or another U.S. financial institution. After you verify the linked account and fund your Capital One account, you’re good to go.

Capital One Kids Savings Account

Helps those under 18 learn about saving with an account that offers automatic savings plans and the ability to earn a surprisingly competitive APY.

APY

Minimum Balance to Earn APY

0.50%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: No access to ATMs

The Capital One Kids Savings Account is meant to help children learn about earning interest and the benefits of a bank account, especially one that isn’t touched as often as a checking account. Any adult who is a parent or legal guardian of the minor can open an account for someone under the age of 18.

As an adult, the account needs to be in both your name and the name of the minor. Therefore, both you and the child will be joint account holders. You’ll also need to link the account to a personal checking account at another U.S. chartered bank. This linked account is the only way to make deposits and withdrawals.

Once you sign up for an account, you and the minor will have separate logins and PINs. The minor on the account can sign in to check his or her balance, but the adult needs to be the one to make deposits or withdrawals. Adults also have the option to make automatic deposits into the account. Since it is a savings account, Federal Regulation D mandates certain types of telephone and electronic withdrawals, including transfers from savings accounts up to 6 per statement cycle, including transfers between Capital One accounts.

How to get Capital One’s Kids Savings Account

You can open this account online, or in a branch or Capital One Cafe with a Taxpayer Identification Number. You’ll need to provide personal details for both you and the minor such as name, address and Social Security Number. You’ll then need to link a personal, non-business checking account from Capital One or an external bank. Once you verify you’re the owner of the external account, you can then fund the minor’s Capital One account.

magnifying glass

How Capital One’s savings accounts compare

Capital One’s savings accounts can be a good fit or a pass, depending on your individual needs. Their rates are competitive with those from other institutions listed on our round-up of the best savings accounts. Moreover, the minimum required balances to open and earn APYs are low, so for those who simply want to park their money and watch it grow, these accounts could be a good choice.

Capital One checking accounts

Capital One 360 Checking®

Convenient access to your funds, although APYs are not among the best.

APY

Minimum Balance to Earn APY

0.10%

Less than $50k

0.10%

$50k - $99,999.99

0.10%

$100k +

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: None for Capital One or Allpoint ATMs with no foreign transaction fees. If you use an out-of-network ATM, surcharge fees may be charged by its owner.
  • ATM fee refund: None
  • Overdraft fee: Capital One 360 Checking provides four options on overdrafts. You can choose auto-decline for transactions that would overdraw your account or you can link your savings account to cover the overdrawn amount. There’s also the Next Day Grace option, which gives you one business day to replace the overdrawn amount before charging a $35 fee. Finally, there is an overdraft line of credit option, which offers you an opportunity to withdraw money from that account while paying an APR (variable 12.75% APR at time of publishing) on the amount borrowed.

Capital One’s checking account is for those who want an account with no fees and no minimum deposit requirement. With this account, you get a 360 Checking MasterCard® debit card, mobile banking, online bill pay and your first checkbook for free. The account will not be considered as open until it has been funded.

The bank’s mobile app includes P2P payments functionality from Zelle, which lets you easily send money to friends and family even if they don’t have a Capital One account. You also get access to over 38,000 Capital One and Allpoint ATMs for free. While you won’t get reimbursed for any fees charged by out-of-network ATMs, Capital One won’t charge you anything on its side.

How to get a Capital One 360 Checking account

To open an account, fill out an application online or in a branch or Capital One Cafe with a Taxpayer Identification Number. You’ll be asked to provide details such as your name, Social Security Number and employment information. After agreeing to receive only paperless statements and linking a bank account, just fund your new checking account and you’re all set.

Capital One MONEY teen checking account

Helps your teens manage money independently by giving them access to a joint account that earns APY and has no monthly fees.

APY

Minimum Balance to Earn APY

0.10%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: None for Capital One or Allpoint ATMs with no foreign transaction fees. If you use an out-of-network ATM, surcharge fees may be charged by its owner.
  • ATM fee refund: None
  • Overdraft fee: Transaction will be denied, but if for some reason it is approved, you must cover the overdrawn amount immediately

The MONEY checking account is designed to help those over 8 learn how to manage their own money. You’ll essentially be a joint account owner with your child or minor, and have access to the same features, but you won’t receive a debit card. The teen however will receive a Mastercard debit card. Unlike in the Kids Savings account, you do not need to be the parent or legal guardian of the teen as long as they are over 12 years old.

The MONEY account functions as a joint account, meaning that both the account owners own whatever amount is in the account. There is some leeway if one of the account holders wants to block certain transactions, but it’s at the discretion of the bank.

Your teen will be able to make transactions such as depositing checks via the mobile app, checking their balance and making withdrawals. However, there are no check-writing or bill-pay options. You can monitor account activity by logging in online or signing up to receive text and email alerts. Once the teen turns 18, they have the option to move their money over to a 360 Checking account.

How to get the Capital One MONEY account

To be eligible for a Capital One MONEY account, one owner needs to be at least 18 years old. The adult on the account needs to either link a Capital 360 Checking account or an external one.

To open an account, head over to the Capital One website to fill out an application. You and your teen will be asked to provide personal details such as your address, Social Security numbers and employment information. You’ll also need to comply with certain disclosures, including agreeing to only receive paperless statements. Afterward, you’ll need to link to the adult’s account and verify that you are the owner. Once this account is funded, you and your teen can start making transactions.

magnifying glass

How Capital One’s checking accounts compare

Capital One’s checking accounts do not really match up to the best options listed in our round-up of the top accounts available. The teen MONEY account is a nice option in that it has ATM access, earns an APY and allows for joint ownership. A lot of other accounts that offer joint ownership offer the lowest possible APY, but Capital One’s offering seems to want to rise above those types of accounts, and could be a good choice for those between the ages of 8 and 18.

Unlike in other online banking options, you don’t get third-party ATM fee reimbursements. If you intend on using your debit card often and there aren’t any Allpoint or Capital One ATMs around, you may want to look elsewhere.

Capital One CD accounts

Competitive APYs on certificates of deposit (CDs), with the big advantage of no minimum deposit amounts.

Term

APY

Minimum Deposit to Open

6 months

0.50%

None

9 months

0.70%

None

12 months

0.50%

None

18 months

1.00%

None

24 months

1.10%

None

30 months

1.10%

None

36 months

1.20%

None

48 months

1.20%

None

60 months

1.30%

None

  • Minimum amount to open account: None
  • Maximum amount: $1,000,000
  • Early withdrawal penalty, which depend on the original term of the CD, are:
    • 12 months or shorter: three months’ interest
    • Longer than 12 months: six months’ interest

Capital One CDs are best for those looking for a conservative and relatively safe investment option. Once you open and fund an account, your rate is guaranteed until maturity. If rates change, Capital One will offer the highest interest rate up to ten calendar days within the funding period. Deposits are also FDIC-insured up to the legal limit.

Interest earned in the CD is accrued daily and compounded monthly. You can either keep the interest in your CD, or have it deposited to another Capital One account or an external one. Interest disbursements can be credited monthly or yearly. When your account matures, you have a 10-day grace period to make a decision on what to do with your money. Otherwise, Capital One will automatically renew it for the same period as the original term.

How to get a Capital One CD

You can open a Capital One CD online or in a branch or Capital One Cafe with a Taxpayer Identification Number. To open a CD online, go to the bank’s website and fill out an online application. You’ll need to provide personal details such as your address, employment information and Social Security Number. Afterward, you’ll need to link another account, verify you’re the owner and fund your CD, which won’t be considered as open until it is funded.

magnifying glass

How Capital One’s CDs compare

Capital One offers some pretty good rates compared with other banks in our round-up of the top CDs available. What makes its CD stand out is there is no minimum deposit amount. Most other competitors require one, which may not be an issue if you plan on putting a significant amount of money into a CD. Still, there are CDs with better APYs and no minimum deposit requirement. The maximum deposit is high as well for those with access to large amounts of capital.

If you intend on keeping your money in a CD until maturity, you don’t need to worry about early withdrawal penalties. However, if there’s a possibility of you doing so (like if you find a better rate elsewhere), Capital One offers forgiving penalties for early withdrawal. Many competitors have penalties of up to 365 days of interest for longer terms, compared with just six months’ interest with Capital One.

Capital One IRA accounts

Capital One 360 IRA Savings®

An easy-to-open, no-fee investment option — with less-than-competitive returns.

APY

Minimum Balance to Earn APY

0.80%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: No access to ATMs

The 360 IRA Savings account is a tax-advantaged account to help you save for retirement, and Capital One offers both traditional and Roth IRA savings accounts. You can make deposits to and withdrawals from (called distributions) this account only online, and any distributions are subject to IRS penalties and taxes. You may, however, transfer money from 360 IRA Savings to 360 IRA CDs. In 2020, you may contribute no more than $6,000 to all of your traditional or Roth IRA accounts, or $7,000 if you’re age 50 or older.

This account is best for savers looking for a very conservative investment while earning an APY, but it will not keep up with inflation in the long term. Unless you’ll be drawing on your retirement funds within the next year, you’re better off putting your money in one of Capital One’s IRA CDs, which offer better rates starting at 12-month terms.

How to get a Capital One IRA Savings account

You can apply for an account online, and it’s considered open once you fund the account and complete the bank’s verification process. Unlike for other Capital One banking products, Taxpayer Identification Numbers are not accepted as proof.

Capital One 360 IRA CD®

A great, conservative investment with no minimum deposit.

Term

APY

Minimum Deposit to Open

6 months

0.25%

None

9 months

0.30%

None

12 months

1.00%

None

18 months

0.50%

None

24 months

0.75%

None

30 months

0.75%

None

36 months

0.80%

None

48 months

0.90%

None

60 months

1.00%

None

  • Minimum amount to open account: $0
  • Early withdrawal penalty, which depend on the original term of the CD, are:
    • 12 months or shorter: three months’ interest
    • Longer than 12 months: six months’ interest

What stands out most about Capital One’s 360 IRA CDs is the fact that there’s no minimum deposit requirement. This makes saving for retirement more accessible to people who want to get started but don’t have much cash on hand.

Interest is compounded and credited monthly. You cannot make partial withdrawals of your principal, and the APY assumes you leave the interest in your account to compound. If you do withdraw the principal early, you must pay a penalty, and if you take a distribution from your IRA CD, you may be subject to penalties and taxes.

Upon maturity of your IRA CD, you have a 10-day grace period to redeem your deposit or change the amount or term, before it automatically renews.

How to get a Capital One 360 IRA CD

You can open a Roth or traditional IRA CD by applying online. When you open a 360 IRA CD, you also get a 360 IRA Savings account, so you have a vehicle to put your money after your CD matures but before you want to take a distribution. You open the account by linking a personal checking account to your 360 IRA Savings account and transferring money to the IRA CDs you wish to open.

magnifying glass

How Capital One’s IRA CDs compare

While there are other IRA CDs offering higher APYs listed on our site, it’s rare that the accounts with the top rates require no minimum opening deposit.

Starting with the 12-month IRA CD, Capital One offers a higher rate of return than the IRA savings account, so unless you need your retirement funds soon, it makes sense to put conservative IRA investments into one of these CDs. You can get better returns on investments elsewhere, but IRA CDs offer guaranteed returns. Capital One offers a very accessible product for conservative investors.

Overall review of Capital One’s banking products

Capital One’s banking products offer above-average rates, no minimum deposit amounts and virtually no fees. The bank also offers free checks, mobile banking and a user-friendly website, making it a great option. When you’re looking for the best rates on any given product, keep Capital One in the mix.

What makes this online bank noteworthy is its low barrier to entry, as well as its options for both kids and teens. Capital One’s MONEY account, in particular, offers the ability to give teenagers more independence over their money while still giving parents a way to oversee their finances. The Kids Savings account is also a great choice since it gives children a separate online login and the opportunity to check their balance. Other online banks have limited options in this area.

If you want to keep most of your finances in one place and the ability to earn good rates, Capital One is a great choice. Although some of its accounts may not offer the same features and competitive rates like its competitors, there’s a reason why so many people bank with Capital One.

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.

Advertiser Disclosure

Reviews

PenFed Credit Union CD Rates, Checking, Savings, Money Market, and IRA Accounts

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.

Written By

Reviewed By

PenFed CD Rates

PenFed Money Market Certificates

Term

APY

Minimum Deposit to Open

6 months

0.40%

$1,000

12 months

0.70%

$1,000

15 months

0.70%

$1,000

18 months

0.70%

$1,000

2 years

0.75%

$1,000

3 years

0.80%

$1,000

4 years

0.85%

$1,000

5 years

1.00%

$1,000

7 years

1.05%

$1,000

PenFed refers to its certificate of deposit (CD) products as money market certificates. They feature competitive rates and renewal flexibility. 

  • Minimum amount to open an account: $1,000
  • Minimum amount to earn APY: $1,000
  • Early withdrawal penalties, which depend on the original term of the CD, are: 
    • For a 6-month certificate, you’ll forfeit any dividends earned if you withdraw the amount before 90 days, or a full 90 days’ worth of dividends thereafter.
    • For a longer-term certificate, you’ll forfeit all dividends earned if you withdraw the amount within the first year, or 30% of what you would have earned if you kept the certificate to maturity (if you withdraw the amount after one year, but before the certificate matures).

One of the nice things about PenFed’s Money Market Certificates is that they are very flexible in terms of how your dividends are paid out and what happens to the certificate upon maturity. You can choose to have dividends reinvested into your certificate or paid out each month by direct deposit into a PenFed savings, checking or money market savings accounts, or mailed to you as a check.

There is no grace period after maturity to decide what to do with your funds, like with many other institutions. Instead, you choose upfront whether you want to roll over the certificate at maturity or close it. However, you can change your mind at any time prior to the maturity date.

The only apparent downside of PenFed’s money market certificates is that you are not allowed to make a partial withdrawal. If you need to withdraw cash early, you can only remove the full amount. If you do need to withdraw funds, you can also only do so after giving written notice to the credit union, which reserves the right to require up to 60 days’ notice.

How to get a PenFed Money Market Certificate

To get this certificate, you’ll need to be a member of the credit union. Joining is easy and only takes a few minutes.

As a part of the application process, you’ll need to deposit at least $5 into a PenFed savings account. Once this is done, you can open up your certificate with a minimum deposit of at least $1,000.

PenFed will mail you a signature form to complete your account application. However, you can still open new accounts online before completing this final task.

magnifying glass

How PenFed’s Money Market Certificates compare

PenFed offers very competitive rates on its Money Market Certificates. Each certificate carries a higher-than-average interest rate compared to those listed in our roundup of the best available CDs. These high rates, combined with flexibility on how you earn dividend payments and how the money market certificate is renewed, make this a great choice for people looking for a well-rounded CD option from a credit union.


PenFed’s Coverdell Education Savings Certificates

Lower minimum deposit requirements make this account more accessible for parents.

Term

APY

Minimum Deposit to Open & Earn APY

1 year

0.60%

$500

2 years

0.65%

$500

3 years

0.70%

$500

4 years

0.75%

$500

5 years

0.90%

$500

7 years

0.95%

$500

  • Minimum amount to open an account: $500
  • Minimum amount to earn APY: $500
  • Early withdrawal penalty: If you withdraw the certificate within one year, you’ll forfeit any dividends earned. If you withdraw the certificate after one year has passed, you’ll pay a penalty equal to 30% of what you would have earned if you had kept the certificate to maturity.

PenFed’s Coverdell Education Savings Certificates are a great tool to help save for college. These certificates have a lower, and therefore more accessible, minimum account opening requirement compared to the credit union’s regular Money Market Certificates. You can contribute up to the maximum yearly amount set by the IRS ($2,000) to this Coverdell account.When you set up your account, you can choose what happens when the CD matures: either renew the certificate for a similar term or deposit the amount into a new Coverdell certificate account. Unlike PenFed’s regular certificates, you do have the option to make a partial withdrawal during the term of the certificate if needed, provided that it doesn’t drop the balance below $500. If you do make a partial withdrawal, that amount will also be subject to early withdrawal penalties.

How to get PenFed’s Coverdell Education Savings Certificates

To get this certificate, you’ll need to be a member of the credit union. Joining is easy and only takes a few minutes. As a part of the application process you’ll need to deposit at least $5 into a PenFed savings account. Once this is done, you can open up your Coverdell account with a minimum deposit of at least $500.

PenFed Access America Checking account

Great interest rates, but make sure you can meet the requirements to get the monthly fee waived.

APY

Account Balance to Earn APY

0.20%

Up to $19,999.99

0.50%

$20,000 - $50,000

  • Minimum amount to open an account: $25
  • Monthly account maintenance fee: $10
  • How to avoid the account maintenance fee: Keep $500 or more in your account, or have at least $500 directly deposited into your account each month.
  • ATM fee: None for in-network ATMs. Out-of-network withdrawals incur a $1.50 PenFed fee, in addition to whatever surcharge the ATM’s owner charges.
  • Overdraft fee: $30 as an opt-in line of credit that is subject to approval.

Unfortunately, this checking account charges a monthly fee, but if you have a job with a direct-deposit paycheck or at least a little bit of cash, it’s not a hard fee to beat. Interest is compounded daily and credited monthly.

The Access America account offers users the mobile payments feature via Apple Pay, Google Pay and Samsung Pay. If you prefer cash, some of Penfed’s accounts offer access to over 68,000 ATMs.

A downside of this account is the overdraft line of credit option. Unlike other banks where you can simply overdraw from a savings account, PenFed allows overdraws from a line of credit with fairly dismal terms — a fixed annual percentage rate (APR) approaching 20%. Although many customers may cover their overdraft rather quickly, this could spell trouble for those unable to cover their overdraft amounts in a timely manner. This overdraft line of credit is an opt-in program, and it is not automatically applied when you open your account.

Still, it is easy to look past that downside on an account that charges zero ATM fees except for any surcharge fees an out-of-network ATM owner would charge. If you’re looking for a high-interest-earning checking account and use the ATM often, this would be a great checking account for you.

How to get PenFed’s Access America Checking account

To get this account, you’ll need to be a member of the credit union. Complete an application and deposit $5 into a PenFed savings account. Once your application is complete or if you’re already a member, you can open any new financial product directly online. PenFed will mail you a signature form, but you can still open new accounts before completing this final task.

magnifying glass

How PenFed’s Access America Checking account compares

PenFed’s Access America Checking account offers a low annual percentage yield (APY) compared to our roundup of the best online checking accounts. In addition, the credit union charges its own fees on out-of-network ATMs and offers no refunds for third-party ATM fees.

There are plenty of other checking account options that charge no monthly fees and also reimburse third-party ATM fees. Unlike other checking accounts that charge a flat rate for any overdrafts, PenFed’s optional line of credit accrues its own interest. The APR for its overdraft line of credit is exorbitant, even when compared against credit cards — let alone other banks.

PenFed Money Market Savings account

Very low rates for this account, even if you carry a high balance.

APY

Minimum Balance to Earn APY

0.05%

Up to $9,999.99

0.10%

$10,000 - $99,999.99

0.15%

Over $100,000

  • Minimum opening deposit: $25
  • Monthly account maintenance fee: None
  • ATM fee: $1.50 fee for both in-network and out-of-network ATM withdrawals, plus whatever fee the ATM’s owner charges.
  • ATM fee refunds: None.
  • Overdraft fee: $30 as an opt-in line of credit that is subject to approval.
  • Excessive transaction fee: $10 if you exceed six certain transactions per month.

PenFed’s Money Market Savings account is designed to earn higher APYs than its Regular Savings account, and that’s exactly what this account does — but only if you bring at least $10,000 of cash to the table.

Although this account doesn’t have a monthly account maintenance fee, there are other fees to watch out for. You don’t typically use ATMs with a money market account as often as with a checking account, but if you do need to use it, you’ll pay a $1.50 fee to make a withdrawal, even at an in-network PenFed ATM.

A better way to get your cash out of this account is with the free checks that come with this account or via an account transfer. Federal Reserve’s Regulation D mandates certain types of telephone and electronic withdrawals, including transfers from savings accounts up to 6 per statement cycle.

How to get PenFed’s Money Market Savings account

To get a PenFed Money Market savings account, you’ll need to be a member of the credit union. Joining is easy and only takes a few minutes. As a part of the application process, you’ll need to deposit at least $5 into a PenFed savings account. Once this is done, you can open up your Money Market savings account with a minimum deposit of at least $25.

magnifying glass

How PenFed’s Money Market Savings account compares

The APY on PenFed’s money market account is very low compared to the rates on our listing of the best accounts. In fact, you can earn higher interest rates by keeping your money in PenFed’s checking account.

Furthermore, we find it odd that the credit union charges you to make an ATM withdrawal from this account — even from its own ATMs. At least PenFed offers free checks, but that won’t help you if you need quick cash.

PenFed Regular Savings account

Lackluster savings account that offers a low rate and charges for ATM withdrawals.

APY

Minimum Deposit to Open

0.05%

$5

  • Minimum opening deposit: $5
  • Monthly account maintenance fee: None
  • ATM fee: $1.50 fee for both in-network and out-of-network ATM withdrawals, plus whatever fee the ATM’s owner charges.
  • ATM fee refund: None.
  • Overdraft fee: $30 as an opt-in line of credit that is subject to approval.
  • Excessive transaction fee: $10 if you exceed six certain transactions per month.

This is the basic account that you need to become a PenFed member and open any other account. It’s designed as a free savings account and does pay a minimal APY, but don’t expect much more.

If you need to take out cash from this account via an ATM, you’ll pay a $1.50 fee per withdrawal, even if you use a PenFed ATM. Unlike for its money market checking account, you don’t get free checks with this account. That means the only way you can make a free transaction into or out of this account is either online or by visiting a branch.

How to Get PenFed’s Regular Savings account

You need to get this account to be a member of the credit union. Joining is easy and only takes a few minutes. As a part of the application process, you’ll need to deposit at least $5 into this savings account. The credit union will mail you a signature form to complete your account application, but you can still open new accounts online before completing this final task.

magnifying glass

How PenFed’s Savings account compares

The interest rate this savings account is extremely low. You likely won’t earn much, especially when compared with other online high-interest savings accounts listed on our site.

Furthermore, we don’t like the fact that you need to pay to use an ATM with this account, even for in-network PenFed ATMs. Most banks at least let you use their own in-network ATMs for free, so the fact that you need to pay to do so with this account puts it at an even further disadvantage.

However, even though all members are required to open this account when establishing their membership with PenFed, it doesn’t mean you have to use it. It’s perfectly fine to let it sit idle with the $5 minimum deposit since there are no monthly account maintenance fees. It’s probably best to view this account just as the minimum requirement for PenFed credit union membership.

PenFed Premium Online Savings Account

A welcome step up from PenFed’s basic savings account, with a respectable APY and no monthly maintenance fee.

APY

Minimum Balance Amount

1.00%

$5

  • Minimum opening deposit: $5
  • Monthly account maintenance fee: None
  • Overdraft fee: $30 as an opt-in line of credit that is subject to approval.
  • Excessive transaction fee: $10 if you exceed six certain transactions per month.

PenFed seems to be committed to passing on in-branch savings with its online-only offering. Most of the terms are the same as in its regular savings account, except for the fact that you won’t be able to manage your account at a physical branch. Considering PenFed’s 24/7 access to customer service personnel, this lack of branch access probably won’t be much of an issue and is offset by the APY boost.PenFed’s other accounts charge a small fee to use in-network PenFed ATMs, but that isn’t an option with this account as there is no ATM access whatsoever. So customers will need to make their transfers online, over the phone or in person at a branch.

How to Get PenFed’s Premium Online Savings Account

To get a PenFed Premium savings account, you’ll need to be a member of the credit union. Joining is easy and only takes a few minutes. As a part of the application process you’ll need to deposit at least $5 into Penfed’s Regualar Savings account.

The credit union will mail you a signature form to complete your account application, but you can still open new accounts online before completing this final check mark.

magnifying glass

How PenFed’s Premium Online Savings Account compares

The interest rate on PenFed’s Premium Online savings account is refreshingly competitive. You do sacrifice accessibility in terms of of visiting a branch or using ATMs, so this account might not be best for those who need cash quickly.

That being said, if you are looking for somewhere to park your money for a while and let it accrue interest, this could be a good account for you.

PenFed IRA CD

No fees on partial withdrawals for those ages 59½ and over make this IRA certificate a great account choice for mature consumers.

Term

APY

Minimum Deposit to Open & Earn APY

1 year

0.60%

$1,000

2 years

0.65%

$1,000

3 years

0.70%

$1,000

4 years

0.75%

$1,000

5 years

0.90%

$1,000

7 years

0.95%

$1,000

  • Minimum amount to open an account: $1,000
  • Minimum amount to earn APY: $1,000
  • Early withdrawal penalty: If you withdraw the money in the first year, you’ll forfeit all dividends earned. If you withdraw the money after one year but before the certificate matures, you’ll pay 30% of what you would have earned if you kept the certificate to maturity.

At first glance, PenFed’s IRA certificates look pretty run-of-the-mill. The minimum opening deposit is fairly high, especially if you’re a young saver just looking to start out. Over time, the certificate interest adds up. They are considered one of the safest investments, but it will take a long time to see noticeable returns.

However, what makes these IRA certificates stand out as better options for more mature savers is that if you’re age 59½ and over, you can make partial early withdrawals penalty-free. So if you need to take out the cash early in retirement, it won’t cost you as long as you leave at least $1,000 in the certificate for the account to stay open. However, you will need to consult with your tax professional about any IRS penalties you might incur.

Another benefit is that you can make withdrawals at any time, so long as they are reinvested in a PenFed IRA product. Otherwise, you will be subject to withdrawal penalties from both the bank and the IRS.

How to get a PenFed IRA Certificate

To get a PenFed IRA certificate, you’ll need to be a member of the credit union. Joining is easy and only takes a few minutes. As a part of the application process, you’ll need to deposit at least $5 into a PenFed Regular Savings account. Once this is done, you can open your IRA certificate with a minimum deposit of at least $1,000.

The credit union will mail you a signature form to complete your account application, but you can still open new accounts online before completing this final check.

magnifying glass

How PenFed’s IRA CDs compare

While PenFed doesn’t offer the highest interest rates on its IRA certificates, the credit union is industry-competitive. If you’re looking to get as high in returns as possible, it’s tough to go wrong with PenFed, but you may earn more with other IRA CDs listed on our site.

What stands out the most with PenFed’s IRA certificates is that people who are over age 59½ can make partial withdrawals from these certificates without paying any early withdrawal penalties (assuming they keep at least a $1,000 balance in the certificate to keep it open). This unique feature is why PenFed’s IRA certificates can be a good choice for older adults looking to retain access to their capital throughout the term of an investment.

PenFed IRA Savings Account

A low APY means your money will grow, but not at a substantial or competitive rate.

APY

Minimum Deposit to Open

0.05%

$25

  • Minimum opening deposit: $25
  • Monthly account maintenance fee: None

Remember how everyone is required to open a PenFed savings account and fund it with at least $5 if they want to become a member? This account is the IRA version of that. Specifically, if you want to open up an IRA product — such as one of PenFed’s IRA certificates — you’ll need to open one of these accounts first.This will be the default account that your IRA certificate money is deposited into if you elect not to have the certificate auto-renew when it matures. It’s a decent place to store your money in the short term until you withdraw it for retirement or move it to another IRA investment, but not a great option to grow your money due to the lackluster interest rate.

How to get PenFed’s IRA Savings Account

To get a PenFed IRA Savings Account, you’ll need to be a member of the credit union. Joining is easy and only takes a few minutes. As a part of the application process, you’ll need to deposit at least $5 into a PenFed Regular Savings account. Once this is done, you can open your IRA savings account with a minimum deposit of at least $25.

The credit union will mail you a signature form to complete your account application, but you can still open new accounts online before completing this final check mark.

PenFed IRA Premier Account

Similar to PenFed’s regular IRA Savings account, just with a higher minimum balance requirement.

APY

Minimum Deposit to Open

0.05%

$10,000

  • Minimum amount to open an account: $10,000
  • Monthly account maintenance fee: None.

The high minimum balance requirement to open this account and the $10,000 minimum deposit required to receive the premier rate make it hard to understand the appeal of this account. There are many other IRA savings options at other banks that yield significantly higher interest and may even reward savers who can ante up an amount like $10,000.

How to get a PenFed IRA Premium account

To get this certificate, you’ll need to be a member of the credit union. Joining is easy and only takes a few minutes. As a part of the application process, you’ll need to deposit at least $5 into a PenFed Regular Savings account. Once this is done, you can open your IRA certificate with a minimum deposit of at least $10,000.

PenFed will mail you a signature form to complete your account application, but you can still open new accounts online before completing this final check.

magnifying glass

How PenFed’s IRA Premium account compares

At the time of writing this article, it is hard to see any benefit to this account. The high minimum balance and paltry APY make little sense when compared to some of PenFed’s other products.

Typically, the more money you bring to the table, the higher the interest rate you can earn (as with PenFed’s Money Market Savings account), but that is not the case with this account. That could change in the future, however, if the credit union decides to increase its interest rates for this account.

Overall review of PenFed’s banking products

When it comes to banking accounts, PenFed really shines in some areas and is somewhat lackluster in others. Specifically, we like the high rates offered on its checking accounts and certificate products, which currently run near the top of the pack. The added advantage for people who are over age 59½ to withdraw money from the IRA certificates without paying a penalty as long as they keep at least $1,000 in the certificate is also a great option.

However, other products — such as its savings and money market accounts — fall a bit short. We find it odd that the credit union charges ATM fees for some of its accounts even if you use a PenFed network ATM. Furthermore, each of PenFed’s savings accounts offers such low rates that we can’t recommend them as a place to grow your money, although it might be a place to store it while you look for a higher-yielding option.

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.

Advertiser Disclosure

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.

Written By

Reviewed By

Wells Fargo-CD
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

0.05%

$2,500

1 year

0.05%

$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

0.08%

$2,500

6 months

0.08%

$2,500

1 year

0.08%

$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

0.30%

$5,000

29 months

0.25%

$5,000

39 months

0.25%

$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

0.35%

$5,000

29 months

0.30%

$5,000

39 months

0.30%

$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.

SEE DETAILS

Wells Fargo's website is secure

Wells Fargo Step Rate CDs

CD Term

APY

Minimum Deposit to Open

24 months

0.16%

$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

0.19%

$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.