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The Best 2-Year CD Rates in 2019

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

When it comes to saving and growing your money, you want to make sure you’re doing it efficiently. This is especially true if you’re building a CD ladder, where every component should be optimized for your savings goals. CD ladders are typically built from accounts that mature within a year of each other. For many savers, that means finding the best 1-year CD rates, the best 2-year CD rates, the best 3-year CD rates, and so on.

To help you find the best 2-year CD rates, we sifted through data from DepositAccounts.com, a LendingTree-owned site. To start, we sorted by highest APY on 2-year CDs. We also took into consideration the minimum deposit requirement for each account.

The 10 best 2-year CD rates in 2019

InstitutionAPYMinimum deposit amount
CD Bank3.07%$10,000
Summit Credit Union3.00%$500
Sallie Mae Bank3.00%$2,500
WebBank2.90%$2,500
BankDirect2.98%$10,000
TotalDirectBank2.98%$25,000
Banesco USA2.45%$1,500
Georgia Banking Company2.95%$500
Rising Bank2.95%$1,000
Colorado Federal Savings Bank2.95%$5,000

CD Bank — 3.07% APY, $10,000 minimum deposit

With a name like this, it’s no wonder that CD Bank offers great rates across its certificate of deposit product line, especially on its 24-month CD. Interest is credited semi-annually. Early withdrawals from a CD Bank 24-month account will trigger a penalty equal to 18 months’ worth of interest, the highest penalty on this list. Opening a CD here also requires a relatively high minimum deposit of $10,000.

CD Bank is the online division of TBK Bank and offers only CD accounts at the moment. Headquartered in Dallas, TBK Bank is a subsidiary of Triumph Bancorp, Inc.

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on CD Bank’s secure website

Member FDIC

Summit Credit Union — 3.00% APY, $500 minimum deposit

At Summit Credit Union, you’ll want to focus on the 27-Month Special CD for its superior rate, rather than the standard 24-month account, which earns at a lower yield. Waiting just three extra months can boost your savings significantly. Either way, you’ll need only $500 or more to open an account.

Summit Credit Union employs a pretty strict early withdrawal policy for its CDs: If you withdraw any of the principal amount before maturity, Summit will close your account and you’ll face a penalty of 180 days’ worth of dividends, making it imperative for you to wait for maturity. At that point, you have a 10-day grace period to make any penalty-free withdrawals.

Summit Credit Union was founded in 1935 by CUNA, Inc. in Madison, Wis., and maintains branches mostly in southern Wisconsin. Unlike a typical credit union, Summit Credit Union membership is open to anyone. To join, you just need to open Primary Savings account with at least $5.

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on Summit Credit Union (WI)’s secure website

NCUA Insured

Sallie Mae Bank — 3.00% APY, $2,500 minimum deposit

Known mostly for its student loans, Sallie Mae also offers a variety of great banking products, including certificates of deposit. Its 24-month CD is a particularly good deal, and you need only $2,500 to open an account. Sallie Mae Bank will impose an early withdrawal penalty of 180 days’ worth of interest.

Sallie Mae first started as a government-funded business in 1972 and became a fully privatized company in 2004. Through Sallie Mae Bank, you can open not only CDs, but high-yield savings accounts, a money market account and personal loans, as well.

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on Sallie Mae Bank’s secure website

Member FDIC

WebBank —2.90% APY, $2,500 minimum deposit

WebBank Time Deposits — its name for CDs — offer some great savings opportunities on all five terms, including the 2-year time deposit. Plus, interest is compounded daily. Opening a time deposit requires an initial deposit of at least $2,500. The early withdrawal penalty on a 2-year time deposit equals six months of simple interest.

WebBank was founded in 1997 and is currently headquartered in Salt Lake City.

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on WebBank’s secure website

Member FDIC

BankDirect — 2.98% APY, $10,000 minimum deposit

If you have thousands of extra dollars to stash away, consider opening a BankDirect 24-month CD. It requires at least $10,000 to open. The early withdrawal penalty on this account is 180 days’ worth of interest on the principal amount withdrawn.

BankDirect, which first went live in 1999, is a branchless division of Texas Capital Bank, N.A.

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Member FDIC

TotalDirectBank — 2.98% APY, $25,000 minimum deposit

TotalDirectBank also requires a high deposit of $25,000 to open a CD, including its high-yield 24-month CD. Its early withdrawal penalty will equal six months of simple interest earned, based on a 360-day year.

TotalDirectBank operates entirely online. It’s a division of City National Bank of Florida which has a 70-year history.

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on TotalDirectBank’s secure website

Member FDIC

Banesco USA — 2.45% APY, $1,500 minimum deposit

Each BaneSmart CD from Banesco USA offers a great rate to grow your savings, especially its high-yield 24 Month CD. You need to open an account with at least $1,500. The early withdrawal penalty on a 24 Month CD equals nine months of interest earned.

Banesco USA was founded in 2006, and maintains four branches in South Florida and one in San Juan, Puerto Rico. Banesco USA is part of the wider international banking group, Banesco International, which spans over 15 countries.

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on Banesco USA’s secure website

Member FDIC

Georgia Banking Company —2.95% APY, $500 minimum deposit

With its low minimum deposit of $500 and its high interest rate, Georgia Banking Company’s 2 Year Certificate can boost just about anyone’s savings. Just be careful about the early withdrawal penalty, which will set your savings back by six months’ worth of interest.

Georgia Banking Company was founded in 1998. In addition to the bank’s two Atlanta-area branches, you can easily access your accounts online, on mobile and over the phone.

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on Georgia Banking Company’s secure website

Member FDIC

Rising Bank —2.95% APY, $1,000 minimum deposit

Rising Bank offers a few types of CDs, which includes its high rate 2-Year Term CD. You’ll need at least $1,000 to open an account and earn interest. Interest is compounded and credited every three months. An early withdrawal from this account will trigger a penalty equal to 180 days’ interest on the amount withdrawn.

Rising Bank, founded in 2018, is the online division of Midwest BankCentre. Midwest BankCentre, in turn, traces its history back to 1906 in St. Louis, Mo.

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on Rising Bank’s secure website

Member FDIC

Colorado Federal Savings Bank — 2.95% APY, $5,000 minimum deposit

Colorado Federal Savings Bank’s 24 Month CD requires at least $5,000 to earn at its competitive interest rate. Making a withdrawal from the account before maturity will result in a penalty equal to six months of interest.

Colorado Federal Savings Bank was first founded in 1990 in Greenwood Village, Colo., and changed ownership in 2008. The bank doesn’t have any branches and operates solely online instead.

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on Colorado Federal Savings Bank’s secure website

Member FDIC

The best 2-year CD rates vs. the national average 2-year CD rate

As we’ve said, the key to maximizing your savings is finding the right accounts for stashing your money with the highest CD rates. Luckily, the best 2-year CD rates above all earn at substantially higher interest rates than the average 2-year CD rate. On average, 2-year CD rates earn just 1.67% APY, as of April 2019.

Let’s say you deposit $5,000 into a CD earning at the national average. At the end of your 24-month CD, you’ll have earned just under $170 in interest ($169.82, if you’re wondering). Boost that APY to 3.00%, and your earned interest grows to $309.17, a much better return on your cash.

It’s also helpful to check out how often a bank compounds interest. Most often, you’ll see CDs with monthly or daily compounding interest. In basic terms, compounded interest is the interest you earn on already-earned interest. For example, with daily compounding, your balance earns interest today. Then tomorrow, that new, higher balance will earn even more interest, and so on. It’s a simple change that can grow your savings a little bit more efficiently.

Using the above example, a $5,000 deposit into a 24-month CD grows by $309 with interest compounded daily. If you compound it monthly, you’ll earn $308 instead, while quarterly compounding drops that amount by nearly another dollar, and so on. While that might not seem like much, it can prove useful if you’re looking to maximize your savings down to every last dollar.

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

Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

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The Best 5-Year CD Rates in 2019

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Five-year CDs offer some of the highest savings interest rates available. In exchange for keeping your money on deposit for half a decade, banks are willing to dole out higher returns on these long-term accounts. For example, in April, the average 1-year CD interest rate is 1.37% APY and the average 3-year CD rate is 1.86% APY, compared to the average 5-year CD rate of 2.25% APY.

Longer-term CDs do exist, but even their yields don’t often exceed 5-year CD rates these days. The highest yield on a CD of six or more years is 3.45% APY, though the next best rate comes in at 3.25% APY. 5-year CDs are also useful components to a CD ladder. When you build a ladder with CDs maturing a year apart, you can renew each one into a 5-year CD at maturity. This locks in the higher long-term rates for years to come.

To make sure you’re getting the best CD rates, MagnifyMoney has uncovered the highest 5-year CD rates available nationwide. Using data from DepositAccounts.com, similar to MagnifyMoney, a LendingTree owned company, we found that the best 5-year CD rates earned well above the national average interest rate for 5-year CDs. We also took minimum deposit requirements into consideration, to check for wider customer availability.

The 10 best 5-year CD rates in 2019

InstitutionAPYMinimum deposit amount

The Federal Savings Bank

3.30%$10,000

Alabama Credit Union

3.03%$500

Affinity Plus FCU

3.25%$500

Main Street Bank

3.25%$500

Sun East FCU

3.25%$500

Tampa Bay FCU

3.25%$500

Presidential Bank

3.25%
$1,000

Service Credit Union

3.25%$1,000

Superior Choice Credit Union

3.25%$10,000

Georgia Banking Company

3.20%$500

The Federal Savings Bank, 3.30% APY, $10,000 minimum deposit

To earn the highest rate on this list, you’ll need at least $10,000 to spare, as this is the minimum opening deposit required to open a Federal Savings Bank 5-year CD. The penalty for an early withdrawal from this account equals one year of interest.

Established in 2000, the Federal Savings Bank is veteran-owned and focuses heavily on mortgage lending throughout all 50 U.S. states. It has two retail banking branches in the Chicago area.

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on The Federal Savings Bank’s secure website

Member FDIC

Alabama Credit Union, 3.03% APY, $500 minimum deposit

The 60-month CD from Alabama Credit Union works better for those who have a lower minimum deposit starting point than the top-ranked CD. Plus, the rate is still competitive — only nominally lower than our top pick. Alabama Credit Union will assess a penalty equal to 360 days’ worth of interest for any early withdrawals you make from a 60-month CD.

Alabama CU was founded in 1956 to serve the University Of Alabama community, and is based in the school’s hometown of Tuscaloosa, Ala. Alabama Credit Union membership is available to employees of Value Partners (its name for the businesses and organizations it works with) and some members of their families, residents of select local communities and members of select associations.

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on Alabama Credit Union’s secure website

NCUA Insured

Affinity Plus FCU, 3.25% APY, $500 minimum deposit

To start earning at Affinity Plus FCU’s competitive rate on a 60-month basic certificate, you’ll need an opening deposit of at least $500. Early withdrawals from this account may trigger a penalty of 365 days’ worth of dividends.

Your Affinity Plus FCU membership eligibility depends on the organization where you’re employed or volunteer, your school or place of residence, work or worship or through eligible/current members; you can also easily join by making a one-time $25 donation to the Affinity Plus Foundation. Affinity Plus Federal Credit Union was founded in 1930 and is currently headquartered in St. Paul, Minn.

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on Affinity Plus Federal Credit Union’s secure website

NCUA Insured

Main Street Bank, 3.25% APY, $500 minimum deposit

Main Street Bank offers a great rate on its 60-month CD (and its 3-year CD) for a low minimum deposit of $500. An early withdrawal from this account will land you a penalty of 180 days’ worth of interest.

Founded in 2005, Main Street Bank is headquartered in Bingham Farms, Mich., and has a few branches in the Detroit area.

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on Main Street Bank (MI)’s secure website

Member FDIC

Sun East FCU, 3.25% APY, $500 minimum deposit

At Sun East FCU, you only need $500 to start saving through a 60-month certificate of deposit. Plus, Sun East insures your deposits up to $500,000. The penalty for early withdrawals will depend on when during the term you make your withdrawal, according to Sun East FCU customer service.

Founded in 1949 by Sun Oil Company employees, Sun East serves members throughout Delaware, Pennsylvania and New Jersey. Sun East FCU membership depends on your place of residence, family members, employer or community, though you can also join with a $10 donation to the Sun East Charitable Foundation.

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on Sun East Federal Credit Union’s secure website

NCUA Insured

Tampa Bay FCU, 3.25% APY, $500 minimum deposit

You can earn Tampa Bay FCU’s high 60-month share certificate rate on all balances starting at $500. The penalty for making an early withdrawal from this account will be six months of last dividends earned.

Tampa Bay Federal Credit Union was founded in 1935 by City of Tampa workers and was originally called Tampa City Employees Credit Union. Today, membership at Tampa Bay FCU is open to employees at select companies, select association members and members/residents of certain areas and organizations. You may also qualify through a current member or by joining Prime Time Club with a one-time, non-refundable $5 fee.

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on Tampa Bay Federal Credit Union’s secure website

NCUA Insured

Presidential Bank, 3.25% APY, $1,000 minimum deposit

You’ll need a slightly higher minimum deposit to open a Presidential Bank CD which requires at least $1,000. The bank will assess a penalty of 24 months’ worth of interest on any early withdrawal you make from its 5-year CD — the largest penalty listed here.

Presidential Bank was founded in 1985. Its main office is located in Bethesda, Md., with a handful of branches in the Washington, D.C. metro area.

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on Presidential Bank (MD)’s secure website

Member FDIC

Service Credit Union, 3.25% APY, $1,000 minimum deposit

Another great high-rate 60-month CD comes from Service Credit Union. It requires at least $1,000 to open an account and start earning interest. The penalty for early withdrawals equals one year’s worth of dividends, according to Service Credit Union customer service.

Service Credit Union membership is available to residents or those employed in select areas of New Hampshire and Massachusetts, as well as active duty military, veterans and their families and Department of Defense employees and their families.

Service Credit Union was founded in 1957. It has branch and ATM locations in Massachusetts, New Hampshire, Germany and at Grand Forks Air Force Base in North Dakota. You can also access to 5,000 shared branches and 30,000 fee-free ATMs within the SUM and CO-OP networks.

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on Service Credit Union’s secure website

NCUA Insured

Superior Choice Credit Union, 3.25% APY, $10,000 minimum deposit

While you only need $2,500 to open a Superior Choice Credit Union 5-year share certificate, you’ll need at least $10,000 to earn at its most competitive rate. All other balances will earn at a lower APY. According to Superior Choice Credit Union customer service, making an early withdrawal from this account will result in a percentage of your balance being charged as a penalty, including accrued interest.

Superior Choice Credit Union was established in 1932. It has a handful of branches in near its Superior, Wisc., headquarters, including one in nearby Duluth, Minn. You can also access over 30,000 fee-free ATMs and 5,000 branches nationwide and in Canada through the CO-OP Network.

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on Superior Choice Credit Union’s secure website

NCUA Insured

Georgia Banking Company, 3.20% APY, $500 minimum deposit

Georgia Banking Company’s 5-year certificate closes out our list. You’ll need a $500 minimum deposit to start earning at the given interest rate. The bank’s early withdrawal penalty equals six months interest.

Georgia Banking Company was established in 1998, and currently has two branches in the Atlanta metro area.

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on Georgia Banking Company’s secure website

Member FDIC

5-year CDs vs. savings accounts

If you’re simply looking for the highest rates available, 5-year CDs are going to seem much more appealing than a savings account. Even the best savings accounts can’t quite reach the 5-year CD rates you’ll find above. Plus, 5-year CDs lock in their rates at opening for the term of the investment, guaranteeing your rate of return. This can make for a great savings vehicle for conservative investors, who don’t want to ride the waves of an ever-changing economy.

Looking at the numbers, a $5,000 deposit into a 5-year CD at 3.25% APY (the most common rate in our list) would result in $882 of extra savings at maturity. Meanwhile, making a $5,000 deposit into one of the best savings accounts at 2.25% APY lands you with nearly $595 in savings after five years.

Savings accounts do provide easier access to your money, though. If you find yourself in a pinch suddenly, you can make a quick ACH transfer online or a withdrawal at a branch or ATM. Withdrawing from CDs isn’t as easy, especially when you account for the money you’ll lose to early withdrawal penalties. As you can see from the accounts above, early withdrawals from a 5-year CD can result in the loss of six months’ to two years’ worth of interest.

5-year CDs vs. other investment options

Investing in individual bonds — Treasury, municipal, or corporate — can be a solid alternative to saving with 5-year CDs. Non-Treasury bonds do have some risk by default as they don’t have the FDIC/NCUA insurance coverage limits. You can use these bonds to build a ladder similar to a CD ladder, so each bond matures a year or so apart.

An alternative to creating a bond ladder is to invest in a mutual fund or ETF of bonds. Unlike a ladder, however, the value of a bond mutual fund or ETF does fluctuate with interest rates. So when interest rates go up, the value of those investments will drop and vice versa.

The best way to maximize your 5-year CD investment

If you’re putting away money for five years, you’re going to want to make it worthwhile. For starters, CDs are best for those who have already maxed out their other savings accounts and have their emergency savings in a liquid savings account for easy access. They’re also better if you have a higher deposit to stash away. That will earn more interest in the long term for more tangible savings.

For example, placing $1,000 in a 5 year CD with a 3.25% APY will yield about $176 in savings by the end. Making a $10,000 deposit, on the other hand, lands you with a little over $1,764 in interest. That $176 is a good chunk of change, but you should make sure it’s enough to justify stashing away $1,000 now instead of perhaps waiting to make a larger deposit.

A great way to utilize a 5-year CD is to include it in a CD ladder. A 5-year, five-CD ladder is a standard and easy-to-track method of saving. You open five CDs, each maturing a year apart. Once a CD matures, you renew it as a new 5-year CD. Eventually, all your CDs will be 5-year accounts, maturing a year apart. You can also choose to withdraw your money whenever an account matures if you need to use those funds. This allows you to take advantage of the longer terms’ higher rates and bigger savings.

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

Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

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The Best 3-Year CD Rates in April 2019

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Three-year CDs are a great choice for your mid-term savings goals. They offer higher APYs than 1-year certificates, while avoiding the time commitment of a longer 5-year CD term. To make sure you give your account the best chance to grow your money, you’ll want to find the best CD rates available.

MagnifyMoney can help you find the right 3-year CD for your savings. Using data from DepositAccounts.com, similar to Magnify Money, a LendingTree-owned site, we’ve found the highest 3-year CD rates available nationwide. We also looked at each account minimum deposit and each bank’s relative health to ensure top picks.

The 10 best 3-year CD rates in April 2019

InstitutionAPYMinimum deposit amount

WebBank

3.00%$2,500

CD Bank

3.07%$10,000

Veridian Credit Union

3.05%$1,000

North American Savings Bank

3.05%$5,000

Citizens Access

2.90%$5,000

BankDirect

3.05%$10,000

M.Y. Safra Bank

3.01%$1,000

Main Street Bank

3.00%$500

Sun East FCU

3.00%$500

USALLIANCE Financial

3.00%$500

WebBank — 3.00% APY, $2,500 minimum deposit

WebBank offers five Time Deposits, or CDs. Its 3-Year Time Deposit offers a competitive rate on balances of $2,500 and over. WebBank compounds interest daily, which can grow your savings a little faster. An early withdrawal from a 3-Year Time Deposit will trigger a penalty equal to nine months’ simple interest.

WebBank, founded in 1997, is headquartered in Salt Lake City. It holds an industrial bank charter and maintains Strategic Partnerships in order to provide its customers with a variety of financial products beyond its savings and CD accounts.

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on WebBank’s secure website

Member FDIC

CD Bank — 3.07% APY, $10,000 minimum deposit

Maybe it’s no surprise that CD Bank offers competitive CD rates, including on its 36-month account. The CDs require a pretty high deposit of $10,000 to open and start earning interest, which is credited semi-annually. Making a withdrawal from the 36-month CD before maturity will result in a heavy penalty equal to 24 months worth of interest.

As its name might suggest, CD Bank offers only CD accounts for now. CD Bank is an online division of TBK Bank, which is itself a subsidiary of Triumph Bancorp, Inc.

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on CD Bank’s secure website

Member FDIC

Veridian Credit Union —3.05%APY, $1,000 minimum deposit

If you’re okay with waiting an extra five months for your CD to mature, Veridian Credit Union offers a 41-Month Bump-Up Certificate. It starts off with a competitively high rate and gives you the chance to bump it up once during the term if rates go even higher — plus, you need only $1,000 to open up this account. Unlike most banks/credit unions, Veridian assesses early withdrawal penalties depending on how much you want to withdraw, and how long the CD has until its maturity date.

Veridian Credit Union was first founded as John Deere Employees Credit Union by John Deere employees in Waterloo, Iowa, in 1934; it changed its name to Veridian Credit Union in 2006. You can become a Veridian Credit Union member in a few different ways, including through your place of residence, your employer and family membership. You must open a Member Equity Savings account with at least $5 to join.

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on Veridian Credit Union’s secure website

NCUA Insured

North American Savings Bank — 3.05% APY, $5,000 minimum deposit

While you need only $1,000 to open a 36-Month CD from NASB, you’ll need a balance between $5,000 and $1 million to earn at its more competitive rate — balances outside of that bracket earn at a pretty paltry interest rate for CDs. Its penalty for early withdrawals equals 6 months’ worth of interest on the amount withdrawn.

North American Savings Bank was founded in 1927 and has a handful of branches in the Kansas City, Mo. area.

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on North American Savings Bank’s secure website

Member FDIC

Citizens Access — 2.90% APY, $5,000 minimum deposit

With competitive rates across the board, Citizens Access 3-year CD offers a high rate for those who can deposit at least $5,000 at opening. Early withdrawals from a 3-year CD will trigger a penalty of 180 days’ of interest.

Citizens Access is the online division of Citizens Bank, which traces its roots back to 1828 and is now headquartered in Providence, R.I.

learn more Secured

on Citizens Access’s secure website

Member FDIC

BankDirect — 3.05% APY, $10,000 minimum deposit

If you have an extra $10,000 to save away for a few years, consider BankDirect’s 36-month CD. It offers a high interest rate and compounds interest daily. If you make a withdrawal from the account before maturity, you’ll face a penalty of 180 days’ worth of interest.

BankDirect, which operates without branches, first went live on the internet in 1999. It is a division of Texas Capital Bank, N.A.

learn more Secured

on BankDirect’s secure website

Member FDIC

Main Street Bank — 3.00% APY, $500 minimum deposit

You can save towards a future goal easily with Main Street Bank’s low minimum deposit of $500 and competitive rates, including on its 36-month CD accounts. Early withdrawals from the 36-month CD will trigger a penalty of 180 days’ interest.

Main Street Bank was founded in 2005 and has a few locations just north of Detroit.

learn more Secured

on Main Street Bank (MI)’s secure website

Member FDIC

Sun East FCU — 3.00% APY, $500 minimum deposit

You only need $500 to start saving with a Sun East FCU 36-Month Certificate of Deposit, and your deposits are insured up to $500,000. Making an early withdrawal from the account may result in a penalty of 180 days’ worth of dividends.

Sun East FCU was founded in 1949 by Sun Oil Company employees. Today, it serves members throughout Delaware, Pennsylvania and New Jersey. You can join Sun East’s membership through your place of residence, family members, employer or by way of your community affiliation (e.g. where you might attend church or school, or a location where you might volunteer). You can also choose instead to make a $10 donation to the Sun East Charitable Foundation.

learn more Secured

on Sun East Federal Credit Union’s secure website

NCUA Insured

USALLIANCE Financial — 3.00% APY, $500 minimum deposit

USALLIANCE Financial offers a high-yield, fixed-rate 36-month CD with a minimum deposit of only $500. USALLIANCE compounds interest daily and credits it monthly. Early withdrawals from the account may trigger a penalty equal to 360 days of interest.

USALLIANCE Financial was founded by IBM employees in 1966. Today, you can join USALLIANCE Financial through your place of residence, employer, place of worship, school or organization.

learn more Secured

on USALLIANCE Financial’s secure website

NCUA Insured

Georgia Banking Company — 3.00% APY, $500 minimum deposit

Georgia Banking Company earns at a high interest rate on its 3-year certificate with an opening deposit of just $500. The bank will assess a penalty equal to six months’ interest on early withdrawals from this account.

Georgia Banking Company started in 1998 and now serves the Atlanta area with two physical locations, as well as its nationwide customers online, on mobile and over the phone.

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on Georgia Banking Company’s secure website

Member FDIC

Inflation impact on 3-year CD rates

Inflation reduces the value of any savings or investment balance, including CDs. Your earnings have to exceed the inflation rate for there to be a real return on your money. While mid- and long-term CDs can lock in a high rate today, there’s still potential for inflation to lower your earnings.

For a more inflation-proof savings strategy, consider stock- and bond-based investment products. They can come in handy for long-term savings since their earnings have a better chance of exceeding the inflation rate.

Should I pay early withdrawal penalties if 3-year CD rates rise?

In today’s current rate climate, the zero odds of a Fed rate hike in 2019 don’t point to an increase in 3-year CD rates any time soon. That said, an early withdrawal can sometimes be worth paying the penalties, although you’ll want to do the math and check whether the gains are greater than the costs. Calculate the penalty you would end up paying and ensure it’s lower than the returns on the new CD. This early withdrawal penalty calculator from DepositAccounts.com can run the numbers for you and tell you outright whether breaking your CD is worth it or not.

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

Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

TAGS: