APY GUY tracks and publishes noteworthy APYs (annual percentage yields) on both fixed and variable rate deposit accounts from hundreds of FDIC-insured banks and NCUA-insured credit unions nationwide.

In this January 2023 report, we’ve published what we’ve found to be the top CD (certificate of deposit) rates available to residents in New Jersey. While we do our best to keep rates updated on a monthly basis at the minimum, we advise that you check with each financial institution individually to get updated CD and savings rates.

We should also note that although all of the CDs on this list are available to residents in the state of New Jersey, many are issued by institutions based outside of the state and/or without locations in the state.

According to FDIC state profile data (download here) there are 58 banks serving the state of New Jersey with combined assets of just over $195.5 billion.

There are also 144 credit unions with headquarters in New Jersey serving 960,000+ members with combined assets of just over $15.65 billion according to CreditUnionsOnline.com.

The largest credit union in New Jersey by member size and assets held is Affinity Federal Credit Union, serving ~135,000 members in the state and holding $2.3 billion in assets.

Credit unions and banks of all sizes within the state of New Jersey and throughout the country offer federally insured CDs with varying terms, generally ranging from a few months to 5 to 10 years. The FDIC insures bank deposits up to $250,000 per depositor and the NCUA insures credit union deposits up to $250,000 per depositor.

Generally speaking, with fixed-rate CDs, the longer you lock up your funds (i.e. the greater the term) the higher the APY you will earn.

That said, savings rates – both fixed and variable – at banks and credit unions are generally correlated to Federal Reserve rates which are now anchored between 4.25% and 4.50% following the FED’s final rate hike of last year on December 14th. The FED is still expected to raise rates (albeit by smaller increments) in Q1 of 2023. You can read more in our CD rate forecast.

Below is our report on the best CD Rates in New Jersey for the month of January 2023.

Best 6 Month CD Rates

Below are the top three 6 month CD rates available to residents in New Jersey. These products may not be exclusive to New Jersey residents in all cases.

To put these yields into perspective, the national average for a 6 month CD sits at just 0.81% APY according to FDIC data.

ConnectOne Bank, based out of Englewood Cliffs, NJ, has 23 locations throughout New Jersey and New York state.

Affinity Federal Credit Union is New Jersey’s largest credit union. If you don’t live near a local branch, you can still join the credit union by joining the New Jersey Coalition for Financial Education.

Best 12 Month CD Rates

Below are the top four 12 month CD rates available to residents in New Jersey.

Financial Resources Federal Credit Union is headquartered in Bridgewater, New Jersey and has branches in Bridgewater, Flemington, Green Brook, Hillsborough, Jersey City and Somerset New Jersey.

They have a number of competitive CD rates at the moment and membership is available to consumers nationwide. If you’re outside of the state of New Jersey and can’t stop by a local branch, but would like to open a CD, you may join by becoming a member of the American Consumer Council. There is no fee to join.

Bask Bank and Live Oak Bank are online-only institutions that can accept deposits from consumers across the country.

To give the offers above some context, the average APY on a 12 month CD sits at just 1.28% nationally (according to FDIC data) while the average 12 month CD rate in New Jersey is 1.72% APY according to Bankrate data.

Best 2 Year CD Rates

Below are the top four 2 year CD rates available to residents in New Jersey.

Ascendia Bank is a small bank based out of Glen Rock, New Jersey. They have just 5 branches in the state with 2 in Glen Rock, 2 in West Orange and 1 in Hawthorne, New Jersey.

To put these offers above in perspective, the average 2 year CD rate sits at just 1.21% APY, nationally. The average 2 year CD rate in New Jersey is 1.97% APY.

Best 3 Year CD Rates

Below are the top five 3 year CD rates available to residents in New Jersey.

Valley Bank is headquartered in Wayne, New Jersey but has 200 branches through New Jersey, New York, Florida, and Alabama.

To put these offers above in perspective, the average 3 year CD rate sits at just 1.16% APY, nationally. The average 3 year CD rate in New Jersey is 2.01% APY.

Best 5 Year CD Rates

Below are the top five 5 year CD rates available to residents in New Jersey.

To put these offers above in perspective, the average 5 year CD rate currently sits at just 1.21% APY, nationally. The average 5 year CD rate in New Jersey is 2.15% APY.

New Jersey CD Rates VS National Average

Banks and credit unions operating in New Jersey and serving the residents therein, are currently featuring higher CD rates and APYs than what we find at the national level.

We’ve compiled a chart comparing average CD rates in New Jersey vs average CD rates in the US using both Bankrate and FDIC data. You can see the results below. These are accurate as of January 2023.

Average CD Rates in New Jersey – vs – Average CD Rates Nationally:

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.

CD Rates

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 their highest yield of 4.40% APY (annual percentage yield) 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.

To put these yields into perspective, the current national average for a 12 month CD and a 60 month CD sit at just 1.28% and 1.21% 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 4.60% APY for both 1 and 5 year 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.

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.

Webster Bank, based out of Stamford, Connecticut, is the 44th largest bank in the U.S. by assets with roughly $67 billion.

They are FDIC-insured and offer a number of deposit accounts including variable rate products like money market accounts, savings accounts and checking accounts as well as fixed rate CDs (Certificates of Deposit) and IRAs (Individual Retirement Accounts).

Webster Bank has 150+ branches and 300+ ATMs located throughout Southern New England and Westchester County in New York state.

For the purpose of this review, we will focus on Webster Bank’s CD rates which now offer APY (annual percentage yields) up to 4.25%.

Unfortunately for many, these accounts may be out of reach as Webster Bank only accepts consumers who live in their regional footprint which includes the following states:

• Connecticut,
• Massachusetts,
• New York and
• Rhode Island.

Webster Bank is member FDIC. All deposit accounts held at Webster are federally insured by the FDIC up to the applicable limits. To see if a Webster Bank CD is right for you, continue reading below.

Webster Bank CD Rates + Account Details

Webster Bank only offers 4 CDs with terms ranging from 6 months to 5 years, however, only one of them is competitive at this time (highlighted below). All of Webster Bank CDs require a minimum deposit of $1,000.

CD Rates

To put the yields above into perspective the current national average for a 12 month CD and a 60 month CD sit at just 1.28% and 1.21% APY, respectively, according to FDIC data.

That said, the top rates offered from FDIC-insured online banks and some nationally available credit unions are now inching over the 4.60% APY mark for both respective terms.

Compounding and Crediting Interest

Interest is both credited and compounded monthly. This is a lower compounding frequency than many competing online banks offer which typically come with daily compounding interest.

Grace Period and Early Withdrawal Fees

The grace period is the brief window of time upon your CD’s maturity in which you may modify your CD (either by term or by deposit size) or close the CD out entirely without facing any early withdrawal fees. You are generally notified by your bank prior to your grace period letting you know of its arrival. Standard grace periods are either 7 or 10 calendar days.

Webster Bank does not mention the grace period anywhere on their website, however, their online sub-brand BrioDirect allows for a 7 day grace period for their online CDs. In the fine print BrioDirect stipulates that “Webster Bank will allow a 7 day grace period” for their CDs, so this may be the case for Webster Bank as the parent company but we would recommend giving them a call at 203-271-8738 if you’d like further clarification on this matter.

If you need access to the funds in your Webster Bank CD prior to its maturity you will face an early withdrawal fee.

Early withdrawal fees are as follows:

How to Open and Fund Your CD

If you live in their geographical footprint you can create a profile and open a CD online (start here) or stop by a local branch (locate them here). You can also give them a call if you need assistance here (203) 271-8738.

Opening a CD online with Webster Bank takes about 10 minutes. You’ll need the following information to complete the process. These are:

Personal Information

• Driver’s license number
• Social Security number
• Employment information
• Identifying information – previous addresses, employers, loans, etc.

Once your profile is created and you’ve selected the CD you’d like to open, you’ll need to fund it. Funding your CD can be done with a physical check or via transfer. If you’re transferring funds from another bank or credit union you’ll need the following:

• bank or credit union routing number
• account number where funds are coming from

📌 Please Note: Webster Bank will authenticate your identity information through Equifax Secure, Inc. and reserves the right to validate your banking history through ChexSystems, Inc.

Flagstar Bank, headquartered in Troy, Michigan, is the 74th largest bank in the US by asset size, with just over $31 billion in total assets.

They have a robust offering of deposit accounts, however, they are only available to consumers in select regions. You’ll have to enter in your zip code in the beginning of your session to navigate through their products and rates.

Within their suite of deposit products they offer both fixed-rate certificates of deposit and variable-rate accounts such as money market accounts, savings accounts and checking accounts.

Their high yield savings account doesn’t offer a competitive rate at the time of this writing and comes with a $35 monthly service fee if you don’t maintain a balance of $50k or more.

Their CDs (certificates of deposit) feature the most competitive yields out of all of Flagstar Bank’s deposit accounts.

In our review below, we will focus on the CDs offered by Flagstar Bank. They currently offer customizable CD terms ranging from 30 days to 10 years. They also have one promotional CD which carries the best APY (annual percentage yield).

Flagstar Bank CD Rates + Account Details

Flagstar Bank is a member of the FDIC. Consumer deposits are federally insured up to $250,000 or $500,000 for joint accounts.

Flagstar Bank CDs come with a minimum deposit requirement of $500. If you plan on depositing more than $110,000 into a CD you will need to visit a local branch. You can locate one here.

CD Rates

To put these offers in perspective, the current national average for a 12 month CD and a 60 month CD sit at 1.21% APY and 1.28% APY, respectively, according to FDIC data.

That said, there are a number of online banks and credit unions with nationwide acceptance offering CDs with rates above 4.60% for both respective terms.

Compounding and Crediting Interest

Unlike many bank CDs which feature daily compounding interest which gets credited back to the account monthly, Flagstar Bank both compounds rates monthly and also credits interest payments on a monthly basis.

Grace Period and Early Withdrawal Fees

Flagstar Bank has a standard 10 calendar-day grace period in which you can add or withdraw funds from your certificate of deposit or close it out entirely without penalty. If nothing is done during this time, the funds will automatically renew into the same deposit term with the going APY at that time.

If you need access to your funds outside of the grace period, Flagstar Bank will impose an early withdrawal penalty.

Early withdrawal penalties are determined by the term length of your CD. Early withdrawal penalties are as follows:

Be sure to set up your own reminders to alert you when your grace period starts. Flagstar Bank will also send out notifications to let you know your CD will be maturing soon.

How to Open and Fund the CD

There are 2 ways to open a Flagstar Bank CD.

1. Give them a call at 844-645-0835
2. Stop by a local branch.

Flagstar does not provide an option to open a CD online at this time.

Once you’ve connected with a Flagstar representative either by phone or in-person you’ll need to have the following personal information to proceed with the CD:

1. Home Address
2. Phone Number
3. Email
4. Social Security Number
5. Driver’s License or State ID

Once you’ve opened the CD, you’ll need to fund it. This can be done by transferring funds from another bank account or with a physical check. If transferring funds from your current bank or credit union you’ll need to the following:

1. You current bank or credit union’s routing number
2. Your bank account number