APY GUY: Maximize Your Savings & Earnings

editorial staff

PayPal Savings Account Review – Now 4.30% APY!

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The financial technology company PayPal hardly needs any introduction with nearly 223 million users worldwide and over $27.5 billion in annual revenue; they’ve been a household name since their founding in 1998.

What you may not know is that they just launched a high yield online savings account in May of last year just as interest rates started to pick up.

The account has no minimum deposit requirements, minimum balance requirements or monthly maintenance fees of any kind.

To learn more about PayPal’s online savings account continue reading our review below.

PayPal Savings Rate + Account Details

image credit: paypal.com

The PayPal Savings account is 100 percent digital. You can download their app here and start saving immediately.

The account has no minimum deposit requirements or monthly balance requirements and all balances are eligible for the advertised rate.

The rate is variable and can change at any time without notice.

PayPal itself is not a bank, however your deposits are FDIC-insured through their partner Synchrony Bank.

Pros and Cons

Pros:
✅ High interest rate. Roughly 11x the national average per FDIC data.
✅ No minimum balance or deposit requirements.
✅ No monthly maintenance fees.
✅ Can be opened and managed completely online or by smartphone.
✅ Helpful savings tools.
✅ FDIC insured up to $250,000.
Cons:
🛑 No joint accounts.
🛑 No additional deposit accounts such as checking, money market or CDs (certificates of deposit).
🛑 No physical branches.
🛑 No business accounts (despite many using PayPal with eBay for business).
🛑 Slow transfers from 3rd party banks that may take up to 6 days.

Savings Account Rate

Minimum DepositAPY
$04.30%
APY = Annual Percentage Yield

To put this yield into perspective, the current national average for a savings account and a money market account sit at just 0.40% and 0.59% APY, respectively, according to recent FDIC data.

The best high yield online savings account rates are just now inching over the 5.00% APY mark following the Fed’s last rate hike in early May.

How does PayPal’s Savings Account Compare?

If you’re curious to see how PayPal’s APY (annual percentage yield) stacks up against the competition, then take a look at the table below. It compares PayPal’s savings rate with other FDIC-insured online banks and their high yield savings account rates.

BankAPY
Bask Bank4.75%
First Foundation Bank4.85%
PNC Bank4.50%
PayPal4.30%
These rates were surveyed on June 7, 2023.

Money Management

image credit: paypal.com

Managing your money is straightforward with the PayPal app. You can transfer funds from your bank account or current PayPal balance into the savings account.

From the app you’ll also have access to the following:

  • Get your paychecks up to 2 days early when you set up direct deposit.
  • Mobile check cashing. Cash a physical check to your account from your phone.
  • Set up bill pay. Pay your TV, utilities, internet, phone bills, etc from the app.
  • Set up auto-save features and savings goals. Move money from one goal to another if priorities change.
  • Get a PayPal Cash Card. No fees or credit checks required. Can be used anywhere Mastercard is accepted.
  • Add cash with the app or Cash Card at 100k+ stores across the US, including Walmart, CVS, and 7-Eleven
  • Buy, sell and hold cryptocurrencies.

Final Thoughts

As far as FDIC-insured online savings accounts go, PayPal’s is fairly competitive – with a yield roughly 11x the national average.

Plus the fact that the account has no maintenance fees, minimum deposit requirements or monthly balance requirements to earn the high rate makes it available to a large swathe of consumers.

PayPal Savings Account FAQs

If you still have questions about PayPal and their newly launched online savings account, don’t worry we’re here to help. Here are some of the most commonly asked questions by consumers and our responses below.

Is PayPal a Bank?

No. PayPal itself is not a bank, but it provides a high yield savings account through Synchrony Bank.

Peter Thiel, the founder of PayPal, has stated that PayPal is not a bank because it does not engage in fractional reserve banking. Essentially meaning the company does not engage in the act of borrowing and lending their customers’ funds.

Federal Regulators also reiterated this notion back in 2002, stating that PayPal is not a bank and shouldn’t be regulated as such.

That being said, PayPal has dipped their toe into banking products like the online savings account that they now offer.

In the past, they have also tested out money market accounts, lines of credit and even a debit card, which is still offered as the PayPal cash card.

Are PayPal Accounts Insured by the FDIC?

Yes, by proxy.

While PayPal itself is not a bank and is not FDIC-insured, the accounts they offer are through their partner Synchrony Bank (FDIC# 27314).

Mountain America Credit Union CD Rates – Up to 5.50% APY!

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Mountain America Credit Union, based out of Sandy, Utah is the 12th largest credit union in the country with 1,033,000 and more than $14 billion in assets.

They have just over 100 branches in the following 6 states:

  • Arizona,
  • Idaho,
  • Montana,
  • Nevada,
  • New Mexico and
  • Utah.

Despite their regional footprint, they offer highly competitive CDs (certificates of deposit) that can be opened by anyone in all 50 states – online or over the phone.

If you don’t live near a local branch or have a family member that is currently a member, you can still join the credit union by also joining one of their partner affiliations. This is of no cost to you and can be done during the application process.

To see if their CDs are right for you continue reading our review below.

Mountain America Credit Union CD Rates + Account Details

image credit: macu.com

Mountain America offers three types of CD accounts:

  • Standard CDs
  • Growth CDs
  • Youth CDs

The Standard CDs and Growth CDs come with identical yields but slightly different requirements.

Their Youth CDs offer the highest yields and are only available to those 27 years old or younger. Once you turn 28, your Youth CD will automatically renew into a Standard CD.

Their Standard Certificate comes with a minimum deposit requirement of $500 and allows for one rate bump during its lifespan if one becomes available. To enable this feature, you will have to take a 0.25% discount on the rate listed below. You will also have to notify Mountain America Credit Union when you’d like to activate the rate increase. One will not be automatically activated for you if rates rise.

Next is their Growth Certificate which comes with a minimum deposit requirement of just $5.00 but requires automated monthly add-on deposits of at least $10.00 with a cumulative cap of $100,000. There is no rate bump feature with the Growth CDs.

CD Rates (Standard and Growth)

Mountain America is a member of the NCUA (FDIC equivalent for credit unions) and all deposits are federally insured up to $250,000 per depositor.

The yields shown in the table below apply to both standard CDs and Growth CDs at Mountain America Credit Union.

CD TermAPY
6 months5.50%
12 months5.25%
18 months4.50%
24 months4.50%
30 months4.50%
36 months4.50%
48 months4.00%
60 months4.00%
APY = Annual Percentage Yield

To put these yields into perspective, the national average for 12 month and 60 month CDs sits at just 1.59% and 1.37% APY, respectively, according to FDIC data. That said, there are now a number of banks and credit unions offering 5.00% and 4.50% APY on the same respective terms – with Mountain America Credit Union leading the way for 12 month CDs.

Youth Certificates

Youth CDs require a minimum deposit of just $5.00 and allow for add-on deposits up to $10,000 per year starting from the day you open your CD.

As mentioned, you must be 27 years old or younger and all Youth CDs automatically renew into Standard CDs upon the owner’s 28th birthday.

Youth CD Rates

CD TermAPY
12 months5.35%
24 months4.60%
36 months4.60%
48 months4.09%
60 months4.09%
APY = Annual Percentage Yield

How Much Can you Earn with a Mountain America CD?

To see how much money you can earn from a Mountain America Credit Union CD take a look at the table below. It shows the total amount of money you’d earn in interest payments from a handful of Mountain America Credit Union’s most competitive CDs. It assumes a one-time deposit of $10,000.

CD TermAPYEarnings
6 months5.50%$271.32
12 months5.25%$525.00
24 months4.50%$920.25
36 months4.50%$1,411.66
60 months4.00%$2,166.53
Earnings = Total earnings from all interest payments through maturity.

How do Mountain America’s CD Rates Compare?

To get an idea of how Mountain America Credit Union’s CD rates compare to other well known credit unions with NCUA insurance, take a look at the table below.

Credit UnionBest CD Rate (APY)
Connexus Credit Union5.26%
GreenState Credit Union4.85%
Navy Federal Credit Union4.85%
Mountain America Credit Union5.50%
CD rates surveyed on June 5, 2023.

Compounding and Crediting Interest

Interest is compounded daily and credited back to the CD account monthly on all Mountain America CDs. You may elect to have the interest transferred to a MACU (Mountain America Credit Union) savings account which can then be withdrawn but this must be done upon account opening. You can learn more in their Truth-in-Savings disclosure forms (see PDF here).

Grace Period and Early Withdrawal Fees

Upon the maturity of any MACU (Mountain America Credit Union) CD, you will be given a 10 day grace period in which you may close out your CD or modify it in any way. If nothing is done during this 10 day window, your CD will automatically renew into a new standard CD with the same term and going APY at that time. Keep in mind, this means that all Growth CDs will automatically renew into Standard CDs with the same term.

If you need access to the funds in your CD prior to its maturity you will incur an early withdrawal fee. The fee(s) are as follows:

CD TermEarly Withdrawal Penalty
12 months or less90-day dividends penalty
greater than 12 mos and less than 48 mos180-day dividends penalty
48 months or greater365-day dividends penalty
mos = months

How to Open and Fund a CD

As noted, opening and funding a Mountain America Credit Union CD can be done online or over the phone by consumers in all 50 states. You can get started here.

Once your application has been accepted, the first account you’ll need to open is a MACU Traditional Savings account. All of the funds destined for your CD account must first come through this savings account. You’ll also need to maintain a minimum balance of $1.00 in the account for membership purposes after your CD is open and funded.

To complete the process you’ll need to following personal information:

  • email
  • phone
  • home address
  • social security number
  • driver’s license

If you’re going to make a transfer from another bank or credit union, you’ll need:

  • your current bank or credit union’s routing number
  • your account number

Chase Bank CD Rates – Up to 4.50% APY!

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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 $4 trillion in assets as of the end of last year.

Chase Bank has 4,700 branches and 16,000 ATMs nationwide. They offer a full range of financial services that reach nearly every age group and demographic.

Despite the bank’s eye-popping asset size, their current CD rates have been slow to keep up with those offered by many FDIC-insured online banks and nationally available credit unions.

📌 Please Note: 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.

To see if Chase Bank CDs are right for you, continue reading our review below.

Chase Bank CD Rates + Account Details

image credit: chase.com

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. Two factors will determine the APY (annual percentage yield) that is applied to your Chase Bank CD. These are:

  1. Deposit size
  2. Region

The deposit sizes come in ranges or tiers. They tiers are as follows:

  • $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.

Once you’ve entered your zip code, you can see Chase’s current CD rates by deposit amount. Their CD rates don’t vary too much by region – with their best offer being either 4.50 or 4.25% APY depending on where you live. We’ve sampled CD rates from the following U.S. cities to give you an idea of what you might encounter:

  • New York City (zip: 11368)
  • Los Angeles (zip: 90011)
  • Seattle (zip: 98122)
  • Boise, Idaho (zip: 83701)

The CD rates listed below were surveyed on June 4, 2023.

CD Rates (New York)

CD TermAPY ($0 – $9,999)APY ($10k – $99,999)APY ($100K +)
1 month0.02%0.02%0.02%
2 month0.02%0.02%0.02%
3 month3.00%3.00%3.00%
6 month4.00%4.00%4.25%
9 month0.02%0.05%0.05%
12 month3.00%3.00%3.75%
15 month0.02%0.05%0.05%
18 month0.02%0.05%0.05%
21 month0.02%0.05%0.05%
24 month2.00%2.00%2.00%
30 month1.50%1.50%1.50%
36 month2.00%2.00%2.00%
42 month1.50%1.50%1.50%
48 month1.50%1.50%1.50%
60 month1.50%1.50%1.50%
84 month1.50%1.50%1.50%
120 month1.50%1.50%1.50%
APY = Annual Percentage Yield

To give these yields some context, the current national average for a 12 month CD and a 60 month CD sit at 1.59% and 1.37% APY, respectively, according to FDIC data and average CD rates in New York are 2.27% and 2.59% APY for the same respective terms, according to Bankrate.

CD Rates (Los Angeles)

CD TermAPY ($0 – $9,999)APY ($10k – $99,999)APY ($100K +)
1 month0.02%0.02%0.02%
2 month0.02%0.02%0.02%
3 month3.00%3.00%3.00%
6 month4.00%4.00%4.25%
9 month0.02%0.05%0.05%
12 month3.00%3.00%3.75%
15 month0.02%0.05%0.05%
18 month0.02%0.05%0.05%
21 month0.02%0.05%0.05%
24 month2.00%2.00%2.00%
30 month1.50%1.50%1.50%
36 month2.00%2.00%2.00%
42 month1.50%1.50%1.50%
48 month1.50%1.50%1.50%
60 month1.50%1.50%1.50%
84 month1.50%1.50%1.50%
120 month1.50%1.50%1.50%
APY = Annual Percentage Yield

Average CD rates for 12 and 60 month terms in California sit at 2.36% and 2.74% APY for comparison.

CD Rates (Seattle)

CD TermAPY ($0 – $9,999)APY ($10k – $99,999)APY ($100K +)
1 month0.02%0.02%0.02%
2 month0.02%0.02%0.02%
3 month3.00%3.00%3.00%
6 month4.00%4.00%4.50%
9 month0.02%0.05%0.05%
12 month3.00%3.00%3.75%
15 month0.02%0.05%0.05%
18 month0.02%0.05%0.05%
21 month0.02%0.05%0.05%
24 month2.00%2.00%2.00%
30 month1.50%1.50%1.50%
36 month2.00%2.00%2.00%
42 month1.50%1.50%1.50%
48 month1.50%1.50%1.50%
60 month1.50%1.50%1.50%
84 month1.50%1.50%1.50%
120 month1.50%1.50%1.50%
APY = Annual Percentage Yield

Average 12 and 60 month CD rates for Washington state are 2.37% and 2.58% APY for comparison.

CD Rates (Boise, ID)

CD TermAPY ($0 – $9,999)APY ($10k – $99,999)APY ($100K +)
1 month0.02%0.02%0.02%
2 month0.02%0.02%0.02%
3 month3.00%3.00%3.00%
6 month4.00%4.00%4.25%
9 month0.02%0.05%0.05%
12 month3.00%3.00%3.75%
15 month0.02%0.05%0.05%
18 month0.02%0.05%0.05%
21 month0.02%0.05%0.05%
24 month2.00%2.00%2.00%
30 month1.50%1.50%1.50%
36 month2.00%2.00%2.00%
42 month1.50%1.50%1.50%
48 month1.50%1.50%1.50%
60 month1.50%1.50%1.50%
84 month1.50%1.50%1.50%
120 month1.50%1.50%1.50%
APY = Annual Percentage Yield

Average 12 and 60 month CD rates in Idaho sit at 2.41% and 2.80% APY for comparison.

How Much Can you Earn with a Chase Bank CD?

How much you earn on a Chase Bank CD is going to depend on four variables:

  1. The CD term you choose.
  2. The APY (annual percentage yield) on your CD.
  3. Your deposit size.
  4. Your Location.

The table below shows how much you’d earn with a Chase Bank CD assuming a $100,000 deposit for Chase Bank’s most competitive terms. Rates are based on the location of Seattle, WA (zip code: 98122).

CD TermAPYEarnings
3 months3.00%$741.71
6 months4.50%$2,225.24
12 months3.75%$3,750.00
2 years2.00%$4,040.00
3 years2.00%$6,120.80
5 years1.50%$7,728.40
Earnings = Sum of all interest payments through maturity.

How do Chase Bank’s CD Rates Compare?

Although Chase was quick to bump up their CD rates back in 2022 when the Fed began to lift prime rates in a major way, other large brick and mortar banks have caught up and even surpassed them. See the table below to compare Chase’s CD rates with other top CD rates from big banks.

BankCD TermAPY
Chase Bank6 months4.00% – 4.50%
Citibank9 months4.75%
Capital One24 months4.75%
Wells Fargo6 months4.76%
Bank of America13 months4.60%
CD rates surveyed June 4, 2023.

To get a better idea of how Chase Bank’s CD rates compare with some of the largest nationally available credit unions and their best CD rates, take a look at this second table below.

Bank/Credit UnionCD TermAPY
Chase Bank6 months4.00% – 4.50%
Alliant Credit Union12 months5.00%
MACU (Mountain America Credit Union)24 months5.50%
Navy Federal Credit Union18 months4.85%
PenFed Credit Union18 months4.70%
CD rates surveyed June 4, 2023.

Calculating Interest

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

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 CD without facing a penalty. During this time you may also roll your funds into another deposit with a different term or close it out entirely.

All Chase Bank CDs come with a standard 10 day grace period.

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

Fees That May Apply

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

Wire Fees:

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.

Final Thoughts

Although Chase Bank has vast coverage across the country and abroad, many of their CD rates are still less competitive than what you can find from most FDIC-insured online banks and nationally available credit unions.

And as of June 2023, all of the big banks offer slightly more competitive CD rates than Chase.

Charles Schwab CD Rates – Now up to 5.50% APY!

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Charles Schwab is a multinational financial services company founded in 1971 and headquartered in San Francisco, California.

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.

As of March 2023, they have 34 million active brokerage accounts, 1.7 million bank accounts and roughly $7.38 trillion (yes, with a T) in total client assets.

For the purposes of this review, we will focus on the brokered CD (certificate of deposit) rates offered through Charles Schwab.

To see if their CDs are right for you, continue reading our review below.

Charles Schwab Brokered CD Rates + Account Details

image credit: schwab.com

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.

CD Rates

TermAPY
1-3 Month5.41%
4-6 Month5.37%
7-9 Month5.34%
10-18 Month5.50%
APY = Annual Percentage Yield

The CD rates displayed above were surveyed on June 2, 2023.

To put these offers in perspective, the current national average on a 12 month CD and a 60 month CD sit at just 1.59% and 1.37% APY, respectively, according to recent FDIC data.

How do Charles Schwab’s CD Rates Compare?

If you want to see how Charles Schwab’s CD rates stack up against other major brokerages then take a look at the table below comparing top yields from some of the largest brokerage firms in the country.

BrokerageBest APYCD Term
Charles Schwab5.50%1-3 months
Edward Jones5.25%6-12 months
Fidelity5.35%3 and 9 months
Vanguard5.40%10-18 months
CD Rates surveyed June 2, 2023

How Much Can You Earn with a Charles Schwab CD?

If you’re curious about how much money you can make with a Charles Schwab CD take a look at the table below. This shows how much money you’d earn in total interest payments with a few of Charles Schwab’s CD offers. It assumes a deposit size of $10,000.

CD TermAPYTotal Earnings
3 months5.41%$132.59
6 months5.37%$264.99
9 months5.34%$397.88
12 months5.50%$550.00
Total Earnings = The sum of all interest payments throughout the life of the CD.

Brokerage Fees

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.

FDIC-Insurance

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

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

Grace Period

The exact grace period for your Charles Schwab CD can be found by contacting the issuing banking institution. Your broker can help you access this information.

In general, banks and credit unions typically offer a 7 – 10 calendar-day grace period in which the deposit holder may add or withdraw funds penalty-free before the CD automatically renews into a new CD with the same term and the going APY at that time.

Early Withdrawal Fees

Early withdrawal fees do not exist with brokered CDs. If you need funds prior to maturity, your Charles Schwab broker will help you sell it on the secondary market.

You may lose money on this sale depending on where interest rates are at that time. Learn more in the section below.

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.

Callable CDs

In some cases your brokered CD through Charles Schwab may be callable. This means the CD issuer may redeem the CD at a specified date or at the sole discretion of the issuing bank or credit union.

If your CD is redeemed by the issuer, you will be paid the outstanding principal amount and interest accrued up to, but not including, the call date. No interest will be earned after the call date as the CD will be closed out. To learn more visit Charles Schwab’s CD disclosure statements (PDF here).

Final Thoughts

Charles Schwab CD rates are getting more competitive each month as the Fed continues to increase rates to combat inflation. Vanguard, Edward Jones and Fidelity have also seen their CD rates rise this year as well.

That said, we may be nearing a peak in both prime rates and deposit rates as inflation continues to fall (now at 4.93%) and the Fed is unlikely to raise rates again during their next session in the middle of June.

Fidelity CD Rates – Now up to 5.35% APY!

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Fidelity is a multi-national financial services corporation based out of Boston, Massachusetts. They are one of the top 10 AMC (asset management companies) in the world with $3.88 trillion in assets under management and a combined customer asset value of $10.3 trillion as of December 2022.

Fidelity offers a wide range of services, products and tools to suit investors of varying experience levels and risk tolerances.

In this review we will focus on the brokered CDs offered through Fidelity. These can be found under their fixed income and bonds category.

It is important to note that Fidelity is not a bank, but a brokerage firm. Therefore Fidelity does not issue any certificates of deposit themselves, but rather “brokers” or resells them to their clients. The deposits are still obligations of the issuing bank, and thus come with FDIC-insurance up to $250,000 per depositor. That said, because Fidelity is a brokerage service, you can hold multiple CDs in your brokerage account with them, effectively expanding your FDIC coverage past the $250,000 limit. This is also true for their cash management account which allows for FDIC coverage up to $1.25 million.

You can open new issue CDs and/or secondary market CDs through Fidelity. New issue CDs are typically sold at par and clients do not pay a trading fee to purchase them. Purchases (and sales) of secondary CDs incur a trading fee of $1 per CD (1 CD = $1,000 par value). Download Fidelity’s CD disclosure document for a full understanding of their terms and conditions.

Fidelity CD Rates + Account Details

image credit: fidelity.com

Fidelity offers ten standard term New Issue CDs ranging from 3 months to 5 years that come with a minimum deposit requirement of $1,000.

CD Rates

TermExpected APY
3 months5.35%
6 months5.30%
9 months5.35%
1 year5.30%
18 month5.20%
2 years4.90%
3 years4.65%
4 years4.60%
5 years4.50%
APY = Annual Percentage Yield

[The CD rates above were surveyed on June 2, 2023.]

To give Fidelity’s new issue certificate of deposit rates (shown in the table above) some context, the current national average for 12 month and 5 year CDs sit at just 1.59% and 1.37% APY, respectively, according to FDIC data, while the top rates from online banks are hovering around 5.00% and 4.50% APY for the same respective terms.

How do Fidelity’s CD Rates Compare?

Take a look at the table below to compare Fidelity’s best CD rates with the top rates from other major brokerages.

BrokerageBest APYCD Term
Fidelity5.35%3 and 9 month
Charles Schwab5.50%10-18 months
Edward Jones5.25%6-12 months
Vanguard5.50%13-18 months
[The CD rates above were surveyed on June 2, 2023.]

How Much Can You Earn with a Fidelity CD?

The amount of money you can earn with a Fidelity CD is going to depend on your deposit size and the CD you choose. The table below shows how much you’d earn in total interest payments with a $50,000 deposit on a handful of Fidelity’s CDs.

CD TermAPYTotal Earnings
6 months5.30%$1,307.89
12 months5.30%$2,650.00
2 years4.90%$5,020.05
5 years4.50%$12,309.10
Total Earnings = The sum of all interest payments throughout the life of the CD.

How is Interest Calculated?

Interest on new issue Fidelity CDs do not compound. This is true with most brokered CDs as they require an immediate distribution of interest.

Interest payments will go into your Fidelity brokerage account as opposed to going back into the CD for further compounding.

Fidelity CDs that are purchased on the secondary market may be based on other interest rate calculations. You will need to contact the issuing bank or credit union with questions concerning the interest rate calculation on a secondary market CD.

Fidelity Auto Roll Program

Fidelity also has an “Auto Roll Program” that comes with some helpful features. The most notable being the ability to make early withdrawals on your CD without incurring steep fees. This is in contrast to bank or credit union CDs which generally take a portion of your interest as a fine.

The second stand-out feature of the Auto Roll Program is that it allows you to sell part of your CD (or add to it) prior to its maturity date.

You can also keep track of your earnings, set up alerts and auto-renew your CDs based on your chosen asset allocation.

If you would not like to be a part of the Auto Roll Program, you may cancel at any time.

Fidelity Brokered CDs: Pros and Cons

Brokered CDs offered through Fidelity come with many benefits and few downsides for those looking for FDIC insured accounts with high yields.

✅ For starters, the current rates offered (shown above) are more competitive than those found at top online banks and credit unions.

✅ The second major benefit is liquidity. If you need your funds prior to maturity you can simply sell it during any trading day on the open market. Keep in mind though that the market prices will fluctuate based on rates. This means it’s also possible to sell your deposit for less (or more) than you purchased it for.

For example, if you open a 5 year deposit and need the funds after year 2, during which time interest rates have risen considerably, you may have a tough time selling your deposit for your full purchase price because consumers can get better rates through new issue CDs.

Conversely, if you purchase a 5 year deposit and rates drop significantly (which they have) then you may find investors willing to offer a premium on your CD in the secondary market.

🛑 While new CDs don’t come with any fees, CDs purchased on the secondary market will be subject to a trading fee similar to buying or selling a stock.

🛑 You must have a taxable brokerage account or an Individual Retirement Account (IRA) with Fidelity to hold your CDs. This is also where your Fidelity CD’s interest payments will be deposited.

🛑 CDs may be callable, meaning the issuer may redeem the CD on a set date prior to maturity. Interest and principal will be paid in full or partially depending on whether the entire CD is called or just a portion of it. You’ll need to check with the issuer for the call schedule to see the exact call date(s).

Citibank CD Rates – Now up to 5.97% APY!

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Citibank has been a household name for generations. They first opened their doors back in 1812, originally as the City bank of New York and today they are the 4th largest bank in the country by asset size with roughly $2.42 trillion in total.

On the savings side, Citibank has a full product suite of FDIC-insured deposit accounts with both fixed and variable interest rates.

For CDs (certificates of deposit), Citibank has:

  • 19 standard term CDs
  • 2 promotional CDs, and
  • 16 IRA CDs

Most of their CD rates are sitting at or below the national average for each respective term. To see if Citibank’s CDs are right for you, continue reading our review below.

Citibank CD Rates + Account Details

Citibank’s CDs have varying minimum deposit requirements by region. Most states will only have a $500 minimum deposit requirement, but some may have $1,000 or even $2,500. See our table below for a breakdown or proceed to Citi’s Fixed Rate CD page and enter your zip code.

You can apply for and open a Citibank CD online, however, if you plan on depositing more than $250,000 you must stop into one of Citibank’s 700 branch locations across 12 states. You can locate a branch here.

Citibank has 19 certificates of deposit terms to choose from ranging from 3 months to 5 years. If you are looking for IRA CDs they have 17 to choose from with terms also ranging from 3 months to 5 years but with some featuring higher yields than their standalone CD counterparts. You can see Citi’s IRA CD rates and account details further below.

Of the 19 CD terms Citibank offers, 3 are considered “Featured Rate” CDs. These are:

  • a 9 month CD yielding 4.05% or 4.75% APY
  • a 12 month CD yielding 4.05% APY
  • an 18 month CD yielding 4.05% APY

Citibank CDs are federally insured by the FDIC up to $250,000 per depositor or $500,000 for joint accounts. See all yields below.

CD Rates

TermAPY
3 months0.05%
4 months0.05%
5 months0.05%
6 months1.10%
7 months0.05%
8 months0.05%
9 months4.05%
9 months ($100k +)4.75%
10 months0.05%
11 months2.00%
11 months ($100k +)3.00%
12 months4.05%
13 months0.10%
14 months0.10%
15 months0.10%
18 months4.05%
2 years2.50%
30 months0.10%
3 years2.50%
4 years2.50%
5 years2.50%
APY = Annual Percentage Yield

As you can see they have mostly flat yields across all terms but are slowly introducing new featured rate CDs and promotional CDs that are far more competitive.

To give these yields some context, the current national average for a 12 month CD and a 5 year CD sit at 1.59% APY and 1.37% APY, respectively, according to recent FDIC data, with top yields from online banks inching over the 5.00% APY and 4.50% APY mark for the same respective terms.

Citibank Promotional CDs

Citibank also offers 2 promotional deposits. A “Step Up CD” and a “No Penalty CD.”

The Step Up CD is a 30 month deposit with a composite APY of 0.10%. You can read more about the terms and conditions here.

The No Penalty CD is a 12 month deposit that used to feature a decent APY last year, but is no longer competitive. Funds from this account may be withdrawn penalty-free at any time after six calendar days from opening the account. You can read more about the terms and conditions here.

Related: You may want to check out the Citi Accelerate Savings account which is available in select regions.

Promotional CD Rates

TermAPY
12 month No Penalty CD0.05%
30 month Step Up CD0.10%
APY = Annual Percentage Yield

Both the Step Up CD and the No Penalty CD come with minimum deposit requirements of $500.

Citibank IRA CDs

Citibank also offers IRA CDs. These IRA CDs only come with short terms and mostly have low yields other than the highlighted rates below. The highlighted 3 month, 6 month and 18 month (variable rate) IRA CDs feature some of the most competitive yields available anywhere in the country for those respective terms.

TermAPY
3 month5.18%
4 month0.05%
5 month0.05%
6 month5.23%
7 month0.05%
8 month0.05%
9 month5.18%
10 month0.05%
1 year5.07%
18 month Variable CD5.97%
13 month0.10%
18 month4.05%
2 year2.50%
30 month0.10%
3 year2.50%
4 year2.50%
5 year2.50%
APY = Annual Percentage Yield

Citibank introduced the promotional 18 month variable rate CD in the Spring of 2022 and it has been Citibank’s most competitive offer ever since. This is a variable rate, meaning it may change prior to maturity.

Minimum Deposit Requirements

As mentioned, the minimum deposit requirement for all Citibank CDs vary by region. Below is the breakdown.

StateMinimum Deposit
California, Nevada$1,000
Florida, Maryland, Virginia, D.C.$2,500
All other states$500

To open a Citibank CD online you must be a U.S. resident or citizen and at least 18 years old. You will need the following pieces of information to complete your application online:

  • Physical address
  • Date of Birth
  • Social Security Number
  • Email Address
  • Phone Number

To fund the account you will need the bank account number and routing number for the institution you will be transferring the funds from.

Interest on all Citibank CDs compounds daily. For CDs with terms of one year or less, interest is paid to you either monthly or upon maturity. And for CDs with terms longer than one year, interest is paid monthly.

How Much Can you Earn with a Citibank CD?

The amount you can earn on a Citibank CD is going to depend on 3 variables. These are:

  1. Deposit amount.
  2. APY (annual percentage yield).
  3. CD term.

To get a better understanding of your potential overall interest earnings from a Citi CD, we’ve compiled a table below of Citi’s best CD rates and total earnings from interest payments based on a $100,000 deposit.

CD TermAPYTotal Earnings
9 months4.75%$3,541.76
12 months4.05%$4,050.00
18 months4.05%$6,136.10
18 month variable CD (IRA only)5.97%$9,087.35
Total Earnings = Total interest paid for the duration of the CD.

How do Citibank’s CD Rates Compare?

Below are 3 tables comparing Citibank’s current CD rates with other large U.S. banks, popular FDIC-insured online banks and then brokered CDs offered through major brokerages.

Citibank’s CD Rates vs Other Big Banks

BankMin. DepositBest APY
Citibank$5005.97%
Bank of America$100,0004.60%
Chase$1,0004.00%
U.S. Bank$1,0004.75%
Wells Fargo$5,0004.76%
CD rates surveyed June 2, 2023.

Citibank’s CD Rates vs Online Banks

BankMin. DepositBest APY
Citibank$5005.97%
Barclaysnone4.80%
Bread Savings$5,0005.20%
CIT Bank$1,0005.00%
Discover Bank$2,5004.75%
CD rates surveyed June 2, 2023.

Citibank’s CD Rates vs Brokered CDs

InstitutionMin. DepositBest APY
Citibank$5005.97%
Charles Schwab$1,0005.50%
Edward Jones$1,0005.25%
Fidelity$1,0005.35%
Vanguard$1,0005.50%
CD rates surveyed June 2, 2023.

Early Withdrawal Penalties

TermPenalty
1 – 12 months90 days’ interest
13 months +180 days’ interest

Final Thoughts

Citibank’s CDs are quickly becoming more competitive with the addition of new promotional CDs for both regular and IRA accounts.