Ameriprise Financial, headquartered in Minneapolis, Minnesota is a diversified financial services company that is publicly traded on the NYSE (New York Stock Exchange) and sits on roughly $176 billion in assets.
They offer consumers a wide range of investment products including IRA (Individual Retirement Accounts), retirement plans, college savings, advisory services, mutual funds, etc. They also offer a variety of banking solutions such as CDs (certificates of deposit), cash management accounts, home loans and even credit cards.
For the purpose of this review we will focus on Ameriprise Financial’s CD rates as they have been on the rise – along with the interest rate environment in general.
Ameriprise Financial CD Rates + Account Details
First, we should note that unlike nearly all the other CDs we cover on APYGUY, Ameriprise Financial is not federally insured by the FDIC. This means these products carry risk including the potential for loss of principal.
Rather than the FDIC, your deposits are backed by the Ameriprise Certificate Company which is made up of cash reserves and “qualified assets” with “varying ratings.” To learn more go here and scroll to the bottom.
Ameriprise offers 9 CDs with terms ranging from 3 months to 3 years with a minimum deposit requirement of $1,000. They also have a special 13 month CD that comes with an APY (annual percentage yield) of 5.35% but requires a minimum deposit of $1,000,000.
For deposits $100,000 or more you’ll get an additional 0.10% APY added to any CD term which would put the 18 month term at 5.45% APY making it Ameriprise Financial’s most competitive offer.
To put these yields into perspective, the current national average for a 12 month CD and a 36 month CD sit at just 1.76% and 1.40% APY, respectively, according to FDIC data.
That said, there are a number of FDIC-insured online banks and NCUA-insured credit unions with nationwide acceptance offering yields above 5.50% APY and 5.00% APY for the same respective terms.
13 Month CD
The 13 month CD requires a minimum deposit of $1,000,000 million. If depositing over $2m then you will first need approval from the Ameriprise Certificate Company.
This CD will automatically renew into a standard 12 month CD if nothing is done during the grace period.
How do Ameriprise Financial CD Rates Compare?
Take a look at the table below to see how Ameriprise Financial’s best CD rate compares to the best CD rates offered at FDIC-insured banks.
|Institution||Best CD Rate (APY)|
How Much Can You Make with an Ameriprise Financial CD?
The amount of money you can earn on a CD with Ameriprise Financial is going to depend on your deposit size, the CD term you select and its going APY. Take a look at the table below to see potential earnings on a handful of Ameriprise Financial CDs assuming a deposit size of $100,000.
Grace Period and Early Withdrawal Fees
Ameriprise allows for a longer than average grace period of 15 days upon the maturity of your CD in which you may modify your deposit (either by term or by deposit size) or close it out without incurring any fee. If nothing is done during this 15 day period then the CD will automatically into a new one with the same term and the going APY at that time.
Please note – If you open the 7 month CD, this will automatically renew into a 6 month CD if nothing is done during the grace period.
If you need access to your CD’s funds prior to its maturity due to an emergency, Ameriprise allows for you to withdraw all or part of your interest earnings plus up to 10% of your principal without penalty. If you need access to more than that, a 2% withdrawal charge will be assessed on the amount greater than 10% of your principal.