Valley National Bank, based out of Wayne, New Jersey, is a regional bank with over 200 locations in New York, New Jersey, Florida and Alabama. The bank claims that it has never had a losing quarter since their founding in 1927 despite many challenging economic periods in the last ~100 years or so.
Today, the bank offers a number of FDIC-insured deposit accounts that come with respectable yields for savers.
They offer 7 CDs (certificates of deposit) with terms ranging from 91 days to 36 months that can be opened online by consumers in all 50 states.
If you’d like a longer term CD, you’ll have to stop by a local branch to see those rates and/or open that account. They offer CDs with terms up to 5 years for local residents, but not online.
To see if Valley Bank’s CD rates are right for you, continue reading our review below.
Valley Bank CD Rates + Account Details
All of Valley Bank’s CDs come with a minimum deposit requirement of $500 and are federally insured by the FDIC up to the applicable limits.
They also impose a maximum deposit allowance of $500,000 if opening the CD online. They allow deposits up to $1m if opened in a branch.
|36 months (variable rate)||5.60%|
To give these yields some context, 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, there are a number of online banks and credit unions offering yields near the 5.50% and 4.50% APY mark for the same respective terms following the Fed’s most recent rate hike of 0.25% earlier in the summer.
The 36 month variable rate CD comes with a rate that can change at any time without notice to the account holder. Generally speaking however, variable rate deposit accounts (whether it be CDs, money market accounts or online savings accounts) tend to rise and fall with the interest rate environment as a whole.
📌 Please Note: Variable rate CDs can be deceiving. For example, earlier this year Citibank offered an 18 month variable rate IRA CD that had an incredible APY of 5.97% only to drop the yield to a negligible 0.05% APY shortly thereafter (likely after signing up many new accounts). We should note, however, that Valley Bank has consistently lifted the rate on their 36 month variable rate CD this year to keep up with the rising interest rate environment, but they could still lower it at any time if they so choose.
How Do Valley Bank’s CD Rates Compare?
To get a better idea of how Valley’s CD rates stack up against the competition, take a look at the table below. It compares Valley Bank’s most competitive CD rate with other competitive CD rates offered by various FDIC-insured institutions.
|Bank||Best CD Rate (APY)|
|Luana Savings Bank||5.37%|
|Valley Bank||5.60% (variable rate)|
How Much Can You Earn with a Valley Bank CD?
How much money you can earn with a CD from Valley Bank is going to depend on the term you choose, the going APY (annual percentage yield) and your deposit size. Below is a table showing an example of how much money you’d earn with each of Valley’s CDs assuming a one-time deposit of $50,000.
Compounding and Crediting Interest
Unlike many CD rates offered from online banks who compound interest daily, Valley Bank only compounds interest on a quarterly basis. Interest payments are also credited to the account quarterly.
Grace Period and Early Withdrawal Fees
Prior to your CD’s maturity, Valley Bank will send you a notification to let you know.
Upon the maturity of your Valley Bank CD, you will be given a 10 calendar-day grace period in which you may modify your CD or close it out without incurring any early withdrawal fee.
If nothing is done during this grace period, your Valley Bank CD will automatically renew with the same term and the going APY at that time.
If you need funds from your CD prior to its maturity you will face an early withdrawal fee.
Valley Bank does not post the fees on their website, so you’ll need to give them a call at 800-522-4100 to get this information.
Open and Fund the CD
As mentioned, the 7 CDs with oddball maturities listed here can all be opened online by consumers in 50 states with up to $500,000. If you’d like to deposit more than that, you will have to stop by a local branch (find locations here) in Alabama, Florida, New Jersey or New York.
Here’s what you’ll need to apply for an online CD:
- Social Security Number
- Valid state ID, driver’s license or passport
- Physical residential address within the United States
The application process is fairly straightforward and should be able to be completed in minutes if you have the appropriate information handy. We should note that once you start the application you will only have 20 minutes to complete it or your session will timeout due to inactivity. The application will automatically save though, so you can pick up where you left off if you need more time.
Here’s what you’ll need to fund your online CD:
- Current bank or credit union’s routing number
- Account number in which the funds will be drawn from to fund your Valley Bank CD