Best Bank for Certificate of Deposit Account

Certificate of deposit accounts, or CD accounts, are popular with individuals who want to save money and earn interest. In addition to Customers Bank, so many financial institutions offer these accounts that it can be hard to decide which one is best. Let’s explore the different options and the advantages and disadvantages of each.

Customers Bank provides consumer banking services such as savings, checking, and money market accounts; residential mortgages; consumer loans; and certificates of deposit.

What is a Certificate of Deposit Account?

A certificate of deposit (CD) account is a savings account offered by banks and credit unions that guarantees a fixed interest rate for a set period. The interest rate is typically higher on a CD account than you would find on a regular savings account.

Traditional Banks

These financial institutions offer a range of services to customers, including savings and checking accounts, loans, credit cards, and investment opportunities. They typically provide certificate of deposit accounts.

Advantages:

• Banks are insured by the FDIC, so you can feel secure about your money.
• Most banks have several branches and ATMs all over the country, so accessing your money is convenient.
• Most banks offer online banking, enabling you to manage your accounts from anywhere.
• Banks offer a wide range of products, so you can manage your financial needs in one place.

Disadvantages:

• Banks typically offer lower interest rates on certificate of deposit accounts than credit unions and online banks.
• Customers may encounter fees for account maintenance, overdrafts, and other services.

Credit Unions

Credit unions are not-for-profit organizations owned and operated by their members. They offer many services like traditional banks, including CD Accounts.

Advantages:

• Credit unions often offer higher interest rates on certificate of deposit accounts than banks.
• Credit unions generally have lower fees than banks.
• Credit Unions are insured by the National Credit Union Administration (NCUA), so you can feel secure about your money.
• Credit unions focus on serving their members, so you may experience better customer service.

Disadvantages:

• Credit unions may have limited accessibility because they often serve only specific groups of people, such as employees of a particular company or residents of a specific area.

• Credit unions usually have fewer branches and ATMs than banks, so you may find it more difficult to access your money.

Online Banks

Online banks are banks that provide all services exclusively online. Thanks to lower overhead costs, they often offer higher interest rates on CD accounts.

Advantages:

• Online banks often provide higher interest rates on CD accounts than traditional banks.
• Online banks typically have lower fees than traditional banks.
• Online banks make it easy to manage your account from anywhere with an internet connection.
• Online banks are insured by the FDIC, like traditional banks.

Disadvantages:

• Online banks have no physical branches, so you cannot access your money in person and must rely on phone and email support.

What to Expect from Customers Bank

Experience the benefits of a shorter-term CD and grow your savings with the 3.50% APY* 20-month Certificate of Deposit from Customers Bank. (*Annual Percentage Yield (APY) is the total amount of interest that an account holder earns on their account in a year, expressed as a percentage of the principal balance.) Account features include:

• $1,000 minimum to open an account
• Convenient online account management
• FDIC-insured

Customers Bank is the best bank for a shorter-term certificate of deposit (CD) account. One of our bankers would happily help you decide if a CD savings account will meet your needs.