APY GUY: Maximize Your Savings & Earnings

CD Rates

BMO CD Rates – Now up to 5.10% APY!

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Fact Checked :
Updated

BMO Bank, based out of Chicago, Illinois, offers consumers 10 regular term CDs (certificates of deposit) with durations ranging from 3 months to 5 years.

They also have 5 “CD Specials” with oddball terms of 13, 25, 35, 45, and 59 months. These CDs come with higher rates and APYs (annual percentage yields) than their standard term CDs and are quite competitive when compared to the national average for each term.

Although BMO Bank has branch locations in just 9 states (Arizona, California, Florida, Illinois, Indiana, Kansas, Missouri, Minnesota, and Wisconsin) their CDs can be opened online by consumers in all 50 states or within a branch for local residents. The same yields and terms apply whether you’re opening the account in-person at a branch or at your home.

BMO is member FDIC and all deposit accounts are federally insured up to the applicable limits.

📌 Please Note: BMO Bank’s CD rates may vary by region but do not per the time of this writing. All of the locations we surveyed (Los Angeles, CA, Seattle, WA, St. Louis, MO, Miami, FL and NYC, NY) provided the same yields and terms. If you’re opening a BMO CD online, you’ll first need to enter your zip code to see the current rates in your area.

BMO Bank CD Rates + Account Details

image credit: bmo.com

As noted, BMO Bank’s most competitive CD rates come with their Special CD accounts. There are 5 terms to choose from and they require a minimum deposit of $1,000 to open. This is down from a $5,000 minimum earlier in 2023.

CD Rates (CD Specials)

TermAPY
13 months5.10%
25 months4.75%
35 months4.50%
45 months4.50%
59 months4.50%
APY = Annual Percentage Yield

To put these offers in perspective, the current national average for a 12 month CD and a 60 month CD sit at just 1.76% and 1.41%, respectively, according to recent FDIC data.

That said, top yields from online banks are now hovering around 5.50% and 4.50% APY for the same respective terms.

How Do BMO Bank CD Rates Compare?

The table below shows the best CD rate offered at BMO Bank compared to some of the best CD rates offered by other FDIC-insured banks.

BankBest CD Rate (APY)
Merrick Bank5.60%
Needham Bank5.40%
TD Bank5.50%
Valley Bank5.60%
BMO Bank5.10%
CD rates surveyed on September 6, 2023.

How Much Can You Make with a BMO Bank CD?

The amount of money you can earn with a CD from BMO Bank is going to depend on your deposit size, the term you choose and its going APY. It may also depend on your location, but does not per the time of this writing. Take a look at the table below. It shows potential earnings on BMO Bank’s CD Specials assuming a deposit size of $50,000.

CD TermAPYEarnings
13 months5.10%$2,768.28
25 months4.75%$5,075.39
35 months4.50%$6,849.40
45 months4.50%$8,973.39
59 months4.50%$12,080.96
Earnings = Sum of all interest payments through maturity.

Standard CD Rates

All of BMO Bank’s standard CDs are providing negligible yields at this time for all locations. These accounts also require a minimum deposit of $1,000 to open.

TermAPY
3 months0.05%
6 months0.05%
9 months0.05%
12 months0.05%
18 months0.05%
24 months0.05%
30 months0.05%
36 months0.10%
48 months0.15%
60 months0.25%
APY = Annual Percentage Yield

Add-On CDs

From time to time BMO Bank offers Add-On CDs. They discontinued this offer earlier in 2023, but may bring it back again.

With Add-On CDs, additional deposits may be made into your BMO Bank CD during the term of the CD and during the grace period.

These additional deposits may be transferred through another BMO deposit account, mobile banking, telephone banking, a transfer request at a branch, and when you sign into your online banking account. There is a maximum deposit limit of $100,000 (excluding interest).

Grace Period

BMO Bank has a 10 calendar day grace period after maturity for both CD specials and standard term CDs. During this time you may add or withdraw any or all funds without facing a penalty. If you need to withdraw funds prior to your CD’s maturity, you will face early withdrawal fees.

If nothing is done during this 10 day grace period, your CD will renew into a new deposit with the going rate and APY at that time.

Early Withdrawal Penalties

Early withdrawal penalties are fairly straight forward and will not affect your principal, just interest accrued. They are as follows:

CD TermFee
3 months – 364 days90 days’ interest
365 days or more180 days’ interest

How to Open and Fund a BMO CD

Whether you plan to open a BMO CD online or in a branch, you’re going to need a few pieces of personal and financial information ready to verify your identity and fund your deposit.

To complete the application process, you’ll need the following:

  • Legal Name
  • Verifiable Email Address and Phone Number
  • Home Address
  • Date of Birth
  • Social Security Number or Tax ID
  • Driver’s License or State Issued ID
  • Employment Status

Once your identity has been verified and your application has been approved, you’ll be able to fund the CD. If you’re funding the BMO CD from an external bank account, you’ll need the following:

  • Current bank or credit union’s routing number.
  • Current bank account number where funds will be withdrawn from.

Ally Bank CD Rates – Now up to 5.00% APY!

Written by:
Fact Checked :
Updated

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

In this review we will just focus on Ally Bank’s fixed-rate CDs. 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 the 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.

To see if Ally Bank’s CD rates are right for you, continue reading our review below.

Ally Bank CD Rates + Account Details

image credit: ally.com

Ally Bank CDs are FDIC insured up to $250,000 per depositor or $500,000 for joint accounts. There is no minimum deposit requirement to open an Ally Bank CD.

CD Rates

TermAPY
3 months2.50%
6 months3.50%
9 months5.00%
12 months4.85%
14 month select5.00%
18 months5.00%
3 years4.25%
5 years4.10%
APY = Annual Percentage Yield

Ally Bank’s CD rates were surveyed on July 24, 2023.

To give the yields above some context, the current national average for 12 month CDs and 5 year CDs sits at just 1.76% and 1.41% APY (annual percentage yield), respectively, according to FDIC data.

The top yields from online banks like Ally and credit unions with nationwide acceptance are now inching over the 5.50% APY and 4.50% APY mark for the same respective terms.

The 14 month Select CD is another promotional deposit that is available October 17, 2023. This will automatically renew into a 12 month CD upon maturity. Read more here.

Ally had a 20 Month Select CD that expired on August 15, 2023. They may offer this term again with a new rate, but haven’t yet as of the time of this writing.

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.

Compounding Interest

Interest is compounded daily which gives your overall APY 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.

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.

Raise Your Rate CD Rates

TermAPY
2 year3.75%
4 year3.75%
APY = Annual Percentage Yield

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.

No Penalty CD Rate + Details

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.

No Penalty CD Rate

TermAPY
11 months4.55%
APY = Annual Percentage Yield

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.

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

How Much Can You Earn with an Ally Bank CD?

How much you earn with an Ally Bank CD depends on 3 variables. They are:

  1. the term you choose,
  2. its APY (annual percentage yield), and
  3. your deposit size.

Below is a chart showing the total amount of earnings you’d accumulate from interest payments through the life of a few of Ally Bank’s CDs. This assumes a deposit size of $100,000.

CD TermAPYTotal Interest Earned
9 month5.00%$3,727.04
14 month5.00%$5,857.31
18 month5.00%$7,592.98
5 year4.10%$22,251.35
APY = Annual Percentage Yield

How do Ally Bank’s CD Rates Compare?

To get a better idea of how Ally’s CD rates stack up against the competition take a look at the 2 tables below. The first table compares Ally Bank’s best CD rates with other top U.S. banks and the second compares Ally’s CD rates with other FDIC-insured online banks.

Ally vs Big Banks

BankBest CD Rate (APY)
Ally Bank5.00%
Chase5.00%
Bank of America4.75%
Citibank4.90%
Wells Fargo5.26%
CD rates surveyed September 5, 2023.

Ally vs other Online Banks

BankBest CD Rate (APY)
Ally Bank5.00%
Crescent Bank5.45%
CFG Bank5.50%
Bread Savings5.50%
Sallie Mae5.15%
CD rates surveyed September 5, 2023.

Ally Bank CD FAQs

Still have questions about Ally Bank’s certificates of deposit? See what other consumers are asking around the web plus our responses below.

Can You Get 6% APY on a CD With Ally?

No, you can not get 6.00% APY on a CD with Ally Bank at this time. You can, however, get 5.00% APY on several terms with Ally (9, 14 and 18 months).

Are Ally Bank’s CDs FDIC Insured?

Yes, Ally Bank is member FDIC (#57803) and all of their deposit accounts are federally insured up to $250,000 per depositor or $500,000 on joint accounts.

Are Ally’s CD Rates Higher than Capital One’s CD Rates?

CD rates are changing rapidly due to an increasing interest rate environment. Here is a head-to-head comparison of Capital One’s CD rates vs Ally Bank’s CD rates:

AllyCapital One
6 months3.50%3.90%
12 months4.85%4.85%
18 months5.00%5.15%
60 months4.10%4.10%
CD rates surveyed September 5, 2023.

Are Ally Bank’s CD rates going up?

Yes, Ally Bank’s CD rates have been trending up in 2023. That said, Ally has not lifted their CD rates since July of 2023 when a few of their terms hit the 5.00% APY mark for the first time in many years.

What is Ally Bank’s Routing Number?

Ally Bank’s routing number is 124003116.

What is Ally Bank’s Phone Number?

You can call Ally Bank and speak to a representative at (877) 247-2559.

How Do You Withdraw Funds at Maturity?

Once your CD is active you can login to Ally’s online banking portal and submit a transfer request up to 1 year prior to your CD’s maturity (or within your 10 day grace period). Ally will initiate the transfer on the CD’s maturity date if you schedule it ahead of time.

Are Ally Bank CDs Callable?

No, none of Ally Bank’s CDs are callable. Ally will never close out your CD for any reason.

American Heritage CD Rates – Now up to 5.00% APY!

Written by:
Fact Checked :
Updated

American Heritage Credit Union based out of Philadelphia, PA is offering some highly competitive CD (certificate of deposit) rates to their members currently featuring APYs (annual percentage yields) up to 5.00%.

American Heritage Credit Union is a member-owned financial cooperative and all deposit accounts are federally insured by the NCUA up to $250,000 per depositor.

They were founded in 1948 and are in the top 100 credit unions nationwide by assets and membership serving over 250,000 members with more than $4 billion in assets.

They offer 19 standard CDs with terms ranging from 3 months to 5 years. They also have a number of promotional CDs available as well.

If you don’t live near one of their 35 locations across Philadelphia, Bucks, Montgomery, Delaware and Camden Counties, you can still join the credit union by becoming a member of their partner organization Kids-N-Hope. Once you become a member you can open any of American Heritage Credit Union’s CDs online. Learn more below.

American Heritage Credit Union CD Rates + Account Details

image credit: americanheritagecu.org

American Heritage Credit Union CDs require a minimum deposit of $500 to open and can be opened as IRA CDs as well.

CD Rates

TermAPY
3 months3.00%
4 months3.00%
4 month (Special)4.00%
5 months3.00%
6 months4.00%
7 months4.00%
8 months4.50%
9 months4.25%
10 months4.25%
11 months5.00%
12 months5.00%
13 months4.75%
15 months5.00%
18 months4.75%
18 month (Legacy Club)4.85%
20 months4.75%
24 months4.50%
30 months4.25%
36 months4.25%
48 months4.00%
60 months4.00%
APY = Annual Percentage Yield

📍 Please note – The 4 month promotional CD requires new money to the credit union and has a maximum deposit limit of $2,000.

To put these CD rates above into perspective, the current national average for a 12 month CD and a 60 month CD sit at just 1.76% and 1.41% APY, respectively, according to FDIC data.

That said, the best CD rates available in the country are now hovering around 5.50% and 4.50% APY for the same respective terms.

How Do American Heritage Credit Union’s CD Rates Compare?

To get a better idea of how competitive American Heritage Credit Union’s CD rates are take a look at the table below. This compares the best CD rates AHCU has to offer along with the top CD rates offered at other popular NCUA-insured credit unions.

Credit UnionBest CD Rate (APY)
First Tech5.35%
Mountain America5.50%
State Employees5.60%
American Heritage5.00%
CD rates surveyed on September 5, 2023.

How Much Can You Make with a CD from American Heritage Credit Union?

The amount of money you can earn with an American Heritage Credit Union CD is going to depend on the CD term you select, its APY (annual percentage yield) and your deposit amount. Take a look at the table below showing potential earnings of a handful of AHCU CDs based on a deposit amount of $25,000.

CD TermAPYEarnings
12 months5.00%$1,250.00
15 months5.00%$1,572.15
30 months4.25%$2,741.51
60 months4.00%$5,416.32
Earnings = Sum of all interest payments through maturity.

Compounding and Crediting Interest

American Heritage Credit Union CDs feature daily compounding interest. By default the interest gets deposited to your CD for further compounding, however, for CDs with terms longer than 12 months members may choose to have this interest paid to them by check or transferred to another account of theirs. This is great for folks who use the interest as income, but just remember if you do this compounding interest does not apply.

Grace Period and Early Withdrawal Fees

American Heritage Credit Union CDs have a 7 calendar day grace period upon maturity in which you may add or withdraw any/all funds without incurring a penalty fee. If nothing is done during this period the CD will automatically renew.

If you need access to your CD’s funds prior to its maturity you will incur an early withdrawal fee. The fees are based on the term of the CD.

Early withdrawal fees are as follows:

CD TermFee
11 months or less90 days’ interest
12 – 35 months180 days’ interest
36 months or longer360 day’s interest

You can learn more about their CDs by reading their Truth in Savings disclosure.

Membership

The easiest way to join is if you live in the greater Philadelphia area and can go into one of their physical branches.

For those outside of that region just looking to take advantage of their competitive CD rates, you can easily join Kids-N-Hope with a one-time $5.00 donation.

Kids-N-Hope was formed by American Heritage Credit Union back in 1996. Doing this made AHCU the first credit union to create its own charitable organization.

The Kids-N-Hope foundation primarily provides financial support for the Music Therapy Program at the Children’s Hospital of Philadelphia, PA.

Columbia Bank CD Rates – Now up to 4.80% APY!

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Fact Checked :
Updated

Columbia Bank, based out of Fair Lawn, New Jersey is a regional bank with 60 branches and 3 lending offices throughout the state of New Jersey. They were founded in 1927 and hold roughly $9.8 billion in assets.

Despite operating mostly in New Jersey, Columbia Bank has a handful of CDs (certificates of deposit) with slightly above average yields that can be opened by anyone online throughout the country.

They have 9 standard CDs and 1 promotional “Bump Up” CD. You can open these CDs as stand alone accounts or within an IRA (individual retirement account). The interest rates provided on Columbia Bank’s IRA CDs are the same as their standard CDs.

To see if Columbia Banks’ CD rates are right for you, continue reading our review.

Columbia Bank CD Rates + Account Details

image credit: columbiabankonline.com

All of Columbia Bank’s CDs come with a minimum deposit requirement of $500. Columbia Bank is member FDIC and all deposit accounts are federally insured up to the applicable limits.

CD rates surveyed on September 1, 2023.

CD Rates

CD TermAPY
4 months4.20%
9 months4.70%
12 months2.25%
18 months4.80%
20 month Bump CD3.00%
24 month3.30%
36 month3.30%
60 month3.30%
72 month3.30%
APY = Annual Percentage Yield

The 20 month Bump Up CD allows you to make a one-time rate increase during the life of this CD. You can increase it anytime Columbia Bank increases the yield for this account.

📌 Please Note: The 60 month and 72 month CD options can not be opened online. All the remaining terms can.

To put these yields into perspective, the national average for 12 month CDs and 60 month CDs sits at just 1.76% and 1.41% APY, respectively, according to FDIC data.

That said, top yields from online banks and nationally available credit unions are now inching above the 5.50% APY and 4.50% APY mark for the same respective terms.

How Do Columbia Bank CD Rates Compare?

The table below shows the best CD rate offered at Columbia Bank compared to the best CD rates offered by other FDIC-insured banks.

BankBest CD Rate (APY)
HomeStreet Bank4.65%
Morgan Stanley5.37%
PNC Bank5.00%
Santander Bank5.50%
Columbia Bank4.80%
CD rates surveyed on September 1, 2023.

How Much Can You Make with a Columbia Bank CD?

The amount of money you can earn with a CD from Columbia Bank is going to depend on your deposit size, the term you choose and its going APY. Take a look at the table below. It shows potential earnings on a handful of Columbia Bank’s CDs assuming a deposit size of $25,000.

CD TermAPYEarnings
4 months4.20%$345.21
9 months4.70%$876.17
18 months4.80%$1,821.43
60 months3.30%$4,406.38
Earnings = Sum of all interest payments through maturity.

IRA CD Rates

Columbia Bank’s IRA CDs also come with a minimum deposit requirement of $500 and cannot be opened online. Visit a local branch or give them a call at 1(800) 522-4167 to get started with an IRA CD.

CD TermAPY
4 months4.20%
9 months4.70%
12 month2.25%
18 month4.80%
24 month3.30%
36 month3.30%
60 month3.30%
72 month3.30%
APY = Annual Percentage Yield

The yields on the IRA CDs are the exact same as their standard CDs, however, we should note that Columbia Bank’s IRA CDs have provided better rates in the past than their standalone counterparts.

Compounding and Crediting Interest

Interest on all of Columbia Bank’s CDs are compounded monthly and credited to your account monthly.

Grace Period and Early Withdrawal Fees

When your Columbia Bank CD matures you will have a 7 calendar-day grace period in which you may close out the CD or change the terms and/or deposit amount. If nothing is done during this 7 day window, your CD will automatically renew into a new CD with the same term and the going rate at that time.

If you need your CD’s funds prior to its maturity you will incur an early withdrawal fee. The fee is based on your CD’s term. See fee structure below:

CD TermFee
5 months or less45 days of simple interest
6 – 11 months90 days of simple interest
12 – 23 months180 days of simple interest
24 – 59 months270 days of simple interest
60 months +365 days of simple interest

How to Open and Fund a Columbia Bank CD?

Most of Columbia Bank’s CDs can be opened online other than the 5 year CD, 6 year CD and their IRA CDs. Regardless of whether you’re opening a CD online or stopping by a local branch, you’re going to need the following pieces of personal information to complete the application process.

These are:

  • Full Legal Name
  • Home Address
  • Verifiable Email and Phone Number
  • Driver’s License or State Issued ID

To fund the CD from an external source, you’ll need the following:

  • Routing number of current bank or credit union.
  • Account number where funds will be withdrawn from to fund the Columbia Bank CD.

Ameriprise Financial CD Rates – Now up to 5.45% APY!

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Fact Checked :
Updated

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

image credit: ameriprise.com

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 an APY (annual percentage yield) of 5.35% but requires a minimum deposit of $1,000,000.

CD TermAPY
3 months5.15%
6 months5.21%
7 monthsNA
9 months5.21%
12 months5.25%
18 months5.35%
24 months5.05%
30 months4.95%
36 months4.80%
APY = Annual Percentage Yield

For deposits $100,000 or more you’ll get an additional 0.10% APY added to any CD term which would put the 18 month term at 5.45% APY making it Ameriprise Financial’s most competitive offer.

To put these yields into perspective, the current national average for a 12 month CD and a 36 month CD sit at just 1.76% and 1.40% APY, respectively, according to FDIC data.

That said, there are a number of FDIC-insured online banks and NCUA-insured credit unions with nationwide acceptance offering yields above 5.50% APY and 5.00% APY for the same respective terms.

13 Month CD

The 13 month CD requires a minimum deposit of $1,000,000 million. If depositing over $2m then you will first need approval from the Ameriprise Certificate Company.

CD TermAPY
13 month5.35%
$1 million minimum

This CD will automatically renew into a standard 12 month CD if nothing is done during the grace period.

How do Ameriprise Financial CD Rates Compare?

Take a look at the table below to see how Ameriprise Financial’s best CD rate compares to the best CD rates offered at FDIC-insured banks.

InstitutionBest CD Rate (APY)
Banesco5.25%
Columbia Bank4.80%
Flagstar Bank4.50%
Ameriprise Financial5.45%
CD rates surveyed on August 31, 2023.

How Much Can You Make with an Ameriprise Financial CD?

The amount of money you can earn on a CD with Ameriprise Financial is going to depend on your deposit size, the CD term you select and its going APY. Take a look at the table below to see potential earnings on a handful of Ameriprise Financial CDs assuming a deposit size of $100,000.

CD TermAPYEarnings
6 months5.31%$2,620.66
9 months5.31%$3,956.63
18 months5.45%$8,285.39
36 months4.90%$15,432.06
Earnings = Sum of all interest payments through maturity.

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.

Vanguard CD Rates – Now up to 5.75% APY!

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Fact Checked :
Updated

Vanguard is an investment management company that has been around since 1975. They are the largest provider of mutual funds and the second largest provider of exchange-traded funds (ETFs). They service customers worldwide and have over $8.5 trillion in assets under management.

They also offer competitive APYs (annual percentage yields) on their brokered CDs (certificates of deposit).

You can purchase new issue CDs and secondary market CDs through Vanguard. To see if a brokered CD from Vanguard is right for you, continue reading our review below.

Vanguard CD Rates + Account Details

image credit: vanguard.com

All of Vanguard’s CDs are federally insured by the underlying issuer. Vanguard only purchases FDIC-insured CDs to resell to their clients.

The brokered CDs available at Vanguard can change regularly as Vanguard may choose to purchase different CD accounts from different banks on an ongoing basis. The good news is that because Vanguard purchases these CDs in bulk they can obtain higher rates from the issuer than an individual may receive going to the bank directly.

To find out which CDs are available at any given time, you can run a quick search on Vanguard’s site in their fixed income section or call an agent.

If you’re scanning Vanguard’s CDs online, you can search by the issuer, term length, yield, or quantity. A Vanguard broker can also help you choose a CD that fits your investment goals and target date.

Here is a sample of the current terms and CD rates available for new-issue CDs through Vanguard (surveyed August 14, 2023):

CD Rates

Term LengthAPY
1 – 3 months5.35%
4 – 6 months5.45%
7 – 9 months5.50%
10 – 12 months5.65%
13 – 18 months5.75%
2 years5.60%
3 years5.45%
4 years5.45%
5 years5.45%
7 yearsNA
10+ years5.50%
APY = Annual Percentage Yield

To put these in perspective, the national average rate for a 12 month and a 60 month CD sit at just 1.76% APY and 1.41% APY, respectively, according to FDIC data. However, some online banks and nationally available credit unions are paying over the 5.50% and 4.50% APY mark for the same respective terms.

How do Vanguard’s CD Rates Compare

If you want to see how Vanguard’s CD rates compare against other major brokerages then take a look at the table below. This displays the best CD rate offered from each major brokerage and the associated term.

BrokerageBest APYCD Term
Vanguard5.75%13-18 months
Charles Schwab5.65%10-18 months
Edward Jones5.35%12 months
Fidelity5.40%12 months
CD rates surveyed on August 30, 2023.

How Do Vanguard’s CD Rates Compare to Online Bank CD Rates

Take a look at the table below to see how Vanguard’s CD rates compare to popular online banks with competitive yields on their CDs.

Bank / InstitutionBest CD Rate (APY)CD Term
Ally Bank5.00%9, 18 months
Capital One5.15%18 months
Synchrony Bank5.25%12 months
Vanguard5.75%13 – 18 months
CD rates surveyed on August 30, 2023.

How Much Can You Earn with a Vanguard CD

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

CD TermAPYTotal Earnings
6 months5.45%$268.89
12 months5.65%$565.00
18 months5.75%$874.78
120 months5.50%$7,081.44
Total Earnings = The sum of all interest payments through maturity.

What Is a Brokered CD

If you’re not familiar with brokered certificates, they differ from traditional certificates in a few key ways.

The main one being that Brokered CDs are not issued by the actual brokerage themselves. They are issued by banks and/or credit unions that have FDIC insurance (or NCUA insurance if a credit union) and are then resold by the brokerage firm to their clients.

The primary benefits of a brokered CD are:

  • They can offer higher yields than traditional CDs because brokerages buy CDs in bulk which enables them to obtain higher rates than an individual would going to that bank directly for a single CD.
  • It expands your FDIC coverage. Because you can open multiple CDs from multiple banks through your brokerage, you will receive your full $250,000 in FDIC coverage for each deposit you open. This way you can invest more money in CDs without sacrificing FDIC coverage and with the convenience of managing all your CD accounts with one broker.
  • Flexibility. Because these are brokered securities, you may choose to sell your CD before it matures on the secondary market.

Both standard certificates of deposit and brokered certificates are considered to be low-risk investments because they earn a fixed interest rate until maturity and guarantee full principal and interest. If you sell a brokered CD, there is an inherent risk that you will lose some of your interest, but it is not possible to lose the principal you have invested whether you sell or not.

Vanguard brokered CDs may be callable or noncallable. Callable means that the issuing bank has the option to call or terminate your certificate before it matures and return the principal and interest to you. Issuers often choose to do this when interest rates drop as they can save money when paying you your interest. Some callable CDs can only be called for a certain period of time and others are eligible to be called at any time before maturity. If you choose a callable brokered CD, note the callable date and understand that your account may be closed.

When your certificate reaches maturity, the principal and interest is transferred into your settlement fund and you may withdraw the funds as cash. Brokered CDs do not automatically renew at maturity as traditional CDs do.

Primary and Secondary Market

Vanguard allows you to purchase both primary market and secondary market CDs.

  • Buying CDs in the primary market means your broker (Vanguard) is transacting with the issuer of the security directly (i.e. the underlying bank). There are no fees for buying new issue CDs.
  • Buying (or selling) CDs on the secondary market means you’re transacting with other market participants. Vanguard charges a commission for secondary market trades. See fee specifics below.

📌 Important: Vanguard themselves do not make a market in brokered CDs. If you would like to sell your CD early a Vanguard broker may provide access to a secondary market managed by another broker.

Terms and Fees

Purchasing new issue CDs are completely free of charge.

As mentioned, when purchasing CDs on the secondary market, Vanguard charges a $1 transaction fee for every $1,000 you invest but no more than $250 in total.

If you place a secondary trade over the phone, you will pay a $25 fee for a broker to help you complete the trade.

The fees are waived for secondary trades if you hold more than $1 million across all of your Vanguard assets including fixed income investment products, mutual funds and index funds, and ETFs.

Vanguard CDs are federally insured up to $250,000 per depositor. All banks issuing new brokered CDs are also FDIC insured so that you are fully covered with each bank you have purchased a CD from.

If you decide to sell your brokered CD before it matures, you can do so through your Vanguard brokerage account.

Each bank imposes its own minimums and maximums. Some, for example, may require you to invest at least $10,000, not $1,000. Vanguard will help show you your options, but it is your responsibility to make sure you understand the terms for each of your CDs. Vanguard plays no role in deciding whether you qualify for an account.

Note that these brokered CDs do not automatically renew at maturity. Instead, the principal and interest you’ve earned is transferred to your linked Vanguard money market account.

How to Open

There are two different ways you can purchase a CD through Vanguard.

The first is to buy a new issue CD.

You must invest at least $1,000 to get started and can increase your investment in increments of $1,000. New certificates are issued directly from banks through Vanguard, so you earn the interest rate set by the bank.

The second is to purchase a secondary issue CD.

This is where you buy an existing CD from someone looking to sell theirs that has not yet matured. This is done on a secondary market through Vanguard brokerage. Vanguard charges a commission for these trades equal to $1 for every $1,000 you invest and will help you choose from available CDs and initiate the trade.

You pay commission fees when your certificate matures, not when you make your investment. If you choose to purchase various secondary market CDs with Vanguard at a time, you will pay commission for each.

You are not permitted to invest more money into your account after you have made an initial deposit. CDs can be opened online or over the phone (additional fees may apply for phone trading).

How to Earn Interest

Vanguard CDs pay simple interest at maturity into your linked Vanguard money market fund. This is another key difference between brokered and non-brokered CDs, as non-brokered CDs compound interest and credit it monthly or quarterly back into the certificate, onto the principal, until it reaches maturity (at which point you can withdraw the funds).

Remember, for Vanguard’s brokered CDs, yields are calculated as simple interest, not compounded.

Vanguard CD FAQs

Still have questions regarding Vanguard’s brokered CDs (certificates of deposit)? See what other consumers are asking as well as our responses below.

Are Vanguard’s CDs FDIC Insured?

Yes. Vanguard only brokers CDs from FDIC-insured banks. This means consumers have $250,000 in FDIC coverage per institution.

Are Vanguard’s CDs available in all 50 states?

All of Vanguard’s CDs may not be available in each state. Due to Blue Sky Laws, if the underlying bank offering the CD hasn’t registered with that particular state’s banking commission then consumers from that state may not purchase it through Vanguard.

Why are Vanguard’s CD Rates Higher than Regular Bank CD Rates?

Vanguard’s CD rates are higher than the CD rates you’d see at traditional, brick and mortar banks and even most online banks because Vanguard buys the CDs in bulk from the underlying institution. This gives them leverage to secure better yields that they can then resell to their clients.

Does Vanguard Offer a Money Market Account?

Vanguard does not broker any traditional FDIC-insured money market accounts like they do with CDs. They do, however, offer a variety of Money Market Funds that are not FDIC-insured but are made up of fixed income mutual funds that only invest in highly liquid, short-term debt. The average 7 day yield for the Vanguard Federal Money Market Fund sits at 5.28% per the time of this writing.

Are Bonds and Brokered CDs the Same?

Vanguard places brokered CDs and bonds in the same category and offers a variety of government-issued securities, but bonds and brokered CDs are not the same product. Both are fixed-income securities, but brokered CDs are issued by banks and credit unions while bonds are often issued (and insured) by the government.

Still, if you’re interested in both, you can choose from U.S. government agency securities and corporate bonds, U.S. Treasury securities, municipal bonds, mortgage-backed securities, and unit investment trusts.