Certificate of Deposit

A Bank CD, or Certificate of Deposit, is a type of account that holds a fixed amount of money for a set period of time, such as six months, one year, or five years. In return, you receive a fixed rate of interest.² With a Bank CD, you know in advance exactly how much you will earn and when. CDs typically offer higher interest rates than regular savings accounts, but require you to keep your money in the account for the entire term. Withdrawing funds early usually incurs a penalty.⁴

Yes, you can open your Bank CD account online and fund it via ACH, wire, or check.⁵ Bank CD accounts are eligible to be opened as either individual or joint accounts.

If your Settlement Date is within 10 calendar days of the account opening, the applied interest rate will be the highest of the prevailing interest rate on the date of account opening or the date of settlement.² Settlement Date is when funds are received and posted to your account according to our Funds Availability policy. You will receive the prevailing interest rate after the account is funded and settled. If you fund more than 10 calendar days after account opening, you’ll receive the prevailing interest rate as of the Settlement Date. View current Bank CD rates.

While it’s not possible to add money to an existing Bank CD once it’s open and funded, you can open additional Bank CDs. You can also execute a strategy known as a CD ladder whereby you spread funds across multiple Bank CDs with short to long maturities. This allows you to earn potentially higher interest rates while freeing up access to your cash at more frequent intervals.

At the end of the agreed upon term, your Bank CD will mature and automatically rollover into the same term at prevailing rates. You then have a grace period of seven calendar days to decide what you want to do with the funds.² Your choices are:

1. Withdraw your money and transfer it to another type of account, such as a checking or high-yield savings account
2. Use the funds to open a new Bank CD with a different principal amount and/or term
3. Allow your Bank CD to automatically renew with the same term at the rate effective as of your maturity date (in this case, no action is required by you)⁴

Note that if you choose to allow your Bank CD to automatically renew, a renewal confirmation letter will be sent to you soon after the grace period ends.