[Update April 2022: Despite CD rates rising across the board in 2022 with both banks and credit unions, Bank of the West CD rates remain lower than the national average. In fact, their rates haven’t nudged up since prior to 2020 and have actually dropped slightly since then. See all rates below.]
The only Bank of the West is a regional bank, headquartered in San Francisco, California. They operate in 19 states within the West and Midwestern region of the country.
Some accounts can be applied for online, bust most r equire you to visit one of their 600 branch locations in the following states: Arizona, California, Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, Wisconsin and Wyoming.
They offer a full suite of FDIC-insured deposit products that include variable rate accounts such as checking accounts, a money market account, and a classic savings account as well as fixed rate certificates of deposit.
For the purpose of this review, we will focus on Bank of the West’s fixed rate CDs. You have the option to open these as stand alone accounts or as IRA CDs.
Their CDs come in two types:
- Premium Certificates of Deposit
- Flexible Term CD
Their “Premium” CDs are just standard term CDs while their flexible term CDs come with term ranges rather than set dates. See details and APYs below.
Bank of the West CD Rates + Account Details
Bank of the West is member FDIC and all consumer deposits are federally insured up to the applicable limits.
Their Premium CDs require a minimum deposit of $2,500 and must be opened in a branch.
Premium Certificates of Deposit Rates
| CD Term | APY |
| 91 days | 0.02% |
| 5 months | 0.02% |
| 182 days | 0.02% |
| 7 months | 0.02% |
| 8 months | 0.02% |
| 10 months | 0.02% |
| 11 months | 0.02% |
| 12 months | 0.02% |
| 13 months | 0.20% |
| 14 months | 0.05% |
| 15 months | 0.05% |
| 16 months | 0.05% |
| 18 Months | 0.05% |
| 24 Months | 0.10% |
| 60 Months | 0.25% |
To give these yields some context, the current national average for a 12 month CD and a 60 month CD sit at 0.17% APY and 0.32% APY, respectively, according to FDIC data.
Flexible Term CD Rates
Their Flexible Term CDs require a minimum deposit of $1,000 and must be opened in a branch.
| Term Range | APY |
| 32 – 89 days | 0.02% |
| 90 – 179 days | 0.02% |
| 180 – 364 days | 0.02% |
| 12 – 23 months | 0.05% |
| 24 – 35 months | 0.10% |
| 36 – 47 months | 0.10% |
| 48 – 60 months | 0.15% |
IRA CD Rates + Options Available
If you’re interested in opening an IRA CD, then you have 3 options. They are:
- Premium IRA CD
- Flexible IRA CD
- IRA Add-On CD
The minimum deposit is just $100 to open any of these accounts. They are subject to annual contribution limits and must be opened in a local branch.
All IRA CDs held at Bank of the West are subject to an annual fee of $12. We should also note that if you end up closing your Bank of the West IRA altogether, they will charge you a $25 fee.
As with all of Bank of the West’s deposit accounts, their IRA CDs are federally-insured by the FDIC up to the applicable limits.
Premium IRA CD Rates
Bank of the West Premium CDs come with a standard grace period of 10 days with automatic renewal if nothing is done during that 10 day window.
These accounts must be opened at a local branch, however, Bank of the West has a promotional 13 month “premium money market CD” that can be applied for online. Below are all of the current rates.
The APYs are shown in the table below.
| Premium IRA CD Term | APY |
| 91 days | 0.01% |
| 182 days | 0.03% |
| 8 months | 0.02% |
| 12 months | 0.02% |
| 18 months | 0.05% |
| 24 months | 0.10% |
Flexible IRA CD Rates
Their flexible IRA CDs come with term ranges rather than set dates. The APYs are listed below.
| Flexible IRA CD Term | APY |
| 12 – 23 months | 0.05% |
| 24 – 35 months | 0.10% |
| 48 – 60 months | 0.15% |
The last product is the Add-On CD which allows you to add deposits during the term. It comes with an APY of 0.05%.
Interest on IRA CDs is compounded daily and you have the option to be paid monthly, quarterly, semi-annually or at maturity.
When your IRA CD matures, you can automatically renew it, or transfer the funds into another retirement account for it to grow further. Bank of the West notes that other options are available depending on your individual eligibility. You may want to consult with your tax advisor before making any decision.
Early Withdrawal Penalties
If you need access to funds prior to the maturity of your CD, Bank of the West will impose an early withdrawal fee. This fee is standard practice for banks, but Bank of the West has slightly steeper fees in this regard than what is normal. In some cases the fees could even eat into your principal.
The fees are as follows:
| CD Term | Fee |
| 7 – 31 days | $25 + 31 days’ interest |
| 32 days to 11 months | $25 + 1% of amount withdrawn |
| 12 – 59 months | $25 + 3% of amount withdrawn |
| 60 months | 730 days of simple interest |