APY GUY: Maximize Your Savings & Earnings

editorial staff

Sallie Mae CD Rates – Now up to 0.70% APY!


image credit: salliemae.com

[Update September 2021: Sallie Mae raised the rates on many of their CDs with terms of 12 months and greater. The biggest increases came with their 12 and 36 month CD which now yield 0.60% APY and 0.70% APY, respectively. They also raised their money market rate by 0.10% APY to the current 0.40% APY. See all of their current rates below.]

Sallie Mae has become a household name as the largest originator of student loans in the country.

Founded in 1972 as the Student Loan Marketing Association, Sallie Mae operated with government sponsorship by handling both federal and private sector loans.

Some may remember their Federal Stafford and Federal Perkins loans coming from Sallie Mae. However, Sallie Mae started the path of incorporation as a private company during the 90s and completed it in 2004, severing their operation from the government.

Today, their product suite covers a large range of financial services from private education loans and college savings programs to banking services and insurance programs.

In this review, we’ll focus on the savings side of Sallie Mae Bank. Sallie Mae is a member of the Federal Deposit Insurance Corporation and currently offers several types of FDIC-insured savings accounts for a variety of needs: the SmartyPig savings account, certificates of deposit, money market, and high-yield savings accounts are all on the menu with Sallie Mae.

Please note the SmartyPig savings account will not be covered here. Use the link above to read more about that account.

Sallie Mae CD Rates + Account Details

If you’re looking to lock-in an interest rate, a certificate of deposit may be the way to go.

Sallie Mae was named as one of the best banks for certificates for deposit in 2020 by GOBankingRates.

Although their CD rates have been more competitive in the past, they still feature returns that beat the national average(s) for their respective terms by decent margins.

TermMinimum DepositAPY
6 months$2,5000.30%
9 months$2,5000.30%
11 months$2,5000.30%
12 months$2,5000.60%
13 months$2,5000.45%
15 months$2,5000.45%
18 months$2,5000.65%
24 months$2,5000.60%
30 months$2,5000.60%
36 months$2,5000.70%
60 months$2,5000.45%

To put Sallie Mae’s CD rates (above) in perspective, the current national average for a 12 month CD sits at 0.14% APY and the current average for a 5 year CD sits at 0.24% APY according to recent FDIC data.

As you can see from the table, there is a wide range of terms to choose from but the current yields don’t vary much by term.

Grace Period

Upon the maturity of your Sallie Mae CD, you’ll have a 10 calendar day grace period during which you can withdraw funds from your CD account without penalty. If no action is taken within the 10 day grace period, the funds will automatically renew into the same CD with its current rate.

Locking-In CD Rates

The interest rate and APY will be determined on the date you fund the CD account, not the date you open the account. However, you will receive the higher interest rate of the date your account opened or was funded if the first deposit occurs within ten days from the opening date.

Once your interest rate is set and fixed, you will be paid this rate until maturity. Interest is compounded daily and credited to your account monthly.

The interest begins to accrue on the same business day if the deposit is received before 11:00 PM ET. If the deposit occurs after 11:00 PM ET on a business day or non-business day, the deposit is considered received on the next business day.

Early Withdrawal Penalties

If your CD account has a maturity of 12 months or less, the penalty is equal to 90 days of simple interest on the amount withdrawn. If the CD account has a maturity greater than 12 months, the penalty will equal 180 days of simple interest on the amount withdrawn.

In circumstances such as death or incompetence of the account holder, the law may permit an early withdrawal penalty waiver.

Sallie Mae Money Market Rates + Account Details

Sallie Mae’s money market account is similar to their SmartyPig account but with a few more features. For example, you can write checks from the money market account plus earn a slightly higher rate.

Unlike Sallie Mae’s CDs there are no minimum deposit requirements to open a money market account. The APY you receive applies to all balances as well, which is different than most money market accounts that tie yields to balances.

Sallie Mae Money Market Account Rates

Monthly BalanceMinimum DepositAPY
$0$00.50%

To put the APY (above) in perspective, the current national average for a money market account sits at roughly 0.11% APY. On top of the respectable yield, the lack of both minimum deposit and monthly balance requirements make this an attractive account. Keep in mind money market rates are variable and can change at any time without notice.

Transaction Limitations

You may deposit or withdraw money via:

  • Check,
  • EFT, or
  • Wire Transfer.

There is a maximum of 6 transfers or withdrawals (a combination of either) during any calendar month or statement cycle per Federal Regulation D. Please note that if using your Sallie Mae money market account to repay loans at Sallie Mae, there is no limit in the number of transfers you may make.

Sallie Mae Fee Schedule

  • Check Order Charge (for orders placed after account opening; orders placed at the time of account opening are free): $5
  • Stop Payment Charge: $15
  • Returned Check Fee: $5
  • Insufficient Funds (NSF) Fee: $19
  • Wire Fee: $20 (United States only). Please note that the receiving bank may charge a wire fee on their end. Sallie Mae will not allow international wire transfers.

Sallie Mae Money Market Promotional Offers

Sallie Mae may offer a bonus interest rate and APY from time to time for their money market account customers. The promotional period’s bonus rate will be paid regardless of your balance and discontinued after the promotional period has ended. Your interest rate and APY will then revert to Sallie Mae’s current interest rate and APY. Promotions are not valid with other offers or promotions unless otherwise stated.

Sallie Mae High Yield Savings Account Rates + Details

The high yield savings account is similar to the SmartyPig and money market account in that it has no minimum balance/deposit requirements or monthly maintenance fees.

The rate is slightly lower than the money market account, but still handily beats the current national average for FDIC-insured online savings accounts.

Sallie Mae High Yield Savings Account Rate

Monthly BalanceMinimum DepositAPY
$0$00.35%

Rates are compounded daily and credited to your account monthly. As with the money market account the APY is variable and subject to change at any time without notice.

Transaction Limitations

You may withdrawal or deposit money via:

  • Check,
  • EFT, or
  • Wire Transfer

The same 6 transaction limitation applies to the high yield savings account. This applies to both withdrawals and deposits (a combination of either) per federal regulation.

Fees

• Returned Check Fee: $5
• Wire Fee: $20 (United States only). Please note that the receiving bank may charge a wire fee on their end. Sallie Mae will not allow international wire transfers.

Banking Experience and Customer Sentiment

Sallie Mae has just one physical location in Utah, which is their headquarters. So if you value in-person banking this institution likely isn’t for you.

That said, if you value respectable rates and low maintenance accounts that can be managed 100 percent digitally than Sallie Mae deserves your consideration. Their rates are regularly among the top online offers available and their accounts have received a number of awards from third party sites.

According to user reviews on both Android and iOS apps, Sallie Mae’s app experience ranges from mediocre to comfortably above average (especially as far as banking apps go).

They receive just 3.6 starts on Android, but an impressive 4.6 stars on the App Store.

Sallie Mae’s SmartyPig account has a separate app and also receives high marks.

Final Thoughts

Sallie Mae has a variety of options in terms of deposit accounts. All of their variable rate products feature $0 minimum deposit and monthly balance requirements which make them available to pretty much anyone.

Their CDs feature above average rates, but better APYs can be locked-in through other online institutions or credit unions.

Capital One CD Rates – Now up to 0.80% APY!


image credit: capitalone.com

[Update September 2021: Capital One made a bold move this summer by raising the rates on their 3 year and 5 year CDs by double what they were in just June of this year. Capital One’s 3 year and 5 year CDs now provide an APY of 0.60% and 0.80%, respectively — up from 0.30% and 0.40% APY in June. See all of Capital One 360’s current CD rates below.]

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 months0.60%
48 months0.65%
60 months0.80%

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.

Ally Bank CD Rates – Still up to 0.80% APY!


image credit: ally.com

[Update September 2021: Ally Bank’s CD rates remain largely unchanged throughout the summer and 2021 in general. The only APY change comes from their 3 month CD which had its rate lowered from 0.20% APY to 0.15% APY. You can see all of Ally Bank’s current CD rates further below in this article.]

Ally Bank is an acclaimed digital bank that offers a suite of competitive FDIC-insured online savings products including CDs, savings accounts, interest checking and money market accounts.

[You can read a review of Ally Bank’s money market account and its current APY here.]

In this review we’ll focus on Ally Bank’s fixed-rate, certificates of deposit. They have seven standard term CDs ranging from 3 months to 5 years that can be opened as standard CDs or IRA CDs. They also have two promotional CDs – the “Raise Your Rate CD” and the “No Penalty CD.”

The Raise Your Rate CD is beneficial in an ascending interest rate environment. This product gives you the opportunity to increase your rate once over a 2-year term or twice over a 4-year term if their rate for your term and balance tier goes up while your CD is active.

The No Penalty CD, as the name implies, allows you to withdraw any amount at any time after the first six days of funding the account. You can keep the interest earned with no penalties.

For those that may not remember, Ally Bank is the rebrand of GMAC – the financial arm of General Motors. Following the financial collapse of 2008, GMAC fully rebranded to Ally Bank in 2009. Since then they’ve been recognized for numerous awards for online banking innovation, customer service, and their commitment to giving back to local communities.

Ally Bank CD Rates + Account Details

image credit: ally.com/bank/cd-rates/

As mentioned, Ally Bank has seven standard term certificates of deposit that come with no minimum opening deposit requirements. The terms range from 3 months to 5 years and come with annual percentage yields that beat the current national average by considerable margins and regularly place among the top rates for online banks nationwide.

Ally Bank CDs are FDIC insured up to $250,000 per depositor or $500,000 for joint accounts.

Ally Bank CD Rates

TermAPY
3 months0.15%
6 months0.25%
9 months0.30%
12 months0.55%
18 months0.60%
3 years0.65%
5 years0.80%

To give the yields above some context, the current national average for 12 month CDs and 5 year CDs sits at just 0.14% and 0.27% APY, respectively, according to the most recent FDIC data.

Ally Ten Day Best Rate Guarantee

All of Ally Bank’s CDs come with a “ten day best rate guarantee.” This means that if you fund your account within 10 days of opening it and rates go up during this time, you will get Ally’s best rate for that term and your balance tier during that time. This also applies with CD renewals.

Interest is compounded daily which gives your overall APY (annual percentage yield) a boost over bank deposits that compound less frequently like monthly or quarterly.

Tiered rates by deposit amount do exist in more favorable savings rate environments; however, Ally Bank CDs pay the same APY for each term regardless of your deposit amount currently.

Early Withdrawal Penalties

Early withdrawal penalties at Ally Bank vary by CD term. They are as follows:

  • CD terms of 24 months or less will incur an early withdrawal penalty of 60 days’ interest.
  • CD terms of 25 – 36 months will incur an early withdrawal penalty of 90 days’ interest.
  • CD terms of 37 – 48 months will incur an early withdrawal penalty of 120 days’ interest.
  • CD terms of 48 months or longer will incur an early withdrawal penalty of 150 days’ interest.

Grace Period

Ally Bank has a standard grace period of 10 days where you can withdraw, add or transfer funds without incurring a fee. If nothing is done during this period, the CD will renew under the same terms at the current APY.

Ally Bank Loyalty Rewards for CD Account Holders

Ally Bank has a little-known loyalty program for those that continue to open and/or renew certificates of deposit with them. Currently, they are giving a 0.05% APY bump when you renew any CD with them. Be sure to check back 30 days before your CD matures to see what the reward is at that time.

Ally Bank “Raise Your Rate CD” Rates + Details

The Raise Your Rate CD offered by Ally Bank is going to be best suited for a climbing interest rate environment. Given the fact that CD rates are generally fixed throughout their duration, an opportunity to give your CD rate a bump when interest rates are on the rise, can be a huge benefit. And one that many other banks do not offer.

Ally Raise Your Rate CDs

TermAPY
2 year0.55%
4 year0.55%

The 2 year Raise Your Rate CD will give you the opportunity to increase your rate once over the life of the deposit.

The 4 year Raise Your Rate CD will give you the opportunity to increase your rate twice over the life of the deposit.

Ally Bank “No Penalty CD” Rate + Details

Withdraw any amount fee-free after 6 days of funding the account.

The Ally Bank No Penalty CD comes with only one term at the moment. The term is 11 months. You can withdraw any or all of your money from this deposit at any time after six days from funding the account.

Ally Bank No Penalty CD Rate

TermAPY
11 months0.50%

As with Ally Bank’s other certificate of deposit products this APY is the same regardless of your deposit amount. In the past Ally Bank has rewarded larger deposits with higher yields; however, rates today are the same across the board for all amounts.

Final Thoughts

Ally Bank keeps their CDs simple and rewarding with no monthly maintenance fees, no opening deposit requirements and even the opportunity to open a “no penalty CD” with fee-free access to your deposited funds.

The APYs on their IRA CDs and regular CDs beat the current national average(s) handily, but pay the same yields on all terms regardless of deposit amount. There are also no differences in rates whether the CD is opened in an IRA or not.

Ally Bank’s digital interface – both online and through their IOS and android apps – are very intuitive and allow for easy deposits and account monitoring as well.

Charles Schwab CD Rates – Now up to 0.40% 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 CDs0.10%
4-6 Month CDs0.10%
7-9 Month CDs0.10%
10-18 Month CDs0.15%
1.5-2.5 year CDs0.40%

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.

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.