Advertiser Disclosure

Reviews

Synchrony Bank Review: CD, Savings Account, Money Market, and IRA Rates

Editorial Note: 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 prior to publication.

synchrony bank review
iStock

Synchrony Bank is a relative newcomer to the banking scene, having opened up right around the same time as the World Wide Web was being developed in the late 1980s. Today, it’s one of the largest online-only banks around, offering a range of products including high-interest savings accounts, CDs, money market accounts, and IRAs.

Big banks can have notoriously high fees and low rates, so since Synchrony is a smaller, online bank, we put them to the test. In general, they offered very high rates on their savings and CD accounts, but their money market accounts are a little behind in the rate department. Read on to find out the specific details. This will help you decide whether or not this bank is right for you.

Synchrony Bank CD rates

You might need a higher-than-average minimum deposit for these CDs, but you’ll earn a very good interest rate.

Term

APY

3-months

0.75%

6-months

1.00%

9-months

1.25%

12-months

2.25%

14-months

2.35%

18-months

2.15%

24-months

2.45%

36-months

2.55%

48-months

2.65%

60-months

2.85%

As of 5/22/2018

  • Minimum opening deposit: $2,000
  • Minimum balance to earn APY: $2,000
  • Early withdrawal penalty: For CDs of 12 months or less, you’ll pay 90 days’ worth of interest. For CDs of between 12 months up to 48 months, you’ll pay 180 days’ worth of interest. For CDs over 48 months, you’ll pay 365 days’ worth of interest.

You’ll need to come to the table with a fairly hefty minimum deposit of $2,000 to open a CD at Synchrony. But, once you have it, this bank offers a fair amount of flexibility in how you are paid your dividends. You can elect to roll them over in the CD account, or have them paid out to you directly in the form of a check or an electronic deposit into another Synchrony, or other external, bank account.

Once your CD completes its term, you also have a few options. Your CD will automatically roll over into another CD of the same term length, but you’ll get a 10-day grace period to make any changes. During this grace period, you can withdraw the cash, add more cash, and/or open up a new CD with a different term length.

How to open a CD account with Synchrony

You can easily open up a CD account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth (this is required of all banks in order to comply with the USA PATRIOT Act). You’ll also need to provide a government-issued ID, such as a driver’s license.

LEARN MORE Secured

on Synchrony Bank’s secure website

Member FDIC

How Synchrony Bank’s CD rates compare

While Synchrony doesn’t currently offer the highest rates, they’re still consistently among the top of the pack for the current highest CD rates. Specifically, their 12-month and 60-month CDs are among some of the best offerings out there right now.

The early-withdrawal penalties at Synchrony Bank are also right on par with many of their competitors. You can rest assured that you won’t be paying inordinately high fees should you need to withdraw your cash early.

Synchrony Bank savings account

Synchrony charges no fees and offers a very high interest rate to boot.

APY

Minimum Balance Amount

1.65%

$0

As of 5/1/2018.

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: None; however, the ATM’s owner may charge a separate surcharge fee in order to withdraw cash.
  • ATM fee refund: Synchrony will refund up to $5 per month in ATM surcharge fees.
  • Overdraft fee: None.

This is one of the most accessible high-interest savings accounts for people looking for low fees and low minimum balance requirements. While most banks charge an overdraft fee if you overdraw your account, Synchrony Bank does something different: They may not honor the withdrawal, meaning that you won’t incur an overdraft fee.

Watch out, though: you’re limited to six withdrawals and transfers per month as per Federal Regulation D (not including ATM withdrawals). If you go over that amount, Synchrony Bank reserves the right to close your account for you for “misuse.”

How to open a savings account with Synchrony

You can easily open up a savings account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth (this is required of all banks in order to comply with the USA PATRIOT Act). You’ll also need to provide a government-issued ID, such as a driver’s license. Finally, by signing up for an account, you authorize Synchrony to run your application through ChexSystems, which checks to see if you have any negative standings with other financial institutions.

LEARN MORE Secured

on Synchrony Bank’s secure website

Member FDIC

How Synchrony Bank’s savings account compares

Synchrony currently has one of the best online savings accounts. For people looking for a no-minimum-balance account, or those looking to grow a small savings account balance into a larger one, you can’t go wrong with this account.

Synchrony Bank money market account

Synchrony’s money market account doesn’t offer very high interest rates, but does give you the power to write checks.

APY

Minimum Balance Amount

1.05%

$0

As of 5/1/2018.

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: None; however, the ATM’s owner may charge a separate surcharge fee in order to withdraw cash.
  • ATM fee refund: Synchrony Bank will refund up to $5 per month in ATM surcharge fees.
  • Overdraft fee: None.

Money market accounts technically work a little differently than savings accounts. But for you, the consumer, Synchrony Bank’s money market and savings accounts essentially operate the same way. One big difference is that the money market account offers a lower interest rate than their savings account. One other important difference is that you can actually request and write checks using your money market account, whereas the savings account doesn’t come with this option.

Otherwise, you can still expect the same withdrawal limits dictated by Federal Regulation D. You’re stuck with six transactions (minus ATM withdrawals) per month, lest the bank close your account for “misuse.” You’ll also incur few, if any, fees with this account. Given that these two accounts are so similar, we recommend going with the regular savings account, because that one offers a truly exceptional interest rate with the same terms of this money market account.

How to get Synchrony Bank’s money market account

You can easily open up a money market account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth (this is required of all banks in order to comply with the USA PATRIOT Act). You’ll also need to provide a government-issued ID, such as a driver’s license.

LEARN MORE Secured

on Synchrony Bank’s secure website

Member FDIC

How Synchrony’s money market account compares

Synchrony Bank offers exceptional rates on their savings accounts and CDs. However, their money market account is a little underwhelming in the interest rate department. If you’re looking for the best money market account rates, you can easily find better accounts at other banks and credit unions.

However, Synchrony Bank still does stand out in the fee department. This account — like Synchrony’s savings account — comes with very little fees attached.

Synchrony Bank IRA rates

These IRA CDs are virtually identical to Synchrony’s regular CDs — and still, the fairly high minimum deposit requirements may exclude some savers.

Term

APY

3-months

0.75%

6-months

1.00%

9-months

1.25%

12-months

2.25%

18-months

2.15%

24-months

2.45%

36-months

2.55%

48-months

2.65%

60-months

2.85%

As of 5/22/2018.

  • Minimum opening deposit: $2,000
  • Minimum balance to earn APY: $2,000
  • Early withdrawal penalty: For CDs of 12 months or less, you’ll pay 90 days’ worth of interest. For CDs of between 12 months up to 48 months, you’ll pay 180 days’ worth of interest. For CDs over 48 months, you’ll pay 365 days’ worth of interest.

These IRA CDs work just like Synchrony Bank’s regular CDs, with one exception: they play by the rules of IRA accounts. That means you can open them up within a Roth or traditional IRA, complete with all of the rules governing these two accounts.

Just like Synchrony’s regular CDs, these IRA CDs come with some fairly high minimum deposit requirements. This will exclude some people who can’t come to the table with a full $2,000 — but for those folks, Synchrony Bank has another option: the IRA money market account (discussed below).

If you need to withdraw your money early (if you decide to move it to another company to invest in the stock market, for example), you’ll still face an early withdrawal penalty. However, if you are at the age where you need to take required minimum distributions from CD money held in a traditional IRA, Synchrony Bank will waive the early withdrawal penalty.

How to open an IRA CD with Synchrony

You can easily open up an IRA CD account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth (this is required of all banks in order to comply with the USA PATRIOT Act). You’ll also need to provide a government-issued ID, such as a driver’s license.

LEARN MORE Secured

on Synchrony Bank’s secure website

Member FDIC

How Synchrony Bank’s IRA CD rates compare

Synchrony’s IRA CDs are again very close to being the top IRA CD rates around. However, there are a few banks offering higher rates on IRA CDs, so if this is your preferred retirement savings option, it may pay to shop around.

Synchrony’s IRA money market account

This money market account — like Synchrony’s regular money market account — doesn’t offer very high rates.

APY

Minimum Balance Amount

1.05%

$0

As of 5/1/2018.

  • Minimum opening deposit: $250
  • Monthly account maintenance fee: $0
  • ATM fee: None; however, the ATM’s owner may charge a separate surcharge fee in order to withdraw cash.
  • ATM fee refund: Synchrony Bank will refund up to $5 per month in ATM surcharge fees.
  • Overdraft fee: None.

If you need a bit more flexibility in your retirement savings or can’t afford the minimum deposit requirement of Synchrony’s IRA CDs, you might want to consider their IRA money market account.

You can deposit or withdraw cash at any time, however you’re still subject to Federal Regulation D that limits you to six transactions per month. Since this is an IRA account, you’ll also need to stick to the rules of whichever IRA you choose — Roth or traditional — lest you end up paying a tax penalty at the end of the year.

However, in return for this flexibility and low cash requirement to open an account, you’ll pay for it with lower interest rates. You can earn much higher rates on your retirement savings with Synchrony Bank’s IRA CDs, or even with an IRA savings or money market account at another bank entirely. In fact, many of the best money market accounts out there also offer you the ability to open them as an IRA.

How to open an IRA money market account with Synchrony

You can easily open up an IRA money market account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth (this is required of all banks in order to comply with the USA PATRIOT Act). You’ll also need to provide a government-issued ID, such as a driver’s license.

LEARN MORE Secured

on Synchrony Bank’s secure website

Member FDIC

Overall review of Synchrony’s banking products

We really like Synchrony Bank for their low-fee, high-yielding savings products, especially their savings account and CDs. These accounts are among the top contenders for highest interest rates available.

However, Synchrony’s money market account falls a bit short in the interest rate department. Once upon a time, money market accounts offered higher interest rates than savings accounts, but today that’s often not true — and Synchrony Bank is no exception.

On the whole, however, Synchrony is a great option for people looking for high interest rates on their savings — just skip their money market account.

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

EverBank Reviews: CD Rates, Checking Account and Money Market Account

Editorial Note: 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 prior to publication.

Year Established1998
Total Assets$34.3B
LEARN MORE on EverBank’s secure website
As far as major banks go, EverBank is relatively young but gives other banks a run for their money. They started up in 1961 and since then, they’ve ramped up their business and provide a suite of award-winning bank accounts.

Although EverBank offers a wide range of lending, investment and banking services, in this review, we’ll just focus on the crux of their business — their banking products. Although EverBank offers consistently high rates on their accounts, that’s not the only thing you need to consider when deciding whether or not to open an account at this bank.

We’ll cover everything else you need to know — rates, fees, minimum deposits and rules — in this review as well.
EverBank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

1.50%

Savings

EverBank Yield Pledge Money Market - First Time Client (1st Yr)

2.25%

CD Rates

EverBank 1 Year Yield Pledge CD

2.70%

CD Rates

EverBank 3 Year Yield Pledge CD

2.85%

CD Rates

EverBank 5 Year Yield Pledge CD

EverBank’s CD rates

Yield Pledge CDs

EverBank offers some of the top rates out there on this standard CD account.

Term

APY

3 months

1.25%

6 months

1.45%

9 months

1.60%

1 year

2.25%

18 months

2.35%

2 years

2.50%

2.5 years

2.50%

3 years

2.70%

4 years

2.75%

5 years

2.85%

As of 5/18/2018

  • Minimum opening deposit: $5,000
  • Minimum balance amount to earn APY: $0.01
  • Early withdrawal penalty: For each of the following CDs, the early withdrawal penalty will be:
    • For each of the following CDs, the early withdrawal penalty will be:
    • 6-month CD: 45 days’ worth of interest
    • 9-month CD: 68 days’ worth of interest
    • 1-year CD: 91 days’ worth of interest
    • 18-month CD: 136 days’ worth of interest
    • 2-year CD: 182 days’ worth of interest
    • 2.5-year CD: 228 days’ worth of interest
    • 3-year CD: 273 days’ worth of interest
    • 4-year CD: 365 days’ worth of interest
    • 5-year CD: 456 days’ worth of interest

EverBank’s Yield Pledge CD has pretty standard terms, which means you don’t need to worry about any funny business. You’re allowed to withdraw the interest earned without penalty, but if you do so, you might not earn the stated APY (the stated APY assumes that you let interest pile up within the account rather than withdrawing it).

Once the CD matures, it’ll automatically roll over into a new CD of the same type. But, you also get a 10-day grace period from the date of maturity to make any changes, such as withdrawing the money, adding any funds and/or changing the terms of the CD.

It’s easy to open a Yield Pledge CD account online. All you have to do is provide some basic personal information about yourself to help verify your identity, such as your name and Social Security number. After you’ve applied for an account, you’ll also need a way to fund it. You can do this by writing a check and mailing it in, or using their mobile deposit app, setting up a wire transfer or depositing the funds online from another bank.

LEARN MORE Secured

on EverBank’s secure website

magnifying glass

How EverBank’s CD rates compare

When it comes to high rates on a CD, you can’t really go wrong with EverBank. They currently offer some of the best CD rates available, which puts them on par with some of the bigger online banks.

In particular, we really like EverBank’s Yield Pledge promise, which states that EverBank will always keep their rates among the top 5% of all banks. This makes them a really attractive bank to stick with if you plan on opening multiple CDs, or doing a CD ladder strategy. This gives you peace of mind that the bank isn’t luring you in with temporarily high rates, only to drop them back down after you’ve already got a bunch of CDs with them. You can rest assured you’ll always get high rates, even in the future.

EverBank’s checking account

Yield Pledge Checking

High interest rates and low (or even no) ATM fees make this a great checking account for people who use ATMs frequently.

APY

Minimum Balance Amount

1.21% (1-Year Intro APY)

$5,000 - $250,000

0.25%

$0-$9,999.99

0.46%

$10,000-$24,999.99

0.51%

$25,000-$49,999.99

0.61%

$50,000-$99,999.99

0.71%

$100,000-$10,000.000

As of 5/8/2018

  • Minimum opening deposit: $5,000
  • Monthly account maintenance fee: None
  • ATM fees: None (we are excluding any ATM surcharge fees charged by the ATM’s owner).
  • ATM fee refunds: Unlimited ATM surcharge fee refunds each month if you keep an average daily balance of $5,000 in your account.
  • Overdraft fees: $30 insufficient funds fee, up to twice daily, if you don’t have overdraft protection enabled. Otherwise, an overdraft transfer from a linked EverBank account is free.

You’ll need a hefty amount of money to open this account, but if you’ve got it, it’s one of the highest-earning bank checking accounts. You’ll even earn a higher premium rate in your first year, regardless of how much you have in the account. After that, it’ll drop back down to the normal (but still high) interest rates for this account.

This account is especially great for people who use ATMs frequently and keep a large amount of money in their checking account. You’re not required to keep $5,000 in your account after opening it, but if you do, you get an added bonus: EverBank will refund all ATM surcharge fees that other ATM owners charge. Plus, they, themselves won’t charge you any fees for using whichever ATM you wish. It’s truly free-for-all ATM use.

It’s easy to open a Yield Pledge Checking account online. All you have to do is provide some basic personal information about yourself to help verify your identity, such as your name and Social Security number. After you’ve applied for an account, you’ll also need a way to fund it. You can do this by writing a check and mailing it in, or using EverBank’s mobile deposit app, setting up a wire transfer or depositing the funds online from another bank.

LEARN MORE Secured

on EverBank’s secure website

magnifying glass

How EverBank’s checking account compares

EverBank offers exceptional rates on their checking account. In fact, it’s one of the best online checking accounts available. There’s only one catch: You need to have a large opening deposit of at least $5,000, which is a lot of cash for most people.

But, once you open the account, you don’t necessarily need to keep it funded with $5,000 every day, although you do get some ATM perks and can earn higher interest rates by doing so. Still, it’s a great checking account for most people, although you can earn even higher interest rates by keeping your excess cash in an EverBank Money Market account.

EverBank’s money market account

Yield Pledge Money Market

EverBank’s Money Market account also offers great rates and low (or no) ATM charges.

APY

Minimum Balance Amount

1.50% (1-Year Intro APY)

$5,000 - $250,000

1.05%

$0-$9,999.99

1.10%

$10,000-$24,999.99

1.15%

$25,000-$49,999.99

1.25%

$50,000-$99,999.99

1.35%

$100,000-$10,000.000

As of 5/8/2018

  • Minimum opening deposit: $5,000
  • Monthly account maintenance fee: $0
  • ATM fees: None (not including any ATM surcharge fees charged by the ATM’s owner).
  • ATM fee refunds: Unlimited ATM surcharge fee refunds each month if you keep an average daily balance of $5,000 in your account.
  • Overdraft fees: $30 NSF fee, up to twice daily, if you don’t have overdraft protection enabled. Otherwise, an overdraft transfer from a linked EverBank account is free.

You can earn high rates with EverBank’s Checking account, but you can earn even higher rates for your savings in an EverBank Money Market account. Plus, it’s a tiered account, so as your balance grows, you’ll earn even more money.

Just watch out; you’re limited to six transactions per month with this account, unless they’re in-person, by mail or ATM transactions. If you go over that amount, you’ll pay $10 per transaction, and they may even close your account or convert it into a checking account if you do this enough times.

It’s easy to open a Yield Pledge Money Market account online. All you have to do is provide some basic personal information about yourself to help verify your identity, such as your name and Social Security number. After you’ve applied for an account, you’ll also need a way to fund it. You can do this by writing a check and mailing it in, or using EverBank’s mobile deposit app, setting up a wire transfer or depositing the funds online from another bank.

LEARN MORE Secured

on EverBank’s secure website

magnifying glass

How EverBank’s money market account compares

EverBank also offers high interest rates on their Money Market account. Unlike their Yield Pledge Checking account, however, they’re not actually among the current top contenders for best money market account rates. There are many other banks out there offering higher rates on money market accounts than EverBank.

You also need to bring a lot of cash to the table with this account — $5,000, which again, is a lot for many people.

Overall review of EverBank’s products

We really like EverBank and their Yield Pledge promise, which states that they commit to being among the top 5% of banks offering the highest interest rates on their accounts. This makes them especially appealing if you’re doing a CD ladder because you might not want to fuss around every few years figuring out where you’re going to deposit your CD money next, depending on who’s offering the highest interest rates. With EverBank, you can plop it down in one spot and rest assured that you’ll earn great rates.

One thing we do not like about EverBank is that it requires high minimum deposits for all of their accounts. This precludes a lot of people from getting started with their savings. Still, it’s an all-around great option for folks who already have a small pile of cash saved up to earn even more money on their 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.

Lindsay VanSomeren
Lindsay VanSomeren |

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

TAGS:

Advertiser Disclosure

Earning Interest, Reviews

Discover Bank CD Rates Review

Editorial Note: 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 prior to publication.

Discover Bank
Most people know Discover as a credit card company, but it also operates an online bank and offers some of the best rates and terms on checking and savings accounts and certificates of deposit (CDs).

If you’re looking for CDs in particular, Discover is currently considered one of the best CDs due to their customer service and digital tools.

Discover Bank CD rates

CD term

Annual Percentage Yield (APY)

Minimum deposit amount

3 months

0.35%

$2,500

6 months

0.65%

$2,500

9 months

0.70%

$2,500

12 months

2.10%

$2,500

18 months

2.15%

$2,500

24 months

2.20%

$2,500

30 months

2.20%

$2,500

3 years

2.35%

$2,500

4 years

2.50%

$2,500

5 years

2.60%

$2,500

7 years

2.65%

$2,500

10 years

2.70%

$2,500

Rates as of 5/17/2018

LEARN MORE Secured

on Discover’s secure website

How do Discover Bank CD rates compare?

While Discover Bank CD rates aren’t always the highest available, they are consistently among the top offers across all terms. However, you may be able to find a similar or even better rate with a CD that has a lower minimum deposit than Discover’s. Currently, several nationwide banks offered a 12-month CD at a rate higher than Discover’s 12-month CD APY, while requiring a lower minimum deposit. For example, at the same time the above rates were available at Discover, there were 12-month CDs with rates as high as 2.25% APY with a lower minimum balance amount to earn the APY.

It’s always great to go for the highest interest rates possible, but keep your CD investing strategy in mind. If you’re investing in CDs using the ladder strategy, it might be easier to keep everything in one bank since you’ll be switching in and out of CDs frequently.

Discover also stands out from its competition in the CD space with its mobile app and 24/7 U.S.-based customer service. If you value such features, keep those particulars in mind when weighing Discover CD rates against others’.

What you need to know about Discover Bank’s CDs

Discover Bank is very transparent in terms of fine print. It’s not difficult to understand what’ll happen with your money after you invest it. We’ll cover the basics here about what you need to know to invest in Discover Bank’s CDs.

How to open a CD

It’s very simple to open up a CD with Discover Bank. Go to their CD webpage and click on the orange “Open an Account” button near the top right of the page. You can then choose which accounts you’d like to open. Select “CD,” choose a CD term and enter how much you’d like to deposit.

You’ll then need to complete the application by providing your name, address, date of birth, phone number, Social Security number, employment status and possibly even your driver’s license. Once your application is complete and accepted, you’ll need to fund the account.

How to fund the CD

You’ll need to fund it within 45 days of submitting your application, which you can do in one of three ways:

  • Transfer funds from another bank account over the phone. (You can only do this when you first fund your account.)
  • Transfer funds from another bank via online transfer.
  • Write a check to yourself and send it to the following address:Discover Bank
    P.O. Box 30417
    Salt Lake City, UT 84130

The minimum deposit amount for each of Discover Bank’s CDs is, as the chart above indicates, $2,500. Once you open a CD, you can’t deposit more money later, so it’s a good idea to make sure you have all the cash you want to invest before you open the account.

Withdrawing funds from the CD

When you want to withdraw money from your CD, the biggest thing to consider is whether that CD has matured yet, or finished its term.

If your CD has not matured, you’ve got options: You can take the interest out penalty-free at any time, or you can withdraw the principal (or the money you deposited) at any time as long as you pay an early-withdrawal penalty. This penalty varies depending on the original term of your CD:

  • less than one year: three months’ worth of simple interest
  • one year to less than four years: six months’ worth of simple interest
  • four years: nine months’ worth of simple interest
  • five years to less than seven years: 18 months’ worth of simple interest
  • seven years or longer: 24 months’ worth of simple interest

If your CD has finished its term, you can withdraw your money penalty-free, allow the CD to renew or roll it into a CD of a different term length. (More on that in a bit).

Earning interest on a Discover CD

Your CD will start earning interest on the same business day that you fund the account. The interest will be added to your account once each month, however.

When it comes to what to do with your interest, you have two options: The default option is to allow it to compound within the CD (meaning you’ll earn interest on that interest), or you can have it automatically deposited each month into another Discover bank account.

What happens once the CD matures?

You’ll get a heads-up notice about a month before your CD matures so you can decide what to do with the money. You have two main options: Either reinvest it into another CD (of the same term length or a different term length), or withdraw the money from the CD and put it into another account (such as a checking or savings account, or perhaps a CD at a different institution).

If you don’t let Discover know what you want to do with the maturing CD, the CD will automatically renew into another one of the same term length. You have a nine-day grace period after your CD automatically rolls over to make any changes or withdrawals penalty-free.

The bottom line

As far as big-name banks go, Discover offers great CD products. Wells Fargo, for example, only offers interest rates as high as 1.55% APY on a $5,000 deposit for a 58-month CD. Chase Bank offers even lower maximum rates — an abysmal 1.05% APY, and only if you can commit a minimum of $100,000 for 10 years.

If you’re the kind of person who likes to keep your finances in one place, Discover also has great credit cards, as well as competitive online savings and checking accounts. No matter how long you’re considering putting money in a CD, Discover is worth a look. Even if it doesn’t have the best available rate, it’s usually within several basis points of the top offerings and well above the average APY.

LEARN MORE Secured

on Discover’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.

Lindsay VanSomeren
Lindsay VanSomeren |

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

TAGS: , ,

Advertiser Disclosure

Strategies to Save

Understanding the Differences Between Credit Unions vs Banks

Editorial Note: 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 prior to publication.

Credit unions vs banks

Credit unions are known for having more flexibility in their offerings and lower rates for some financial products.

Because credit unions generally don’t pay state or federal taxes and are nonprofits, they can offer their members loans at relatively low interest rates; many people turn to credit unions when they need financing for a big purchase like a car or a home renovation.

Yet for all the benefits they carry, credit unions remain underused. In 2018, big banks still hold 77% of all household savings. Credit unions, on the other hand, struggle to chip away at holding a measly 10% of household savings, according to the Credit Union National Association.

The grassroots, low-fee structure of credit unions can be appealing to consumers who want to save money on banking services. However, if you’re thinking of transitioning to a credit union, make sure you’re aware of the drawbacks, too.

Main differences between credit unions vs banks

Product offerings

If you’re looking for an institution that can act as a one-stop shop for most if not all of your financial needs, consider looking at a bank. Many banks — especially the big-name banks — can offer many different product types simply because they have more capital than a little neighborhood credit union.

One exception to this rule might be internet-only banks, which by definition have no physical branch locations you can visit. These banks tend to run the gamut in terms of what products they offer. Some of these banks, such as Live Oak Bank and Marcus by Goldman Sachs®, only specialize in one or two things that they do really well — an online savings account, for example. Still, other online-only banks like Ally Bank do offer a range of product offerings like investment services and mortgages.

Fees

Because credit unions are nonprofits, they often don’t have to worry as much about gouging their members with high fees that you might find at traditional banks. However, that’s not always the case. In fact, a March 2017 survey of 57 different rewards checking accounts from banks and credit unions listed on DepositAccounts, another LendingTree-owned company, showed that credit unions actually charged slightly higher fees than their traditional bank counterparts. Here are how the fees panned out in the survey:

Institution

Overdraft fee

Third-party ATM fee

Monthly service fee

Credit Union

$29.83

$1.15

$2.52

Bank

$28.67

$0.56

$0.96

In general, if you are looking for low fees, we recommend starting your search with a credit union. Don’t discount banks, however — as the above case shows, sometimes banks offer lower fees than credit unions, especially internet-only banks.

Yield and rewards

Credit unions are often able to pass off their profits to you in the form of higher deposit account rates because they aren’t as driven as big banks to increase profits to benefit shareholders. Indeed, in the same March survey of rewards checking accounts mentioned above, credit unions came out slightly ahead with an average interest rate of 1.99% APY. Banks, on the other hand, only offered 1.71% APY.

Although credit unions offer better interest rates in general, one area where they lag behind is in sign-up bonuses. Many big banks will offer up to $500 or more in sign-up bonuses; something you’re unlikely to see with a small credit union.

Eligibility

There’s no doubt about it: Credit unions do take some work getting into. Since they’re formed around a common purpose or a common segment of the population, they can afford to be picky about who they accept as members. In many cases, you can join a credit union you’re interested in simply by making a donation to a particular charity. With some credit unions, however, you don’t have this option and you might just be plain out of luck if you don’t qualify.

“Credit union membership typically requires you to open and maintain a savings account. No other accounts can be opened without the ‘membership’ savings account,” said Ken Tumin, founder of DepositAccounts, another Lending Tree company. “This savings account requirement doesn’t exist at banks.”

Banks, on the other hand, will work with almost anyone who walks in the door as long as you have the relevant account setup information, like a government-issued ID, a Social Security number etc.

Branch locations

If it seems like there’s a local bank branch on just about every corner, you’d be right. According to an 2016 analysis by DepositAccounts, there are almost four bank branches in the U.S. for every credit union branch.

Moreover, if you belong to a small local credit union and move away or travel, you can be plain out of luck for finding any branches near you. Big banks like Wells Fargo and Chase, on the other hand, are widespread in just about every community. If walking into a local branch — wherever you might end up — is most important to you, then a bank may be the way to go.

ATM access

At first glance you might think credit unions would also be at a disadvantage when finding in-network ATMs due to their small size compared with banks. To get around this particular disadvantage, many credit unions have joined a network of ATM providers. One of the most popular is the CO-OP Financial Services network, and you’ve probably heard of it if you’ve ever been a member of a credit union.

If your credit union is a part of the Co-Op network, you’re eligible to use any of 30,000 different ATMs nationwide (and even in a few foreign countries) without paying any surcharge fees. Compare that with a big bank like Wells Fargo, which only offers 13,000 ATMs, or PNC Bank, which only offers 9,000 ATMs in 19 states — fewer than half of what most credit unions offer. If using ATMs is more your style, credit unions are the clear winner.

Operating hours

Operating hours vary widely between credit union vs banks, even within different branches. If you’ll be going in to visit a branch, the best suggestion might be to research potential banks and credit unions in your area to see which ones offer hours that will work with your schedule.

One exception is online banks, many of which offer 24/7 phone service. After all, it’s still cheaper for these banks to staff a call center to serve the entire country rather than hire someone to man a branch 24/7 in the middle of nowhere. If you don’t mind calling in to chat with a teller rather than visiting them face-to-face when you have a question, an online bank might be just the thing for you.

Technology

Because credit unions pass off their savings onto members in the form of cheaper loans and higher-yielding products, many don’t have enough cash to invest in the latest and flashiest technology like big banks.

That’s not always the case. There are some credit unions like AlaskaUSA® Federal Credit Union and PenFed® Credit Union which offer modern technology like mobile phone apps with remote check deposit. This nifty feature lets you deposit a check anywhere with the snap of your smartphone camera. But, more often than not, many credit union websites you’ll visit offer antiquated technology that looks like it could be your little brother’s first coding project.

If the latest, hottest bank technology is what you seek, consider starting your search with a bank rather than a credit union.

Autonomy and governance

One of the major benefits of credit unions is that they’re owned by members — including you. When you join a credit union, you generally need to put at least $5 in some type of “share savings” account. This establishes your membership in the credit union, and it even allows you to vote in board elections. In short: You are a member, not a customer, of a credit union. As a member, you get a say in terms of who’s in charge.

Banks, on the other hand, view you as a customer, just like any other business. Banks are usually privately owned, unless it’s a publicly-traded company. With a bank, you generally get no say in how the institution is run. Banks can — and do — set policies that’ll earn their owners and shareholders money made off your back, rather than redistributing it to other banking customers like credit unions do.

If being a member and not a customer is important to you, a credit union is your best bet.

Bottom line: Credit unions vs Banks

There are a lot of differences between credit unions vs banks. We recommend searching for the best financial institution based on what’s most important to you.

A bank might be best for you if you:

  • want to visit a branch in-person to conduct your banking
  • want the latest technology
  • aren’t as concerned about fees and using ATMs

A credit union might be best for you if you:

  • want a good selection of ATMs wherever you go
  • want higher rates and lower fees
  • want to be a member of your financial institution, not a customer

Searching for only banks or credit unions can help narrow down your search, but don’t be afraid to consider other options as well. “Credit unions, especially large ones, have taken on many of the traits of banks,” said Tumin.

In other words, even though these differences generally hold true, there are often exceptions. For example, some banks offer much higher rates on their savings accounts than any credit union, or some credit unions might have unscrupulous business practices despite their nonprofit status.

But by starting your search with either credit unions or banks, you can help narrow down a seemingly infinite amount of choices to a reasonable amount and find the best financial institution for you.

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

Featured, Personal Loans, Reviews

Marcus by Goldman Sachs Review: GS Bank Takes on Online Savings, CDs, and Personal Loans

Editorial Note: 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 prior to publication.

Marcus by Goldman Sachs
iStock

Most Americans probably think of fancy white-collar stock traders on Wall Street when they think of Goldman Sachs, a global investment firm that’s been around since the late 19th century.

In recent years, Goldman made a major pivot, launching a new arm of the company called GS Bank, which would provide internet-only savings accounts to the masses.

They also launched Marcus by Goldman Sachs®, a line of personal loans. Eventually, they decided to rebrand their savings account business, putting it under the Marcus umbrella as well.

Today, through Marcus, you’ll find three product offerings: personal loans, savings accounts, and CDs.

In this article, we’ll take a deep dive into all three products. We’ll tell you what you need to know before opening an account, including what rates they are offering.

All rates are current as of May 15, 2018.

Marcus by Goldman Sachs savings account

A very high interest rate and no fees make this one of the best savings accounts out there.

APY

Minimum Balance Amount

1.70%

None

  • Minimum opening deposit: None. However, you’ll need to deposit at least $1.00 if you want to earn any interest.
  • Monthly account maintenance fee: None.
  • Overdraft fee: None.

This is a great account for almost anyone. However, before you click that “Learn More” button below, there are a couple of things to know.

No ATMs. First, Marcus by Goldman Sachs doesn’t offer ATM access to your savings account. You’ll either need to deposit or withdraw money by sending in a physical check, setting up direct deposits, or by moving the money to and from your other bank accounts via ACH or wire transfer.

No checking account. Second, Marcus does’t offer a corresponding checking account. That means you can only use this account as an external place to park your cash from your everyday money flow.

Keeping a separate savings account does have its benefits. For example, it’s harder to tempt yourself to withdraw the cash if you’re a chronic over-spender. But, it also means that there might be a delay of a few days if you need to transfer the money out of your Goldman Sachs online savings account and into your other checking account.

How to open a Goldman Sachs online savings account

It’s really easy to open an online savings account with Marcus by Goldman Sachs. You can do it online or over the phone as long as you’re 18 years or older, have a physical street address, and a Social Security Number or Individual Taxpayer Identification Number.

You’ll be required to sign a form which you can do online, or by mail if you’re opening the account over the phone.

LEARN MORE Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

How their online savings account compares

Marcus’ online savings account can easily be described with one word: outstanding.

You’ll get a relatively high interest rate with this account, which is among the best online savings account rates you’ll find today. In fact, these rates are currently over seven times higher than the average savings account interest rate.

Even better, this account won’t charge you any fees for the privilege of keeping your money stashed there. It’s a tall order to find another bank that offers these high interest rates with terms this good.

Marcus by Goldman Sachs CD rates

Sky-high CD rates, but watch out for early withdrawal limitations.

Term

APY

Minimum Deposit Amount

6 months

0.60%

$500

9 months

0.70%

$500

12 months

2.20%

$500

18 months

2.25%

$500

24 months

2.30%

$500

3 years

2.35%

$500

4 years

2.40%

$500

5 years

2.80%

$500

6 years

2.85%

$500

  • Minimum amount to open account: $500
  • Minimum amount to earn APY: $500
  • Early withdrawal penalty: For CDs under 12 months, 90 days’ worth of interest. For CDs of 12 months to 5 years, 270 days’ worth of interest. For CDs of 5 years or over, 365 days’ worth of interest.

Marcus’ CDs work a little differently from other CDs. Rather than having to set up and fund your account all at once, Goldman Sachs will give you 30 days to fully fund your account.

Once open, your interest will be tallied up and credited to your CD account each month. You can withdraw the interest earned at any time without paying an early withdrawal penalty, but heads up: If you withdraw the interest, your returns will be lower than the stated APY when you opened your account.

If you need to withdraw the money from your CD, you can only do so by pulling out the entire CD balance and paying the required early withdrawal penalty. There is no option for partial withdrawals of your cash.

Finally, once your CD has fully matured, you’ll have a 10-day grace period to withdraw the money, add more funds, and/or switch to a different CD term. If you don’t do anything, Marcus will automatically roll over your CD into another one of the same type, but with the current interest rate of the day.

How to open a Goldman Sachs CD

Marcus has made it super simple to open up a CD. First, you’ll need to be at least 18 years old, and have either a Social Security Number or an Individual Taxpayer Identification Number.

You can open an account easily online, or call them up by phone. You’ll need to sign an account opening form, which you can do online or via a hard-copy mailed form. Then, simply fund your CD account within 30 days, and you’re all set.

LEARN MORE Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

How their CDs compare

The interest rates that Marcus offers on their CDs are top-notch. In fact, a few of their CD terms are among the current contenders for the best CD rates.

If you’re interested in pursuing a CD ladder approach, Marcus is one of our top picks because each of their CD terms offer above-average rates. This means you can rest easy that you’ll get the best rates for your CD ladder without having to complicate things by spreading out all of your CDs among a handful of different banks.

The only downside to these CDs compared with many other banks is that you can’t withdraw a portion of your cash if you need it. It’s either all-in, or all-out. However, once out, you’re still free to open a new CD with the surplus cash, as long as it’s at least the $500 minimum deposit size.

Marcus by Goldman Sachs personal loan

Personal loans offered by Marcus have low APRs, flexible terms, and no fees.

Terms

APR

Credit Required

Fees

Max Loan Amount

36-72 months

6.99%-24.99%

Varies

None

$40,000

Marcus by Goldman Sachs personal loans can be used for just about anything, from consolidating debt to financing a large home improvement project. They offer some of the best rates available, with APRs as low as 6.99%, and you’ll not only be able to choose between a range of loan terms, but you can also choose the specific day of the month when you want to make your loan payments.

While there are no specific credit requirements to get a loan through Marcus, the company does try to target those that have “prime” credit, which is usually those with a FICO score higher than 660. Even with a less than excellent credit score, you may be able to qualify for a personal loan from Marcus, though, those that have recent, negative marks on their credit report, such as missed payments, will likely be rejected.

Applicants must be over 18 (19 in Alabama and Nebraska, 21 in Mississippi and Puerto Rico) and have a valid U.S. bank account. You are also required to have a Social Security or Individual Tax I.D. Number.

No fees. Marcus charges no extra fees for their personal loans. There are no origination fees associated with getting a loan, but there are also no late fees associated with missing payments. Those missed payments simply accrue more interest and your loan will be extended.

Defer payments. Once you have made on-time payments for a full year, you will have the ability to defer a payment. This means that if an unexpected expense or lost job hurts your budget one month, you can push that payment back by a month without negatively impacting your credit report.

How to apply for a Marcus personal loan

Marcus by Goldman Sachs offers a process that is completely online, allowing you to apply, choose the loan you want, submit all of your documents, and get approved without having to leave home. Here are the steps that you will complete to get a personal loan from Marcus:

  1. Fill out the information that is required in the online application, including your basic personal and financial information, as well as how much you would like to borrow and what you will use the money for.
  2. After a soft pull on your credit, and if you qualify, you will be presented a list of different loan options that may include different rates and terms.
  3. Once you have chosen the loan you want, you will need to provide additional information to verify your identity. You may also be asked for information that can be used to verify your income and you will need to provide your bank account information so that the money can be distributed.
  4. You will receive your funds 1 – 4 business days after your loan has been approved.

APPLY NOW Secured

on Marcus By Goldman Sachs®’s secure website

How their personal loans compare

Marcus offers low APRs and flexible terms with their personal loans, but their main feature is that they have no fees. If you are looking for a straightforward lending experience with no hidden fees or costs, Marcus will be perfect for you since you won’t even have to worry about late fees if you happen to miss a payment.

While Marcus offers some great perks, you may be able to get a lower rate if you choose to go with another lender, such as LightStream or SoFi. Both of these lenders offer lower APR ranges and they don’t charge origination fees, though, LightStreamwill do a hard pull on your credit to preapprove you.

LendingClub and Peerform both have lower credit requirements than Marcus, but they also charge origination fees and, being P2P lending platforms, you will need to wait for your loan to be funded and you run the risk that other users might not fund your loan.

Overall review of Marcus by Goldman Sachs‘ products

Marcus has really hit it out of the park with their personal loans, online savings, and CD accounts. Each of these accounts offers some of the best features available on the market, while shrinking the fees down to a minuscule, or even nonexistent, amount. Their website is also slick and easy to use for online-savvy people.

The only thing we can find to complain about with Marcus is that they don’t offer an equally-awesome checking account to accompany their other deposit products. Indeed, it seems like Marcus has turned their former hoity-toity image around: Today, they’re a bank that we’d recommend to anyone, even blue-collar folks.

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

Best of, Earning Interest

The Best Credit Union CD Rates – May 2018

Editorial Note: 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 prior to publication.

The top credit union CD rates
Source: iStock

Certificates of deposit (CDs) are a great way to safely store your savings at a financial institution, as they offer a guaranteed rate of return, and CD rates tend to be higher than those on traditional savings accounts. Maybe you’ve even heard that credit union CD rates offer higher returns—but is that really the case?

On average, yes. As of December 2017, the average one-year credit union CD had a 0.68% annual percentage yield (APY), compared to the 0.54% APY average among one-year bank CDs.

Using data from DepositAccounts.com, another LendingTree company, we identified the top one-year credit union CD rates, as of May 10, 2018. We then eliminated any credit union with a health rating lower than a B and identified the top three offerings in three categories: restricted, no cost, and best banking app. If there was a tie by APY, we went with the product with the lower minimum deposit. Here are the best one-year credit union CD rates.

Best CD rates for credit unions with no cost to join

The thing about credit unions is that they’re not usually just open to anyone. You usually need to meet some membership criteria in order to get in and get access to all of their really nice products. These credit unions, however, will let you in for free regardless of your personal details. (Note: Only two credit unions met our criteria for this list.)

Unify Financial Credit Union – 1-Year Share Certificate, 1.00% APY, min. deposit $1,000

UNIFY Financial Credit Union
Unify FCU offers the highest interest rates on CDs (which it calls share certificates) of any credit union with no cost to join. The interest rate on their 12-month CD, for example, is 1.00%, compared to the national average of 0.83% in December. You would earn $8.50 on a $1,000 deposit. If you withdraw your money early, however, you’ll face a penalty of 90 days’ worth of interest.

LEARN MORE Secured

on UNIFY Financial Credit Union’s secure website

NASA Federal Credit Union – 1-Year Share Certificate, 0.75% APY, min. deposit $1,000

NASA Federal Credit Union
If the rigid inflexibility of CDs makes you leery, NASA FCU might be your best bet. They have a lot of flexible certificates, such as add-on certificates that let you start with as little as $250, and bump-rate certificates that let you opt for a one-time interest rate increase if rates go up. You can even take out a loan from your certificate should you need the cash before it’s matured. You can join NASA FCU with a complimentary membership to the National Space Society.

If you do need to make an early withdrawal, you will face a penalty of 180 days’ worth of interest.

LEARN MORE Secured

on NASA Federal Credit Union’s secure website

Best credit union CD rates with restricted memberships or membership fees

Each of these credit unions have restricted membership criteria, but don’t let that scare you away. If you don’t meet their membership criteria, it’s possible to make a small donation to their charity of choice in order to become eligible for membership. Furthermore, these credit union CD rates offer some of the highest-returning share certificates out of any category.

Air Force Federal Credit Union – 1-Year Certificate 2.30% APY, min. deposit $1,000

Air Force Federal Credit Union
Members and family members of the military, civilian contractors, and certain employees are eligible to join the Air Force FCU, along with anyone willing to join the Airman Heritage Foundation ($25 annual membership fee).

This credit union comes in first place overall for highest interest rates for 12-month CDs. You can earn an APY of 2.30% by depositing a minimum of $1,000 in a 12-month CD. You can also use your CD as collateral to earn a lower interest rate on a loan, and membership comes with a host of discounts for parks and businesses in the San Antonio, Texas area. Watch out for the early withdrawal penalties, however, worth half of whatever you would have earned between when you withdrew the funds and when it would have matured.

PenFed Credit Union – 1-Year Money Market Certificate, 2.12% APY, min. deposit $1,000

PenFed Credit Union
PenFed tops this list with an APY of 2.12%. With a minimum deposit of $1,000, you could earn $20.70 in one year. Interest is compounded daily and posts to accounts monthly. However, be aware of the steep early withdrawal penalty. If you withdraw funds before the year is up, you may forfeit all interest accrued up to that point.

Eligibility for this credit union is mainly based on military status, governmental employment status, affiliation with certain associations and organizations or relation to eligible members. However, if you don’t qualify through those criteria, getting a membership to this credit union is not difficult if you’re willing to pay a one-time fee of $17 to either Voices for America’s Troops or the National Military Family Association.

LEARN MORE Secured

on PenFed Credit Union’s secure website

NCUA Insured

USAlliance Financial – 12 Month CD, 2.07% APY, min. deposit $500

USALLIANCE Financial
Membership to USAlliance Financial is open to anyone who lives, works or worships in certain counties of Massachusetts, the city of West Haven, Conn., and a few districts in New York. However, if you don’t qualify by location, you can qualify by giving USAlliance authorization to make you a member of various organizations, including the American Consumer Council, if you aren’t already a member of these organizations. Keep in mind that these organizations may request fees.

Once you’re a member of USAlliance Financial, you can open a 12-month CD with a minimum of $500. Their early withdrawal penalty equals 180 days’ worth of interest earned on the amount you withdraw.

LEARN MORE Secured

on USALLIANCE Financial’s secure website

Latino Credit Union – 12 Month CD, 2.05% APY, min. deposit $500

Latino Credit Union
To become a member of Latino Credit Union, anyone can simply donate $10 to the Latino Community Development Center. Once you become a member of this credit union, you’ll be able to take advantage of their 2.05% APY by depositing $500. Early withdrawal penalties are worth 90 days of interest on their 12 month CD.

LEARN MORE Secured

on Latino Credit Union’s secure website

Lake Michigan Credit Union – 12 Month Special VIP CD, 2.02% APY, min. deposit $500

Lake Michigan Credit Union
With a $5 donation to the ALS Foundation, anyone can join Lake Michigan Credit Union. If you live in Michigan or Florida, you’ll also qualify for membership. Once you become a member of the credit union, you’ll be able to open their 12 month CD with a $500 deposit.

With a minimum of $500, you’ll earn $10.10 by the end of the term. However, if you withdraw funds early, you’ll be penalized with a significant amount of interest.

LEARN MORE Secured

on Lake Michigan Credit Union’s secure website

Best CD rates for credit unions with the best mobile apps

By their very nature, CDs aren’t something that require constant attention, poking, and prodding. It’s a set-it-and-forget-it kind of a deal, so you won’t need any spiffy banking apps to use CDs.

But, if you’d like to switch all of your banking to the same institution that holds your CDs, it might be a wise idea to consider one of these credit unions if you’re a digital junkie. Most credit unions lag behind their bank compatriots in terms of mobile banking apps, but these credit unions offer top-notch mobile apps, according to MagnifyMoney’s 2017 mobile banking app analysis.

Eastman Credit Union – 1-Year Investment Certificate, 2.00% APY, min. deposit $1,000

Eastman Credit Union
Eastman Credit Union also has pretty restrictive membership requirements. You’ll have to be an employee (or a family member of an employee) of one of their select employers, or live in certain parts of Tennessee, Texas, or Virginia.

Eastman CU is another one of the rare credit unions that allow you to withdraw your dividends penalty-free before the maturity date, although again, doing so will lower your total returns. Currently, you can earn an interest rate of 2.00% on a 12-month CD with a minimum deposit of $1,000. If you withdraw your money before the CD matures, you’ll owe a penalty fee of anywhere between seven days’ worth of dividend earnings or all of your dividend earnings.

LEARN MORE Secured

on Eastman Credit Union’s secure website

Redstone Federal Credit Union – 12 Month MemberPlus Regular Share Certificate, 1.75% APY, min. deposit $5

Redstone Federal Credit Union
You can’t just make a simple donation to join to Redstone Federal Credit Union if you fail to meet their membership criteria. You need to be a government employee or contractor, a member of the military, reserve, or National Guard, or affiliated with a number of organizations listed on their website among other options.

However, if you do qualify for membership, you could earn an APY of 1.75% with a minimum deposit of $5. Redstone FCU has compounding and non-compounding certificates, which allow you to have the option to withdraw interest earned or not throughout the term of the certificate.

LEARN MORE Secured

on Redstone Federal Credit Union’s secure website

Wright-Patt Credit Union – 1-Year Certificate, 1.64% APY, min. deposit $500

Wright-Patt Credit Union
Unlike many credit unions, you can’t just make a simple donation to join Wright-Patt CU if you fail to meet their membership criteria. You need to live in certain areas of Ohio, be associated with Wright-Patterson Air Force Base, or be an employee of their select employer group, among other options.

You can earn $8.20 on a 12-month CD with just a relatively small $500 deposit. However, if you’re able to deposit $100,000 or more, you’ll earn an APY of 1.74%, which will return $1,740 in interest. Early withdrawal penalties vary depending on the original term of your CD, however they’ll be anywhere between 5-12 months’ worth of dividends.

LEARN MORE Secured

on Wright-Patt Credit Union’s secure website

Delta Community Credit Union – 1-Year Certificate, 1.10% APY, min. deposit $1,000

Delta Community Credit Union
There are many ways to join Delta Community CU, such as living in certain parts of Georgia, being a member of one of their select employers, or being a member of one of their partner organizations. Interestingly, citizens of many countries like Argentina, France, and Peru are also eligible to join.

Delta Community CU used to be the lowest-earning credit union on our list, but recently increased the APY on this product from 1.00% to 1.10%. The early withdrawal penalty is 90 days’ worth of interest on a 12-month CD.

LEARN MORE Secured

on Delta Community Credit Union’s secure website

 

3 questions to consider before opening a credit union CD

Banks are more likely to call their products certificates of deposit, while credit unions often refer to them as share certificates. Aside from the name, the biggest difference between the two is that credit unions have higher average annual percentage yields (APYs), as of December 2017. That’s good news: It means more money back in your pocket when the CD matures (i.e., reaches the end of its term and is available for withdrawal).

There really is no difference in safety between depositing money in a CD with a credit union versus a bank, as long as they participate in either the National Credit Union Administration (NCUA) for credit unions, or the Federal Deposit Insurance Corporation (FDIC) for banks.

According to Neal Frankle, a Los Angeles-based Certified Financial Planner with Wealth Pilgrim, deposits of up to $250,000 per financial institution are “backed by the full faith and credit of United States Government, so it’s pretty solid.”

For the most part, choosing a CD at a bank or a credit union boils down to your preference as a consumer: Do you want to be a bank customer or a member of a credit union? Here’s a primer on the differences.

The biggest advantage of credit union CDs over bank CDs is that you can likely earn more interest. But with both products, the longer the CD term, the more interest you will earn. And with a CD laddering strategy, you can have the best of both worlds: frequent access to your money, yet you can still keep it locked away in high-interest, long-term CDs.

Beyond that, the disadvantages of opening a credit union CD are the same as if you’re opening a CD with a bank. You can’t access that money without paying an early withdrawal penalty until the CD matures. While CDs do offer some of the highest rates for any financial product you’re likely to come across at a bank or credit union, they still don’t really earn great interest. If you’re investing for the long-term (like retirement savings), your money is better invested in the riskier (but higher-earning) stock or bond market.

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 Live Oak Bank’s Deposit Rates

Editorial Note: 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 prior to publication.

Year Established2008
Total Assets$2.7B
LEARN MORE on Live Oak Bank’s secure website
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.
Live Oak Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

1.70%

Savings

Live Oak Bank Savings Account

2.20%

CD Rates

Live Oak Bank 1 Year CD

2.60%

CD Rates

Live Oak Bank 3 Year CD

2.70%

CD Rates

Live Oak Bank 5 Year CD

Live Oak Bank’s savings account

When it comes to the best savings accounts with high interest rates, Live Oak Bank currently has one of the highest rates.

APY

Minimum Deposit

1.70%

Up to $5 million

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

Rate current as of 5/1/2018

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fees: None
  • ATM fee refunds: None

Live Oak Bank currently has one of the best savings account rates available. 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.

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 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 withdrawal past your allotted six per month, you’ll be charged a $10 transaction fee for each additional action.

Live Oak Bank CD rates

Live Oak Bank also has some of the best CD rates with a decent deposit amount.

Term

APY

Minimum Deposit

6-month CD

1.85%

$2,500

1-year CD

2.20%

$2,500

18-month CD

2.35%

$2,500

2-year CD

2.45%

$2,500

3-year CD

2.60%

$2,500

4-year CD

2.65%

$2,500

5-year CD

2.70%

$2,500

Rates current as of 5/9/2018

  • Minimum opening deposit: $2,500
  • Early withdrawal penalty:
    • CD terms that are less than 24 months — 90 days’ interest penalty
    • CD terms that are more than 24 months — 180 days’ interest penalty

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. Currently, the best CDs out there have minimum deposit requirements both above and below Live Oak Bank’s $2,500 benchmark.

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).

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

Bank of Internet Reviews: Checking, CDs Rates, Money Market, and Savings Accounts

Editorial Note: 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 prior to publication.

Year Established2000
Total Assets$8.9B
LEARN MORE on Bank Of Internet USA’s secure website
San Diego, Calif.-based Bank of Internet USA is a newer bank, having started up in the year 2000 while many traditional banks have been around for decades. It was also one of the first banks to exclusively operate online. Even though it’s a new kid on the block, it’s still a solid performer, and has received an “A” health rating from DepositAccounts.com, another LendingTree company, which indicates it’s a solid choice for consumers looking for a new bank account.

U.S. citizens and resident aliens 18 years or older are welcome to apply for an account with Bank of Internet. To apply online, you’ll need at least three pieces of information: a social security number, a U.S. driver’s license or state ID, and a physical mailing address (P.O. boxes aren’t allowed), along with other basic information about yourself like your name and phone number.

In this review we’ll cover Bank of Internet’s checking, CD, money market, savings, and IRA accounts. We’ll discuss the interest rates, fees, and rules that come along with each account so you can decide whether Bank of Internet will be the best bank for you.
Bank of Internet USA’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

1.30%

Savings

Bank of Internet USA Smart Savings Account

1.00%

CD Rates

Bank of Internet USA 12 Month CD

1.30%

CD Rates

Bank of Internet USA 36 Month CD

2.25%

CD Rates

Bank of Internet USA 60 Month CD

Bank of Internet CD rates

While Bank of Internet’s CDs are pretty standard, they do offer a unique feature: interest is paid out every year for CD terms over one year in length.

Term

APY

3 months

0.55%

6 months

0.75%

12 months

1.00%

24 months

1.20%

36 months

1.30%

48 months

1.40%

60 months

2.25%

As of 5/8/2018

  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty:
    • For the 3-month CD, you’ll pay 1.5 months’ worth of interest.
    • For the 6-month CD, you’ll pay 3 months’ worth of interest.
    • For the 12-month CD, you’ll pay 6 months’ worth of interest.
    • For the 24-month CD, you’ll pay 12 months’ worth of interest.
    • For the 36-month CD, you’ll pay 18 months’ worth of interest.
    • For the 48-month and 60-month CD, you’ll pay 24 months’ worth of interest.

Bank of Internet offers a pretty standard CD with this account. You can choose from a range of terms, and you must bring a moderately-sized deposit to the table to open an account. You’ll also face a penalty for withdrawing your cash early, and if you do withdraw money, Bank of Internet will first remove it from the interest you’ve earned. Since the APY you’ll earn is calculated based on the assumption that you leave the interest in the account to earn even more interest, withdrawing any money early can reduce the actual APY you get.

One important heads-up: if you choose a CD term longer than a year, you’ll receive a payout of the interest you’ve earned from the prior year, rather than having it sit in your CD account until maturity. Additionally, the CD will auto-renew to another CD of the same term length when it matures. You’ll still have a 10-day grace period to withdraw the money or make any changes to the CD, however.

LEARN MORE Secured

on Bank Of Internet USA’s secure website

Member FDIC

magnifying glass

How Bank of Internet’s CD rates compare

When it comes to CD rates, Bank of Internet is a bit like Goldilocks. It doesn’t offer the best CD rates out there, but it also don’t offer the worst. In addition, its minimum deposit size to open a CD is relatively standard among banks, however it will be a bit cost-prohibitive to many people, especially those just starting out their savings.

One option to get around this is to find another bank with a lower minimum deposit size for CDs, or to simply open a savings account until you have enough cash saved up to open a higher-interest-earning CD.

Bank of Internet checking account options

Rewards Checking

This fee-free account offers a great opportunity to earn high interest rates on your checking account money.

APY

Minimum Deposit Amount

0.4166% - 1.25%

$0

As of 5/8/2018

  • Monthly account maintenance fee: $0
  • ATM fees: $0
  • ATM fee refunds: Unlimited ATM fee refunds for any domestic ATMs
  • Overdraft fees: Free, if you link a savings or money market account to cover any overdrafts.

If you’re looking for a high-interest-earning checking account, this is a great one to consider. You can earn three different tiers of interest rates, depending on how you use the account. To earn the base rate of 0.4166% APY, you’ll need to receive at least $1,000 worth of monthly direct deposits into this account. To earn an additional 0.4166% APY, you’ll need to also make at least 10 purchases of at least $3 per month with your Bank of Internet Visa® debit card. Finally, if you also make another five purchases (for a total of 15) of at least $3 per month, in addition to the direct deposit requirements, you can earn yet another 0.4166% APY — totalling a whopping 1.25% APY.

This account also comes with a cashback rewards program. To enroll, you’ll need to log in to your account and navigate to the Purchase Rewards section, where you can see what cashback offers are available at local and online stores. You’ll need to manually activate the offers in order for it to work; otherwise, you won’t earn anything. If you do earn any cash back, it’ll be deposited into your account at the end of the next month.

LEARN MORE Secured

on Bank Of Internet USA’s secure website

Member FDIC

Platinum Checking

The only string attached with the Platinum Checking account is that you need a high balance to earn any interest.

APY

Minimum Balance Amount

0%

$1 - $4,999

0.71%

Over $5,000

As of 5/8/2018

  • Monthly account maintenance fee: $0
  • ATM fees: $0
  • ATM fee refunds: Up to $8 per month from domestic ATM surcharge fees
  • Overdraft fees: $0

If you tend to keep a large balance in your checking account and don’t use it a whole lot, this could be a good rewards checking account to consider. You won’t earn anything on the first $4,999 in the account, but once you hit the $5,000 mark, you’ll earn a decent interest rate for a checking account, and with no strings attached like with Bank of Internet’s Rewards Checking account.

There aren’t any fees for using any domestic ATMs; however, you still might owe ATM surcharge fees from the ATM’s owner. Bank of Internet will reimburse you up to $8 for these surcharge fees, but unlike the Rewards Checking account, it’s not an unlimited amount — so this account may be better for folks who don’t use ATMs frequently either.

The Platinum Checking account also comes with the same cashback rewards program as the Rewards Checking account. Simply log into your online account, select which offers you’re interested in, and shop at that store. Your cash rewards will be deposited into your bank account at the end of the next month.

LEARN MORE Secured

on Bank Of Internet USA’s secure website

Member FDIC

CashBack Checking

You can earn up to 1.00% cash back when you use your Bank of Internet USA debit card to make purchases with this account.
  • Monthly account maintenance fee: $0
  • ATM fees: $0
  • ATM fee refunds: Unlimited ATM fee refunds for any domestic ATMs.
  • Overdraft fees: $25

Bank of Internet’s CashBack Checking account may be an option to consider if earning cash back if more your style. You’ll earn 1.00% cash back on any signature-based purchases made with your Bank of Internet USA debit card if you keep an average daily balance of $1,500 in your account. (A “signature-based purchase” is one where you don’t use the PIN pad.) If you have less than the $1,500 average daily balance in your account, you’ll still earn cash back, but at a slightly lower rate (0.50%).

You can earn up to $2,000 in cash back per month. Also, heads-up: this cash back is counted as income, so you’ll owe taxes on this money when you file your taxes at the end of the year (the bank will send you a 1099-MISC form to record on your taxes).

In addition to this cashback program, you’re also eligible for the regular cashback rewards program offered with the other checking accounts. All you have to do is log in to your online account, select which offers you’re interested in purchasing, make the purchase, and earn a set amount of cash back on top of what you’re already earning. The money from this cashback program and your normal daily spending will be deposited into your checking account.

LEARN MORE Secured

on Bank Of Internet USA’s secure website

Member FDIC

Essential Checking

Bank of Internet’s Essential Checking account doesn’t earn any interest or come with any inherent rewards, but it won’t cost you anything either.
  • Monthly account maintenance fee: $0
  • ATM fees: $0
  • ATM fee refunds: Unlimited ATM fee refunds for any domestic ATMs.
  • Overdraft fees: $0

This fee-free account also does not offer any interest, nor does it come with its own cashback rewards program like the CashBack Checking account.

However, this account is still eligible for Bank of Internet’s own cashback rewards program. To earn cashback rewards with this program, you need to log into your account online and select the cashback offers that you’re interested in. Then, simply use your Bank of Internet USA Visa® Debit Card to make a purchase with these merchants, and your cash rewards will be deposited into your bank account in the next month.

LEARN MORE Secured

on Bank Of Internet USA’s secure website

Member FDIC

Golden Checking

The Golden Checking account allows you to earn a small amount of interest and free checks if you’re 55 or older.

APY

Minimum Deposit Amount

0.20%

$0

As of 5/8/2018

  • Monthly account maintenance fee: $0
  • ATM fees: $0
  • ATM fee refunds: Up to $8 per month from domestic ATM surcharge fees.
  • Overdraft fees: $0

If you’re over age 55, you’re eligible to open Bank of Internet’s Golden Checking account. It offers a few extra perks on top of its regular accounts — you’ll earn a small amount of interest on any money you keep in the account (with no stipulations for minimum balances or transactions), and you’ll get a free box of checks as often as every six months.

In addition, you’re eligible for Bank of Internet’s cashback program. If you log into your online account, you’ll be able to select from certain retailers offering cashback rewards. Simply activate these rewards, spend money with your Bank of Internet USA Visa® Debit Card at these retailers, and the money you earn will be deposited back into your account the following month.

LEARN MORE Secured

on Bank Of Internet USA’s secure website

Member FDIC

First Checking

This checking account is a great option to wean your teen into managing their own money.

APY

Minimum Deposit Amount

0.25%

$0

As of 5/8/2018

  • Monthly account maintenance fee: $0
  • ATM fees: $0
  • ATM fee refunds: Up to $12 per month from domestic ATM surcharge fees.
  • Overdraft fees: $0

Bank of Internet’s First Checking account is designed to be exactly that… your teen’s first checking account. It’s jointly owned by you and your teen (ages 13 to 17, or 18 in Alabama), so you also have complete control over the account, including being able to deposit an allowance into the account and monitor spending.

There are also a few other nice safeguards that come with the account. In order to prevent totally reckless spending, your teen is limited to withdrawing just $100 cash per day, or making just $500 in point-of-sale transactions. Even though it’s a checking account, this account doesn’t allow any check-writing capabilities, though it does come with a Visa® debit card. Finally, your teen won’t be allowed to make certain purchases or use their card at certain kinds of establishments, like bars, liquor stores, or casinos.

LEARN MORE Secured

on Bank Of Internet USA’s secure website

Member FDIC

magnifying glass

How Bank of Internet’s checking accounts compare

We really like all of Bank of Internet’s checking accounts because they each come with low fees — or even no fees. You can use any domestic ATM you want without paying any Bank of Internet fees, and each of its checking accounts even offers at least some, if not an unlimited amount, of ATM surcharge fee reimbursements. This makes these accounts great for people who use ATMs frequently.

In addition, many of its accounts offers great interest rates. Some of these accounts — like the Rewards Checking account — are even currently rated as some of our best online checking accounts.

Bank of Internet’s Money Market account

You can write checks from this money market account, but you won’t earn as much interest as with a regular Bank of Internet Smart Savings account.

APY

Minimum Deposit Amount

1.05%

$0

As of 5/8/2018

  • Monthly account maintenance fee: $0
  • ATM fees: $0
  • ATM fee refunds: None
  • Overdraft fees: $25

Bank of Internet’s Money Market account earns slightly less than its regular Smart Savings account, but in return, you get the option to write checks from this account. You can also pay your bills online for free with this account.

But, just like other money market or savings accounts, you’re limited to making just six transactions per month from this account, per Federal Regulation D. If you go over that number, you’ll pay a $10 excessive transaction fee per each new transaction.

Heads-up: if you also have a checking account and have opted into overdraft protection with this account, any overdraft transfers made on your behalf will also count against the six transaction limit. Finally, any checks you write will be counted against the six-transaction limit in the month that they’re posted to your account, not in the month that you write them.

LEARN MORE Secured

on Bank Of Internet USA’s secure website

Member FDIC

magnifying glass

How Bank of Internet’s Money Market account compares

Unfortunately, Bank of Internet’s Money Market account offers a lackluster interest rate, especially compared to the best money market account rates out there — but we do like that it has no monthly account maintenance fee and no minimum balance requirement. This will make the account accessible to anyone, but if a high interest rate is what you’re after, you can still find higher-yielding accounts with no fees from other banks and credit unions.

Bank of Internet’s Savings account

This account offers a fairly high interest rate, but remember to request an ATM card if you plan on making ATM withdrawals from this account.

APY

Minimum Deposit Amount

1.30%

$0

As of 5/8/2018

  • Monthly account maintenance fee: $0
  • ATM fees: $0
  • ATM fee refunds: None
  • Overdraft fees: $25

The Smart Savings account from Bank of Internet is a pretty standard savings account. Like all savings and money market accounts, you can only make up to six transactions per month from this account as per Federal Regulation D. If you exceed that amount, you’ll pay a $10 excessive transaction charge.

One thing to note with this account is that you’ll need to request a free ATM card with this account if you plan on making ATM withdrawals from it — it doesn’t come with one automatically. It’s not a big deal, but just something to be aware of if you ever plan on making an ATM withdrawal from your savings account.

LEARN MORE Secured

on Bank Of Internet USA’s secure website

Member FDIC

magnifying glass

How Bank of Internet’s savings account compares

Bank of Internet does offers a higher rate than most banks, but still, it’s not the top contender out there. For that, you’ll need to instead turn to our recent rankings of the best online savings accounts.

Its terms, however, are quite fair. There are very few fees that come with this account, and if most people use it as intended, it’s possible that they never will pay any fees for having a savings account with Bank of Internet. In addition, there is no minimum balance, so it’s easy to get your savings started with this bank.

Bank of Internet’s IRA accounts

IRA CD rates

These CDs earn a much lower rate than Bank of Internet’s normal CDs, but in return you do get the tax benefits of an IRA account.

Term

APY

12 months

0.60%

18 months

0.70%

36 months

0.75%

As of 5/8/2018

  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty:
    • For the 12-month and 18-month CD, you’ll pay six months’ worth of interest.
    • For the 36-month CD, you’ll pay 18 months’ worth of interest.

Although Bank of Internet’s IRA CDs offer a paltry rate compared to its regular CDs, you do still get the tax benefits from opening these accounts within an IRA. Specifically, you can open a Roth IRA or a traditional IRA through these CDs.

This CD comes with a $1,000 minimum deposit, which may be a hard pill to swallow for savers just starting out on their retirement savings journey. There are other signs this account is geared towards older savers, too: if you need to take a required minimum distribution (RMD) from your IRA, you can do so from these CDs without paying an early withdrawal penalty — this is a nice feature.

When your IRA CD matures, it’ll automatically roll over into another IRA CD of the same terms, but with the new interest rate of the day. You’ll still have a 10-day grace period to make any changes to the CD without paying any early withdrawal penalties.

There are a few fees to be aware of with this account: If you close the account and/or transfer your money out, you’ll face a $35 fee. If you’d like an annual paper statement, that’ll also set you back $10.

LEARN MORE Secured

on Bank Of Internet USA’s secure website

Member FDIC

magnifying glass

How Bank of Internet’s IRA CD rates compare

We’ll be honest — Bank of Internet doesn’t offer very high interest rates on its IRA CDs. It may be convenient for you to open an IRA CD here if you already have an account, but if earning the best returns on your money is your primary concern, you will be better off choosing one of these IRA CDs with much higher rates.

IRA Savings account

You can earn a low rate on your retirement savings but have more flexibility for moving your retirement cash around with this IRA Savings account.

APY

Balance Requirement

0.15%

$250 - $1,000

0.70%

Over $1,000

As of 5/8/2018

  • Monthly account maintenance fee: $0
  • Overdraft fees: $25

If you think you might want to move your retirement savings to a new institution before your CD term is up and you don’t want to pay early withdrawal fees, then you may want to consider an IRA savings account. You can get started with your retirement savings with as little as $250 with this account, making it much more accessible to those just getting started. You can also choose from a Roth IRA or a traditional IRA.

You won’t get an ATM card with this account (if you’re saving for retirement, you probably don’t need one anyway). If you decide to roll over or close your IRA, you’ll face a $35 IRA transfer fee or a $35 IRA closing fee as well. Finally, you’ll pay a $10 fee if you’d like an annual paper statement from your account.

LEARN MORE Secured

on Bank Of Internet USA’s secure website

Member FDIC

Overall review of Bank of Internet’s products

Bank of Internet is a bit hit-or miss. They have many different types of checking accounts, and most of them offer fantastic rates and perks, such as a cashback rewards program. Additionally, these accounts don’t come with any maintenance fees. However, the interest rates offered on its money market, savings, and CD products aren’t really that great, especially compared with its competitors.

It may be worth keeping a checking account with Bank of Internet if you’re looking for a low-fee, high-earning account. But at the same time, it’s also possible to find great rates on the whole package — checking and savings accounts — at other banks as well.

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: