Earning Interest

The Best CD Rates – June 2018

Friday, June 15, 2018

Any opinions, analyses, reviews or recommendations expressed in this articles are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any lender or provider of the products listed.

Nick Clements

Updated June 15, 2018

If you are looking for a better yield on your savings, a high rate CD (certificate of deposit) offered by an online bank could be a good option. Internet-only banks offer much better interest rates than traditional banks. For example, a 12-month CD at Bank of America would require a $10,000 minimum deposit and would pay only 0.07%. At an online bank, you could earn 2.25% with no minimum deposit. (If you would rather get a savings account or money market with no time restriction, look at the best savings accounts or best money market accounts).

The Best CD Rates in June 2018

This list is updated monthly, and competition continues to intensify. Here are the accounts with some of the best CD rates:

Term	Institution	APY	Minimum Deposit Amount
1 year	Goldman Sachs Bank USA	2.30%	$500
2 years	PurePoint Financial	2.75%	$10,000
3 years	PurePoint Financial	3.00%	$10,000
5 years	M.Y. Safra Bank Bank	3.06%	$5,000

See a full list of the best CD rates below.

6 months – 6 years: Goldman Sachs Bank USA – 0.60% APY – 3.00% APY; $500 minimum deposit

Our advertiser Marcus by Goldman Sachs is the online consumer bank of Goldman Sachs Bank USA (the large investment bank). Your funds are FDIC insured, and Goldman offers very competitive rates. Even better: there is only a $500 minimum deposit. So, if you don’t have enough money to meet the minimum deposit of the other banks on this list, or you are looking for another bank for your savings, GS is a good option. It also doesn’t hurt that they also offer some of the best CD rates in the market today. Here are their rates:

6-month: 0.60% APY
9-month: 0.70% APY
12-month: 2.30% APY
18-month: 2.35% APY
2-year: 2.45% APY
3-year: 2.55% APY
5-year: 2.90% APY
6-year: 3.00% APY

LEARN MORE

on Goldman Sachs Bank USA’s secure website

Member FDIC

3 months – 5 years: Ally Bank – 1.00% APY – 2.75% APY; $0 minimum deposit (higher APY with higher deposit)

Ally is one of the largest internet-only banks in the country. Ally’s former advertising campaign made it very clear: no branches = higher rates. And Ally has consistently paid some of the highest rates in the country across savings accounts, money market accounts and CDs. For savers with fewer funds, Ally is unique. There is no minimum deposit to open a CD. However, if you have more money, you can earn a higher APY. If you have more than $25,000 to deposit, you can earn between 1.50% APY and 2.75% APY. And one of our favorite features of Ally: they often (although not always) offer preferential rates on renewal. Far too often banks give the biggest bonuses to new customers, but Ally has done a good job of rewarding its existing customers. All deposits at Ally are FDIC insured up to the legal limit.

3-months: 1.00% APY (less than $5k); 1.25% APY ($5k minimum deposit) and 1.50% APY ($25k minimum deposit)
6-months: 1.75% APY (less than $5k); 1.85% APY ($5k minimum deposit) and 2.00% APY ($25k minimum deposit)
9-months: 1.85% APY (less than $5k); 1.95% APY ($5k minimum deposit) and 2.10% APY ($25k minimum deposit)
12-months: 2.10% APY (less than $5k); 2.20% APY ($5k minimum deposit) and 2.30% APY ($25k minimum deposit)
18-months: 2.15% APY (less than $5k); 2.25% APY ($5k minimum deposit) and 2.35% APY ($25k minimum deposit)
3-year: 2.40% APY (less than $5k); 2.45% APY ($5k minimum deposit) and 2.50% APY ($25k minimum deposit)
5-year: 2.50% APY (less than $5k); 2.65% APY ($5k minimum deposit) and 2.75% APY ($25k minimum deposit)

LEARN MORE

on Ally Bank’s secure website

Member FDIC

3 months – 5 years: Synchrony Bank – 0.75% APY – 2.85% APY; $2,000 minimum deposit

Synchrony used to be a part of GE, and now has an online bank that pays competitive rates. The online deposits are used to fund their store credit card portfolio – and the company is publicly traded. Your deposit will be insured up to the FDIC limit. In a rising rate environment, this is a great way to get a high interest rate without locking yourself into a long term.

3-months: 0.75% APY
6-months: 1.00 % APY
9-months: 1.25% APY
12-months: 2.25% APY
14-months: 2.35% APY
18-months: 2.35% APY
24-months: 2.45% APY
36-months: 2.55% APY
48-months: 2.65% APY
60-months: 2.85% APY

LEARN MORE

on Synchrony Bank’s secure website

Member FDIC

1 year – 5 years: Barclays Bank – 2.25% – 2.85% APY, no minimum deposit

12 Month Online CD from Barclays Barclays is one of the oldest banks in the world. Although they’re based in London, they do have a U.S. presence and offer competitive rates on their CDs and savings account. Currently, they’re offering some of the highest CD rates in the market, and they have an edge over the rest of the institutions on this list: they don’t require a minimum balance to earn the APY or open an account. Deposit as little or as much as you’d like into a term of your choice and you can start earning interest as long as the account is funded within 14 days of opening the CD. Additionally, your funds are insured through the FDIC.

1-year: 2.25% APY
2-year: 2.45% APY
3-year: 2.55% APY
4-year: 2.65% APY
5-year: 2.85% APY

LEARN MORE

on Barclays’s secure website

Member FDIC

1-Year CD from a Credit Union: PenFed Credit Union – 2.25% APY, $1,000 minimum deposit

12 Month Money Market Certificate from PenFed Credit Union PenFed is a credit union that offers very competitive interest rates. You need to join the credit union in order to benefit from their products. If you have a military or government affiliation, it is free to join. Otherwise, you would need to join an organization like Voices for America’s Troops, which costs $17.00. Once you are a member, you can open PenFed products (including this certificate) online. Your deposit would be insured by the NCUA, which is the National Credit Union Administration. There is a $1,000 minimum deposit for the one-year certificate.

LEARN MORE

on PenFed Credit Union’s secure website

NCUA Insured

12-Month CD: Banesco USA – 2.35% APY, No minimum deposit

12 Month CD from Banesco USA Banesco USA is based out of Florida, but has an international presence. Established in 2006, they have quickly grown to procure over $1 billion in assets. They’re currently offering one of the highest CD rates available. With $1,500 minimum deposit amount, you can earn a 2.35% APY on a 12-month CD.

LEARN MORE

on Banesco USA’s secure website

2-Year CD: PurePoint Financial – 2.75% APY, $10,000 minimum deposit

24 Month Online CD from PurePoint Financial
PurePoint Financial is new to our list this month. Despite having a high deposit amount of $10,000, they have one of the highest rates on a 24-month CD. PurePoint Financial is a division of MUFG Union Bank, N.A. Both are backed by Mitsubishi UFJ Financial Group, which is the fifth largest financial group in the world. PurePoint Financial is offering some of the most competitive rates, not only with their CDs, but also in their online savings account. With their CDs, they have a Best Rate Commitment, which means that if you fund the account within 10 days of submitting the application, they will make sure that you receive the best rate during that time period. In an ever-increasing rate environment, that’s a pretty good promise. While they mainly function as online-only bank, they don’t currently have a mobile app.

LEARN MORE

on PurePoint Financial’s secure website

Member FDIC

2-Year CD from a Credit Union: Greenwood Credit Union – 2.80% APY, $1,000 minimum deposit

Greenwood Credit Union is open to anyone and everyone. The only requirement to become a member with this credit union is to open their Share Savings Account with a minimum deposit amount of $5. You’ll also have to maintain that amount in the account to remain an active member. When you go to apply for membership, you can also add that you want to open their 24 month CD. You’ll need to deposit $1,000 in order to earn their outstanding 2.80% APY. This deposit will be in addition to the $5 to open the Share Savings Account. Accounts can be managed online or through their mobile app. Deposits made to Greenwood Credit Union are insured by the NCUA.

LEARN MORE

on Greenwood Credit Union’s secure website

3-Year CD: PurePoint Financial – 3.00% APY, $10,000 minimum deposit

36 Month Online CD from PurePoint Financial
PurePoint Financial lands a second spot on our list by offering an incredible 3.00% APY on a 36-month CD. You’ll still need a minimum deposit amount of $10,000 to open this account. Like the 24-month CD, PurePoint Financial commits to providing the best rate for this term if the account is funded within 10 days of completing the application.

LEARN MORE

on PurePoint Financial’s secure website

Member FDIC

3-Year CD from a Credit Union: Veridian Credit Union, 2.75% APY, $1,000 minimum deposit

18-24 Month CD from Veridian Credit Union Veridian Credit Union was established in 1934 by employees of John Deere. According to Veridian Credit Union’s history, the employees wanted to provide alternatives to for-profit institutions for their coworkers. Today, Veridian operates similarly even though they’ve expanded their field of membership to include almost anyone by allowing applicants to register as a user of Dwolla if they’re not eligible any other way. Once you become a member, you can open a 36-month CD with a minimum of $1,000. This account earns an APY of 2.75%. Veridian Credit Union allows you to manage your account online as well as through their mobile app.

LEARN MORE

on Veridian Credit Union’s secure website

5-Year CD: M.Y. Safra Bank – 3.06% APY, $5,000 minimum deposit

3 Month Online Promo (New Money) from M.Y. Safra Bank M.Y. Safra Bank, located in New York, NY, was established in 2000. They currently have over $368 million in assets. Their 5-year CD has an APY of 3.06%, which is one of the highest currently available. You’ll need $5,000 to deposit to open the account and a little patience navigating their website. While they do have a mobile app, you’ll have to first apply for an account online.

LEARN MORE

on M.Y. Safra Bank’s secure website

Member FDIC

5-Year CD from a Credit Union: Connexus Credit Union – 3.25% APY, $5,000 minimum deposit

60 Month Certificate from Connexus Credit Union If you’re able to deposit $5,000 into a CD, you’ll want to consider this 5-year CD with an incredible 3.25% APY. Anyone is able to join the credit union by making a donation of $5 to their organization called Connexus Association. This organization provides scholarships and assists educational institutions. They have a mobile banking app as well as an online banking platform.

LEARN MORE

on Connexus Credit Union’s secure website

3 Questions To Ask Before You Open A CD

1. Should I just open an online savings account instead?

With a CD, the saver and the bank make stronger commitments. The saver promises to keep the funds in the account for a specified period of time. In exchange, the bank guarantees the interest rate during the term of the CD. The longer the term, the higher the interest rate – and the higher the penalty for closing the CD early. With a savings account, there are few promises. You can empty the account without paying a penalty and the bank can change the interest rate at any time.

If you have a high level of confidence that you do not need to touch the money for a specified period of time, a CD is a much better deal. However, if you think you might need to use the money in the next couple of months, a savings account is a much better idea.

You can earn a lot more interest with a CD. Imagine you have $10,000 and know that you do not need to touch the money for two years. In a high-yield savings account earning 1.60%, you would earn $322.56 over two years. If you put that money into a 2.51% CD, you would earn $508.30. Given the ease of switching to an online CD, the extra interest income is easy money.

2. What term should I select?

The early withdrawal penalties on CDs can be significant. On a 1-year CD, 90 days is a typical penalty. And on 2 and 3 year CDs, a 6-month penalty is common. The impact of the penalty on your return can be significant. If you opened a one-year CD with a 2.20% APY and closed it after six months, you would forfeit half of the interest and earned only 1.11%. You would have been better off with a savings account paying 1.60%.

The worst case scenario is with the longest CDs. 5-year CDs usually have a one-year penalty for taking out funds early. If you open a 5-year CD and close it quickly, you could actually end up losing money.

Given the early penalties, you need complete confidence that you will not need to withdrawal the money early. Ask yourself this question: “do I have 90% confidence that I will not need access to the cash during the CD term?” If you don’t have confidence, go for a shorter term or a savings account.

3. Should I consider my local bank or credit union?

The interest rates shown in this article are all from online banks that offer products nationally. Our product database includes traditional banks, community banks and credit unions. If traditional banks offered better rates, they would have been featured in this article. The internet-only banks have dramatically better interest rates. That should not be surprising. Because internet-only banks do not have branches, they are able to pass along their cost savings to you in the form of higher interest rates.

However, you can always visit your local bank or credit union and ask them to beat the rates listed in this article. The chance of getting a better deal is extremely low (remember that Bank of America is only paying 0.07%), but you can try.

How To Find The Best Account

If you don’t find an account that meets your needs in this article, you can use the MagnifyMoney CD tool to find the best rate for your individual needs. Input your zip code, deposit amount and term. The tool will then provide you with CD options, from the highest APY to the lowest.

You can learn more about us and how we make money here.

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.

Nick Clements |

Nick Clements is a writer at MagnifyMoney. You can email Nick at nick@magnifymoney.com

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Earning Interest, Reviews

Review: Smart Move Online Savings by Ridgewood Savings Bank

Monday, June 18, 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.

Gretchen Lindow

review-full

Ridgewood Savings Bank is a physical bank that services the Bronx, Manhattan, Kings County (Brooklyn), Queens County, Nassau County, Staten Island, Suffolk County, and Westchester County. You must live or work in one of these communities to be eligible for Ridgewood Savings Bank products, including the Smart Move Online Savings.

The account offers 1.60% APY for balances $0.01 – $249,999.99, requires a $0.01 minimum deposit to open, no monthly fees with $100 monthly balance, and access to your money via phone, internet, or ATM.

How To Open An Account

Opening the Smart Move Online Savings account only take about 10 minutes. In order to be prepared, you will need:

Valid Identification: Driver’s License, Passport, Military ID, or State ID
Social Security number
If no Social Security Number, must have proof of valid citizenship in the form of Resident Alien Status
External account information, if you wish to fund the account from an external account

Funding the Account

Deposits to the account can be made via mail, ATM, or by electronic transfer from an external account. There are no fees for deposits, no matter how you make them, and there are no limits to the number of deposits you can make per statement cycle.

The Fine Print

Interest on the Smart Move Online Savings Account is compounded daily and credited monthly on the last business day of the month. If the interest accrued at the end of the period is $25.00 or greater, you can request a check be mailed to you by submitting a mailed request at least 10 days before the end of the period.

The 1.60% APY is the current rate offer, but is subject to change at any time. Additionally, the 1.60% APY is only valid for balances up to 249,999.99. Balances of 250,000.00 or greater will be subject to the current Ridgewood Savings Bank Savings Account APY, which is 0.30% at the time of writing.

Because of federal regulations regarding savings accounts, you are limited to 6 free withdrawals per statement cycle. Withdrawals or transfers beyond 6 are charged a $10 fee.

Ridgewood Savings Bank also charges a $2.00 monthly account maintenance fee on all of its savings accounts, including the Smart Move Online Savings, which is waived with a $100 minimum balance.

Finally, Ridgewood Bank charges a $30 fee for each withdrawal or transfer initiated against insufficient funds. This includes transfers made online, by phone, by ATM, or by wire transfer.

Pros

Competitive 1.60% APY
Can fund the account for free from an external account, mail, or wire transfer
No minimum deposit to open
No monthly fee with $100 balance
Interest compounded daily
Support by phone Monday – Friday: 7am to 7pm (ET), and Saturday: 9am to 3pm (ET)

Cons

$2.00 monthly account maintenance fee if balance is not $100 or greater
$10 fee for withdrawals or transfers over 6 per statement cycle
$30 insufficient funds fee
1.60% APY is valid on balances up to $249,999.99 and subject to change at any time
Balances of $250,000.00 and greater are subject to 0.30% APY
Interest is credited monthly, even though it is compounded daily

Who It’s Best For

Even though the Ridgewood Bank Smart Move Savings Account is online it’s similar to a credit union in that it only services a select area.

LEARN MORE

on Ridgewood Savings Bank’s secure website

Member FDIC

How It Stacks Up

Even though the interest rate on the Smart Move Online Savings is competitive at 1.60%, there are other online accounts that offer higher APYs and lower, less complicated fees.

You can find rates as high as 1.50% by visiting our best savings account page.

Gretchen Lindow |

Gretchen Lindow is a writer at MagnifyMoney. You can email Gretchen at gretchen@magnifymoney.com

TAGS: interest, Savings Account

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The Best Online Savings Accounts in June 2018

Friday, June 15, 2018

LaTisha Styles

The Best Online Savings Accounts

Updated June 15, 2018

After years of low interest rates, there is a pricing war happening for online savings accounts. Long gone are the days of 0.01% APY. If you are willing to open an online savings account (which is FDIC insured), you can now easily get a 1.65% APY or higher. Interest rates are only increasing online: traditional brick and mortar banks continue to pay very low rates. A typical savings account at a big bank only pays 0.01% APY.

The best online banks offer perks like no minimum balance, ATM access and much higher interest rates than the average savings account. Here are the best online savings accounts (and this post is updated regularly).

1. High Rate: Synchrony Bank – 1.75% APY, no minimum balance (and ATM access)

Synchrony Bank pays a healthy 1.75% APY. There is no minimum balance requirement and no monthly fee. In addition to the great rate, you can get an ATM card. Most internet-only banks require you to transfer funds electronically, which can take a few days. If you ever need quick access to your funds, the ATM card makes access easy. You might not recognize the Synchrony brand, but it is a large, well-capitalized business. Synchrony used to be a part of General Electric (GE), and was spun out as a separate company. Unfortunately, the digital experience is not the best and there is no app.

LEARN MORE

on Synchrony Bank’s secure website

Member FDIC

2. High Rate: Goldman Sachs Bank USA – 1.70% APY, no minimum balance (but no ATM access)

Our advertiser Marcus by Goldman Sachs, the consumer bank of Wall Street giant Goldman Sachs, offers a 1.70% APY on deposits. There is no minimum balance and there are no transaction fees. Upon opening the account, you can deposit funds via electronic transfer, wire transfer, or deposit by check. You can get access to your funds via electronic transfer or wire transfer. Goldman has been investing heavily in Marcus, its online consumer bank. Marcus is already offering some of the best savings accounts and personal loans in the market, and further expansion is expected. The savings account has consistently been paying one of the highest rates in the market. With a 1.70% APY, you can get one of the highest rates in the market from a well-known brand. The maximum deposit is $1,000,000 and deposits are FDIC insured up to the $250,000 limit.

LEARN MORE

on Goldman Sachs Bank USA’s secure website

Member FDIC

3. High Rate: Barclays Bank – 1.65% APY, no minimum balance

Online Savings Account from Barclays Barclays is a large, old British bank, based in London and with more than 325 years of history. Although Barclays is huge in the United Kingdom, it is a challenger brand in the US. Barclays offers savings products with highly competitive rates. These deposits are used to fund their rapidly growing American credit card business. The online savings account has a 1.65% APY with no minimum balance to open and no monthly fees. Your deposits are FDIC insured up to the legal limit. The Barclays website has a good look and feel. And you can have the confidence of keeping your money with one of the world’s largest and oldest universal banks.

LEARN MORE

on Barclays’s secure website

Member FDIC

4. High Rate: American Express National Bank – 1.65% APY, no minimum balance (and no fees)

High Yield Savings Account from American Express National Bank Our sponsored advertiser, American Express National Bank, offers a Personal Savings account, which earns a 1.65% variable APY. The account charges no monthly fees and requires no minimum deposit, making it an affordable account to open. You must fund your account within 60 days of applying for the account, and the FDIC insures your deposits up to $250,000. Overall, the account is a great option for anyone who wants the flexibility of earning a high interest rate on a sum of money you’ve stashed away, minus the withdrawal restrictions of a certificate deposit.

LEARN MORE

on American Express National Bank’s secure website

Member FDIC

5. Top Choice: Ally Bank – 1.65% APY, no minimum balance and you can get a free checking account

Online Savings Account from Ally Bank Ally is a bank without branches that has consistently been paying high interest rates on savings accounts. Ally has no minimum balance requirement and will pay 1.65% APY. Even better, you can open a free checking account (also with no minimum balance requirement). This makes access to your savings account incredibly easy – because you can transfer funds online (or via the app) and have immediate access via checks, debit cards and ATMs. With an Ally account, you will have access to their full suite of expanding (and market-leading) products.

LEARN MORE

on Ally Bank’s secure website

Member FDIC

6. High Rate: Citibank – 1.60% APY, $10,000 minimum balance

Citi Savings Account from Citibank Citibank, best known for their credit cards, is currently offering an outstanding 1.60% APY on their new savings account. If you’re able to deposit a minimum of $10,000, Citi will guarantee this rate for 12 months. This rate may not available in all markets. We think this a rare offer for those who qualify as it’s unique to find a bank who will guarantee a rate for a set amount of time outside of a certificate of deposit (CD).

LEARN MORE

on Citibank’s secure website

7. Highest Overall Rate: Northpointe Bank – 2.05% APY, $25,000 minimum balance amount

Ultimate Savings from Northpointe Bank Northpointe Bank is a fairly small institution when compared to some of the bigger banks on this list. However, they’ve quickly accumulated over $800 million in assets. This month, they’ve made it on to our list due to their outstanding APY of 2.05% on their Ultimate Savings Account. In order to earn this rate, you’ll need to maintain a minimum balance amount of $25,000. If your balance drops below $25,000, you’ll still be able to earn a 1.12% APY. If your balance rises above $1 million, the APY will also drop to 1.12%. There are no monthly fees associated with this account, but there may be a $15 excessive transaction fee if you make more than six transactions per month. Northpointe Bank allows you to easily manage the account via their mobile app.

LEARN MORE

on Northpointe Bank’s secure website

8. High Rate: PurePoint Financial – 1.90% APY, $10,000 to open

Online Savings from PurePoint Financial PurePoint Financial is a division of the MUFG Union Bank, N.A., otherwise known as Union Bank. Together, PurePoint Financial and Union Bank have over $120 billion dollars in assets and are powered by one of the largest financial groups in the world, Mitsubishi UFJ Financial Group (MUFG). PurePoint Financial’s online savings account currently has an APY of 1.90% with an opening deposit amount of $10,000. You’ll also have to maintain that balance to earn the APY. If the balance falls below $10,000, the APY will drop to 0.25%. The only fee associated with this account is as a result of making more than six transactions per month. If this happens, a $10 Excess Activity Fee will be applied to your account. PurePoint Financial allows you to safely manage your account online via your computer or mobile phone, but they don’t have a mobile app just yet.

LEARN MORE

on PurePoint Financial’s secure website

Member FDIC

9. High Rate: Popular Direct – 1.85% APY, $5,000 to open

Popular Direct Exclusive Savings - New Account Rate from Popular Direct

Popular Direct, the online bank of Banco Popular North America, is currently offering an outstanding APY of 1.85% on their Exclusive Savings Account. This is currently one of the highest rates available. You’ll need $5,000 to open this account and you’ll have to maintain a daily end of day balance of $500 to avoid the $4 monthly service fee. This account does not come with an ATM card. In order to access your money, you would need to transfer funds to and from an existing checking account via an ACH transfer, which can take a few days. Your deposits are FDIC insured. Popular Direct has a mobile banking app and provides account holders with access to online banking.

LEARN MORE

on Popular Direct’s secure website

Member FDIC

10. High Rate: Salem Five Direct – 1.85% APY, $100 to open

eOne Savings - New Money Only from Salem Five Direct

Salem Five Direct is the online bank division of Salem Five Cents Savings Bank, a community bank based in Salem, Massachusetts. Salem has been around for more than 150 years and all deposits are insured by the FDIC up to the legal limit. You only need $100 to open this account, and there are no monthly maintenance fees. However, they do have a few limitations to be aware of. First, according to their online banking agreement, Salem Five Direct limits the dollar amount of their External Transfers to $5,000 per transaction, $5,000 in aggregate per day, and $20,000 in aggregate per month. So, if you decide to have more than one account with them, like their money market account, they’ll look at the aggregate amount of External Transfers conducted from both the savings account and money market account. Second, account holders are limited to six withdrawals per statement cycle due to Federal Regulations. If you exceed the six withdrawal limit, they’ll charge you $10 per additional transaction. Finally, the web and mobile experiences are not great. But, if you give them a call (which we have done), you will get friendly service from a community bank. While this bank does offer one of the best rates for an online savings account, we want you to be aware of their limitations.

LEARN MORE

on Salem Five Direct’s secure website

Member FDIC

11. High Rate From A Credit Union: Alliant – 1.60% APY, $5 to open and ATM access.

People love credit unions. Because credit unions are owned by their members, you can get a higher interest rate on your savings (and lower interest rates when you borrow). Alliant is one of the best credit unions in the country, offering some of the best rates on your savings. In addition, Alliant has a great website and digital experience. Anyone can join the credit union and you only need $5 to open the account. Be aware, however, that when you go to apply for this account, Alliant will pull a soft credit inquiry for all applicants. Alliant also mentions that if you have a credit freeze, you won’t be able to apply unless you temporarily release the freeze.

LEARN MORE

on Alliant Credit Union’s secure website

Runner-Up: For Small Balance Savers – Digital Federal Credit Union – 5.12% APY up to $1k

Primary Savings from Digital Federal Credit Union (DCU) Digital Federal Credit Union (DCU) currently offers a nice account for people who are just starting to save. You can earn an APY of 5.12% with their Primary Savings Account. You will only earn that rate on deposits up to $1,000. Once you have more than $1k, you should consider other accounts on this list. It is a credit union – and your deposits are insured by the NCUA up to the legal limit. Anyone can join the credit union by donating to one of their participating organizations such as Reach Out for Schools, which has a membership fee of $10. You’ll be able to join one their participating organizations when you go to open your account with DCU. DCU is also part of a nationwide CO-OP network that allows their members to have access to shared branches and surcharge-free ATMs throughout the U.S.

LEARN MORE

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

How to Find the Right Account For You

Take a moment to calculate how much you could earn using our free saving account comparison tool. Enter your zip code and how much you have to save and you’ll see the best savings accounts for you and save more this year. If you have a large balance, the tool might find better options than the no minimum balance options we’ve listed here.

If you are willing to lock your money into a longer term, consider a certificate of deposit. You can find the best CD rates here.

Your money deserves more than 0.01%. At that rate you’re basically giving a free loan to the bank, not a favor they’d return to you!

You can learn more about how our site is financed here.

LaTisha Styles |

LaTisha Styles is a writer at MagnifyMoney. You can email LaTisha at LaTisha@magnifymoney.com

TAGS: Interest Rates, online banking, online savings account, Savings Account

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Best Travel Credit Cards With No Annual Fee

This Cash Back Number May Surprise You

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Earning Interest, Reviews

Discover Bank CD Rates Review

Tuesday, June 12, 2018

Lindsay VanSomeren

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)
3 months	0.35%
6 months	0.65%
9 months	0.70%
12 months	2.25%
18 months	2.25%
24 months	2.30%
30 months	2.30%
3 years	2.45%
4 years	2.50%
5 years	2.75%
7 years	2.80%
10 years	2.85%

Rates as of 6/12/2018

LEARN MORE

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

on Discover’s secure website

Lindsay VanSomeren |

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

TAGS: CD rates, certificates of deposit, Discover

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Earning Interest

Top Jumbo CD Rates for June 2018

Friday, June 8, 2018

Cat Alford

In the banking world, CD stands for certificate of deposit. This is a type of savings account where you agree to put a certain amount of money in for a set period of time. In return, the bank agrees to pay you interest. You may have to pay early-withdrawal penalties if you access your money before the CD term ends.

There is a type of CD called a jumbo CD, in which you generally have to put in a minimum deposit of $100,000. Sometimes these jumbo CDs have higher interest rates than CDs where you deposit less than $100,000.

Best CD Rate Currently Available: Goldman Sachs Bank USA – 12-Month CD – 2.30% APY

Marcus by Goldman Sachs® is currently offering one of the highest CD rates available on a 12-month CD. While this CD is technically not a jumbo CD, it offers a rate that is too good to pass up. You can earn the 2.30% APY with a minimum of $500 and lock in that rate for the duration of the term once the account is funded.

LEARN MORE

on Goldman Sachs Bank USA’s secure website

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The top jumbo CD rates

To compile a list of the top jumbo CD rates, we used information from DepositAccounts.com, which, like MagnifyMoney, is a LendingTree company. We sorted products by APY. Then, we excluded any institutions with a health rating below a B, as well as any credit unions with very restrictive membership requirements. If there was a tie between APYs, we chose the CD with a minimum deposit of $100,000. All products on this list are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), but with jumbo CDs, it’s especially important to remember that only deposits up to $250,000 are insured.

Keep in mind that other banks might offer a CD with a better APY and a lower minimum deposit than $100,000. However, the chart below reflects the true definition of a jumbo CD, which involves a deposit of $100,000 or more.

This table is updated as of June 8, 2018, but it’s always a good idea to double-check the annual percentage yield (APY) before making your choice of where to invest. Some banks on the list offer promotional APYs, so be sure to check that the rates below are still available since rates can change day to day.

Institution	CD Term	APY	Minimum Deposit Amount
M.Y. Safra Bank	3 months	1.15%	$100,000
My eBanc	6 months	1.85%	$100,000
KS StateBank	1 year	2.27%	$100,000
My eBanc	18 months	2.36%	$100,000
Veridian Credit Union	2 years	2.65%	$100,000
Veridian Credit Union	3 years	2.85%	$100,000
K.S. StateBank	4 years	2.90%	$100,000
Northwest Federal Credit Union	5 years	3.10%	$100,000

As of June 8, 2018

Banks that offer the best jumbo CD rates

M.Y. Safra Bank

M.Y. Safra Bank holds three spots on this list. When you go to its homepage, you’ll notice the banner shows “Special CD Offers.” This means that it’s important to keep track of these interest rates to make sure you get one that is current. This page has asterisks next to online promotions, so you know which ones might not be offered for a long time.

One downside to M.Y. Safra Bank is that the website is hard to navigate and is slow to load. This could be difficult for sophisticated investors who are used to banking with ease.

For a three-month jumbo CD, the APY is 1.15%. Keep in mind there might be other banks that offer 35- or 38-month CDs for slightly better rates, but they were not factored into this chart since this category was specifically for a three-year offering.

LEARN MORE

on M.Y. Safra Bank’s secure website

My eBanc

My eBanc is an online-only bank. It’s a division of BAC Florida Bank. Unlike M.Y. Safra Bank’s, the eBanc website is much easier to navigate and has clear instructions on how to open a jumbo CD.

According to the site, My eBanc has no maintenance fees and compounds interest daily. When your jumbo CD matures, withdrawing your money is simple, although there is an early-withdrawal fee.

For a six-month jumbo CD, their APY is 1.85%. Their 18-month jumbo CD has a 2.36% APY.

LEARN MORE

on My EBanc’s secure website

Veridian Credit Union

Veridian Credit Union is headquartered in Waterloo, Iowa, has 30 locations and over 700 employees. You can become a member of the credit union if you live in the area or if you’re a registered user of Dwolla, an e-commerce company which is available to anyone.

You can see current rates on jumbo CDs on the Veridian rate sheet. Keep in mind that several of the rates listed are current specials and might not be available long term. At the time of this writing, Veridian Credit Union has a special on an 24-month jumbo CD with an APY of 2.65% and a 36-month jumbo CD with a 2.85% APY. This credit union also has various specials on 7, 9, and 15 month jumbo CDs.

LEARN MORE

on Veridian Credit Union’s secure website

KS StateBank

KS StateBank currently has internet-only specials on their 1, 2, 3, 4, and 5-year jumbo CDs. However, their best rates are with their 1 and 4-year jumbo CDs, which currently have a 2.27% APY and a 2.90% APY respectively.

Although KS StateBank is mainly located in Kansas, they do have the option to bank online or through their mobile banking app. This allows them to reach customers nationwide.

LEARN MORE

on KS StateBank’s secure website

Northwest Federal Credit Union

5 Year Share Certificate from Northwest Federal Credit Union Northwest Federal Credit Union currently has an incredible rate on their 5-year CD. For $100,000 you could earn an APY of 3.10%. If you’re able to deposit $250,000 you could earn an APY of 3.15%. However, even if a minimum of $1,000 is deposited into their 5-year CD, the APY would be 3.05%.
In order to become a member of Northwest Federal Credit Union, you must either be employed by one of their “Member Companies”, be employed or retired from select U.S. government agencies, or be a member of one of their “Community Partner Organizations”. If you don’t meet any of those qualifications, you’re able to join one of their “Community Partner Organizations” when you apply for membership. Selecting this option authorizes Northwest Federal Credit Union to deduct the membership amount from your account for whichever organization you choose in order to qualify for membership at this credit union.

LEARN MORE

on Northwest Federal Credit Union’s secure website

The difference between jumbo and regular CDs

As mentioned previously, you can open a CD with less than $100,000. You can even get CD rates comparable to the ones above, with a lower minimum deposit requirement. Of course, the more money you put in a CD, the more interest you can earn, but if you don’t have $100,000 to open a jumbo CD, it’s important to know you do have other options with lower minimums.

Withdrawal penalties on jumbo CDs

According to a recent survey, the penalties for withdrawing your money from your CD early could be serious. Some banks will even take part of your principal as a penalty.

Below are the most common penalties, according to the survey:

3 month CD: Three months of interest
6 month CD: Three months of interest
1 year CD: Six months of interest
2 year CD: Six months of interest
5 year CD: A year’s worth of interest

So, it’s important to be confident that you want to put your money in a CD. When you do this, you’re making an agreement with the bank to leave it there for a set period of time. If you’re unsure if you want to tie up your money for a long period of time, consider a high-yield savings account instead.

How jumbo CDs are taxed

It’s important to know that the interest you earn on your jumbo CD will be taxed as interest income, not as capital gains income.

This means that your bank or credit union will send you a 1099-INT form at the end of the year to show how much interest you earned in your jumbo CD and you will be taxed on that.

Are jumbo CDs safe?

According to the U.S. Securities and Exchange Commission: “Certificates of deposit are considered to be one of the safest savings options. A CD bought through a federally insured bank is insured up to $250,000.”

Some people prefer investing in the stock market over CDs because you can often get higher rates of returns; however, the stock market is a riskier bet, and returns are not guaranteed like those associated with CDs.

CDs are not affected by the whims of the stock market. The interest rate you agree on with your bank is the rate you will get. That interest rate, however, may not outpace inflation, meaning you may not really earn much, if anything, over time.

Final thoughts

If you have over $100,000 and want to invest it in a jumbo CD, you have several options. Like the chart above shows, you can choose many different terms and durations for your jumbo CD. Just be sure to research the bank you invest with so you know you’re putting your money with a top-rated institution. Also, be sure that you’re comfortable with putting your money in a CD long-term because there are often penalties for withdrawing your money early.

Cat Alford |

Cat Alford is a writer at MagnifyMoney. You can email Catherine at cat@magnifymoney.com

TAGS: CD, certificate of deposit, deposit accounts, jumbo CD

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The Top 6 Month CD Rates for June 2018

Friday, June 8, 2018

Gabby Hyman

The top 6 month CD rates — *Source: iStock*

Short-term certificate of deposit (CD) accounts offer investors a safe opportunity to squirrel away money for a future expense. If you’re looking for a brief solution for storing your cash and want to earn more interest than a typical savings account will offer, a 6 month CD can make a lot of sense. (It’s also a good place to start if you’re building a CD ladder.)

Using information from DepositAccounts.com, another LendingTree company and a database of offerings at more than 17,100 banks and credit unions, we found the five banks and five credit unions with the top 6 month CD rates. If there was a tie, we chose the institution with the smaller minimum-deposit requirement. We pulled these rates on June 8, 2018, and we excluded promotional offerings. The national average APY on 6 month CDs (among banks and credit unions) is 0.54%, according to the DepositAccounts.com database. These options outperform that average by a long shot. (You may also want to view our picks for the overall best CD rates.)

Banks with the best 6 month CD rates

Limelight Bank

6 month CD APY: 2.05%
Bank information: Although Limelight Bank is located in Utah, they are an online bank that serves customers nationwide. They are environmentally conscious and originate loans for solar projects from customers’ various deposit accounts.
Where to open CD account: Online
Minimum balance to open: $1,000
Maintenance fees: $0
Early withdrawal penalties: Determined by bank.

LEARN MORE

on Limelight Bank’s secure website

Popular Direct

6 month CD APY: 2.05%
Bank information: Popular Direct is an online bank that services customers in the U.S., Puerto Rico, and throughout the Caribbean. They currently have some of the most competitive rates in the market – not only in their CD products, but with their savings account as well.
Where to open CD account: Online
Minimum balance to open: $10,000
Maintenance fees: $0
Early withdrawal penalties: 120 days of simple interest

LEARN MORE

on Popular Direct’s secure website

Member FDIC

My Banking Direct

6 month CD APY: 2.00%
Bank information: My Banking Direct is a division of New York Community Bank. The bank was originally chartered in 1859 in Queens, NY. My Banking Direct was created as a way to offer consumers higher rates on deposit accounts.
Where to open CD account: Online
Minimum balance to open: $2,500
Maintenance fees: $0
Early withdrawal penalties: 90 days’ interest

LEARN MORE

on My Banking Direct’s secure website

First Internet Bank

6 month CD APY: 1.92%
Bank information: A subsidiary of First Internet Bancorp, this online bank founded in 1999 has no branch locations, but offers service online in all 50 states.
Where to open CD account: Online
Minimum balance to open: $1,000
Maintenance fees: $0
Early withdrawal penalties: 90 days’ interest

LEARN MORE

on First Internet Bank’s secure website

State Bank of India

6 month CD APY: 1.91%
Bank information: State Bank of India originated in India, but opened a branch in New York in 1970. Today, they have over 22,000 branches across 36 countries and an online platform that allows them to reach customers worldwide.
Where to open CD account: Online
Minimum balance to open: $5,000
Maintenance fees: $0
Early withdrawal penalties: 30 days’ interest

LEARN MORE

on State Bank Of India’s secure website

Credit unions with the best 6 month CD rates

Service Credit Union

6 month CD APY: 2.00%
Credit union information: Founded in Portsmouth, N.H., in 1957, Service Credit Union originally served employees of Pease Air Force Base. Today, it has grown to serve over 200,000 people throughout New Hampshire, North Dakota, Massachusetts, and even Germany.
Membership details: To become a member, you must live or work, or have family members that live or work in New Hampshire or Falmouth, Bourne, Mashpee, and Sandwich, Mass. Current members of the military, veterans, retirees, and reservists of the U.S. Armed Forces along with their families are also eligible for membership.
Where to open CD account: You can open an account online or at one of their many branches.
Minimum balance to open: $250
Maintenance fees: $0
Early withdrawal penalties: Determined by credit union.

LEARN MORE

on Service Credit Union’s secure website

PenFed Credit Union

6 month CD APY: 1.85%
Credit union information: PenFed, established in 1935, today serves more than 1.6 million members at branch locations in all 50 states and select overseas facilities.
Membership details: Open to current or retired members of the U.S. military, federal employees, affinity partners, members of qualifying organizations, or by donating to Voices for America’s Troops or the National Military Family Association.
Where to open CD account: You can open an account online or at one of their branches.
Minimum balance to open: $1,000
Maintenance fees: $0
Early withdrawal penalties: 90 days’ interest

LEARN MORE

on PenFed Credit Union’s secure website

NCUA Insured

Latino Credit Union

6 month CD APY: 1.55%
Credit union information: Founded in Durham, N.C., in 2000, Latino Credit Union opened its doors as a solution to the Durham Latino community who were being robbed and mugged. While their original intent was to serve the Latino community, they have since expanded their membership to include anyone and everyone.
Membership details: Anyone who is willing to provide a one-time $10 donation to the Latino Community Development Center is welcome to become a member of the credit union.
Where to open CD account: Online
Minimum balance to open: $500
Maintenance fees: $0
Early withdrawal penalties: 90 days’ interest

LEARN MORE

on Latino Credit Union’s secure website

Spectrum Credit Union

6 month CD APY: 1.55%
Credit union information: Spectrum Credit Union was founded in 1973. This credit union is a division of Chevron Federal Credit Union and serves members worldwide through their online banking platform.
Membership details: If you don’t qualify by one of their location or employment field of membership requirements, you may apply for membership by joining one of their non-profit partners: Contra Costa Country Historical Society or Navy League of the United States.
Where to open CD account: Online
Minimum balance to open: $500
Maintenance fees: $0
Early withdrawal penalties: Equal to three months of dividends.

LEAEN MORE

on Spectrum Credit Union’s secure website

USALLIANCE Financial

6 month CD APY: 1.51%
Credit union information: Founded as a credit union for IBM employees in 1966, USALLIANCE Financial today serves more than 90,000 members worldwide through 6,000 branches and 25,000 ATMs (surcharge-free).
Membership details: Applicants must be a relative of an existing USALLIANCE member, reside in one of five Massachusetts counties, work in select New York and Connecticut locations, or work in participating membership companies (you can find the requirements by visiting the website, clicking “Open an Account” and then “Open a Primary Account”).
Where to open CD account: Online
Minimum balance to open: $500
Maintenance fees: $0
Early withdrawal penalties: Credit union calculates a “significant penalty” of 360 days of dividends.

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Pros and cons of using 6 month CDs

Pros:

The CD rates offered by banks and credit unions are generally higher than those on savings accounts.
The rates are fixed and guaranteed for the length of their term.
The discipline of keeping the funds in the CD means the money will be available upon maturity. (Note: Most banks offer a seven-day grace period to reinvest or withdraw the investment, after which the funds will roll over into a new CD. However, you are not guaranteed the same rate.)

Cons:

Six-month CD rates are lower than those offered on longer CD investment terms.
To tap into the CD funds — even for emergencies — consumers must accept a loss through penalties, which can include a percentage of the funds, a percentage of the earned interest, or a combination of both. A typical penalty on a short-term CD is between 30 and 90 days’ worth of interest earnings.
If you’re not confident you can do without access to the funds for six months, you may be better off putting your money in a traditional savings account, which is likely to earn less interest than a CD.
Since CD rollovers may reset at a different percentage rate, consumers must speak with the bank before the grace period ends to ensure they are getting the best deal.

Using a 6 month CD for laddering

A CD ladder comprises small-amount CDs with varying terms and respective interest rates that contribute to a long-term investment strategy. After the 6 month CD matures, investors can withdraw the funds for a predetermined expense. Or, they can reinvest the money into a longer-term CD with a better rate. By staggering the maturity dates on short-term CDs, consumers have access to their cash on a regular, predictable basis.

Where can you open a CD account?

Consumers can open 6 month CD accounts (or longer) from banks and credit unions. Bank and credit union CD rates are based on Federal Reserve rates, and there may be strategic times to pursue these short-term instruments following a rate increase.

Gabby Hyman |

Gabby Hyman is a writer at MagnifyMoney. You can email Gabby here

TAGS: 6-month CD rates, CD rates

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The Best Credit Union CD Rates – June 2018

Friday, June 8, 2018

Lindsay VanSomeren

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 June 8, 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, 1.34% APY, min. deposit $1,000

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 1.34%, compared to the national average of 0.68% 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

on UNIFY Financial Credit Union’s secure website

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

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

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.

Connexus Credit Union – 12 Month Certificate, 2.50% APY, min. deposit $5,000

12 Month Certificate from Connexus Credit Union With a $5 donation to the Connexus Association, anyone can join Connexus Credit Union. The Connexus Association assists educational institutions by providing scholarships and financial information. Once you become a member of the credit union, you’ll be able to open their 12 month CD with a $5,000 deposit.

If you’re able to deposit $5,000 into Connexus’s 12 month CD, you’ll earn $125 by the end of the term. However, if you withdraw funds early, you’ll be penalized with 90 days’ worth of interest.

LEARN MORE

on Connexus Credit Union’s secure website

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

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.

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USAlliance Financial – 12 Month CD, 2.28% APY, min. deposit $500

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

on USALLIANCE Financial’s secure website

PenFed Credit Union – 1-Year Money Market Certificate, 2.25% APY, min. deposit $1,000

PenFed has an outstanding APY of 2.25%. With a minimum deposit of $1,000, you could earn $22.50 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

on PenFed Credit Union’s secure website

NCUA Insured

Alliant Credit Union – 12-17 Month Share CD, 2.25% APY, min. deposit $25,000

With a minimum deposit of $1,000, you could earn an APY of 2.20% on a 12-17 month CD. If you deposit $25,000 or more, you would be able to earn an APY of 2.25% with the same term. An early withdrawal penalty of 90 days’ worth of interest may be imposed if you withdraw funds prior to the CD’s maturity date.

With a $10 donation to Foster Care to Success, you can easily become a member of Alliant Credit Union. You can also become a member if you are an employee or retiree of certain organizations, related to existing Alliant members, or live or work in qualifying communities.

LEARN MORE

on Alliant 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 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

on Eastman Credit Union’s secure website

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

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

on Redstone Federal Credit Union’s secure website

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

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

on Wright-Patt Credit Union’s secure website

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

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

on Delta Community Credit Union’s secure website

3 questions to consider before opening a credit union CD

What is the biggest difference between having a CD with a credit union versus a bank?

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).

Is it safer to deposit money with a credit union or a bank?

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.”

What are the advantages and disadvantages of holding money in a credit union CD?

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.

Lindsay VanSomeren |

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

TAGS: CD rates, credit unions, savings

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The Best IRA CD Rates – June 2018

Friday, June 8, 2018

Lindsay VanSomeren

Perhaps you’ve decided to build a CD ladder within your IRA, or maybe you’re looking for a safe way to store your retirement cash for a specific period of time. Whatever the reason, you’re interested in getting an IRA CD and, understandably, want to know what products will give you the best rate of return.

You can get an IRA CD with terms ranging from three months to more than six years, with interest rates generally increasing with the term length. There are lots of options, so we’ve rounded up the top IRA CD rates that are available right now for a variety of terms. You’ll select your IRA CD terms based on your CD-ladder master plan or whenever you’ll need access to your money.

Every month, we choose the best IRA CD rates using data from another LendingTree company DepositAccounts.com, a database of offerings at more than 17,100 banks and credit unions. On June 8, 2018, we sorted the products by APY, then eliminated institutions with a health rating below a B. We then eliminated products that are not available nationwide. From there, we chose the IRA CD with the highest APY among products with a minimum deposit no greater than $5,000. Here are the best options. (Average CD rates referenced below are based on DepositAccounts.com data as of June 8, 2018.)

The best IRA rates in June 2018

Term	Institution	APY	Minimum Deposit Amount
3 months	Signature Federal Credit Union	1.35%	$500
6 months	Service Credit Union	1.75%	$250
12 months	Connexus Credit Union	2.50%	$5,000
18 months	Capitol Federal Savings Bank	2.53%	$500
2 years	Greenwood Credit Union	2.80%	$1,000
3 years	Connexus Credit Union	2.75%	$5,000
4 years	ConnectOne Bank	2.94%	$500
5 years	Connexus Credit Union	3.25%	$5,000

Rates as of June 8, 2018

3 Month IRA CD – Signature Federal Credit Union, 3 Month IRA CD (Traditional, Roth)

3 Month Share Certificate from Signature Federal Credit Union Three-month regular CDs are earning an average interest rate of 0.33% APY currently. Signature Federal Credit Union is quadrupling that, with an interest rate of 1.35% APY with their 3-month IRA CD. With that APY and a $500 minimum deposit, you would earn $1.68 when the certificate matures.

LEARN MORE

on Signature Federal Credit Union’s secure website

6-Month IRA CD – Service Credit Union, 6 Month SEG IRA Certificate (Traditional, CESA, Roth)

6 Month Share Certificate from Service Credit Union
Six-month IRA CDs typically earn a little bit better, but they’re still not great. Service Credit Union offers the highest interest rate at 1.75% APY for deposits of $250 and over. That translates into earnings of $2.18 if you were only to deposit the minimum amount. Compare that to the average of all regular 6 month CDs, at 0.56%.

LEARN MORE

1-Year IRA CD Rates – Connexus Credit Union, 1 Year IRA (Traditional, Roth, CESA)

12 Month Certificate from Connexus Credit Union
Regular one-year CDs earn an average interest rate of 0.88% APY. Connexus Credit Union, however, is offering a one-year IRA CD at 2.50% APY. You’ll need a $5,000 minimum deposit to earn $125.00 in interest once the CD matures.

LEARN MORE

on Connexus Credit Union’s secure website

18-Month IRA CD Rates – Capitol Federal Savings Bank, 18 Month Variable IRA (Traditional, Roth, CESA)

18-month regular CDs earn an average interest rate of 1.08% APY. Capitol Federal Savings Bank on the other hand, is currently offering 2.53% APY on an 18-month IRA CD. This would translate into earnings of $19.09 with a minimum $500 deposit.

LEARN MORE

on Capitol Federal Savings Bank’s secure website

2-Year IRA CD Rates – Greenwood Credit Union, 24 Month IRA (Traditional, Roth, CESA, SEP)

24 Month CD from Greenwood Credit Union
Two-year regular CDs earn an average interest rate of 1.18% APY. Greenwood Credit Union, on the other hand, is currently offering 2.80% APY on a 2-year IRA CD. This would translate into earnings of $56.78 with a minimum $1,000 deposit.

LEARN MORE

on Greenwood Credit Union’s secure website

3-Year IRA CD Rates – Connexus Credit Union, 36 Month IRA Certificate IRA (Traditional, Roth, CESA)

12 Month Certificate from Connexus Credit Union

Three-year regular CDs are earning an average interest rate of 1.39% APY currently. Connexus Credit Union is doubling that, with an interest rate of 2.75% APY with their 36-month IRA CD. With those interest rates and a $5,000 minimum deposit, you would earn $423.95 when the certificate matures.

LEARN MORE

on Connexus Credit Union’s secure website

4-Year IRA CD Rates – ConnectOne Bank, 48 Month Personal IRA

Four-year regular CDs are currently earning an average interest rate of 1.55% APY. ConnectOne Bank claims the top interest rate for these IRA CDs, with an interest rate of 2.94% APY. You would earn $61.44 on this CD with a $500 minimum deposit.

LEARN MORE

on ConnectOne Bank’s secure website

5-Year IRA CD Rates – Connexus Credit Union – 60 Month IRA Certificate (Traditional, Roth)

12 Month Certificate from Connexus Credit Union
Five-year IRA CDs hold the top spot for interest rates out of any category on our list. National averages for a regular 5-year CD is 1.84% APY, however Connexus Credit Union outperforms the average with a 3.25% APY on its 5-year IRA CD for members. The minimum deposit is $5,000 to earn this APY.

LEARN MORE

on Connexus Credit Union’s secure website

6+ Year IRA CD Rates – Air Force Federal Credit Union, 7 Year IRA (Traditional, Roth, CESA)

We’re starting to see these very-long-term IRA CDs offer higher interest rates than the shorter-term five-year IRA CDs. Air Force Federal Credit Union offers the highest term for their seven-year IRA CD, at 3.20% APY. That’s less than Connexus Credit Union which offers a 3.25% APY for a five-year IRA CD. Still, with Air Force Federal Credit Union’s seven-year IRA CD, you would earn $616.72 on a minimum deposit of $2,500 when the IRA CD matures.

LEARN MORE

on AFFCU’s secure website

3 questions to consider before opening an IRA CD

How do I invest in an IRA CD?

Opening an IRA CD generally requires filling out a form or talking to a banker. You’ll have to have a way to fund your IRA CD, whether that’s rolling over an existing retirement account into an IRA CD or depositing cash into the product. The same limits that apply to IRA contributions apply to IRA CDs: $5,500 per year ($6,500 if you’re over age 50) of your own money across all your IRA accounts each year, and you can do a rollover once per year.

What are my options if rates go up after I open my IRA CD?

Unless you’ve invested in a bump-up IRA CD, you won’t be able to take advantage of a higher rate until your CD matures. Withdrawing funds from an IRA CD before they mature will result in a stiff penalty. Bump-up IRA CDs give you a chance to increase your interest rate to a higher level if it’s available, but you’re generally only allowed to do this once or twice during the life of the CD.

How do I avoid penalties when rolling over retirement funds into an IRA CD?

You can either use the the direct-transfer method or the indirect-transfer method. The direct transfer method requires setting up your new IRA account filling out a form authorizing the bank or credit union to transfer money from the old account into the new account. The indirect transfer method involves you asking for a check from your old IRA account. You have up to 60 days to deposit that check into your IRA CD to avoid incurring a penalty.

Lindsay VanSomeren |

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

TAGS: CD rates, IRA CD

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The Best High Yield Checking Accounts in 2018

Friday, June 8, 2018

Lindsay VanSomeren

The money you keep in your checking account has a lot of valuable potential that can help you reach your financial goals. Sadly, this potential isn’t often realized because most checking accounts offer little to no interest, especially compared to savings and CD accounts. These high yield checking accounts are bucking that trend with sky-high rates that can put even the best savings accounts to shame. But, before you sling all of your cash into one of these accounts, there’s a few things you need to know.

Typically, these accounts come with a lot more strings attached than a regular checking account (you didn’t think they’d be offering all of this for free, did you?). In this article, we’ll help you make an informed decision about whether one of these high yield checking accounts are right for you and your financial goals.

How we picked the best high yield checking accounts

We followed a strict approach when selecting these accounts. We used the online rate finder for FDIC- or NCUA-insured rewards checking accounts on DepositAccounts.com, another LendingTree.com-owned site, to list the top 10 checking accounts with the highest rates. These rates were pulled on 6/8/18. We assumed a deposit amount of $100.

Credit unions were only included if they allow membership to anyone (such as by making a donation to their chosen charity). Finally, we filtered out any checking accounts that are not available nationwide, or that carry a health rating of below a B.

The best high yield checking accounts in 2018

Institution	APY	Minimum Balance Amount
America’s Credit Union	5.00% APY on balances up to $1,000 0.10% APY on balances between $1,000.01 - $15,000 0.25% APY on balances over $15,000.01	$0
First Financial Credit Union (IL)	5.00% APY on balances up to $2,499.99 0.10% APY on balances over $2,500	$0
La Capitol Federal Credit Union	4.25% APY on balances up to $3,000 2.00% APY on balances between $3,000.01 and $10,000 0.10% APY on balances over $10,000	$0
Blue Federal Credit Union	4.00% APY on balances up to $15,000 0.25% APY on balances over $15,000.01	$0
One American Bank	3.50% APY on balances up to $10,000 0.25% APY on balances over $10,000.01	$0
Heritage Bank	3.33% on balances up to $25,000 0.15% on balances over $25,000	$0.01
Consumers Credit Union	3.09% APY on balances up to $10,000 3.59% APY on balances up to $15,000 4.59% APY on balances up to $20,000	$0
Market USA Federal Credit Union	3.01% for the Platinum Tier on balances up to $15,000 2.01% for the Gold Tier on balances up to $15,000	$0.01
Partner Colorado Credit Union	3.00% APY on balances up to $10,000.99 0.50% APY on balances between $10,001.00 – $25,000.99 0.10% APY on balances over $25,001	$0
Signature Federal Credit Union	3.00% APY on balances up to $15,000 0.10% APY on balances over $15,000.01	$0

America’s Credit Union

Minimum amount to open: $0
Requirements to earn the high APY: You must complete the following four things each month:
1. Have $15,000 in loans or deposits with ACU
2. Have a $500 direct deposit
3. Be signed up for eStatements
4. Complete 10 debit transactions in person in store
Monthly service fee and how to waive it: No monthly service fee.
ATM fees: Your first 10 non-America’s Credit Union ATM withdrawals are free. After that, you’ll pay $1.00 per withdrawal at a non-America’s Credit Union ATM.
ATM refunds: None

LEARN MORE

on America's Credit Union’s secure website

First Financial Credit Union (Illinois)

Minimum amount to open: $0
Requirements to earn the high APY: You must complete the following two things each month:
1. Be enrolled in eStatements
2. Complete 15 signature-based debit card purchases
Monthly service fee and how to waive it: No monthly service fee.
ATM fees: Your first eight out-of-network withdrawals per month are free. Balance inquiries and cash withdrawals after your eighth withdrawal of the month are $1.00 each.
ATM refunds: $10 per month.

LEARN MORE

on First Financial CU (IL)’s secure website

La Capitol Federal Credit Union

Minimum amount to open: $50
Requirements to earn the high APY: Make at least 25 debit purchases per month.
Monthly service fee and how to waive it: $2; waived if you enroll in eStatements.
ATM fees: None
ATM refunds: Up to $25 in out-of-network surcharges (the money the ATM’s owner charges you) per month if you are signed up for eStatements and make 25 debit purchases per month.

LEARN MORE

Blue Federal Credit Union

Minimum amount to open: $0
Requirements to earn the high APY: You must have completed the following three things each month:
1. Make at least 10 debit transactions
2. Be enrolled in eStatements
3. Have at least one direct deposit, ACH deposit or withdrawal, or bill payment per month from your account
Monthly service fee and how to waive it: No monthly service fee.
ATM fees: $1.50 for out-of-network ATMs.
ATM refunds: $3 per transaction, up to $21 per month as long as you’ve met the requirements to earn the high APY. Otherwise, no ATM fee refunds will be given.

LEARN MORE

One American Bank

Minimum amount to open: $50
Requirements to earn the high APY: You’ll need to do the following three things for each qualification cycle (be aware: their qualification cycles are not the same thing as a calendar month):
1. Complete at least 12 debit purchases of $5.00 or more
2. Be enrolled in eStatements
3. Log into your Online Banking account
Monthly service fee and how to waive it: No monthly service charges.
ATM fees: None
ATM refunds: Up to $25 per qualification cycle if you meet the requirements to earn the high APY.

LEARN MORE

Heritage Bank

Minimum amount to open: $100
Requirements to earn the high APY: You’ll need to complete these three actions each month:
1. Make at least 10 debit purchases
2. Have at least one direct deposit or ACH post to your account each month
3. Be signed up for eStatements
Monthly service fee and how to waive it: No monthly service fees.
ATM fees: Amount is at the discretion of the out-of-network ATM owner.
ATM refunds: $25 per month in out-of-network ATM surcharge fees (i.e., the fees that the ATM’s owner tacks on)

LEARN MORE

on Heritage Bank NA’s secure website

Member FDIC

Consumers Credit Union

Minimum amount to open: $0
Requirements to earn the high APY: You must complete the following four things each month:
1. Make 12 Debit card point-of-sale purchases without using the PIN (all 12 must post and clear the account on or before the last day of the calendar month)
2. Have at least one direct deposit, ACH debit, OR bill payment (using Consumers Credit Union’s online bill pay system) post and clear the account on or before the last day of the calendar month.
3. Sign into their Online Banking system at least once each calendar month
4. Be signed up for eStatements
  - Keep in mind that Consumers Credit Union will add an additional requirement each time the balance grows to earn the higher APY.
Monthly service fee and how to waive it: No monthly service fee.
ATM fees: None
ATM refunds: Complete reimbursement for all ATM fees charged from ATMs outside of their surcharge-free ATM network as long as you meet the minimum requirements of their Rewards Checking Account.

LEARN MORE

Market USA Federal Credit Union

Minimum amount to open: $0
Requirements to earn the high APY: You must complete the following actions each month:
1. Be enrolled in eStatements
2. Have monthly direct deposits of at least $250
3. Use your Visa Debit Card at least 12 times a month with purchases that are $5 or more
4. Make three online bill payments a month that are at least $20 each
  - This last requirement is what will qualify you for the Platinum tier
Monthly service fee and how to waive it: No monthly service fee
ATM fees: None.
ATM refunds: 8 free transactions per month when you sign up for direct deposit

LEARN MORE

Partner Colorado Credit Union

Minimum amount to open: $0
Requirements to earn the high APY: You’ll need to do three things each month:
1. Use your debit card to make at least 20 signature-based purchases of $5 or more
2. Be signed up for eStatements
3. Log into your Online or Mobile Banking account
Monthly service fee and how to waive it: $5; waived if you meet the requirements to earn the high APY.
ATM fees: None.
ATM refunds: All ATM surcharge fees are refunded.

LEARN MORE

Signature Federal Credit Union

Minimum amount to open: $0
Requirements to earn the high APY: You must complete the following things each month:
1. Have at least one direct deposit into your account of $1,000 or more
2. Be enrolled in e-statements
3. Use your debit card to make at least 10 purchases per month
Monthly service fee and how to waive it: No monthly service fee.
ATM fees: None.
ATM refunds: Signature Federal Credit Union allows you to choose from either a higher interest rate, $10 in waived ATM fees, or debit card rewards points. If you choose the higher interest rate, they will not waive ATM fees.

LEARN MORE

How are these banks able to offer such a high APY?

Did you notice that most of the institutions offering high yield checking accounts tend to be smaller names that you’ve probably never heard of? It turns out there’s a good reason for that, and it all has to do with some recent legal changes.

Back when the Dodd-Frank Act was passed in 2010, a tiny legislative nugget called the Durbin Amendment was included in the text. This amendment limited the swipe fees that big banks can charge merchants for each purchase that one of their customers makes using a debit card.

Suddenly, big banks could only charge half as much per swipe as they had been doing, and swipe fees became a lot more lucrative for smaller banks and credit unions instead.

That’s why so many smaller institutions have strict rules requiring you to use your debit card each month. According to the Federal Reserve, in 2016 smaller banks earned anywhere from 18 to 65 cents for each debit card swipe, compared to a maximum of just 22 cents plus 0.05% of the purchase price for larger banks.

Say, for example, a smaller bank requires you to make 10 debit transactions per month, and earns 65 cents from each transaction. Your bank would then earn $6.50 from your spending that month.

That is where the high interest rates come from. It’s also why the high interest rates are generally capped to smaller balances, so that you don’t earn too much money and negate all the swipe fees that the bank earns.

Is it worth meeting requirements to go after the high APY?

Some of these high yield checking accounts have a lot of requirements.

If you prefer to use debit cards, chances are you’ll be able to easily meet the minimum debit swiping requirements for most of these accounts. On the other hand, if you’re a cash or credit card junkie, you may find yourself frequently worrying at the end of the month about whether or not you’ve met the minimum debit swiping requirements. In this case, a high yield checking account might not be right for you.

Another thing to consider is that many of these banks require you to make a signature-based debit transaction, rather than a PIN-based debit transaction for it to count. Unfortunately, this is slightly less secure than using the PIN-based payment method.

You’ll also need to avoid making a rush of charges at the end of the month to meet the spending requirements. That’s because banks and credit unions will usually only count a charge that has finished posting to your account towards meeting the monthly swiping requirement. It can take a few days for debit swipes to post to your account, so it’s better to get these charges in early to make sure they post to your account in time to count.

The good news is that checking accounts aren’t designed to hold significant amounts of cash. That’s what a savings account is for, and you can still earn pretty good interest rates with a high yield savings account (although still nowhere close to these checking accounts).

If you’re going to keep a smaller deposit in your checking account anyways, why not earn as much as you can from it—especially if you know you’ll have an easy time meeting the requirements?

Lindsay VanSomeren |

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

TAGS: Best of, Checking accounts

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Review of USAA CD Rates

Thursday, June 7, 2018

Sarah Li Cain

Founded and based in San Antonio, USAA is an FDIC-insured bank, insurance and financial services company that serves current and former military members and their families. Started by 25 U.S. Army officers, USAA has since grown to more than 11 million members. Most of their products are only available to USAA members, who are military members or their families.

USAA won a number of awards in 2016, including the title World’s Most Ethical Company from the Ethisphere Institute. It scored top rankings in the bank, insurance, and credit card categories in the Temkin Customer Service Ratings from 2013 to 2016.

Looking beyond high customer service standards, USAA CD rates are pretty comparable to the national average, though with some products they are significantly lower. Minimum deposit requirements are lower than with many similar products, though there are CDs out there with better rates and lower minimum deposits than USAA’s CDs. If you’re a member of the military (or a family member of military member) and looking for a bank that offers a wide variety of products as well as excellent customer service, USAA could be a good bet if you’re will to make the tradeoff for lower CD rates.

USAA Fixed-Rate CDs

A USAA fixed-rate CD is for those who intend to make one deposit to get a guaranteed rate of return over the agreed-upon term. Once you make your initial deposit (which differs depending on the type of CD you choose), your interest rate is set for the duration of the CD term. You are not allowed to make any additional deposits into your CD account after the initial amount.

Interest accumulates daily, and you have the choice to keep any interest earned in the CD until it matures (the interest will compound monthly) or have it paid out monthly to an account of your choosing. The CD will not be renewed automatically once it matures, though you have the option to do so if you want. If not, all the money in the account will be paid into an investment account until you withdraw it or invest it in another type of account.

Early-withdrawal penalties apply depending on the term of your CD:

Terms of 30 days or less: 30 days’ worth of interest
30 days to 364 days: 90 days’ interest
365 days to five years: 180 days’ interest
Five years or more: 365 days’ interest

Also, if you make a withdrawal within six calendar days of a deposit or another withdrawal, you’ll have to pay at least seven days’ worth of interest.

Standard rates

A standard CD requires a minimum deposit of $1,000 and up to a maximum of $95,000. This type of account is best for those who do not have a large amount of money to invest and want a guaranteed rate for their savings.

CD Term	APY
91 days	0.30%
182 days	0.56%
7 months	0.56%
270 days	0.66%
1 year	0.71%
15 months	0.71%
18 months	0.76%
2 years	1.51%
30 months	1.54%
3 years	1.71%
4 years	1.87%
5 years	2.12%
7 years	2.17%

As of 6/7/2018

USAA fixed jumbo CD rates

Fixed jumbo CDs require a minimum deposit of $95,000 and a maximum amount up to $175,000.

CD Term	APY
30 days	0.22%
91 days	0.35%
120 days	0.45%
150 days	0.50%
182 days	0.61%
7 months	0.61%
270 days	0.71%
1 year	0.76%
15 months	0.76%
18 months	0.81%
2 years	1.56%
30 months	1.59%
3 years	1.76%
4 years	1.92%
5 years	2.17%
7 years	2.22%

As of 6/7/2018.

USAA fixed super jumbo CD rates

Fixed super jumbo CDs require a minimum deposit of at least $175,000 with no maximum amount. However, FDIC only insures up to $250,000.

CD Term	APY
30 days	0.22%
91 days	0.35%
120 days	0.45%
150 days	0.50%
182 days	0.61%
7 months	0.61%
270 days	0.71%
1 year	0.76%
15 months	0.76%
18 months	0.81%
2 years	1.56%
30 months	1.59%
3 years	1.76%
4 years	1.92%
5 years	2.17%
7 years	2.22%

As of 6/7/2018

USAA Adjustable-Rate CDs

Like the fixed-rate CDs, the interest rate is locked for the entirety of the agreed term with an adjustable-rate CD. All interest is compounded daily starting on your settlement date (the actual date when your deposit goes into your account) and the interest either paid out monthly or kept in the account until your CD matures. Your CD will not be automatically renewed. Instead the money will be put into an investment account until you decide to put it back into another CD account or withdraw the entire balance.

Unlike with the fixed-rate CD, however, you can adjust your rate once during your CD term as well as make one other deposit when you request a rate adjustment. If rates go up, you can make an adjustment up to a 2 percent increase. The additional deposit needs to be a minimum of $25.

Early-withdrawal penalties are the same as with the fixed-rate CD:

Terms of 30 days or less: 30 days’ worth of interest
30 days to 364 days: 90 days’ interest
365 days to five years: 180 days’ interest
Five years or more: 365 days’ interest

In addition, you will be required to pay at least seven days’ worth of interest if you withdrawal money within six calendar days of either a deposit or another withdrawal from your account.

Standard rates

The minimum opening deposit for an adjustable standard CD account is $1,000. You’re allowed up to a maximum of $95,000. Otherwise, you will need to open an adjustable jumbo CD account.

CD Term	APY
3 years	0.91%
4 years	1.22%
5 years	1.49%
7 years	1.54%

As of 6/7/2018

Jumbo rates

Adjustable Jumbo CDs need a $95,000 minimum deposit and rates are applicable up to $175,000.

CD Term	APY
3 years	0.96%
4 years	1.27%
5 years	1.54%
7 years	1.59%

As of 6/7/2018

Super jumbo rates

Adjustable super jumbo CDs have a minimum deposit of $175,000 with no limits on how much you can keep in your account. Keep in mind that FDIC insures up to $250,000 in your account.

CD Term	APY
3 years	0.96%
4 years	1.27%
5 years	1.54%
7 years	1.59%

As of 6/7/2018

USAA variable-rate CDs

This type of CD account is best suited to those who want the ability to make more than one deposit any time they choose. The rate tends to be lower than the other CDs of the same term length, but you are allowed to make as many additional deposits as you like without extending the maturity date, as long it’s $25 or more each time. This could help you earn more on your deposits than you would with a traditional savings account, though there are better rates to be had among those products, as well.

Unlike the fixed- and adjustable-rate CDs, the interest rate on a variable-rate CD may fluctuate daily so earnings may be affected. However, interest is compounded daily and just like the other CD accounts and you can either keep earned interest with the CD balance and allow the interest to compound, or you can have it paid out to another account every month.

There are also early-withdrawal penalties with a variable rate CD. You’ll be charged 30 days’ worth of interest if you take your money out before the maturity date.

CD Term	APY	Minimum Deposit Amount
182 days	0.46%	$250
1 year	0.46%	$250

As of 6/7/2018

Overall review on USAA’s CD rates

Above all, it’s important to remember that only USAA members can get its products, so if you’re not eligible for membership, USAA CDs aren’t an option for you.USAA’s CD rates are not as competitive as other institutions’ products (you can see the best CD rates in our monthly roundup). While the $1,000 minimum deposit requirement is lower than some other banks that offer higher APYs on their CDs, you can get a better CD rate on accounts with deposit requirements as low as $500. While the rates for jumbo and super jumbo CDs are better than its standard offers, you can find better rates.

One of the main advantages of opening a CD with USAA is the ability to bump up your rate with an adjustable-rate CD, as other banks don’t always offer this option.. It’s important to note that a rate increase is not guaranteed. However, you are given an opportunity to make another deposit into your account before maturity.

As for USAA’s variable-rate CD, you may be better off opening a high-interest savings account if you’re looking for an account with a good APY and some liquidity.

Overall, if you want a bank with excellent customer service and the ability to choose from a wide variety of services, USAA is a good option. USAA may be your best choice if you want your CDs at a bank that understands needs specific to military members and their families. But if high yields are your priority, you’re better off looking elsewhere.

Sarah Li Cain |

Sarah Li Cain is a writer at MagnifyMoney. You can email Sarah Li here

TAGS: APY, CD rates, interest, Military, USAA

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