Reviews

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

Tuesday, May 22, 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.

Lindsay VanSomeren

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

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

Synchrony Bank CD rates

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

Term	APY
3-months	0.75%
6-months	1.00%
9-months	1.25%
12-months	2.25%
14-months	2.35%
18-months	2.15%
24-months	2.45%
36-months	2.55%
48-months	2.65%
60-months	2.85%

As of 5/22/2018

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

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

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

How to open a CD account with Synchrony

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

LEARN MORE

on Synchrony Bank’s secure website

Member FDIC

How Synchrony Bank’s CD rates compare

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

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

Synchrony Bank savings account

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

APY	Minimum Balance Amount
1.65%	$0

As of 5/1/2018.

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

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

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

How to open a savings account with Synchrony

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

LEARN MORE

on Synchrony Bank’s secure website

Member FDIC

How Synchrony Bank’s savings account compares

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

Synchrony Bank money market account

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

APY	Minimum Balance Amount
1.05%	$0

As of 5/1/2018.

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

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

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

How to get Synchrony Bank’s money market account

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

LEARN MORE

on Synchrony Bank’s secure website

Member FDIC

How Synchrony’s money market account compares

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

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

Synchrony Bank IRA rates

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

Term	APY
3-months	0.75%
6-months	1.00%
9-months	1.25%
12-months	2.25%
18-months	2.15%
24-months	2.45%
36-months	2.55%
48-months	2.65%
60-months	2.85%

As of 5/22/2018.

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

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

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

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

How to open an IRA CD with Synchrony

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

LEARN MORE

on Synchrony Bank’s secure website

Member FDIC

How Synchrony Bank’s IRA CD rates compare

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

Synchrony’s IRA money market account

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

APY	Minimum Balance Amount
1.05%	$0

As of 5/1/2018.

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

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

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

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

How to open an IRA money market account with Synchrony

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

LEARN MORE

on Synchrony Bank’s secure website

Member FDIC

Overall review of Synchrony’s banking products

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

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

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

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

Lindsay VanSomeren |

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

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Reviews

Review of Connexus Credit Union’s Deposit Rates

Monday, May 21, 2018

Lindsay VanSomeren

Year Established1935

Total Assets$1.7B

LEARN MORE on Connexus Credit Union’s secure website

Connexus Credit Union started in Wausau, Wis., in 1935 and catered only to people affiliated with the company Employer’s Mutual (which was later acquired by Liberty Mutual). Since then, the credit union has absorbed numerous other credit unions and has entered the realm of online credit unions by offering membership to anyone in the country.

How to become a member at Connexus Credit Union

All accounts require a credit union membership. You can join for free if you live in certain areas of Minnesota, Ohio and Wisconsin, or if you’re an employee or are associated with an employee of certain companies. But if you don’t meet those qualifications, you can join by making a one-time $5 donation to the Connexus Association, Connexus Credit Union’s nonprofit association dedicated to promoting financial literacy.

You also need to apply for a new account, and to do this, you’ll need to provide the credit union with basic information about yourself such as your name, Social Security number and address. You’ll also have to provide some form of identification, such as a driver’s license.

Another thing to note: If you apply for a deposit account with Connexus Credit Union, it will perform a soft credit pull, which won’t affect your credit.

In this article, we’ll discuss the rates and rules for Connexus Credit Union’s accounts. This will help you decide if Connexus Credit Union is right for you.

Connexus Credit Union’s Most Popular Accounts

APY	Account Type	Account Name	Compare Rates from Similar Accounts
0.25%	Savings	Connexus Credit Union Savings Account	1.70%	Goldman Sachs Bank USA High-yield Online Savings Account
2.50%	CD Rates	Connexus Credit Union 12 Month Certificate	2.20%	Barclays 12 Month Online CD
2.75%	CD Rates	Connexus Credit Union 36 Month Certificate	2.50%	Ally Bank High Yield 3 Year CD
3.25%	CD Rates	Connexus Credit Union 60 Month Certificate	2.80%	Barclays 60 Month Online CD

Connexus Credit Union CD rates

Connexus Credit Union offers great rates on its CDs (which it calls share certificates), but the minimum deposit amount is a little steep.

Term	APY
12 months	2.50%
24 months	2.60%
36 months	2.75%
42 months	3.00%
60 months	3.25%

As of 5/21/2018

Minimum opening deposit: $5,000
Minimum balance amount to earn APY: $0.01
Early withdrawal penalty:
- For the 12 month certificate, you’ll pay 90 days’ worth of dividends.
- For the 24-month and 36-month certificates, you’ll pay 180 days’ worth of dividends.
- For the 60-month certificate, you’ll pay 365 days’ worth of dividends.

Connexus Credit Union advertises that “you don’t need to invest in a large amount to earn our high yields.” A $5,000 minimum deposit may be less than some other banks, but it’s still considered a “large amount” to many people. If you can afford it, great — this may be a good account for you. But if not, you might need to look elsewhere or save up in one of Connexus Credit Union’s other accounts until you have enough cash to open a share certificate.

Another thing to note with this account is that dividends are paid quarterly. That means instead of getting a deposit of dividends into your account every month, it’ll only happen once every three months. This applies to all other Connexus accounts, as well.

You get three options for handling your earnings: You can accrue them within your certificate account, deposit them into another linked Connexus account or have a check mailed to you each quarter.

If you want to open a Share Certificate account with Connexus Credit Union, you can apply online. When you apply for your share certificate account, you’ll also need to open a basic regular savings or youth savings account and fund it with at least $5.

LEARN MORE

on Connexus Credit Union’s secure website

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How Connexus Credit Union’s CDs compare

Connexus Credit Union offers great rates on its share certificates. They’re currently very close to (but not quite as good as) some of the best CD rates. But while its rates are competitive, Connexus requires a higher minimum deposit than institutions that offer higher CD rates.

Connexus Credit Union’s savings account options

Personal Savings account

Expect to pay fees with this account if you are a frequent ATM user.

APY	Minimum Balance Amount
0.25%	$100 to earn APY

As of 5/8/2018

Minimum opening deposit: $5
Monthly account maintenance fee: None.
ATM fee: If you want to be able to use an ATM with this account, you’ll pay a $1 monthly fee. You can make four free ATM withdrawals per month at a Connexus ATM, and after that, it’s $2 per ATM withdrawal. If you use an international ATM, you’ll also pay a foreign transaction fee of up to 1.5%.
ATM fee refund: None.
Overdraft fee: When you open an account, you’ll need to either accept or decline overdraft protection. If you accept the overdraft protection and do indeed overdraft your account, you’ll pay $8.95 for an overdraft transfer from another account (such as a savings account) that has money in it to cover the expense. You may also opt into overdraft without linking an account, in which case the overdraft will result in a fee of $29.95.

This is the account that Connexus Credit Union requires you to open if you have any other accounts. It’s the account that establishes your membership with Connexus.

One important thing to know with this account is that you either have to have another account open, or keep at least $100 balance in the account if it’s your only account with Connexus. Otherwise, you could face a $5 monthly “low savings balance” fee starting 12 months after you close your second-to-last account with Connexus. If you only have this one savings account all along (and no other open accounts) and keep less than $100 in it, you’ll start owing this fee 12 months after opening the account.

This is especially important if you open a Share Certificate, say, and then withdraw the money at the end of the term and close the certificate account. If you don’t close your Personal Savings account as well, or keep at least $100 in it, you’ll owe this fee every month, starting one year after you closed your certificate account.

In addition, you’ll need to make a transaction at least once every 36 months, otherwise you’ll face yet another $5 monthly “abandoned account” fee.

You can apply for a Personal Savings account online.

LEARN MORE

on Connexus Credit Union’s secure website

Youth Savings account

This is basically the same account as the Personal Savings account, but those age 23 and under can start earning money right away rather than waiting until they have $100 saved up.

APY	Minimum Balance Amount
0.25%	$5

As of 5/8/2018

Minimum opening deposit: $5
Monthly account maintenance fee: None.
ATM fee: If you want to be able to use an ATM with this account, you’ll pay a $1 monthly fee. With an ATM card, you get four free withdrawals per month at a Connexus ATM. After that, it’s $2 per ATM withdrawal. If you use an international ATM, you’ll also pay a foreign transaction fee of up to 1.5%.
ATM fee refund: None.
Overdraft fee: $8.95 for an overdraft transfer from a linked account, if you’ve opted into this service. An overdraft paid by the credit union incurs a $29.95 fee.

Connexus’ Youth Savings account is available to kids, teenagers and young adults up to age 23. Once you hit age 24, however, it automatically turns into a Personal Savings account.

There aren’t very many differences between the Youth Savings and the Personal Savings accounts. The Youth Savings account waives the $100 minimum balance to earn interest, but all the other rules and regulations stay in place.

Another difference is that with this account, you and your child (12 years and under) can use the Connexus Jr. app that teaches your child about money. It offers features like the ability to assign your child chores in exchange for allowance money, and allows your child to set up savings goals.

If you want to open a Youth Savings account with Connexus Credit Union, you can apply online.

LEARN MORE

on Connexus Credit Union’s secure website

Holiday Club account

This is a helpful account if you have trouble saving for Christmas — just know that you can’t take the money out until Oct.1.

APY	Minimum Balance Amount
0.25%	$0

As of 5/8/2018

Minimum opening deposit: $0
Overdraft fee: $8.95 for an overdraft transfer, or $29.95 if the credit union pays the overdraft and you do not have a linked account to cover overdrafts.

If you always find yourself going into debt come Christmas, consider opening a Holiday Club account with Connexus. With this account, you set up an automatic deposit of a certain dollar amount with each paycheck. You can’t take the money out during the year (even via ATM), but come Oct. 1, the credit union will automatically deposit the money into another linked Connexus account so you can spend it. If you need the money before then, you’ll need to call up Connexus and have them manually deposit the money into another account that you can use, such as a checking or savings account.

An important thing to note with this account is that it’ll automatically roll over every year, just like a CD. So, if you decide you don’t want to participate in this automatic savings plan, you’ll need to cancel the account before it rolls over again.

If you want to open a Holiday Club account with Connexus Credit Union, you’ll need to apply for an account first. And when you apply for your Holiday Club account, you’ll also need to open a basic Regular Savings or Youth Savings account, and fund it with at least $5.

LEARN MORE

on Connexus Credit Union’s secure website

Health Savings account

Connexus offers good rates on its HSA, but watch out for pesky fees.

APY	Minimum Balance Amount
0.50%	$100 - $499.99
1.00%	$500 - $2,499.99
1.00%	$2,500 - $4,999.99
1.50%	$5,000 - $14,999.99
2.00%	$15,000+

As of 5/8/2018

Minimum opening deposit: $0
Monthly account maintenance fee: $2
ATM fee: You must pay a $1 monthly fee to get ATM access with this account. You get four free ATM withdrawals per month at a Connexus ATM, after which it’s $2 per ATM withdrawal. If you use an international ATM, you’ll also pay a foreign transaction fee of up to 1.5%.
ATM fee refund: None.
Overdraft fee: $8.95 for an overdraft transfer, if you’ve opted into this service. Otherwise, a paid overdraft will be $29.95.

If you have a High Deductible Health Plan (HDHP), you’re eligible to contribute to a health savings account (HSA), up to the yearly limit allowed by the IRS. Doing so will also allow you to take a tax deduction.

Connexus’ HSA comes with a debit card you can use to pay for medical bills directly. You can order checks, but that’ll cost you extra. And, if you decide to liquidate and close your account, watch out for one last fee: a $30 “transfer out” fee.

If you have no medical bills or aren’t making any contributions, it can be quite some time before you make any transfers into or out of the account. As with other checking and savings accounts with Connexus Credit Union, there’s a $5 monthly “abandoned account fee” that you’ll need to watch out for. It shouldn’t be a problem as long as you make at least one contribution or withdrawal every three years, but it is something to be aware of, especially with this account.

When you apply for your Health Savings account, you’ll also need to open a Regular Savings or Youth Savings account and fund it with at least $5.

LEARN MORE

on Connexus Credit Union’s secure website

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How Connexus Credit Union’s savings accounts compare

Unfortunately, Connexus Credit Union falls a bit short in the interest rate department. If you’re looking to earn the most money possible from your deposit, check out these other online savings accounts.

The one exception is Connexus Credit Union’s HSA, which offers decent rates, especially if you have a larger deposit. Sadly, these high interest rates are likely to be negated by the HSA’s monthly maintenance fee.

In general, Connexus Credit Union’s savings accounts do come with more fees than normal. It’s pretty unusual for a credit union to charge members for the privilege of using an ATM — even an in-network ATM. If you’re a heavy ATM user with your savings account, we suggest you look elsewhere.

Connexus Credit Union’s checking account options

Xtraordinary Checking

Earn high interest rates with Connexus Credit Union’s Xtraordinary Checking account if you use your checking account often.

APY	Minimum Balance Amount
1.75%	$0 - $25,000
0.25%	Over $25,000.01

As of 5/8/2018

Minimum opening deposit: $0
Monthly account maintenance fee: None
ATM fee: No charge for using Connexus ATMs. You’ll get six free withdrawals per month at non-Connexus ATMs. After that, you’ll pay $2 per withdrawal. If you use your ATM card while abroad, you’ll also pay up to a 1.5% foreign transaction fee.
ATM fee refund: Up to $25 per month in ATM surcharge fees (i.e., the fees that a non-Connexus ATM owner may charge you for using its ATM). This only applies to ATMs in the United States, however.
Overdraft fee: $8.95 for an overdraft transfer from a linked account. Overdrafts with no linked account incur a fee of $29.95.

If you’re looking to earn more returns from the cash you use for everyday purchases, Connexus Credit Union offers a fantastic interest rate on this checking account. However, this high interest rate only applies to the first $25,000 in your account. After that, you’ll earn a lower interest rate.

And this high interest rate doesn’t come without a catch. You’ll need to meet four requirements every month in order to earn this high interest rate:

Make at least 15 debit card transactions
Have at least one direct deposit into the account
Make at least one bill payment through Connexus Online Bill Pay
Enroll in electronic statements

If you don’t meet those requirements, you won’t be eligible for any ATM surcharge reimbursements, and you’ll earn a much lower interest rate.

In other words, this isn’t a set-it-and-forget it account where you can park your money — it’s designed to be used as your primary checking account. If you can meet these requirements, the high interest rate is yours.

Another bonus: If you have this checking account, you’ll also get a 1% rate reduction on a loan through Connexus. To qualify for this interest rate reduction, you’ll need to meet three criteria that are basically scaled-down versions of the requirements to earn the high interest rate with this account. You’ll need to

Have at least one direct deposit
Make at least 10 transactions via ACH, checks or debit card
Sign up for electronic statements

You can apply online for an Xtraordinary Checking account with Connexus Credit Union, and you’ll also need to open a basic Regular Savings or Youth Savings account and fund it with at least $5.

LEARN MORE

on Connexus Credit Union’s secure website

MyRewards Checking

If you don’t spend enough each month to qualify for the Xtraordinary Checking account, you can still earn great rates with this account

APY	Minimum Balance Amount
1.35%	$0-$25,000
0.25%	More than $25,000

As of 5/8/2018

Minimum opening deposit: $0
Monthly account maintenance fee: None
ATM fee: No charge for using Connexus ATMs. You’ll get four free withdrawals at non-Connexus ATMs. After that, you’ll pay $2 per withdrawal. If you use your ATM card while abroad, you’ll also pay a 1.5% foreign transaction fee.
ATM fee refund: Up to $25 per month in third-party ATM fees (i.e., the fees that a non-Connexus ATM owner may charge you for using its ATM). This only applies to ATMs in the United States.
Overdraft fee: $8.95 for an overdraft transfer from another account. If you don’t have a linked account, overdrafts cost $29.95.

This is basically a scaled-back version of Connexus’ Xtraordinary Checking account, and a great option if you can’t meet that account’s requirements of 15 debit card transactions per month and an online bill pay. In return for this lessened requirement, you sacrifice two things: you’ll earn a slightly lower interest rate, and you’ll get two fewer free ATM transactions per month at non-Connexus ATMs.

You’ll still need to meet certain requirements to have a qualifying account. Non-qualifying accounts earn a much lower interest rate and aren’t eligible for any ATM surcharge reimbursements. To have a qualifying account, each month you’ll need to:

Make at least 10 debit card transactions
Have at least one direct deposit into the account, or an ACH automatic withdrawal
Sign up for electronic statements

Just like with the Xtraordinary Checking account, you’ll also be eligible for a 1% rate reduction on a loan with Connexus as long as your account is active. In order to be active, you need to

Have at least one direct deposit
Make at least 10 transactions via check, ACH withdrawal or debit card transaction
Enroll in electronic statements

When you apply for your MyRewards Checking account, you’ll also need to open a basic Regular Savings or Youth Savings account and fund it with at least $5.

LEARN MORE

on Connexus Credit Union’s secure website

Innovative Checking

This is Connexus Credit Union’s basic checking account that offers no interest, but has no requirements, either.

Minimum opening deposit: $0
Monthly account maintenance fee: None
ATM fee: No charge for using Connexus ATMs. You’ll get four free withdrawals at non-Connexus ATMs. After that, you’ll pay $2 per withdrawal. If you use your ATM card while abroad, you’ll also pay a 1.5% foreign transaction fee.
ATM fee refund: None.
Overdraft fee: $8.95 for an overdraft transfer, or $29.95 with no linked account.

This account appears to offer no advantage over the Xtraordinary and MyRewards checking accounts, even if you can’t meet the minimum requirements to earn the high interest rate for those accounts. The only penalties for not meeting the requirements of those high-earning accounts is that you won’t qualify for the $25 monthly ATM surcharge fee reimbursement, and you’ll earn a lower interest rate on your deposits — but at least you’ll still earn some interest. You can’t say the same thing about this account.

To phrase it another way: you will probably be better off signing up for the Xtraordinary or MyRewards checking accounts over this checking account, even if you can’t meet the requirements for the high interest rates on those accounts. At least that way, you will earn some interest, and you may qualify for the high interest rates if you have a bumper month in spending.

However, if you decide to stick with this account, there is still one perk: you’re eligible for a 1% interest rate discount, should you ever take out a personal loan. All you need to do is

Make at least 10 ACH, check, or debit card transactions per month
Sign up for electronic statements
Have at least one direct deposit into this account each month

You can apply online for an Innovative Checking account with Connexus Credit Union. You’ll also need to open a basic Regular Savings or Youth Savings account and fund it with at least $5.

LEARN MORE

on Connexus Credit Union’s secure website

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How Connexus Credit Union’s checking accounts compare

Connexus Credit Union offers some super-premium rates, especially when compared to the best online checking accounts currently out there — where it falls a bit short, however, is in the ATM fee department.

Connexus offers 54,000 ATMs nationwide, but in the event you do find yourself needing to use an out-of-network ATM, you’re limited to up to six free transactions per month. Connexus will still reimburse up to $25 in ATM surcharge fees from the ATM’s owner, however, as long as you meet your monthly account requirements for the Xtraordinary and MyRewards accounts.

If you use ATMs frequently and aren’t near any Connexus ATMs, consider opening an account with a credit union or bank that does offer unlimited fee-free ATM use, even at out-of-network ATMs.

Connexus Credit Union’s Money Market account

Connexus Credit Union’s Money Market account sounds good — until you take into account the fees and lowered interest rates for not meeting certain requirements.

APY	Minimum Balance Amount
1.15%	Over $100,000
1.00%	$50,000 - $99,999.99
0.75%	$20,000 - $49,999.99
0.60%	$10,000 - $19,999.99
0.50%	$1,000 - $9,999.99
0.00%	$0 - $999.99

As of 5/8/2018

Minimum opening deposit: $1,000
Monthly account maintenance fee: None
ATM fee: You must pay a $1 monthly fee to use an ATM with this account. You then get four free ATM withdrawals per month at a Connexus ATM. After that, it’s $2 per ATM withdrawal. If you use an international ATM, you’ll also pay a foreign transaction fee of up to 1.5%.
ATM fee refund: None.
Overdraft fee: $8.95 for an overdraft transfer from a linked account, otherwise $29.95 per overdraft.

This money market account earns a high rate, with one stipulation: You need to also have an active checking account in order to earn the above interest rates. In order for your checking account to be active, you need to have at least one direct deposit per month, sign up for electronic statements and make at least 10 transactions per month via check, ACH or debit card. If you don’t meet those requirements with your checking account, you’ll earn much lower rates on this money market account.

There are a few other unusual rules as well. If you make a withdrawal, it needs to be at least $250. You can write checks from this account (if you order a box of checks — it’s $16.90 for a box of 100 checks) and there is no fee for your first three checks of the month, but after that, you’ll pay $29.95 per check.

You can also only make a total of six transactions per month via check, ACH, Digital Banking or telephone. (This isn’t unique to Connexus’ money market account — Regulation D limits transactions out of all savings and money market accounts.) If you need to get around these limits, you can make unlimited transactions through an ATM or at an in-person Connexus branch (if you’re lucky enough to live near one).

You can apply for a money market account online, and you’ll also need to open a basic Regular Savings or Youth Savings account and fund it with at least $5.

LEARN MORE

on Connexus Credit Union’s secure website

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How Connexus Credit Union’s Money Market account compares

Connexus Credit Union offers a decent interest rate with its money market account. But, not everyone will qualify for these high interest rates, because you need to meet a separate set of requirements with a second checking account.

In addition, there are a lot of strange rules that go with this account, such as being charged to write checks after a certain number each month, and not being able to withdraw money unless it’s above a certain threshold level.

If you’re looking for a money market account that offers better terms for your banking needs, consider one of these money market accounts instead.

Connexus Credit Union IRA accounts

IRA Certificates

These are carbon copies of Connexus Credit Union’s regular Share Certificates, but they operate within the framework of an IRA.

Term	APY
12 months	2.50%
24 months	2.60%
36 months	2.75%
42 months	3.00%
60 months	3.25%

As of 5/21/2018

Minimum opening deposit: $5,000
Minimum amount to earn APY: $0.01
Early withdrawal penalty:
- For the 12-month certificate, you’ll pay 90 days’ worth of dividends.
- For the 24-month and 36-month certificates, you’ll pay 180 days’ worth of dividends.
- For the 60-month certificate, you’ll pay 365 days’ worth of dividends.

If you’re looking to save for retirement in an NCUA-insured environment and earn the most money possible through Connexus Credit Union, these accounts might be right for you. This IRA Certificate operates under all the same rules as its regular Share Certificates, with one caveat: these accounts are opened within the framework of an IRA, allowing you to save for retirement and potentially get certain tax advantages.

Otherwise, all the same rules apply. The account will automatically renew at maturity, unless you specify otherwise. If you don’t give them any instructions on what to do after the certificate matures, you’ll still get a 10-day grace period to make any changes to the certificate, or withdraw it.

One important thing to note: If you do decide to close your IRA account, be warned that you’ll also owe a $30 fee.

You must apply for an IRA Certificate account, and you’ll also need to open a Regular Savings or Youth Savings account and fund it with at least $5, if you don’t already have one.

LEARN MORE

on Connexus Credit Union’s secure website

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How Connexus Credit Union’s IRA CDs compare

Connexus Credit Union is again very close to offering some of the highest-earning IRA CDs currently on the market.

There are a few strikes against these certificates, though. As with its regular CDs, the minimum buy-in for a single CD can be quite high for someone just starting out with their retirement savings. One final word of caution is the fee for closing your IRA, something that many other credit unions don’t charge.

IRA Supreme account

This IRA savings account offers good rates for those getting started with saving for retirement.

APY	Minimum Balance Amount
0.75%	$0 - $1,999.999
1.00%	$2,000 - $4,999.99
1.25%	$5,000 - $9,999.99
1.50%	$10,000+

As of 5/8/2018

Minimum opening deposit: $0
Monthly account maintenance fee: None
ATM fee: The ability to use an ATM with this account requires a $1 monthly fee, and you get four free ATM withdrawals per month at a Connexus ATM. After that, it’s $2 per ATM withdrawal. If you use an international ATM, you’ll also pay up to 1.5% foreign transaction fee.
ATM fee refund: None.
Overdraft fee: $8.95 for an overdraft transfer from a connected account, or $29.95 for an overdraft with no linked account.

If locking your money up for a set period of time isn’t your thing, or if you don’t have the $5,000 minimum buy-in for a CD yet, consider opening an IRA Supreme savings account instead. You can save up to the maximum IRA yearly contributions in this account, minus any money you set aside in other IRA accounts for that year.

This account also comes with a pesky $30 “IRA plan closure” fee, so be warned if and when you close this account.

You can apply for an IRA Supreme account online, but you’ll also need to have a Regular Savings or Youth Savings account and fund it with at least $5.

LEARN MORE

on Connexus Credit Union’s secure website

Overall review of Connexus Credit Union’s deposit products

Compared with most other banks and credit unions, Connexus Credit Union is a bit hit-or-miss. It does offer noteworthy rates on its CDs and rewards checking accounts; however, not everyone will be able to take advantage of these high rates. In the case of its rewards checking accounts, there are a lot of stipulations you’ll need to meet before you’re eligible for the high interest rate, while the minimum deposit size for its CDs is a bit steep.

There are very few account maintenance fees, which is nice, but some of its accounts are plagued with many other fees, such as Connexus’ money market and IRA accounts.

If you’re looking for high interest rates on CDs and checking accounts, Connexus could work out great for you if you can meet the requirements for these accounts. Otherwise, you may be better off at another bank or credit union.

Lindsay VanSomeren |

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

TAGS: CD rates, Checking account, Credit Union, IRA CD, Review, Savings Account

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Reviews

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

Friday, May 18, 2018

Lindsay VanSomeren

Year Established1998

Total Assets$34.3B

LEARN MORE on EverBank’s secure website

As far as major banks go, EverBank is relatively young but gives other banks a run for their money. They started up in 1961 and since then, they’ve ramped up their business and provide a suite of award-winning bank accounts.

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

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

EverBank’s Most Popular Accounts

APY	Account Type	Account Name	Compare Rates from Similar Accounts
1.50%	Savings	EverBank Yield Pledge Money Market - First Time Client (1st Yr)	1.70%	Goldman Sachs Bank USA High-yield Online Savings Account
2.25%	CD Rates	EverBank 1 Year Yield Pledge CD	2.20%	Barclays 12 Month Online CD
2.70%	CD Rates	EverBank 3 Year Yield Pledge CD	2.50%	Ally Bank High Yield 3 Year CD
2.85%	CD Rates	EverBank 5 Year Yield Pledge CD	2.80%	Barclays 60 Month Online CD

EverBank’s CD rates

Yield Pledge CDs

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

Term	APY
3 months	1.25%
6 months	1.45%
9 months	1.60%
1 year	2.25%
18 months	2.35%
2 years	2.50%
2.5 years	2.50%
3 years	2.70%
4 years	2.75%
5 years	2.85%

As of 5/18/2018

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

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

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

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

LEARN MORE

on EverBank’s secure website

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How EverBank’s CD rates compare

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

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

EverBank’s checking account

Yield Pledge Checking

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

APY	Minimum Balance Amount
1.21% (1-Year Intro APY)	$5,000 - $250,000
0.25%	$0-$9,999.99
0.46%	$10,000-$24,999.99
0.51%	$25,000-$49,999.99
0.61%	$50,000-$99,999.99
0.71%	$100,000-$10,000.000

As of 5/8/2018

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

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

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

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

LEARN MORE

on EverBank’s secure website

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How EverBank’s checking account compares

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

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

EverBank’s money market account

Yield Pledge Money Market

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

APY	Minimum Balance Amount
1.50% (1-Year Intro APY)	$5,000 - $250,000
1.05%	$0-$9,999.99
1.10%	$10,000-$24,999.99
1.15%	$25,000-$49,999.99
1.25%	$50,000-$99,999.99
1.35%	$100,000-$10,000.000

As of 5/8/2018

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

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

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

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

LEARN MORE

on EverBank’s secure website

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How EverBank’s money market account compares

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

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

Overall review of EverBank’s products

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

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

Lindsay VanSomeren |

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

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An In-Depth Review of Discover’s Banking Products

Thursday, May 17, 2018

Jackson Wise

Year Established1911

Total Assets$98.7B

LEARN MORE on Discover Bank’s secure website

Discover Bank, which originally was introduced as a credit card via Sears-owned Greenwood Trust Company, first came on the market in 1985. Since then, Discover has gone on to become one of the largest credit card issuer in the U.S., known for their customer loyalty. Discover Bank, which runs completely as an online bank, has made strides over the past decade to compete in the financial sector by offering an array of financial products that go beyond credit cards.

Discover Bank offers competitive rates on their banking products, which include CDs, savings, checking, and money market accounts, which also boast perks like no monthly fees. However in recent years, many online banks have begun offering similar, if not better, rates for their deposit products.

In this article we’ll take an in-depth look at Discover Bank’s products. We’ll cover account features, rates and anything else you might need to know to make the most informed decision on your financial needs. Most of our research was conducted by analyzing rates from Depositaccounts.com, which is another LendingTree-owned site.

Discover Bank’s Most Popular Accounts

APY	Account Type	Account Name	Compare Rates from Similar Accounts
1.55%	Savings	Discover Bank Online Savings	1.70%	Goldman Sachs Bank USA High-yield Online Savings Account
2.10%	CD Rates	Discover Bank 12 Month CD	2.20%	Barclays 12 Month Online CD
2.35%	CD Rates	Discover Bank 3 Year CD	2.50%	Ally Bank High Yield 3 Year CD
2.60%	CD Rates	Discover Bank 5 Year CD	2.80%	Barclays 60 Month Online CD

All rates listed below are as of 5/17/2018

Discover Bank’s CD Rates

A minimum deposit of $2,500 gives you competitive CD rates among online banks, but higher rates can be found.

Term	APY
3 Months	0.35%
6 Months	0.65%
9 Months	0.70%
12 Months	2.10%
18 Months	2.15%
24 Months	2.20%
30 Months	2.20%
3 Years	2.35%
4 Years	2.50%
5 Years	2.60%
7 Years	2.65%
10 Years	2.70%

Minimum opening deposit: $2,500
Early withdrawal penalty:
- For CDs that are less than one year, the penalty will be worth 3 months of simple interest.
- For 1-3 year CDs, the penalty is 6 months of simple interest.
- For a 4 year CD, the penalty is 9 months of simple interest.
- For a 5 year CD, the penalty is 18 months of simple interest.
- For 7-10 year CDs, the penalty is 24 months of simple interest.

Discover Bank offers certificates of deposits with terms ranging from three months to 10 years. Interest is compounded daily and is deposited every month. As with most CD rates, the longer the term of the CD, the higher the rate you will receive. To make sure you lock in the highest possible rate for your CD, make sure you fund your account within ten days of application.

There are early withdrawal penalties for taking your money out before the end of the term. The penalty amount varies depending on how far you are into your CDs term.

While there are penalties for withdrawing your money early, you do have the option to withdraw any interest earned on your CD to a Discover bank account without penalty. This money can also be left in your CD to compound throughout the life of your CD. Account holders receive notice of CD maturity 30 days prior to the end of the term. Once a term has ended, account holders have a 9-day grace period to make a change to their CD before incurring penalties. If no action is taken, Discover CDs will automatically renew at the same rate and term.

You can open a Discover CD online or by phone. The only eligibility requirements come in the form the $2,500 minimum deposit, which can be paid via phone, check or an online transfer from your bank. Discover provides the option of opening your CD in the form of a Trust, Guardian, Estate or Custodial account, but in order to do so, you must call one of their Banking Specialists.

LEARN MORE

on Discover Bank’s secure website

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How Discover Bank’s CD rates compare

Overall, Discover Bank CD rates are competitive. They certainly beat out most of the major banks by far when it comes to APY. However, if you do some digging, there are better rates out there for CDs, both in terms of minimum deposit and interest rate earned.

Discover’s minimum deposit of $2,500 is the biggest downside to this product. While it’s not common for banks to offer no-fee withdrawals on CDs, there are some out there. To find the most competitive CD rates on the market right now, check out our Best CD Rates page.

Discover Online Savings account

A completely fee-free online savings account, with no minimum balance requirements, and competitive interest rates.

APY	Minimum Balance Amount
1.55%	$0

Minimum opening deposit: $0
Monthly account maintenance fee: $0
ATM fee: None as long you use an ATM within Discover’s network.
ATM fee refund: None.
Overdraft fee: None.

There is no minimum balance to open a Discover Online Savings account, nor do they charge any monthly maintenance fees. While account holders do not have the ability to withdraw money from their savings account via an ATM, they are able to access and manage their savings account via Discover’s online banking and mobile app.

The online banking and mobile app lets users deposit and transfer money to both Discover Bank and non-Discover bank accounts. However, you’ll get hit with a $30 fee for an outgoing wire transfer, as well as a $15 charge per item for exceeding the Federal Reserve’s Regulation D limitation of six withdrawals or transfers in one calendar month. Overdrafting your online savings account results in a $30 fee, which you can avoid by signing up for overdraft protection.

Currently, you can earn a competitive interest rate of 1.55% APY on a Discover Online Savings account. This is compounded daily and deposited into your savings account every month. As soon as you deposit money in your account, you’ll begin earning interest.

This is a solid savings account for anyone who already has a checking account with Discover, has a substantial amount of savings, or wants to earn a competitive interest rate on their savings account. It stands out for being fee-free and requiring no minimum balance or deposit, but falls short when compared with all the current interest rates out there.

There are no eligibility requirements to open a Discover Online Savings account since they do not require an initial minimum deposit or any minimum balance. Opening an account can be done online or by phone.

LEARN MORE

on Discover Bank’s secure website

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How Discover Bank’s savings account compares

Compared with other online savings accounts, Discover Bank does not have the best offerings. That’s not to say it’s bad. Next to what major banks are currently offering, this account is a major win. However, with a little research, you can find better interest rates out there that don’t charge fees or have minimum balance requirements.

To see what other rates and offers are out there that fit your savings goals check out our Best Online Savings Account Guide.

Discover Bank’s CashBack Checking Account

If you use your debit card often, Discover CashBack Checking offers no monthly fees and pays decent cashback rewards.

Monthly account maintenance fee: None.
ATM fee: None as long as the ATM is within Discover’s network.
ATM fee refund: None.
Overdraft fee: None.

Discover Bank’s CashBack Checking account is appealing because it carries very few fees — that means no monthly maintenance fee, no minimum balance requirements and no fees for check ordering or debit card replacement.

They offer free online and mobile banking options like bill-pay, wire transfers and account management.

One of the account’s main selling points is the cashback reward, which pays 1.00% on debit card transactions up to $3,000 on purchases each month. In other words, if you spend up to $3,000 in a month you receive $30 cash back. This 1.00% return is not an interest rate, but rather a cashback reward. There are no qualifications to earn the cashback rewards — when you spend with your debit card, you’re earning rewards. These rewards can be redeemed as a credit to your checking account or transferred to a Discover CashBack Bonus card account.

Discover recently partnered with AllPoint and MoneyPass to increase their in-network ATM locations by 60,000+. While Discover does not charge ATM fees for going out-of-network, they do not reimburse ATM fees incurred by third-party ATMs.

One of the few fees you’ll find is an overdraft fee. Their overdraft fee is $30 per transaction, which is on par with other financial institutions. You can avoid an overdraft fee by opting in to overdraft protection, which requires account holders to link their checking account with a Discover savings account.

Since Discover Bank is considered an online bank, you must open your account online via their website or by phone. There are no minimum deposit requirements, nor do they require account holders to keep a minimum balance. Once you open your account, you’ll receive your debit card within 10 business days. Discover offers free checks for their CashBack Checking Account, although you must request them.

LEARN MORE

on Discover Bank’s secure website

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How Discover Bank’s checking account compares

Discover Bank’s CashBack Checking stacks up against other banks when it comes to offering a no-fee checking account. While they do boast a large ATM network, in part to their partnerships, they still do not reimburse out-of-network ATM fees. When it comes to rewards, their cashback reward is decent.

There are better cashback rewards programs out there, as well as, accounts that don’t require you to spend money to make money. If you spend a significant amount money via your debit card every month, this rewards program might make sense. If not, there are other banks that currently offer better rates on checking accounts for less effort on your end.

Discover Bank’s Money Market Account

Good withdrawal options, but with a high minimum balance requirement and interest rates that don’t stack up.

APY	Minimum Balance Amount
1.40%	Less than $100,000
1.45%	Greater than $100,000

Minimum opening deposit: $2,500
Monthly account maintenance fee: None
ATM fee: None, but only if you use an ATM within Discover Bank’s network.
ATM fee refund: None.
Overdraft fee: None.

Opening a money market account with Discover Bank requires a minimum initial deposit of $2,500. While their money market accounts don’t charge any monthly maintenance fees, account holders must maintain a minimum balance of $2,500 to avoid a $10 fee. They don’t even beat out Discover’s saving account rates.

There are a few account features worth noting, starting with the withdrawal options. Unlike the Discover Online Savings account, account holders will receive checks and a free debit card. Your debit card can be used to withdraw money via ATMs and at stores.

Discover Bank does not charge ATM fees, however if you use an out-of-network ATM they will not reimburse the fee. It’s important to note, that your money market account is subject to the same Federal Reserve regulations limiting transfer and withdrawals to six per month. If you exceed the six withdrawals you’ll be charged a $15 fee per item; however this does not apply to withdrawals from ATMs or via official check that is mailed to you. Discover Money Market accounts also give you the ability to sign up for online bill pay, as well as, overdraft protection.

The only eligibility requirements to open a Discover Money Market account is an initial minimum deposit of $2,500. You can open an account either online or by calling one of their Banking Specialists. To fund your account, you have the option of an online transfer, direct deposit or check, which can be mailed or deposited via Discover Bank’s Mobile Check Deposit app.

LEARN MORE

on Discover Bank’s secure website

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How Discover Bank’s money market account compares

Looking at the overall market offerings, Discover Bank Money Market accounts do not stack up. Their competitive account features like a large ATM network, free checks and a debit card are nice, but their rates do not compete.

You can find other banks offering lower deposit requirements, as well as better rates. To see how this account compares, check out MagnifyMoney’s Best Money Market Rates guide.

Discover IRA CD rates

Competitive rates with a higher-than-average minimum deposit for both traditional and Roth options.

Term	APY
3 Months	0.35%
6 Months	0.65%
9 Months	0.70%
12 Months	1.90%
18 Months	1.95%
24 Months	2.00%
30 Months	2.00%
3 Years	2.05%
4 Years	2.10%
5 Years	2.45%
7 Years	2.45%
10 Years	2.45%

Minimum opening deposit: $2,500
Early withdrawal penalty:
- For CDs that are less than one year, the penalty will be worth 3 months of simple interest.
- For 1-3 year CDs, the penalty is 6 months of simple interest.
- For a 4 year CD, the penalty is 9 months of simple interest.
- For a 5 year CD, the penalty is 18 months of simple interest.
- For 7-10 year CDs, the penalty is 24 months of simple interest.

Similar to other Discover Bank CD products, the minimum deposit to open an IRA CD is $2,500. This is also the minimum balance required to earn your interest rate. They offer both Traditional and Roth IRA CD options, with interest rates that vary depending on the CD term you choose. Terms can be as short as 3 months to up to 10 years. Their early withdrawal penalties remain the same for both IRA and non-IRA CDs.

An IRA CD is a worthwhile investment if you aren’t touching your savings and want to earn a higher APY than what’s being offered for your savings account. IRA CDs make the most sense if you’re looking for a long-term investment. While they don’t pay crazy high returns, if you have extra capital, it’s a good investment vehicle to have in your portfolio.

Opening an IRA CD account with Discover Bank can be done by phone or online, and requires an initial minimum deposit of $2,500. Funding your account can be done by phone, via check or via a bank-to-bank transfer from an existing IRA. Discover also allows account holders to initiate a direct or indirect rollover from an existing IRA.

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on Discover Bank’s secure website

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How Discover Bank’s IRA CD compares

Compared with other IRA CD’s out there, Discover Bank’s rates fall somewhere in the middle. The minimum deposit is higher than other offerings out there and the rates are competitive, but not high enough to be the best on the market.

Overall review of Discover Bank’s deposit products

Discover has created a suite of banking products that can compete in today’s market. Their online and mobile banking has all the necessary features to access and manage your account, and they boast a large ATM network that limits, but does not completely remove, ATM fees from your life.

Compared with the traditional big banks, Discover Bank has them beat when it comes to rates and offerings. However, if you take the entire market into consideration, adding in online banks, community banks and credit unions, Discover banking products fall somewhere in the middle.

Based on the fact that all of the reviewed products above do not have monthly maintenance fees attached to them and pay some form of interest or cash back, means you aren’t going to be wrong by opening an account. However, if you’re looking for the best of the best, Discover Bank is not quite there yet.

Jackson Wise |

Jackson Wise is a writer at MagnifyMoney. You can email Jackson here

TAGS: Discover

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Reviews

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

Thursday, May 17, 2018

Sarah Li Cain

Year Established1933

Total Assets$290.7B

LEARN MORE on Capital One’s secure website

Established in 1988 and headquartered in McLean, Va., Capital One is one of the most recognizable and largest banks in the U.S. Capital One offers a wide range of products and services on par with other online banks. Its bank accounts, CDs and money market accounts offer low minimum balances and competitive rates. With most accounts, you get mobile banking, a free ATM card and the ability to link other Capital One accounts. If you’re looking for an online bank that offers great rates and a variety of banking products, this bank could be the one.

Capital One’s Most Popular Accounts

APY	Account Type	Account Name	Compare Rates from Similar Accounts
1.00%	Savings	Capital One 360 Savings Account	1.70%	Goldman Sachs Bank USA High-yield Online Savings Account
2.25%	CD Rates	Capital One 12 Month 360 CD	2.20%	Barclays 12 Month Online CD
2.40%	CD Rates	Capital One 36 Month 360 CD	2.50%	Ally Bank High Yield 3 Year CD
2.80%	CD Rates	Capital One 60 Month 360 CD	2.80%	Barclays 60 Month Online CD

Capital One CD rates

Capital One 360 CD^SM rates

Comparable rates to its leading competitors and with no minimum deposit amount.

Term	APY
6 month	0.60%
9 month	0.75%
12 month	2.25%
18 month	2.30%
24 month	2.35%
30 month	2.35%
36 month	2.40%
48 month	2.45%
60 month	2.80%

Rates as of 5/17/2018

Minimum opening deposit: None
Early withdrawal penalty: Three months’ interest for CDs with terms of 12 months or shorter and six months’ interest for terms longer than 12 months

Capital One 360 CDs are best for those looking for a conservative investment option. Once you open and fund an account, your rate is guaranteed until maturity. If rates change, they will offer the highest interest rate up to 10 calendar days within the funding period. Deposits are also FDIC insured up to $250,000.

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

If you do make a withdrawal before maturity, you’ll face an early withdrawal penalty, listed above.

You can only open a Capital One 360 CD^SM online. To do so, go to their website and fill out an online application. You’ll need to provide personal details such as your address, employment information and Social Security number. You’ll also need to agree to receive paperless statement. Otherwise, you’ll need to pay $5 per paper statement you request. Afterward, you’ll need to link another account, verify you’re the owner and fund your CD.

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on Capital One’s secure website

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How Capital One’s CD rates compare

Capital One's 12 Month CD vs Other 12 Month CD Rates
	Capital One	Synchrony Bank	Ally Bank	Goldman Sachs Bank USA
APY	2.25%	2.25%	2.25%	2.20%
Minimum Deposit Amount	None	$2,000	$25,000	$500
Early Withdrawal Penalty	3 months' interest	3 months' interest	60 days of interest	270 days' interest
	LEARN MORE on Capital One’s secure website Member FDIC	LEARN MORE on Synchrony Bank’s secure website Member FDIC	LEARN MORE on Ally Bank’s secure website Member FDIC	LEARN MORE on Goldman Sachs Bank USA’s secure website Member FDIC

Capital One has some of the best CD rates available. What makes its CD stand out even more is that there is no minimum deposit amount and the early withdrawal penalties are one of the lowest. Let’s take a look at how other online banks’ 12 month CDs compare to Capital One.

Synchrony Bank – 2.25% APY and $2,000 minimum balance

Synchrony Bank requires a $2,000 minimum deposit amount to open the account and begin earning the 2.25% APY on their 12 month CD. Their early withdrawal penalties are the same as Capital One as it’s worth 3 months’ interest.

Ally Bank – 2.25% APY and $25,000 minimum balance

CDs from Ally Bank are tiered. This means that the higher the deposit amount you put into the CD, the higher the APY you’ll receive. For the 12 month, the APY starts at 2.10% if you deposit less than $5,000. If you deposit a minimum of $5,000, the APY is 2.15%. If you’re able to deposit a minimum of $25,000, then you’ll receive the 2.25% APY. Ally’s early withdrawal penalty is pretty light as they only charge 60 days’ worth of interest. However, if you’re depositing a large sum of money, it’s probably worth leaving the money in the account for the full term.

Goldman Sachs Bank USA – 2.20% APY and $500 minimum balance

Goldman Sachs Bank USA does offer competitive rates on their CDs, but they do require a small deposit amount of $500 to open the account. In addition, they have a pretty steep early withdrawal penalty of 270 days’ worth of interest that they will impose if you need to withdraw funds from their 12 month CD early. Penalties could be less if you choose a term that is less than 12 months, but more if you choose a term that is more than five years.

Capital One’s savings account

Capital One 360 Savings^®

Slightly lower rates compared with other online options and no ATM access.

APY	Minimum Balance Amount
1.00%	$0

Rates as of 5/1/2018

Minimum opening deposit: $0
Monthly account maintenance fee: $0
ATM fees: No access to ATMs
ATM fee refunds: None
Overdraft fees: This account doesn’t allow overdrafts

Capital One’s 360 Savings® account is designed to help you earn a high interest rate while giving you some liquidity. Interest earned is compounded and deposited into your account monthly. If you intend to keep a balance of $10,000 or more on a regular basis, you may want to consider Capital One’s 360 Money Market® account, which offers a higher APY and many of the same features.

Unfortunately, you don’t get an ATM card with a savings account. As it is with all savings accounts, you’re limited to six withdrawals a month, per federal regulations. You can only make transactions online, via their mobile app or by calling customer service. If you want to write checks and/or have ATM access, you can link your savings account to your Capital One 360 Checking account.

You can only open an account online. To do so, go to their website and fill out an online application. You’ll be prompted to enter personal details such as your address, Social Security number and home address. Afterward, you’ll need to link a personal checking account from Capital One or another U.S. financial institution. After you verify the linked account and fund your Capital One account, you’re good to go.

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Member FDIC

Capital One Kids Savings Account

Help your child learn about saving with an account that offers automatic savings plans and the ability to earn interest.

APY	Minimum Balance Amount
1.00%	$0

Rates as of 5/1/2018

Minimum opening deposit: $0
Monthly account maintenance fee: $0
ATM fees: No access to ATMs
ATM fee refunds: No access to ATMs
Overdraft fees: This account doesn’t allow overdrafts

The Capital One Kids Savings Account is meant to help children learn about earning interest and the benefits of using a bank account. Any adult can open an account with a child under the age of 18, whether it’s a grandchild or a nephew or a friend of the family. You can open this account either in the child’s name, your own name or both. No matter which option you choose, you and the child will be joint account holders. You’ll also need to link the account to a Capital One or external checking account, as this is the only way to make transactions.

Once you sign up for an account, you and your child will have separate logins and PINs. Your child can sign in to check their balance, but the adult needs to be the one to make deposits or withdrawals. Adults also have at the option to make automatic deposits into the account. Since it is a savings account, you are limited to six withdrawals per calendar month, including transfers between accounts.

To open an account, you’ll need to do so online via their application form or by calling 1-888-464-7868. You’ll need to provide personal details for both you and your child such as name, address and Social Security number. You’ll then need to link a personal checking account, either from Capital One or an external one. Once you verify you’re the owner of the external account, you can then fund your child’s Capital One account.

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How Capital One’s savings accounts compare

Capital One's Savings Account vs Other Savings Accounts
	Capital One	Goldman Sachs Bank USA	Synchrony Bank	Barclays Bank
APY	1.00%	1.70%	1.65%	1.50%
Minimum Amount to Open	None	None	None	None
Minimum Balance Amount	None	$1	None	None
FDIC Insured?	Yes	Yes	Yes	Yes
Mobile App?	Yes	No	No	No
	LEARN MORE on Capital One’s secure website Member FDIC	LEARN MORE on Goldman Sachs Bank USA’s secure website Member FDIC	LEARN MORE on Synchrony Bank’s secure website Member FDIC	LEARN MORE on Barclays’s secure website Member FDIC

Capital One’s saving account is great if you don’t have a lot of money to deposit into a savings account, but how does it compare with other online savings accounts?

Goldman Sachs Bank USA – 1.70% APY and $1 minimum balance

As long as you’re able to maintain $1 in a savings account, you can earn 1.70% on the Marcus Savings Account by Goldman Sachs Bank USA. While you do need to maintain a very small balance to earn interest, they don’t require a minimum amount to open the account.

Goldman Sachs does not currently have a mobile banking app to easily manage their savings account. The Marcus savings account doesn’t come with an ATM card, but you can make ACH transfers.

Synchrony Bank – 1.65% APY and no minimum balance

Synchrony Bank’s savings account has a 1.65% APY with no minimum open the account and they don’t charge any monthly fees.

In addition to transferring or depositing funds through an ACH or online transaction, an ATM card is offered through this account. Unfortunately, they don’t have a mobile banking app to conveniently bank on the go.

Barclays Bank – 1.50% APY and no minimum balance

Barclays Bank is currently offering 1.50% APY on their savings account with $0 to open. There are no monthly fees associated with this account, but if the balance falls below $1 for 180 days or more, Barclays reserves the right to close it.

Just like the other two online banks, Barclays does not have a mobile banking app to manage their savings account. There also isn’t ATM access with this account, but you’ll be able to deposit or transfer funds online or through ACH transfers.

Capital One checking accounts

Capital One 360 Checking

Convenient access to funds with a competitive interest rate.

APY	Account Balance
0.20%	Less than $50,000
0.75%	$50,000 - $99,999.99
1.00%	$100,000+

Rates as of 5/1/2018

Minimum opening deposit: $0
Monthly account maintenance fee: $0
ATM fees: $0
ATM fee refunds: None
Overdraft fees: Capital One 360 Checking provides a few options. You can choose auto-decline for transactions that would overdraw your account, or you can link your savings account to cover the overdrawn amount. There’s also the Next Grace option, which gives you one business day to replace the overdrawn amount before charging a $35 fee. The overdraft line of credit offers you an opportunity to withdraw money from that account and pay interest (variable currently at 12.25% APY) for the amount borrowed.

Capital One’s checking account is for those who want an account with no fees and no minimum deposit requirement. With this account, you get a 360 Checking MasterCard® debit card, mobile banking, online bill pay and your first checkbook for free. Subsequent checkbooks cost $5.

Their mobile app has Zelle, which lets you easily send money to other people, even if they don’t have a Capital One account. You also get access to over 38,000 Capital One and Allpoint ATMs for free. While you won’t get reimbursed for any fees charged by out-of-network ATMs, they won’t charge you anything on its side.

To open an account, you’ll need to do so online by filling out an application. You’ll be asked to provide details such as your name, Social Security number and employment information. After agreeing to receive only paperless statements and linking a bank account, just fund your new checking account and you’re all set.

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Capital One MONEY Teen Checking Account

Help your teen manage money independently by giving them access to a joint account.

APY	Minimum Balance Amount
0.25%	$0

Rates as of 5/1/2018

Minimum opening deposit: $0
Monthly account maintenance fee: $0
ATM fees: $0
ATM fee refunds: None
Overdraft fees: Transaction will be denied

The MONEY account is designed to help teenagers learn how to manage their own money. You’ll essentially be a joint account owner with your child, and have access to the same features, but you won’t receive a debit card. Your teen will be able to make transactions such as depositing checks via the mobile app, check their balance and make withdrawals. However, there are no check writing or bill-pay options. You can monitor account activity by logging in online or signing up to receive text and email alerts. Once your teen turns 18, they have the option to move their money over to a 360 Checking account.To be eligible for a Capital One MONEY account, one owner needs to be at least 18 years old. The adult on the account needs to either link a Capital 360 Checking account or an external one.

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

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How Capital One’s checking account compares

Capital One's Checking Account vs nbkc bank's Checking Account
	Capital One	nbkc bank
APY	0.20%-1.00% (APY is based on balance amount)	0.90%
Minimum Amount to Open	None	$5
Monthly Fees	None	None
ATM Fees	None	None
	LEARN MORE on Capital One’s secure website Member FDIC	LEARN MORE on nbkc bank’s secure website

Capital One’s checking account rates are tiered, which means the highest APY is tied to the highest balance amount. If you’re able to keep a high balance in a checking account, you’ll be able to earn some of the best rates for a checking account. Keep in mind, however, that being able to earn interest on a checking account is not the important feature, it’s more of a bonus. What you’ll want to pay more attention to are the fees that may be associated with the account. Capital One doesn’t charge any monthly fees and using an ATM is free as long as you use a Capital One or AllPoint ATM.

nbkc bank – 0.90% APY and no monthly fees

nbkc bank is a fairly small institution when compared to Capital One. However, they have a checking account that is comparable to, and sometimes even better than, a lot of the bigger online banks. In this case, nbkc bank’s checking account is pretty similar to Capital One’s checking account. Both banks offer fee-free checking accounts as well as the opportunity to earn interest. There are a couple of differences between the two banks. nbkc bank’s APY isn’t tied to a tier. All you need is $5 to open the account and you’re qualified to earn interest regardless of the amount held in the account. While nbkc bank doesn’t charge any ATM fees, it is important to note that these surcharge-free ATMs have to be within the Moneypass® Network, not Allpoint. nbkc bank will also reimburse $12 in ATM fees per month if you do withdraw money from an ATM that is out of their network.

Capital One’s Money Market account

Capital One 360 Money Market^®

One of the highest rates offered, but no access to an ATM card.

APY	Account Balance
0.85%	Less than $10,000
1.60%	$10,000+

Rates as of 5/1/2018

Minimum opening deposit: $0
Monthly account maintenance fee: $0
ATM fee: $0, but withdrawals are limited to $1,000 per day
ATM fee refund: $0
Overdraft fee: Your transaction will be denied

Those after a savings account with high rates will want to consider Capital One’s 360 Money Market® account. Like the savings account, there are no minimums and fees for the money market account, but it offers a higher rate if you can maintain a daily minimum balance of $10,000 or more.

Just like the savings account, you do not get check-writing capabilities. You do however, get access to a Money Market card to make transactions. You can also transfer between linked accounts online, go on their mobile app or by calling the bank. Per federal regulations, you’re also limited to six withdrawals every month, including transfers between Capital One accounts.

You can only open a Capital One 360 Money Market® account online. Head over to their online application form and fill out your personal details such as your name, address and Social Security. From there, you’ll need to link an external account, or if you have a Capital One account, it’ll automatically be linked. Then it’s just a matter of making your initial deposit.

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on Capital One’s secure website

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How Capital One’s 360 Money Market^® account compares

Capital One's Money Market Account vs Other Savings Accounts
	Capital One	CIT Bank	UFB Direct
APY	0.85%-1.60% (APY is based on balance amount)	1.75%	1.60%
Minimum Balance Amount	$0-$10,000+	$100	$5,000
ATM Access	Yes	No	Yes
Check Writing Capabilities	No	No	Yes
	LEARN MORE on Capital One’s secure website Member FDIC	LEARN MORE on CIT Bank’s secure website Member FDIC	LEARN MORE on UFB Direct’s secure website Member FDIC

Capital One’s 360 Money Market^® account is one of the best money market accounts available. While the higher APY is tied to a higher balance amount, you don’t need to maintain a certain balance amount in order to avoid fees. Much like Capital One’s other accounts, their money market account is fee-free. Another unique aspect of this account is that Capital One will provide a 360 Money Market Card that you’re able to use at ATMs. Just keep in mind that you’ll be limited to withdrawing $1,000 per day and that by Federal law, you can only withdraw from this account six times per statement cycle.

CIT Bank – 1.75% and $100 minimum balance amount

CIT Bank currently offers a money market account with a great APY. All they require is that you open the account with $100. Unfortunately, this account doesn’t come an ATM card or check writing capabilities, so you’ll have to fund the account and make transfers via ACH.

UFB Direct – 1.60% and $5,000 minimum balance amount

While UFB Direct offers a great APY for their money market account, as well, their opening deposit of $5,000 may be a bit steep for some. While Capital One’s highest APY is tied to a high balance, it’s not the required opening amount. Also, if you’re not able to maintain a $5,000 balance amount in UFB’s money market account, you’ll have to incur a monthly fee of $10. If you are able to maintain that balance amount, they’ll waive the fee. Two positives about this account is that it comes with a Visa debit card and check writing capabilities.

Capital One IRA accounts

Capital One 360 IRA CD^®

A great, conservative investment with no minimum deposit.

Term	APY
6 month	0.60%
9 month	0.75%
12 month	2.25%
18 month	2.30%
24 month	2.35%
30 month	2.35%
36 month	2.40%
48 month	2.45%
60 month	2.80%

Rates as of 5/17/2018

Minimum opening deposit: $0
Early withdrawal penalty: Three months’ interest for CDs with terms of 12 months or shorter and six months’ interest for terms longer than 12 months

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

Interest is compounded and credited monthly. You cannot make partial withdrawals of your principal, and the APY assumes you leave the interest in your account to compound. If you do withdraw the principal early, you must pay a penalty (listed above), and if you take a distribution from your IRA CD, you may be subject to penalties and taxes. Upon maturity of your IRA CD, you have a 10-day grace period to redeem your deposit or change the amount or term, before it automatically renews.

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

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on Capital One’s secure website

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How Capital One’s IRA CD rates compares

Capital One's 12 Month IRA CD vs Other 12 Month IRA CD Rates
	Capital One	Ally Bank
APY	2.25%	2.00%
Minimum Deposit Amount	None	$25,000
Early Withdrawal Penalty	3 months' interest	60 days of interest
	LEARN MORE on Capital One’s secure website Member FDIC	LEARN MORE Member FDIC

Capital One has some of the best IRA CD rates. Not only do they have great rates, but they also don’t require a minimum amount to open the account – which is rare. Starting with the 12-month IRA CD, Capital One offers a higher rate of return than the IRA savings account, so unless you need your retirement funds very soon, it makes sense to put conservative IRA investments into one of these CDs.

Ally Bank – 2.00% and $25,000 minimum balance amount

Ally Bank’s 12 month IRA CD offers a comparable APY to Capital One’s IRA CD, but it’s tied to a very high balance amount. They do have other APY tiers for lower balances. Regardless of the tier you fall into, if money is withdrawn from Ally’s 12 month IRA CD before the CD matures, Ally will impose an early withdrawal penalty that is worth 60 days of interest.

Capital One 360 IRA Savings^®

An easy-to-open, no-fee investment option — with low returns.

APY	Minimum Balance Amount
1.00%	$0

Rates as of 5/1/2018

Minimum opening deposit: $0
Monthly account maintenance fee: $0
ATM fee: There is no ATM access to 360 IRA Savings®

The 360 IRA Savings® account is a tax-advantaged account to help you save for retirement, and is offered as both traditional and Roth IRA savings accounts. You can only make deposits to and withdrawals from (called distributions) this account online, and any distributions are subject to IRS penalties and taxes. You may, however, transfer money from 360 IRA Savings® to 360 IRA CD®s. In 2017 and 2018, you may contribute no more than $5,500 to all of your traditional or Roth IRA accounts ($6,500 if you’re 50 years or older).

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

You can apply for a Capital One IRA Savings® account online, and it’s considered open once you fund the account and complete the bank’s verification process.

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on Capital One’s secure website

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Overall review of Capital One’s banking products

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

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

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

Sarah Li Cain |

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

TAGS: Capital One, CD, Checking account, IRA, IRA CD, money market, Savings Account

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Earning Interest, Reviews

Discover Bank CD Rates Review

Thursday, May 17, 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)	Minimum deposit amount
3 months	0.35%	$2,500
6 months	0.65%	$2,500
9 months	0.70%	$2,500
12 months	2.10%	$2,500
18 months	2.15%	$2,500
24 months	2.20%	$2,500
30 months	2.20%	$2,500
3 years	2.35%	$2,500
4 years	2.50%	$2,500
5 years	2.60%	$2,500
7 years	2.65%	$2,500
10 years	2.70%	$2,500

Rates as of 5/17/2018

LEARN MORE

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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Reviews

Northpointe Bank Reviews: Savings, Checking, CD, Money Market and IRA Accounts

Tuesday, May 15, 2018

Taylor Gordon

Year Established1999

Total Assets$0.8B

LEARN MORE on Northpointe Bank’s secure website

Northpointe Bank is a financial institution that got its start 19 years ago. The bank has several physical locations, but still serves customers from anywhere in the U.S. thanks to online banking. At first glance, Northpointe Bank no doubt shines where fees are concerned. There are fee-free checking, savings, money market and IRA savings accounts.The news isn’t as favorable when we looked at the annual yield on those accounts, which puts Northpointe at the middle of the pack when it comes to fee-free, high-interest bank accounts. Banks like Ally Bank, Bank of Internet USA and Synchrony Bank offer higher interest rates on checking and savings accounts with no fees. We’ll get into more detail on where the interest is lacking when we do an evaluation of each product.

Northpointe Bank’s Most Popular Accounts

APY	Account Type	Account Name	Compare Rates from Similar Accounts
2.05%	Savings	Northpointe Bank Ultimate Savings	1.70%	Goldman Sachs Bank USA High-yield Online Savings Account
1.35%	CD Rates	Northpointe Bank 12 - 17 Month CD	2.20%	Barclays 12 Month Online CD
1.75%	CD Rates	Northpointe Bank 36 - 47 Month CD	2.50%	Ally Bank High Yield 3 Year CD
2.55%	CD Rates	Northpointe Bank 60+ Month CD	2.80%	Barclays 60 Month Online CD

All rates are current as of May 15, 2018.

Northpointe Bank savings account options

Ultimate Savings

The Ultimate Savings account has no monthly service fee or minimum deposit requirement.

APY	Minimum Balance Amount
1.12% APY	$0.01-$2,499.99
2.05% APY	$2,500-$99,999.99
1.12% APY	$100,000-$999,999,999

Minimum opening deposit: $0
Monthly account maintenance fee: $0
ATM fees: None
ATM fee refunds: None
Overdraft fees: $29

The Ultimate Savings account comes with online banking capabilities and offers a decent amount of interest on your savings. One thing the Ultimate Savings account does not come with is an ATM card. Northpointe Bank can give you a free ATM card if you ask for it, but you won’t get a fee reimbursement on the account if you get charged ATM fees from other banks. A lack of ATM refund fees isn’t such a deal breaker in this case. The savings account is intended for saving and not regular transactions. You should be depositing more money than you’re withdrawing at an ATM anyway.

Any transaction you make per month past six may incur a fee, which is standard for this type of account. Under Regulation D, the Federal Reserve sets guidelines for how many transactions financial institutions are allowed to offer you on accounts designated for saving.

Banks may dissuade you from making more than the allotted six transactions by charging a fee or downgrading your account from savings to checking. Be mindful of your transactions throughout the month so you can batch withdrawals and avoid the excessive transaction fee. They’ll charge $15 for excessive transactions.

Taking into consideration the transaction limit, you’ll benefit the most from the Northpointe Bank Ultimate Savings account if you plan to put away cash you won’t be moving often. For example, rainy-day savings that you rarely dip into can find a nice home in the Ultimate Savings account. On the other hand, a checking account is likely a better option if you need to transfer money in and out frequently.

You can complete the entire application for the Ultimate Savings account online. You’ll need to have basic information like your name, address and identifying documents, such as your driver’s license to move forward.

LEARN MORE

on Northpointe Bank’s secure website

Kid’s Savings

The Kid’s Savings account boasts a high interest rate, but can’t be opened online. Plan to call customer service or visit a physical location to open an account for your minor.

APY	Minimum Balance Amount
1.50% APY	Up to $1,000
1.11% APY	$1,000+

Minimum opening deposit: $0
Monthly account maintenance fee: $0
ATM fees: No card
ATM fee refunds: No card
Overdraft fees: $29

The Northpointe Bank Kid’s Savings account has a two-tier interest rate offer. This account for kids actually has the highest interest rate of their basic savings accounts. It does not come with an ATM card.

The same Federal Reserve Regulation D transaction rule applies here as with other savings accounts. Your child’s account will be charged a fee if you do over six outgoing transactions in a month.

Northpointe Bank Kid’s Savings accounts are for minors up to 18 years old.

The Kid’s Savings account is one of the accounts that you can’t set up online with Northpointe Bank. You must call to complete the application or visit a local branch.

LEARN MORE

on Northpointe Bank’s secure website

Health Savings Account (HSA)

A Health Savings Account is a savings account with tax benefits that people with a high-deductible health plan can use to stash away cash for health expenses.

APY	Minimum Balance Amount
0.50% APY	$0

Minimum opening deposit: $0
Monthly account maintenance fee: $0
ATM fees: None
ATM fee refunds: None
Overdraft fees: $29

The benefit of opening an HSA for medical expenses is that contributions reduce your taxable income.

Tax benefits are a clear pro for this account. The Northpointe Bank Health Savings Account is interest-bearing as well — and free. An HSA debit card will be given to you, which makes it convenient to pay medical expenses whenever necessary.

There are some guidelines for this and any other HSA account. You can only sign up for the HSA if you have a high-deductible health plan (HDHP). According to the IRS, 2018 HDHP accounts are generally those that have a deductible of at least $1,350 for individuals and $2,700 for a family.

You can contribute up to $3,450 into an HSA for yourself and $6,850 for a family. Thankfully, this isn’t a use-it or lose-it situation. You can roll over your HSA money into another year. Be aware that they charge a steep $50 fee to transfer your HSA funds to an account with a different bank.

Anyone who qualifies for an HSA account should at least review what it has to offer. Making contributions now can come in handy when you hit retirement. You can use money contributed to the HSA account on qualified medical costs including premiums, medical services, equipment, transportation and long-term care.

Review IRS guidelines carefully before withdrawing cash from the HSA account. You can encounter tax penalties if you don’t use the account properly.

The Northpointe Bank Health Savings Account is one you can apply for online. You select the option to open an account at the top of the page. There’s a choice to select the Health Savings Account further into the application.

LEARN MORE

on Northpointe Bank’s secure website

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How Northpointe Bank’s saving accounts compare

First in this review we took a look at all three of the Northpointe Bank savings accounts. The question now is, how do they stack up against the competition overall? The Kid’s Savings account is leading the pack with the highest interest rate.

The Ultimate Savings account for adults isn’t quite as “ultimate” as it could be. The bottom line is, you can get better rates on savings accounts elsewhere. There’s stiff competition when it comes to online-only savings accounts.

Northpointe Bank checking account options

Interest Checking

The Interest Checking account requires a pretty high balance to earn a so-so interest rate.

APY	Minimum Balance Amount
0.00% APY	Up to $2,499.99
0.15% APY	$2,500 - $24,999.99
0.25% APY	$25,000 - $99,999.99
0.30% APY	$100,000+

Minimum opening deposit: $2,500
Monthly account maintenance fee: $0
ATM fees: None
ATM fee refunds: Up to $15
Overdraft fees: $29

Northpointe Bank Interest Checking comes with online and mobile banking capabilities. The account also has a wide interest rate spread depending on your balance. You can look forward to getting reimbursed up to the monthly limit if you use ATMs from other financial institutions.

For other fees, the Interest Checking account has an overdraft fee ($29), which isn’t unusual for a checking account. Keep tabs on your balance, and you won’t run into much trouble here. One thing to remember for this and any other checking account is that financial institutions are prohibited from overdrafting your account unless they get your consent. They can get your consent by explaining the terms in the disclosure documents.

When you attempt to make a transaction that will overdraft your account, some banks will cover the balance and charge a fee. The overdraft is essentially a courtesy — the institution is covering the transaction for you because you didn’t have the cash. Northpointe mentions in their disclosure agreement that they may honor withdrawal requests at their discretion that will put you into overdraft and a fee can be assessed.

The alternative is that some banks will just decline the transaction resulting in no fee. Of course, the no-fee course of action is ideal. Northpointe also has an option where you can connect your checking to savings to avoid overdraft fees.

You must be able to maintain the daily balance necessary to earn interest from the Interest Checking account. You won’t earn interest otherwise, and your money should always be working for you when it’s sitting in an account.

You can apply online for this account right from their website. You’ll need to provide identifying documents, such as your government-issued ID.

LEARN MORE

on Northpointe Bank’s secure website

Free Checking

No fees or minimum balance required; no interest earned either.

Minimum opening deposit: $100
Monthly account maintenance fee: $0
ATM fees: None
ATM fee refunds: Up to $15
Overdraft fees: $29

The Northpointe Bank Free Checking account is an all around free account. You even get ATM reimbursement up to a limit when you get charged from other banks.The lack of fees is great news. The lack of interest is where the news isn’t so great. There are just too many other online bank accounts at this point that offer you no fees with interest for you to go with this option.

The Free Checking account is also one of the many accounts that you can sign up for online through their website.

LEARN MORE

on Northpointe Bank’s secure website

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How Northpointe Bank’s checking accounts compare

Northpointe Bank’s checking accounts overall leave much to be desired in interest. Competitors offer higher rates and require a lower minimum daily balances on checking accounts. The Interest Checking account which does offer interest makes you maintain a pretty high average daily balance to get any reward for being an account holder.

Northpointe Bank CD rates

Fixed Rate CDs

Northpointe Bank has fixed-rate, fixed-term CDs with decent interest rates, although not the highest around. The CD requires a high balance to earn APY, watch out for this piece of fine print.

Term	APY
7-91 Days	0.30% APY
92-182 Days	0.90% APY
6-11 Months	1.00% APY
12-17 Months	1.35% APY
17 Month CD Special	1.75% APY
18-23 Months	1.60% APY
24-29 Months	1.65% APY
30-35 Months	1.65% APY
36-47 Months	1.75% APY
37 Month CD Special	2.25% APY
48-59 Months	2.25% APY
60+ Months	2.55% APY

Minimum opening deposit: $1,000
Minimum balance to earn APY: $1,000
Early withdrawal penalty:
- CD term 7 to 179 days — 30 days’ interest penalty
- CD term 180 to 364 days — 60 days’ interest penalty
- CD term 1 to 3 years — 90 days’ interest penalty
- CD term 3 to 5 years — 180 days’ interest penalty
- CD term 5 years or more — 365 days’ interest penalty

A CD or certificate of a deposit is a place to park your money for a set period where it earns fixed interest. After it matures, you have a certain amount of time to withdraw that money before the account renews. Pay close attention to the minimum balance to earn APY here; a much higher balance is required to earn APY than is necessary to simply open the account.

Always remember that a CD account is a place to put money that you don’t regularly need because the cost of early withdrawal can be pricey. There are pros and cons to locking into a fixed rate. You’re in the clear if rates should decrease. Your money will continue to earn the interest rate you signed up for initially. On the other hand, you’re stuck with your CD rate until the end of the term if APY increases.

You’ll get the most from their CD account the longer you keep it in. The short-term CD rates are nothing to write home about, and are probably not worth the hassle of opening. Take a closer look and you’ll see that currently, a regular Northpointe Bank Ultimate Savings account beats the Northpointe Bank CD rate until the 12-month mark.

There’s a link to apply for CDs online but the option may not be available when you’re asked to choose the type of account you want to open. In this case, you can just call them to open the account.

LEARN MORE

on Northpointe Bank’s secure website

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How Northpointe Bank’s CD rates compare

The interest rates at Northpointe Bank being less than stellar is a common piece of feedback so far in this review. The CD rates are no different. Their rates are lower than the CD rates you can get from other financial institutions. Other accounts let you deposit a lower balance while still earning interest as well.

Northpointe Bank Money Market rates

Liquid Money Market account

The Liquid Money Market account doesn’t come with an ATM card, but you can purchase checks.

APY	Minimum Balance Amount
0.20% APY	Up to $2,499.99
0.25% APY	$2,500 - $24,999.99
0.40% APY	$25,000 - $99,999.99
0.50% APY	$100,000+

Minimum opening deposit: $1,000
Monthly account maintenance fee: $0
ATM fee: No Card
ATM fee refund: No Card
Overdraft fee: $29

If you’re looking for a money market account with an ATM card, this isn’t going to be your first choice. The account has no monthly maintenance fee though, which is a plus.

Keep in mind, there’s a limit to how many transactions you can make with this account as well. The limit is six transactions due to government regulations. Surpass six transactions and you’ll be charged a $15 fee per item. Take care to avoid this and you can enjoy this account with no fees.

The Liquid Money Market account may be a good place to put savings that you need to have easily accessible because you can use checks. Be mindful of the starting minimum balance required.

The Liquid Money Market account is another one offered by this bank that you can open online. You need to have the minimum deposit ready to get started.

LEARN MORE

on Northpointe Bank’s secure website

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How Northpointe Bank’s Money Market account compares

Northpointe Bank’s Liquid Money Market account has an interest rate spread that’s not in line with competitors — it’s lower. Other money market accounts available also let you deposit less cash initially. If having an ATM card is important to you, then there are better options for you.

Northpointe Bank IRA accounts

IRA CD Rates

The IRA CD is a secure investment option to stash some retirement cash.

Term	APY
7-91 Days	0.30% APY
92-182 Days	0.90% APY
6-11 Months	1.00% APY
12-17 Months	1.35% APY
17 Month CD Special	1.75% APY
18-23 Months	1.60% APY
24-29 Months	1.65% APY
30-35 Months	1.65% APY
36-47 Months	1.75% APY
37 Month CD Special	2.25% APY
48-59 Months	2.25% APY
60+ Months	2.55% APY

Minimum opening deposit: $500 for fixed IRA CDs and $1,000 for IRA special CDs
Minimum balance to earn APY: $500 for fixed IRA CDs and $1,000 for IRA special CDs
Early withdrawal penalty:
- CD term 7 to 179 days — 30 days’ interest penalty
- CD term 180 to 364 days — 60 days’ interest penalty
- CD term 1 to 3 years — 90 days’ interest penalty
- CD term 3 to 5 years — 180 days’ interest penalty
- CD term 5 years or more — 365 days’ interest penalty

Northpointe Bank’s IRA CDs offer a wide spread of interest rates that get higher the longer you keep money in the account. The minimum balance listed above to open the account is less than the balance required to earn APY. Be sure to put at minimum the balance necessary to earn APY. Withdrawing money from an IRA before you reach the age of 59 ½ can cost you a pretty penny in income tax and other penalties.

You must keep your money in the IRA CD account for the entire term to avoid a penalty from Northpointe Bank and the IRS. There is one exception for IRA early withdrawal penalties: You may catch a break if you have to withdraw money for hardship or medical expenses. Even with the possible loopholes for IRS related penalties, people who will benefit from the IRA CD the most are those who will leave the money in for the entire period. Keep in mind, the maximum you can deposit into an IRA for 2018 is $5,500 (or $6,500 if you’re 50 or older).

The IRA CD is a savings vehicle for retirement that earns a set amount of interest for an assigned period. An IRA CD may be the right addition to your retirement plan if you’re looking for a safe and predictable place to put your savings.

LEARN MORE

on Northpointe Bank’s secure website

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How Northpointe Bank’s IRA CD rates compares

Most of Northpointe Bank’s products have lower interest rates than competitors. Again, the IRA CD account is no exception. Competitors offer comparably higher fixed interest rates for the shorter term IRA CDs. You can also find IRA CDs that let you earn better rates with a lower balance.

Liquid IRA Savings

A place with potential tax benefits to put your retirement savings. IRS penalties can apply if you withdraw early.

APY	Minimum Balance Amount
0.20%	Up to $2,499.99
0.25%	$2,500 - $24,999.99
0.40%	$25,000 - $99,999.99
0.50%	$100,000+

Minimum opening deposit: $0
Monthly account maintenance fee: $0
ATM fee: No Card
ATM fee refund: No Card
Overdraft fee: $29

The IRA Liquid Savings account is another place to put cash for retirement that comes with potential tax benefits.

The IRA CD we discussed above has fixed interest for a fixed term. The Liquid IRA Savings account does not have a fixed interest rate or term. The rate can change at any time. The Regulation D six transactions per month limit applies here as well. Go over six transactions per month and you’ll encounter a $15 fee per item.

Ultimately, money you contribute to an IRA is money you don’t plan to touch until retirement age to avoid penalties. Retirement could be years or even decades away for you. The interest rate on this account is pretty low if your money is going to be baking for quite a while. An IRA CD would probably be a better option to consider if you prefer to put some of your nest egg in a place that’s low risk.

The Liquid IRA Savings account is one that you can’t apply for online. You can call the bank to set up this account instead.

LEARN MORE

on Northpointe Bank’s secure website

Our overall review of Northpointe Bank

Northpointe Bank gets high marks with its lack of fees, the variety of account offerings and user experience. The lack of fees on most accounts is a highlight for a bank that happens to have several physical locations across the country. And if you’re not located near a branch, you can apply for many of the accounts online from your own home.The accounts that can’t be applied for online can be done over the phone. Someone who wants to be loyal to one bank will likely benefit the most from doing business with Northpointe since there are so many account types available. You can fulfill all of your banking needs in one place.

The interest rates are where Northpointe Bank doesn’t quite stack up against the competition. The highest rate for a basic savings account is offered to kids. There’s nothing remarkable about the adult account rates that should sway you to bank here instead of other online banks that also have no fees and top-notch online services.

Thanks to online banking, there are too many options for you to settle on just any old account.

Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor here

TAGS: northpointe

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Featured, Personal Loans, Reviews

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

Tuesday, May 15, 2018

Lindsay VanSomeren

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

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

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

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

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

All rates are current as of May 15, 2018.

Marcus by Goldman Sachs savings account

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

APY	Minimum Balance Amount
1.70%	None

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

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

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

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

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

How to open a Goldman Sachs online savings account

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

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

LEARN MORE

on Goldman Sachs Bank USA’s secure website

Member FDIC

How their online savings account compares

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

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

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

Marcus by Goldman Sachs CD rates

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

Term	APY	Minimum Deposit Amount
6 months	0.60%	$500
9 months	0.70%	$500
12 months	2.20%	$500
18 months	2.25%	$500
24 months	2.30%	$500
3 years	2.35%	$500
4 years	2.40%	$500
5 years	2.80%	$500
6 years	2.85%	$500

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

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

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

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

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

How to open a Goldman Sachs CD

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

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

LEARN MORE

on Goldman Sachs Bank USA’s secure website

Member FDIC

How their CDs compare

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

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

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

Marcus by Goldman Sachs personal loan

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

Terms	APR	Credit Required	Fees	Max Loan Amount
36-72 months	6.99%-24.99%	Varies	None	$40,000

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

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

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

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

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

How to apply for a Marcus personal loan

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

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

APPLY NOW

on Marcus By Goldman Sachs®’s secure website

How their personal loans compare

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

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

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

Overall review of Marcus by Goldman Sachs‘ products

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

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

Lindsay VanSomeren |

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

TAGS: goldman sachs, Marcus

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An In-Depth Review of Ally Bank’s Rates

Friday, May 11, 2018

Sarah Li Cain

Since it spun off from General Motors auto financing in 2009, Ally Bank has proved to be one of the best online-only banks in the industry. Like most online-only banks, Ally charges minimal fees for deposit accounts and requires low or no minimum balances.

Rates on Ally’s checking, savings, CD and money market accounts are relatively high, but the bank is facing stiff competition from a growing list of rivals. Synchrony Bank, Goldman Sachs Bank USA, and Discover Bank offer similar or higher rates on deposit account offerings and many of the same customer perks, like no minimum balance requirements and robust support for online banking.

This Ally Bank review will cover all available savings accounts, including features, interest rates, and which account types may be best suited for your needs. All of our findings were based on analysis of rates from Depositaccounts.com, another LendingTree-owned company.

Ally Bank CD Rates

While Ally Bank doesn’t ask for a minimum deposit amount to open a CD, their best CD rates are tied to high deposit amounts.

Ally’s CD features three products: the High Yield CD, the Raise Your Rate CD and the No Penalty CD. The APYs currently available depend on your opening deposit and term length. All accounts have no minimum balance requirement, though rates will vary depending on the term and amount deposited.

All of Ally Bank’s CDs have a Ten Day Best Rate Guarantee. If their rate goes up within 10 days and you make a deposit within 10 days of account opening, you will get the better rate. This rate also applies when you renew your CD account. Interest is compounded daily with all accounts and your account will be automatically renewed when your CD matures. If you choose to close a CD account, you have a 10-day grace period after the maturity date.

Ally’s CD rates are lower than some of its competitors. You can easily find a 12-month CD at 2.20% APY with a $500 and a three-year at 2.60% APY with only a $2,500 minimum. Other banks also offer higher APYs on CDs with other terms and often require lower minimum deposit amounts than Ally’s middle tier.

	Up to $5K	$5K-$25K	$25K+
3 months	1.00% APY	1.25% APY	1.50% APY
6 months	1.50% APY	1.60% APY	1.75% APY
9 months	1.65% APY	1.75% APY	2.00% APY
12 months	2.10% APY	2.15% APY	2.25% APY
18 months	2.15% APY	2.20% APY	2.30% APY
3 years	2.40% APY	2.45% APY	2.50% APY
5 years	2.40% APY	2.50% APY	2.60% APY

Rates current as of 5/11/2018

The High Yield CD is a more traditional CD featuring a fixed term and interest rate until maturity. You can choose terms anywhere from 3 months to 5 years, with varying APYs. This type of CD has the highest rates compared with the Raise Your Rate and No Penalty CD. The highest rate is 2.35% APY for a five-year term, with no minimum deposit.

With the High Yield CD however, you are subject to an early withdrawal penalty. The penalty charged depends on your CD terms. Usually the longer the term, the more interest you’ll be charged. Currently, the maximum you may be penalized is 150 days of interest. If the interest you’ve earned so far is less than the penalty, the rest will be deducted from the balance in your CD.

Term	APY
2 years	2.35% APY
4 years	2.35% APY

Rates current as of 5/11/2018

The Raise Your Rate CD gives you the option to raise your rate during your term, once for a two-year term, and twice for the four-year term. You’ll get the opportunity to do so if the rate goes up and your balance tier increases. Currently, the APY is lower than the High Yield CD, which could mean that you earn less in interest.

Like the High Yield CD, you will also be subject to early withdrawal penalties. For a two-year term, you’ll be charged 60 days interest; it’s 120 days of interest for the four-year term. Like the High Yield CD, the penalty may de deducted from your CD’s balance if the interest you’ve earned is lower than the penalty amount.

You also cannot make partial withdrawals.

	Up to $5K	$5K-$25K	$25K+
11 months	1.15% APY	1.50% APY	1.50% APY

Rates current as of 5/11/2018

The No Penalty CD is only offered for 11 months. This type of CD may be suitable for those who may want to withdraw their money before the term is up — for instance, in an emergency or when you reached your short term savings goal.

There is no penalty for withdrawing your money early, after the first six days. However, if you don’t plan on withdrawing your money for a few years, you may want to consider the other two options for higher interest rates.

LEARN MORE

on Ally Bank’s secure website

Member FDIC

Ally Bank Savings Account Rates

There are virtually no fees with an Ally savings account, no minimum balance requirements, and high interest rates.

APY	Minimum Amount to Open	Monthly Fee
1.60% APY	No minimum	none

Rates current as of 5/11/2018

With Ally Bank’s savings account, you can access funds online or via their app by making an ACH transfer (wire transfers are subject to a fee) or by requesting a check. You can make deposits either with an ACH transfer or via Ally eCheck Deposit^SM.

However, you do not get a debit card with a savings account, meaning you cannot deposit or withdraw cash from your account. You’re also limited to six withdrawals per statement cycle, although you can make unlimited deposits. If you make more than six, you’ll be charged $10 per transaction. Other fees include overdraft fees, cross border transactions, expedited delivery and returned checks.

While we consider Ally Bank to be one of the best online savings accounts, other online savings accounts have higher APYs as high as 1.60% APY with no minimums and monthly fees. However, not all banks offer a mobile banking option.

LEARN MORE

on Ally Bank’s secure website

Member FDIC

Ally Bank Money Market Account Rates

While Ally Bank’s money market account has some useful features, you can easily find higher rates at other banks.

APY	Minimum Daily Balance	Monthly Fee
0.90% APY	Up to $24,999	$0
1.00% APY	$25,000	$0

Rates current as of 5/1/2018

Ally Bank’s money market account rate isn’t the greatest rate you’ll find out there by a long shot — you can easily find money market rates as high as 1.60% APY elsewhere. You can even score a better rate by parking your cash in a regular Ally Bank savings account.

Still, Ally Bank’s Money Market Account has some useful features. You get a free debit card and checks with a money market account. There is no minimum amount to open the account and no monthly fees. There are no fees if you withdraw cash from any Allpoint ATM, but you will be reimbursed up to $10 per statement cycle for fees charged at other cash machines nationwide. You’re also limited to six transactions per statement cycle like the online savings account, though you get unlimited ATM withdrawals. You also don’t get access to online bill pay like you can with a checking account.

LEARN MORE

on Ally Bank’s secure website

Member FDIC

Ally Bank Checking Account Rates

Ally Bank’s checking account provides beneficial features to account holders, but their rate is on the low end compared to other banks.

APY	Minimum Balance Amount	Minimum Amount to Open	Monthly Fee
0.10%	none	none	none
0.60%	$15,000	none	none

Rates current as of 5/1/2018

Ally Bank’s interest checking account gives you access to online bill pay, transfers between bank accounts, an option to send money to others, as well as free checks and a debit card. There are no minimum amounts to open an account but you’ll get a higher interest rate if you can keep your minimum balance at $15,000. Although we consider Ally Bank to have an all-around great checking account, compared with other banks’ checking accounts, their APY is on the low end.

But, as previously noted, if your minimum balance amount is greater than $15,000, Ally will offer a better rate.

You can send money to friends and family with Zelle®. All you need is the person’s mobile number, email address or bank information, and funds will be transferred via Ally’s app or online. If you link your account to a savings account, you can get free overdraft protection. And you can make unlimited transactions, unlike with the online savings account.

In addition to online transfers, you also get a MasterCard® debit card. Although you cannot make cash deposits, you can easily withdraw cash from any ATM. There are no fees if you take money out from any AllPoint ATM in the U.S. For other domestic ATMs, you’ll get reimbursed a maximum of $10 per statement cycle.

However, if you use your debit card outside the U.S., you’ll be charged a 1% transaction fee. You’ll also be charged a $25 overdraft fee if you don’t have a savings account or didn’t link them together. If you want same-day or overnight bill pay, you’ll be subjected to a fee. Other fees include stop payments, rush delivery (debit card/checks) and returned deposits.

LEARN MORE

on Ally Bank’s secure website

Member FDIC

Ally Bank IRA CD Rates

IRA CD rates at Ally Bank are some of the highest and they’re tiered like their regular CDs.

Ally Bank’s IRA CDs come in terms from three months to five years. Accounts are available as a Traditional, Roth, or SEP IRA, and interest is compounded daily. When the IRA CDs mature, you have a 10-day grace period to withdraw your money or it’ll be automatically renewed. You also have the option to do a rollover to Traditional or Roth IRAs. Both IRA CDs will offer the best rate within 90 days after account opening, or when you fund your account.

Similar to their regular CD rates, Ally Bank offers high rates on their IRA CDs and they don’t require a minimum balance to earn the APY.

	Up to $5K	$5K-$25K	$25K+
3 months	1.00% APY	1.25% APY	1.50% APY
6 months	1.50% APY	1.60% APY	1.75% APY
9 months	1.65% APY	1.75% APY	2.00% APY
12 months	2.10% APY	2.15% APY	2.25% APY
18 months	2.15% APY	2.20% APY	2.30% APY
3 years	2.40% APY	2.45% APY	2.50% APY
5 years	2.40% APY	2.50% APY	2.60% APY

Rates current as of 5/11/2018

The High Yield CD IRA is best for those looking for a short-term option or seeking a higher rate for longer terms. The highest rate offered is for the five-year term with no minimum deposit. For those interested in creating CD Ladders, this type of account offers an excellent opportunity.

However, there are early-withdrawal penalties which vary depending on your CD IRA terms. You’ll be charged more the longer the term. The minimum you’ll be charged is 60 days of interest with a IRA 18 months or less, and 150 days of interest with terms longer than 48 months. Usually the longer the term, the more interest you’ll be charged. Currently, the maximum you may be penalized is 150 days’ interest.

Term	APY
2 years	2.35% APY
4 years	2.35% APY

Data as of 5/11/2018

The Raise Your Rate CD IRA gives you the chance to increase your rate if your balance tier or the rate for your term increases. You can do this once for a two-year term account and twice for a four-year account. This account is best for those who believe interest rates will go up.

There are no minimums with this account, but you may be subject to a maximum amount depending on the type of IRA you choose. You’re also subject to early-withdrawal penalties. A two-year IRA will be charged 60 days of interest; it’s 120 days for a four-year account. If you’re under the age of 59.5, you may also have to pay another 10% to the IRS.

LEARN MORE

on Ally Bank ’s secure website

Ally Bank IRA Savings Account Rates

Ally’s IRA savings doesn’t come with early withdrawal penalties, but you can get higher rates with a long-term IRA CD.

APY	Minimum Amount to Open	Monthly Fee
1.60% APY	none	none

Data as of 5/11/2018

The rate for the IRA Online Savings is variable, meaning it may change after you open an account. Though the rate is lower compared with the other IRA options, you’re not subject to an early-withdrawal penalty, though the IRS may tax you if you’re under 59.5.

If you do make early withdrawals, you’re only allowed a maximum of six per statement cycle. You get charged $10 for each transaction over that amount. To access your money, you’ll need to request a distribution.

LEARN MORE

on Ally Bank’s secure website

Conclusion

You don’t need to rely on your brick-and-mortar bank for competitive rates, products, and customer service. Ally Bank provides products at competitive rates, with convenient access via their mobile app or online portal.

Ally’s no-minimum opening deposits and fees make it more accessible to everyone. Its online accounts for checking and savings cover all the basics, and with no maintenance fees.

Because there are a growing number of alternative online banks these days, it’s important to compare rates at a number of banks to find the best deal possible. Depositaccounts.com, also owned by LendingTree, is a great research tool you can use to compare rates easily online.

Sarah Li Cain |

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

TAGS: Ally, online savings account, Savings Account

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Earning Interest, Reviews, Strategies to Save

Review of Live Oak Bank’s Deposit Rates

Wednesday, May 9, 2018

Lindsay VanSomeren

Year Established2008

Total Assets$2.7B

LEARN MORE on Live Oak Bank’s secure website

Chances are you haven’t heard of Live Oak Bank. After all, this lender, based mostly on the web, has only been around since 2008, and it mostly focuses on giving out small business loans to businesses in specific industries, such as veterinary practices or craft breweries.That’s no reason to pass it up for your personal banking needs, however. In fact, this little gem of a bank has one of the best-kept secrets in the personal banking world: it has one of the highest savings account interest rates you’ll find from an online bank. (More on that below.) And, most of its other personal deposit accounts offer relatively high rates as well.Let’s take a more in-depth look at its deposit accounts to see if they’re right for you.

Live Oak Bank’s Most Popular Accounts

APY	Account Type	Account Name	Compare Rates from Similar Accounts
1.70%	Savings	Live Oak Bank Savings Account	1.70%	Goldman Sachs Bank USA High-yield Online Savings Account
2.20%	CD Rates	Live Oak Bank 1 Year CD	2.20%	Barclays 12 Month Online CD
2.60%	CD Rates	Live Oak Bank 3 Year CD	2.50%	Ally Bank High Yield 3 Year CD
2.70%	CD Rates	Live Oak Bank 5 Year CD	2.80%	Barclays 60 Month Online CD

Live Oak Bank’s savings account

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

APY	Minimum Deposit
1.70%	Up to $5 million (but only up to $250,000 is FDIC-insured)

Rate current as of 5/1/2018

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

Live Oak Bank currently has one of the best savings account rates available. This means that Live Oak Bank is lowering the bar and allowing anyone to take advantage of these high interest rates, no matter how much is in his or her pocket right now.

Live Oak Bank wants you to use your savings account, and use it often, which is one reason why it has no monthly maintenance fee. If there is no activity on your account for 24 months and your balance is less than $10.01, Live Oak Bank will take the remainder of your balance as a Dormant Account Fee and close your account.

Getting money into a Live Oak Bank savings account from an external bank account can take a little bit of time depending on how you do it. If you request the money through Live Oak Bank’s online portal, the funds won’t be available for up to five or six business days. But if you opt instead to send the money to Live Oak Bank from your current bank, the money will be available as soon as it’s received. Your Live Oak Bank savings account will start earning interest as soon as the money posts to your account.

You can easily withdraw your money at any time via ACH transfer. Simply log into your Live Oak Bank savings account and electronically transfer it to whichever bank account you wish. It’ll be available in two to three business days.

You are limited to making just six withdrawals per month with this savings account. That’s not a Live Oak Bank thing; that’s a federal regulation imposed upon savings accounts in the U.S. If you absolutely can’t wait until next month to make another withdrawal past your allotted six per month, you’ll be charged a $10 transaction fee for each additional action.

Live Oak Bank CD rates

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

Term	APY	Minimum Deposit
6-month CD	1.85%	$2,500
1-year CD	2.20%	$2,500
18-month CD	2.35%	$2,500
2-year CD	2.45%	$2,500
3-year CD	2.60%	$2,500
4-year CD	2.65%	$2,500
5-year CD	2.70%	$2,500

Rates current as of 5/9/2018

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

Live Oak Bank currently offers the highest CD rates. This bank’s minimum deposit requirements also seem to be right on par with other bank’s minimum deposit requirements. Currently, the best CDs out there have minimum deposit requirements both above and below Live Oak Bank’s $2,500 benchmark.

Only U.S. citizens and permanent residents are eligible to open these accounts. It’s a relatively straightforward process to open a CD: Simply complete the forms online, provide any needed documentation (such as your current bank account details), and wait for an account approval. Once your account is open, you can transfer over your deposit, where it will be held for five days before officially launching your CD.

If you need to take out your deposit early, bad news: As with many CDs, you’ll face an early-withdrawal penalty at Live Oak Bank. If your original CD term was for six months, one year or 18 months, you’ll be charged 90 days’ worth of interest. If your original CD term was for longer than that, you’ll be charged a higher rate of 180 days’ worth of interest.

If you are able to resist the urge to withdraw your money early, congratulations! Your CD will automatically renew into a second CD with the same term length. However, don’t panic if that’s not what you want: You have up to 10 days after the CD has matured to withdraw your money penalty-free and park it in your own bank account (whether it’s with Live Oak Bank or not).

It’s easy to overlook Live Oak Bank for other larger, more established consumer banks like Ally or Discover Bank. But Live Oak has some of the best CD rates around, and the best savings account available on the market today.

Lest you be scared away by its smaller name, consider this: This tiny-but-growing bank is getting rave reviews from customers and employees alike. It carries an “A” health rating, and has a top-notch online banking portal. About the only thing missing is a checking account to let you seamlessly do all of your daily banking with this great company.

Lindsay VanSomeren |

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

TAGS: CD rates, live oak bank

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