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20 Credit Cards with No Cash Advance Fees

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.

Credit Cards with No Cash Advance Fees

 

If you have a credit card, your financial institution has likely mailed you checks for cash advance purposes. Understanding this aspect of your available credit is incredibly important, as it can be much more expensive than simply making a purchase.

Taking a cash advance gives you money now in cases where you can’t use a credit card (perhaps paying rent), or have otherwise maxed out your purchasing power. Many financial institutions will charge you a fee between 1% and 5% just for making this transaction.

But some cards have no fees for cash advances.

The catch is, interest starts accruing immediately on cash advances, meaning that even if you pay your statement balance in full by the due date, you will still incur interest charges in the interim. So if you do a cash advance, try to pay it off as quickly as possible, even before the due date, to minimize the interest you pay.

Best Cards with No Cash Advance Fees

These credit unions offer no cash advance fees on all their credit cards. While you’ll pay interest from the day you take out the cash, as a last resort it’s a better bet than paying an upfront fee. These are all credit unions anyone can join, but many of them require excellent credit to qualify for a card.

 

PenFed Credit Union

PenFed Credit Union-CDs Pentagon Federal Credit Union, commonly known as PenFed, offers five different credit cards with no cash advance fees. None of them charge a foreign transaction fee, and all interest rates are the same for purchases and cash advances.

Anyone can join PenFed Credit Union via association membership, employment, military affiliation and more!

PenFed Platinum Rewards Visa Signature® Card

APPLY NOW Secured

on PenFed Credit Union’s secure website

PenFed Platinum Rewards Visa Signature® Card

Annual fee
$0
Regular Purchase APR
11.99% - 17.99% Variable

PenFed Promise Visa® Card

APPLY NOW Secured

on PenFed Credit Union’s secure website

PenFed Promise Visa® Card

Annual fee
$0
Regular Purchase APR
11.99% to 17.99% variable

PenFed Gold Visa® Card

APPLY NOW Secured

on PenFed Credit Union’s secure website

PenFed Gold Visa® Card

Annual fee
$0
Regular Purchase APR
9.24% - 17.99% Variable

American 1 Credit Union

American 1 Credit Union American 1 Credit Union offers four different credit cards with no cash advance fees. Interest rates on purchases and cash advances are the same, though there is a foreign transaction fee of 1%.

Anyone can join American 1 Credit Union by joining Community 1 Cooperative. You pay $3 for membership, which includes a litany of discounts on consumer products and services across an array of industries.

American 1 Rewards Credit Card

APPLY NOW Secured

on American 1 Credit Union’s secure website

American 1 Rewards Credit Card

Annual fee
$0
Regular Purchase APR
9.49% - 18.00% Variable

CapEd Federal Credit Union

 CapEd Federal Credit Union CapEd Federal Credit Union offers one card with no cash advance fees. It also carries the same interest rate for purchases and cash advances, but does have a foreign transaction fee that varies depending on if the transaction is in USD or requires conversion into a foreign currency.

To join CapEd, all you have to do is make a one-time $20 donation to the Idaho CapEd Foundation.

CapEd VISA® Platinum Credit Card

APPLY NOW Secured

on Capital Educators Federal Credit Union’s secure website

CapEd VISA® Platinum Credit Card

Annual fee
$0
Regular Purchase APR
7.59% - 17.99% Variable

First Tech Federal Credit Union

First Tech Federal Credit Union First Tech Federal Credit Union offers three different cards that come with no cash advance fees. The interest rates on these transactions will be higher than the interest rates on regular purchases, however. There are no foreign transaction fees.

Anyone can join First Tech through membership in the Financial Fitness Association, which costs $8 per year, or a digital membership to the Computer History Museum, which will run you $15 per year.

Odyssey™ Rewards World Elite MasterCard® from First Tech FCU

APPLY NOW Secured

on First Technology Federal Credit Union’s secure website

Odyssey™ Rewards World Elite MasterCard® from First Tech FCU

Annual fee
First year free, then $75 annual fee thereafter
Regular Purchase APR
13.24% to 18.00% Variable
Credit required
good-credit
Good

Platinum Rewards MasterCard® from First Tech FCU

APPLY NOW Secured

on First Technology Federal Credit Union’s secure website

Platinum Rewards MasterCard® from First Tech FCU

Annual fee
$0
Regular Purchase APR
12.24% to 18.00% Variable
Credit required
good-credit
Good

Choice Rewards World MasterCard® from First Tech FCU

APPLY NOW Secured

on First Technology Federal Credit Union’s secure website

Choice Rewards World MasterCard® from First Tech FCU

Annual fee
$0
Regular Purchase APR
12.24%-18.00% variable
Credit required
good-credit
Good

Platinum Secured Mastercard® from First Tech FCU

APPLY NOW Secured

on First Technology Federal Credit Union’s secure website

Platinum Secured Mastercard® from First Tech FCU

Regular Purchase APR
18.00% Variable
Minimum Deposit
$500 - $25,000
Annual fee
$0

ISU Credit Union

ISU Credit Union ISU Credit Union offers two cards that have zero cash advance fees. Interest rates on cash advances are higher than those on regular purchases for the first year only, and there is a foreign transaction fee of 1%.

To join ISU Credit Union if you don’t live, work or study in Southeastern Idaho, you can qualify through paid membership at a number of Southeastern Idaho organizations including humane societies and educational cause groups. Also, ISU has a $1.00 membership fee and a minimum deposit of $25.00 which represents your share of ownership in the credit union . You must maintain a share balance of $25 while your account is open.

Platinum MasterCard® from ISU CU

Annual fee
$0
Regular Purchase APR
9.50% - 16.75% Variable

Platinum Plus MasterCard® from ISU CU

Annual fee
$0
Regular Purchase APR
9.50% - 16.75% Variable

Mid-Illini Credit Union

Mid-Illini Credit Union Mid Illini Credit Union offers two different cards that come with no cash advance fees. Interest rates for purchases and cash advances are identical, and there is a foreign transaction fee of 1%.

Anyone can join Mid Illini Credit Union by making a one-time $1 donation to the Mid-Illinois Dollars for Scholars, an organization that provides scholarships to students of McLean County, Illinois.

Visa Classic Card from Mid Illini CU

APPLY NOW Secured

on Mid Illini Credit Union’s secure website

Visa Classic Card from Mid Illini CU

Annual fee
$0
Regular Purchase APR
14.99% - 18.99% Variable

Visa Platinum Card from Mid Illini CU

APPLY NOW Secured

on Mid Illini Credit Union’s secure website

Visa Platinum Card from Mid Illini CU

Annual fee
$0
Regular Purchase APR
8.99% - 9.99% Variable

Stanford Federal Credit Union

Stanford Federal Credit Union Stanford Federal Credit Union offers several cards with no cash advance fees for which the general public qualifies. There are no foreign transaction fees, and rates are the same for purchases and cash advances.

To join Stanford Federal Credit Union, you can become a member at the Museum of American Heritage or join Friends of the Palo Alto Library.

Visa® Platinum Cash Back Rewards Card from Stanford FCU

APPLY NOW Secured

on Stanford Federal’s secure website

Visa® Platinum Cash Back Rewards Card from Stanford FCU

Annual fee
$0
Regular Purchase APR
11.24% - 17.99% Variable

Digital Credit Union

Digital Credit Union Digital Credit Union offers two cards with no cash advance fees. While interest rates are the same for both cash advances and regular purchases, foreign transaction fees will vary based on the need for currency conversion.

You can join Digital Credit Union by donating to any number of organizations that match your interests. The most common organization new members choose is Reach Out for Schools, which only requires a one-year membership at the cost of $10.

DCU Visa® Platinum Credit Card

APPLY NOW Secured

on Digital Federal Credit Union (DCU)’s secure website

DCU Visa® Platinum Credit Card

Annual fee
$0
Regular Purchase APR
10.75% - 18.00% Variable

DCU Visa® Platinum Rewards Credit Card

APPLY NOW Secured

on Digital Federal Credit Union (DCU)’s secure website

DCU Visa® Platinum Rewards Credit Card

Annual fee
$0
Regular Purchase APR
13.50% - 18.00% Variable

Other Options with Restricted Membership

There are other credit unions that offer no cash advance fees, however they have restricted membership based on your residence or other factors. Here are some other cards that can be an option depending on where you live.

  • United Federal Credit Union offers two cards for people who live or work in Arkansas, Indiana, Michigan, Nevada, North Carolina, Ohio, and Oklahoma or have an immediate family member who is a member of United FCU:

U First Visa® credit card

APPLY NOW Secured

on United Federal Credit Union’s secure website

U First Visa® credit card

Annual fee
$0
Regular Purchase APR
9.99% - 18.00% Variable

Visa® Premier Rewards Credit Card from CFE Federal Credit Union

APPLY NOW Secured

on CFE Federal Credit Union’s secure website

Visa® Premier Rewards Credit Card from CFE Federal Credit Union

Annual fee
$0
Regular Purchase APR
16.50% 17.75% Variable

Visa® Platinum Rewards Credit Card from CFE Federal Credit Union

APPLY NOW Secured

on CFE Federal Credit Union’s secure website

Visa® Platinum Rewards Credit Card from CFE Federal Credit Union

Annual fee
$0
Regular Purchase APR
16.50% - 17.75% Variable

Visa® Platinum Credit Card from CFE Federal Credit Union

APPLY NOW Secured

on CFE Federal Credit Union’s secure website

Visa® Platinum Credit Card from CFE Federal Credit Union

Annual fee
$0
Regular Purchase APR
11.00% - 17.75% Variable

Visa® Platinum Cash Credit Card from CFE Federal Credit Union

APPLY NOW Secured

on CFE Federal Credit Union’s secure website

Visa® Platinum Cash Credit Card from CFE Federal Credit Union

Annual fee
$0
Regular Purchase APR
16.50% - 17.75% Variable

Visa® Premier Cash Credit Card from CFE Federal Credit Union

APPLY NOW Secured

on CFE Federal Credit Union’s secure website

Visa® Premier Cash Credit Card from CFE Federal Credit Union

Annual fee
$0
Regular Purchase APR
16.25% - 17.75% Variable

VISA® Low Rate Oly Gold Card from O Bee Credit Union

APPLY NOW Secured

on O BEE Credit Union’s secure website

VISA® Low Rate Oly Gold Card from O Bee Credit Union

Annual fee
$0
Regular Purchase APR
9.00% - 17.50% Variable

Visa® Signature Cash Rewards Credit Card from Hawaii State FCU

APPLY NOW Secured

on Hawaii State FCU’s secure website

Visa® Signature Cash Rewards Credit Card from Hawaii State FCU

Annual fee
$0
Regular Purchase APR
11.90% - 13.90% Variable

Visa® Platinum Rewards Credit Card from Hawaii State FCU

APPLY NOW Secured

on Hawaii State FCU’s secure website

Visa® Platinum Rewards Credit Card from Hawaii State FCU

Annual fee
$0
Regular Purchase APR
11.40% - 18.00% Variable

Alternatives to Cash Advances

While cards that offer no fees on cash advances are cheaper, that does not mean these transactions are cheap. You should only take a cash advance as a last resort in a true emergency. In order to avoid becoming one of the American households that can’t cover $400 financial hardships, start building an emergency fund today. When you withdraw money from your own savings account, you have to pay zero interest and zero fees.

If you don’t have an emergency fund, but you do have a credit card, it is wiser to charge emergency expenses as a purchase rather than taking money out as a cash advance if at all possible. Even when interest rates are identical for these two different types of transactions, cash advances will start charging you those rates immediately, while purchases won’t require you to pay interest until after the first statement is issued.

Payday loans are another alternative. However, they’re not necessarily a good one. They often come with numerous fees and aren’t as hassle-free as some lenders make them out to be. If you don’t pay off your loan at the end of the term (often about two weeks), you risk incurring fees that can add up to more than your loan. This can translate into effective interest rates in the triple digits. If they’re your only option, be extremely careful. Above all, make sure you fully understand the terms and costs.

Foreign travelers will also want to charge purchases whenever possible for this same reason. If you must use cash, a cash advance is a safer alternative to withdrawing money from your bank account abroad, but it is also wise to pay it off using your financial institution’s online services as soon as possible to avoid paying more interest than you have to.

Cash advances aren’t ideal, so if you can avoid them you should. However, they are a much better option than turning to the alternative lending industry where you’ll find predators and payday loans.

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.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here

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Best of

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.

learn more Secured

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.

learn more Secured

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.

learn more Secured

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.

learn more Secured

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.

learn more Secured

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.

learn more Secured

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.

learn more Secured

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.

learn more Secured

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.

learn more Secured

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.

learn more Secured

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

TAGS:

Advertiser Disclosure

Best of

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.

learn more Secured

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.

learn more Secured

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.

learn more Secured

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.

learn more Secured

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.

learn more Secured

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.

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Lauren Perez
Lauren Perez |

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

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