APY GUY: Maximize Your Savings & Earnings

editorial staff

Affirm Savings Review – Still 0.65% APY!


A word from founder Max Levchin (former PayPal founder).

Update June 2021: Affirm’s high yield savings account remains at 0.65% APY and has not encountered a rate drop yet in 2021. To put this yield in perspective, recent FDIC data shows the following national averages on various types of variable-rate savings accounts:

  • Average yield on a money market account: 0.10% APY
  • Average yield on a savings account account: 0.06% APY
  • Average yield on an interest checking account: 0.03% APY

Affirm is another San Francisco-based, financial technology company that recently launched a high yield savings account in June of this year.

The company was founded by former PayPal founder Max Levchin and the savings account features one of the best APYs (annual percentage yields) on the market.

As Max states, “We’re here to improve lives. If that means more work for us, or that we make less money, we will always take the more difficult path in favor of treating people better.”

This sentiment shows in their high yield savings account. We’ll review this product, its interest rate, features and potential drawbacks below.

Affirm Savings Rate + Account Details

As mentioned, Affirm itself is a financial technology company. They have partnered with Cross River Bank to offer their high yield savings account; leveraging Cross River Bank’s FDIC insurance. All Affirm savings account deposits are federally insured by the FDIC up to $250,000 per depositor (joint accounts are not available at this time).

Affirm Savings Rate

Minimum BalanceAPY
$00.65%

To give the yield above some context, the national average for a savings account currently sits at just 0.07% APY. The top online savings account and money market account rates from FDIC-insured banks are ranging from 0.50% – 0.60% APY, currently.

Interest is compounded daily on all balances above $0.01.

The account is limited to six ACH transfers per month per Federal Regulation D.

Unfortunately there is no debit card at this time. The only way you can access your money is through bank transfers.

How to Open and Fund the Account

To get started, navigate to the high yield savings offer page on the Affirm website (located here). From this page you can either enter in your email, which will Affirm will then confirm and send you a link to download their app OR you can download the app directly from this page. You can find their Android app and IOS app at their respective stores or use our links.

Once you’ve downloaded the app on your phone or tablet, you may begin the process of opening and funding the account.

Information you’ll need to open the account:

  1. full name (driver’s license)
  2. current address
  3. phone number
  4. email
  5. social security number or valid Tax ID

To fund your savings account or add more money, do the following:

  1. Open the Affirm app.
  2. Under Savings on the Manage tab, tap “See account.”
  3. Tap “Add money.”
  4. Enter the amount you want to add.
  5. Under From, tap the bank account you want to transfer money from.
    • No linked accounts? Tap From, then tap New bank account and link a new bank account.
    • Only one linked account? From will be auto-filled with your linked bank account. To switch to a new bank account, tap From, then link a new bank account.
    • Multiple linked accounts? Tap From, then tap a linked bank or link a new bank account.
  6. Under Frequency, choose how often you want to add money.
    • To add money once, keep Frequency auto-filled with Once. Your transfer will start no later than the next business day.
    • To add money every week, tap Weekly, then choose the day. Depending on the day you pick, your transfer may start next week.
    • To add money every month, tap Monthly, then choose the date. Depending on the date you pick, your transfer may start next month.
  7. Review your transfer details and tap Confirm.

After you have funded your account you will begin earning the advertised rate on all balances above $0.01.

Reviews and Customer Sentiment

Manage your savings and watch your balance grow with Affirm’s highly rated mobile apps.

Given the fact that the Affirm savings account has only been on the market for a short period of time, there isn’t too much coverage on the product.

That said, their mobile app ranks quite high for both Apple and IOS, scoring 4.6 and 4.9 stars out of 5 on the Google Play store and Apple store, respectively.

Final Thoughts

If you’re looking for a no-hassle, digital way to save your cash then you’ll likely want to consider this saving account by Affirm.

It comes with zero fees of any kind and an annual percentage yield that beats the current national average by almost 12x.

Just be sure you won’t need any checking account features such as a debit card, checks or easy access to cash as this account won’t be able to provide you with those.

TD Bank CD Rates – Remain the same in 2021


image credit: td.com

[Update June 2021: TD Bank CD rates remain unchanged for all of 2021. The last rate change was in the Fall of last year. The current national average for a 12 month and a 60 month CD sit at 0.14% APY and 0.27% APY, respectively. TD Bank’s CD rates remain under the national average for each respective term.]

TD Bank is the 8th largest bank in the country by assets despite mostly operating on the east coast. They have over 1,200 locations in 15 US states plus Washington D.C. and are headquartered in Cherry Hill, New Jersey.

For savers looking for fixed-rate deposit products, TD Bank offers three different types of certificates of deposit to choose from. They are:

  1. TD Choice Promotional CDs
  2. TD No-Catch CDs
  3. TD Step Rate CDs

All of TD Bank deposits are federally insured by the FDIC up to $250,000 per depositor. We will breakdown the APYs, terms, conditions and details of all of TD Bank’s CDs in our review below.

When viewing TD Bank’s CD rates on their website, you will first be prompted to enter your location.

After you’ve entered your location you will be able to click through their CD accounts options and view their current rates. That said, we ran this scenario in three separate locations and found the exact same annual percentage yields for each. The locations we sampled are:

  1. Boca Raton, Florida
  2. Washington D.C.
  3. Boston, Massachusetts

TD Choice Promotional CDs

Top APY on these accounts is just 0.10% currently.

Like all of TD Bank CDs, the TD Choice Promotional CDs feature a tiered interest rate and APY based on your deposit amount. They also feature a “relationship bump rate” which allows you to earn a slightly higher APY if you also have a TD bank checking account.

Terms range from 3 months to 5 years and come with a minimum deposit requirement of $250.

TD Choice Promotional CD Rates

CD TermDeposit AmountStandard APYRelationship APY
3 month$250 – $9,999.990.05%0.05%
3 month$10,000 +0.05%0.10%
6 month$250 – $9,999.990.05%0.05%
6 month$10,000 +0.05%0.10%
9 month$250 – $9,999.990.05%0.05%
9 month$10,000 +0.05%0.05%
12 month$250 – $9,999.990.05%0.05%
12 month$10,000 +0.05%0.10%
18 month$250 – $9,999.990.05%0.05%
18 month$10,000 +0.05%0.05%
2 years$250 – $9,999.990.05%0.05%
2 years$10,000 +0.05%0.05%
3 years$250 – $9,999.990.05%0.05%
3 years$10,000 +0.05%0.05%
5 years$250 – $9,999.990.05%0.05%
5 years$10,000 +0.05%0.05%

To give these offers above some context, the current national average for a 12 month CD sits at 0.14% APY and the average yield on a 5 year CD sits at 0.27% according to recent FDIC data.

While TD Bank calls these deposit products “promotional” their current yields are anything but. If you do decide to open one of these, please remember your money will be locked up for the duration of the deposit’s term. If you need access to your funds prior to maturity, an early withdrawal penalty will apply. If you foresee a chance that you will need these funds prior to maturity, you may want to open a “TD No-Catch CD” which allows for one penalty-free withdrawal per term.

Early Withdrawal Penalties:

Withdrawing funds from your TD Choice Promotional CD prior to maturity will cost you some or all of your interest earned. Below is a breakdown of TD Bank’s early withdrawal penalties.

  • For CDs with terms of 7 to 89 days, TD Bank will deduct all accrued interest.
  • For CDs with terms of 90 days to one year, TD will deduct three months’ interest.
  • For CDs with terms between 1 and 2 years, TD will deduct six months’ interest.
  • For CDs with terms between 2 and 3 years, TD will deduct nine months’ interest.
  • For CDs with terms between 3 and 4 years, TD will deduct twelve months’ interest.
  • For CDs with terms between 4 and 5 years, TD will deduct eighteen months’ interest.

Compounding Interest:

TD Bank does not state the compounding schedule on their website, however according to their CD rate calculator interest appears to be compounded monthly. Many banks, both online and brick and mortar, compound interest daily resulting in a higher annual percentage yield.

Grace Period:

As with most banks and credit unions, TD Bank has a 10 day grace period in which you can withdraw or add money to your CD penalty free. TD Bank will send you a notification prior to your deposit’s maturity, but you may want to have your own reminders set as well. If nothing is done during this grace period, your funds will roll into another CD of the same term and current APY.

TD Bank No-Catch CDs

Top APY on these accounts is just 0.05%.

The “No-Catch” CDs offered by TD Bank currently come with only two deposit terms to choose from: 6 months and 12 months. Although these products have featured tiered APYs in the past based on deposit amount, they all feature the same lackluster yield currently.

The major difference with these accounts is that they allow for one penalty-free withdrawal per term.

TD Bank No-Catch CD Rates

CD TermAPY
6 month0.05%
12 month0.05%

The minimum deposit requirement is $250.

Interest is compounded presumably monthly on these CDs as well and the same grace period applies. All of these CDs will automatically renew if nothing is done during the grace period.

TD Step Rate CDs

Top APY on these accounts is 0.25%.

TD Bank’s Step Rate CDs function exactly as their name implies in that your interest rate takes a ‘step up’ on your anniversary each year. You have just two terms to choose from with these products: a 3 year term or a 5 year term.

As an added bonus, the Step Rate CD also come with a similar feature as the “No-Catch CD.” Upon each yearly anniversary of your CD, you will be given a 10 calendar day window in which you can add or withdraw funds penalty-free. You may withdraw any amount at this time whether it be all of your funds or just a partial amount.

3 Year TD Step Rate CD

YearAPY
Composite APY0.10%
Year 10.05%
Year 20.10%
Year 30.15%

The composite APY is simply the blended APY you will have received at the maturity of your deposit term.

5 year TD Step Rate CD

CD TermAPY
Composite APY0.15%
Year 10.05%
Year 20.10%
Year 30.15%
Year 40.20%
Year 50.25%

While the 5 year TD Step Rate CD features the highest yield of any TD Bank CD, better APYs can still be found with online banks and nationally available credit unions.

Final Thoughts

TD Bank has certainly offered decent yields and promotional CDs in the past, but their current offers are far less competitive than even the national average.

In normal interest rate environments, their tiered balances and relationship bonus allow for consumers to lock in even higher yields on their savings, but today these offers add very little incentive.

If you decide to go with a TD bank CD, the quickest way to open one of these products is online. If you’d prefer to speak to a representative you will have to go into one of their 1,200 branch locations across 15 states plus Washington D.C.

Capital One CD Rates – Still up to 0.40% APY


image credit: capitalone.com

[Update June 2021: Rates remain unchanged across all CD terms within the Capital One 360 product suite. The only rate changes that have occurred in 2021 have been with their 6 and 9 month CDs which both dropped by 0.10% APY earlier in the year.]

Capital One offers a number of online certificates of deposit as part of their 360 product suite. The terms come with standard lengths ranging from 6 months to 60 months and above average annual percentage yields.

Their CDs also come with more flexibility than most certificates offered by large national banks. Right now, all Capital One 360 CDs have no minimum deposit and can be opened with any dollar amount that is right for you.

That said, these products must be opened and managed online. But don’t worry, they make it exceptionally easy with their web (and mobile web) interface as well their highly rated apps for IOS and Andriod.

Below is our full review of their CD offerings. If you have experience opening a CD with Capital One, please feel free to share your experience in the comment section below.

Capital One 360 CD Rates + Account Details

Capital One 360 CDs are federally insured by the FDIC up to $250,000 per depositor or $500,000 on joint accounts. As mentioned there are no minimum deposit requirements, but you will need to deposit something in the account to open it.

Capital One 360 CD Rates

TermAPY
6 months0.10%
9 months0.10%
12 months0.20%
18 months0.25%
24 months0.25%
30 months0.25%
36 months0.30%
48 months0.35%
60 months0.40%

To put these offers above in perspective the average yield on a 12 month CD and a 60 month CD sit at just 0.22% and 0.58% APY, respectively. That said, there are still a handful of credit unions and online banks offering slightly higher rates on the same terms.

Interest is compounded monthly on Capital One 360 CDs and credited to your account either monthly, yearly or upon maturity. You can have these funds deposited into a separate account or returned to the CD for further compounding.

Capital One 360 CDs come with a standard 10 day grace period. You’ll also want to note that Capital One CDs automatically renew, so if you plan on adding or withdrawing funds to your CD this 10-day period is the only time you can do so penalty free.

Early Withdrawal Penalties

If you withdraw funds from a CD you opened with a term of 12 months or less, you’ll have to pay three months’ interest as a penalty.

If you withdraw funds from a CD you opened with a term of greater than 12 months, you’ll have to pay six months’ interest.

Please note that it is possible to incur a penalty that dips into your principal if the withdraw happens early enough.

How to Open a Capital One 360 CD?

If you decide you want to open a Capital One 360 CD, first navigate to their online CDs page here.

On this page you can take another look at any of the terms, conditions, or features one last time before you open the account.

Once you’re ready to open a deposit, click on the green “Open Account” button at the top of the page. This button remains static at the top of this page as you scroll.

It will look something like this (below):

Look for the green “Open Account” button that sticks to the top of your browser as you scroll the page.

Once you click on that green button, the process takes about 5 minutes to complete. They’ll first ask you whether or not you already have a Capital One login. If you’ve opened a checking, savings or even credit card with them (either online or in a branch) then you likely have a login already. If you do, this should expedite the process.

If you do not, and this is your first account with Capital One, then you’ll need the following:

  • Full legal name
  • Current address
  • telephone number
  • employment status (and job title)
  • social security number
  • date of birth

Capital One will then use your personal data to confirm your identity. If you are looking to open a joint account, you must first go through this process individually then you can add another account holder online.

Once your identity is confirmed and the account is opened, you will be provided with your account number and the routing number. You then have the option to add funds immediately to your CD. Your rates are locked in the moment you open the deposit until maturity.

Capital One 360 CD Reviews and Customer Sentiment

The Capital One 360 product suite receives high marks across the board from third party review sites. Their savings products in particular – both the variable rate online savings account and the fixed rate online CDs – receive above average marks for consistently higher than average yields and flexible terms. Most notably the lack of minimum deposit or balance requirements to earn the advertised interest.

You can manage your money easily either online or through one of their native apps. Their IOS and Android apps both receive high marks (especially as far as banking apps go). Their IOS app currently has 4.8 stars out of 5, while their Android app has 4.6 stars out of 5.

Final Thoughts

If you’re looking for a solid bank with good rates and a great reputation then Capital One, and more specifically Capital One 360, deserves your consideration.

Their rates consistently beat the national average by considerable margins and come with user-friendly technology that make your accounts both secure and easy to manage/navigate.

Connexus Credit Union Money Market Account 1.00% APY + CD Rates up to 1.00% APY!


image credit: connexuscu.org

Founded in 1935 in Wausau, Wisconsin, Connexus Credit Union got its start as an employee-only credit union serving individuals and families affiliated with Employers Mutual, which later became the insurance giant Liberty Mutual.

As with many credit unions that stand the test of time, Connexus credit union experienced growth through acquisition. Over the years they acquired a number of smaller credit unions that allowed them to broaden their membership eligibility to what it is today.

Today, Connexus credit union serves roughly 360,000 members in all 50 states with over $2.8 billion in assets and just shy of $2.5 billion in consumer deposits.

Connexus credit union has also been nationally recognized over the years for consistently offering high deposit rates on both variable and fixed rate accounts, as well as exemplary customer service.

Connexus Credit Union CD Rates + Account Details

Connexus credit union offers both IRA CDs and standard CDs with terms ranging from 12 months to 5 years. Both their IRA CDs and standard CDs currently feature the same APYs for their respective terms.

Connexus Credit Union’s deposit products are federally insured by the NCUA (FDIC equivalent for credit unions) up to $250,000 per depositor or $500,000 for joint accounts.

All of their certificates of deposit require a minimum deposit of $5,000.

Connexus Credit Union CD Rates

CD TermAPY
12 months0.55%
24 months0.65%
36 months0.75%
48 months0.85%
60 months1.00%

To put these offers in perspective the current national average for a 12 month CD and a 60 month CD sit at just 0.14% APY and 0.24% APY, respectively.

You’ll be given a 10 day grace period upon maturity of your deposit where you can either withdraw or deposit funds penalty free.

If you need to withdrawal money from this deposit prior to its maturity you will be subject to the following early withdrawal fees:

  • 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 Money Market Account Rate + Details

Connexus Credit Union offers some highly competitive money market rates if you:

  1. keep a high daily active balance in the account of $50,000 or more, and
  2. have an active checking account with them, and
  3. open a basic Regular Savings or Youth Savings account and fund it with at least $5.

Keeping an active checking account will likely be the hardest qualification to meet if you are new to Connexus Credit Union and already conduct checking elsewhere.

Connexus Credit Union defines an active checking account as a single checking account with Connexus under the same membership with:

  • Direct Deposit of net pay, including salary, wages, government benefits, or pension made to the account each month;
  • having ten (10) checks, ACH withdrawals, and/or debit card transactions clear the account by the last business day of each month;
  • and electing to receive eStatements. ATM transactions not included.

Connexus Credit Union Money Market Rates

BalanceAPY
$0 to $999.990.00%
$1k – $9,999.990.25%
$10k – $19,999.990.45%
$20k – $49,999.990.60%
$50k – $99,999.990.85%
$100K +1.00%

To give the APYs above more context, the current national average for a money market account sits at just 0.11% APY currently.

The minimum deposit requirement for a money market account with Connexus credit union is $1,000. Interest is compounded monthly and credit monthly. There is no monthly maintenance fee associated with this account.

Outside of the checking account requirement there are a few other oddball rules tied to Connexus credit union’s money market accounts.

  1. If you make a cash withdrawal it must be at least $250.
  2. You may write checks with this account (if you order a box of checks for $16.90/100 checks), BUT you are allotted just three per month. Every check after the third will cost you $29.95 per check.

You can also only make a total of six transactions per month. This includes check, ACH, digital transfer or telephone transfer. This is par for the course for money market accounts and demand deposit accounts in general, per Federal Regulation D. If you need to get around these limits, you can make unlimited transactions through an ATM or at an in-person Connexus branch. Connexus is a part of a shared branch network featuring over 6,000 branch locations across the country.

Connexus Credit Union Health Savings Account Rates + Details

Connexus Credit Union’s Health Savings Account features some of the most competitive rates in the country currently if you can maintain a balance of $5,000 or more.

A HSA (Health Savings Account) from Connexus credit union will allow you to put money aside on a pre-tax basis for qualified medical expenses that may arise in your life. These accounts earn impressive dividends and your money rolls over from year to year if you don’t use it.

To be eligible for an HSA account through Connexus credit union you must meet the following requirements:

  • You are covered under a High Deductible Health Plan (HDHP)
  • You have no other health coverage except what is permitted under “Other health coverage,” listed on IRS.gov
  • You are not enrolled in Medicare
  • You cannot be claimed as a dependent on someone’s tax return

Contribution Limits

20192020
Single$3,500$3,550
Family$7,000$7,100

Contributions can be made by either you or your employer up to the maximum limit specified by law. Individuals age 55 and older can make an additional $1,000 catch-up contribution.

Connexus Credit Union Health Savings Account Rates

BalanceAPY
$0 to $99.990.00%
$100 to $499.990.50%
$500 to $2,499.991.00%
$2,500 to $4,999.991.00%
$5k to $14,999.991.50%
$15k +2.00%

Who is Eligible to Join Connexus Credit Union

Connexus Credit Union offers its services to customers nationwide. It has four paths to membership. The first three are the easiest/fastest ways to join, followed by the fourth way which is essentially a loophole for any US citizen to join. The four paths to membership are as follows:

  • Employees, retirees, family members, or members of one of the following groups, or
  • Residents of one of the following communities, or
  • Spouses, family members, and those living in the same household of an existing member, or
  • Members of the Connexus Association. This just requires a one-time $5 donation.

Applying for membership is a straightforward process. You will need:

  • Valid Driver’s License/State ID/Passport
  • Valid United States Social Security Number
  • Account information for accounts that you would like to close and/or transfer money from.

Final Thoughts

If you value top-notch rates from a member-centric credit union, then Connexus credit union deserves your consideration. They’ve been nationally recognized for abnormally high rates and outstanding service by CNN Money, Kiplinger, PC Magazine, BankRate, the AARP and more.

Both their native apps for Apple and Android receive high marks in their respective app stores. Averaging a 4.7 star rating out of 5 for Apple and a 4.3 star rating out of 5 for Android.

That said, one of their highest yielding accounts (the money market account) comes with some potentially difficult hoops to jump through. However, if you are able to open and maintain an active checking account with them (the prerequisite to opening their money market account) you’ll be rewarded with some of the best yields available on the money market side.

Chase Bank CD Rates Today – Are they Worth Opening?


image credit: chase.com
Full disclosure: We may receive financial compensation when you click on links and are approved for products from our advertising partners. Opinions and product recommendations on APYGUY are those of our writers and have not been influenced, reviewed or approved by any advertiser. Learn more about how we make money.

[Update May 15, 2021: The CD rates offered at Chase Bank today remain the same as they’ve been for all of 2021. Top APY’s sit at just 0.05% while some deposits pay as little as 0.02% APY.]

Chase, or Chase bank, headquartered in downtown Manhattan (New York City) is the consumer and commercial subsidiary of the multinational JPMorgan Chase which holds nearly $2.63 trillion in assets.

Chase Bank has 5,100 branches and 16,000 ATMs nationwide. They offer a full range of financial services that reach nearly every age group and demographic.

For the purposes of this review, however, we will focus on the certificate of deposit suite offered by Chase Bank.

Despite the bank’s eye-popping asset size, their current CD rates are quite poor and underperforming the national average.

Chase Bank CDs come with terms ranging from 1 months to 10 years and can be opened online or in a local branch. If you wish to open a CD online; however, you will need to be an existing Chase Bank customer.

Chase Bank CD Rates + Account Details

Chase Bank is member FDIC and all consumer deposits are federally insured up to $250,000 per depositor or $500,000 for joint accounts.

All Chase Bank CDs require a minimum deposit of $1,000 to open. In normal interest rate environments the interest rates paid on Chase Bank CDs are tiered by deposit amount.

The tiers are $1,000 to $9,999.99, $10k to $24,999.99, $25k to $49,999.99, $50k – $99,999.99, $100k to $249,999.99 and $250k plus.

Today; however, the increase in APY by deposit size is negligible, with the yield increasing from 0.02% APY to 0.05% APY at the $10,000 mark.

Chase also requires you to enter in your location by zip code before viewing rates online. Presumably this means location may affect your interest rate, however, we ran multiple scenarios in different locations throughout the country and found the same rates everywhere.

Chase Bank CD Rates

CD TermAPY ($1k – $9,999.99)APY ($10K +)
1 month0.02%0.02%
2 month0.02%0.02%
3 month0.02%0.02%
6 month0.02%0.05%
9 month0.02%0.05%
12 month0.02%0.05%
15 month0.02%0.05%
18 month0.02%0.05%
21 month0.02%0.05%
24 month0.02%0.05%
30 month0.02%0.05%
36 month0.02%0.05%
42 month0.02%0.05%
48 month0.02%0.05%
60 month0.02%0.05%
84 month0.02%0.05%
120 month0.02%0.05%

To give these yields some context, the current national average for a 12 month CD sits at roughly 0.14% APY while the average on a 5 year CD sits at roughly 0.24% APY according to recent FDIC data.

If you’re looking for FDIC-insured alternatives that don’t require you to lock up your money for a predetermined period of time, there are still a handful of online savings accounts providing yields above 0.50% APY. For example, the Axos High Yield Savings account still holds an APY of 0.61% APY!

How is Interest Calculated on a Chase CD?

Interest is compounded daily and you have some choice as to the frequency in which it is paid out. Depending on the term you may choose to have it paid monthly, quarterly, semi-annually or annually.

Early Withdrawal Penalties

Early withdrawal penalties for Chase Bank CDs are as follows:

  • CD terms less than 6 months pay 90 days of interest
  • CD terms 6 months to 24 months pay 180 days of interest
  • CD terms 24 months or more pay 365 days of interest

Additional Chase CD Fees

Chase Bank CD accounts do not come with any monthly maintenance fees like their other accounts, but depending on how you plan to move funds around, you may encounter some fees.

Below is Chase Bank’s wire fee schedule:

TypeFee
Domestic and international incoming wire$15 per transfer OR
$0 if the transfer was originally sent with the help of a Chase banker or using chase.com or Chase Mobile.
Domestic Outbound Wire (in-branch)$35 per transfer
Domestic Outbound Wire (online)$25 per transfer
Consumer USD/FX international wire (in-branch)$50 per transfer
Consumer USD international wire (online)$40 per transfer
Consumer FX international wire (online)$5 per transfer OR
$0 per transfer if the amount is equal to $5,000 USD or more

Transferring funds online is always going to be a cheaper option than having a banker help you in a physical branch.

If you plan on opening a CD with $1,000,000 or more; however, you must do this in a local branch.

Chase Bank CD Grace Period

A certificate of deposit’s grace period is the brief window of time in which the deposit holder may move funds into and out of their certificate of deposit without facing a penalty. During this time you may also roll your funds into another deposit with a different term.

All Chase Bank CDs come with a standard 10 day grace period for CDs with terms of 14 days.

Chase Bank will alert you via email prior to your CD maturity date, but you should set up your own reminders as well.

Why are Chase Bank CD Rates so Low?

Unfortunately for consumers looking to lock in good rates on certificates of deposit, the nation’s largest banks will all leave you hanging. Whether it’s Chase Bank, Wells Fargo or Bank of America, consumers simply can not expect anything in the way of decent savings rates.

Why is that?

The simple fact of the matter is that banks don’t need your money. With key rates at historic lows and the Fed printing money through qualitative easing (among other programs), these large banks have no need to attract consumer capital with competitive savings rates on long-term CDs or other deposit accounts.

Alternatives to Consider

If you’re looking for FDIC-insured CDs and/or savings accounts, then we would recommend online banks or nationally available credit unions. Some of these institutions still pay above 1.0% APY on long-term CDs and close to 0.50% APY on savings accounts.

If FDIC-insurance is less important to you, you can read our 12 alternatives to CDs and savings accounts for ideas that don’t just consist of banking products.

Final Thoughts

Although Chase Bank has vast coverage across the country and abroad, their current CD rates are underperforming an already abysmal national average by a considerable margin.

If you value in-person banking and are looking for federal insurance on your savings, then you may want to consider a local credit union. They can likely beat Chase’s CD rates and your money will be insured by the NCUA (FDIC equivalent for credit unions) up to $250,000.

If you value high rates and prefer online banking to traditional banking, then check out Ally bank or Discover as potential options for parking your cash.

Charles Schwab CD Rates – Up to 0.20% APY


image credit: schwab.com

Charles Schwab is a multinational financial services company founded and headquartered in San Francisco, California.

They’ve built up quite an impressive sum of assets under management since their inception in 1971 with just over $3.3 trillion and counting.

Charles Schwab has an array of products and services that it offers to both retail and institutional clients encompassing commercial banking, stock brokerage, and wealth management advisory services.

For the purposes of this review, we will only focus on the brokered CD (certificate of deposit) rates offered through Charles Schwab. To see all of Charles Schwab’s CD options you will need to login to the Schwab CD OneSource platform here or continue reading below.

Charles Schwab Brokered CD Rates + Account Details

It is important to keep in mind that Charles Schwab does not issue CDs themselves, but rather brokers (or re-sells) bank CDs issued by FDIC-insured banks and financial institutions.

Charles Schwab CDs require a minimum deposit of $1,000 and you may increase your investment size by increments of $1,000.

Charles Schwab Brokered CD Rates

TermAPY
1-3 Month CDs0.03%
4-6 Month CDs0.05%
7-9 Month CDs0.04%
10-18 Month CDs0.10%
1.5-2.5 year CDs0.20%

To put these offers in perspective, the current national average on a 12 month CD sits at 0.14% APY, and top rates on 12 month CDs from online banks and credit unions still come close to 0.50% APY.

Charles Schwab Brokerage Fees for CDs: New Issue and Secondary Market

For all new issue CDs a selling concession is already included in the overall price for both online and broker assisted trades.

For all CDs purchased on the secondary market through Schwab CD OneSource, a $1 transaction fee per $1,000 is applied. This comes with a $10 minimum and a $250 maximum.

If you need a broker’s assistance for the trade you will also be charged an additional $25 as a trade service charge.

How Does FDIC-Insurance Work with Charles Schwab CDs?

All of the brokered CDs offered through Schwab OneSource are federally insured by the FDIC through the partner bank. Thus the same coverage extends to you and can even exceed the $250,000 maximum if you choose to open more than one CD with more than one bank.

For example, if you open two CDs from two different banks through Schwab OneSource, you will get FDIC coverage of $250,000 from one bank and then $250,000 from the second bank. Assuming you have no other deposits at those banks, you’re covered for $500,000.

Compounding Interest + Grace Period

Interest on brokered CDs is not compounded as it would be with a traditional bank as it requires immediate distribution. If you want compounding interest on a brokered CD you will need to reinvest your earnings into a different account.

Grace periods with traditional banks tend to be around 10 days long. During this time a deposit holder may add to or withdraw funds without incurring a penalty. With brokered CDs you will not incur any fee for early withdrawal. If you need funds prior to maturity, a broker will help you sell it on the secondary market. The exact grace period for your deposit can be found by contacting the issuing institution.

Drawbacks and Risks

The main risk in purchasing a brokered CD through Charles Schwab (or any brokerage firm for that matter) is if you need your funds prior to maturity. As mentioned above, in this case you will need to sell your CD on the secondary market. Depending on the interest rate environment at that time it is possible to sell your CD for either less or more than you purchased it for.

Consider the following: You purchase a 2 year CD and need to cash out unexpectedly after the first year. During this time CD rates have also risen substantially. At this point you will likely need to sell your CD at a lower price than you purchased it for because much more attractive rates are being offered on new issue CDs.

Final Thoughts

While we’ve seen Charles Schwab offer competitive brokered CD rates in the past the current offers are less competitive than brokered CDs at either Fidelity or Edward Jones and are substantially less profitable than CDs found through actual banks and credit unions directly.

The main advantage brokered CDs have over traditional bank deposits is the ability to leverage the FDIC insurance of multiple banks. But in the current interest rate environment, this perk seems less noteworthy.