Compare TD Bank: Checking, Savings, and CDs | finder.com (2022)

If you live in a state that it services, TD Bank can be a one-stop shop for your personal financial needs. Checking and savings accounts are tiered and more perks are awarded for higher balances, though maintenance fees can get steep.

  • Checking
  • Savings
  • CDs

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(Video) TD Bank Review: A Good Place to Keep Your Money?

Personal checking accounts

All of TD Bank‘s checking accounts have free in-network ATMs and are FDIC-insured up to $250,000. Other features include:

  • TD Simple Checking℠. A bare-bones checking account with a flat $5.99 monthly maintenance fee. But you do qualify for a .25% HELOC discount.
  • TD Convenience Checking℠. Waive the $15 monthly maintenance fee by maintaining a $100 daily balance – or being between the ages of 17 and 23, in which case you can skip the fee altogether. You’ll also get a .25% discount on TD Bank Home Equity and Personal Loans.
  • TD Beyond Checking. Skip fees at non-TD ATMs by maintaining a balance of $2,500. Get automatic overdraft reimbursement two times per year, and earn interest on your balance. Waive the monthly maintenance fees with at least a $5,000 direct deposit, maintaining a minimum daily balance of $2,500, or maintaining a combined balance of $25,000 across your accounts. Get free check and money orders, too.
  • TD 60 Plus Checking℠. If you’re 60 or older, you’ll qualify for this interest-earning account. You can waive the $10 monthly maintenance fee by maintaining a $250 daily balance, and checks, money orders, and paper statements are all free. Plus, get a .25% discount on TD Bank Home Equity and Personal Loans.
  • TD Ameritrade Cash Management. This account lets you conveniently access and manage uninvested funds.

Personal savings accounts

Get access to bill pay and a rate bump when you link your savings account to a TD Bank Checking account. You can write up to six checks a month with one of these savings accounts:

  • TD Bank Simple Savings. Waive the $5 monthly maintenance fee by maintaining a balance of $300, and skip the fee altogether in your first year by scheduling a recurring transfer of $25. If you’re 18 or younger, you won’t pay the monthly fee.
  • TD Growth Money Market. The $12 monthly maintenance fee can be waived with a $2,000 account minimum — unless you’re 62 or older, in which case you can skip it altogether. Tiered rates increase your interest as you save, and standard rates range from .03% APY for $.01 to $999 to .30% APY for $250,000 or more. Get rates bumped up even further if you deposit at least $50 a month.
  • TD Preferred Savings. To waive the $15 monthly maintenance fee, maintain a balance of at least $20,000. Get free ATM withdrawals at any bank by maintaining a $2,500 daily balance. Incoming wire transfers, bank checks, money orders, and stop payments are free, too. Tiered interest increases as you save, and standard rates range from .05% APY for $.01 to $19,999 to for $10 million or more. Bump rates up even further by linking an eligible mortgage, home equity, credit card or checking account.

Business accounts

  • TD Business Premier Checking. A $200 initial deposit is required to open this account. The $30 monthly maintenance fee can be waived with $40,000 in combined business deposits and a linked personal checking account, or enrollment in Active TD Merchant Solutions or Active TD Digital Express or by taking out a TD Small Business Loan or Line of Credit. Deposit $30,000 in cash for free each statement cycle. Make up to 500 transactions before incurring a $.35 fee.
  • TD Business Convenience Checking Plus. Deposit $100 to open the account and get the $25 monthly fee waived by maintaining a balance of at least $1,500. Deposit up to $10,000 cash per statement cycle for free. Make 500 payments or deposits before paying a $.50 fee per transaction.
  • TD Business Simple Checking. There’s a flat monthly maintenance fee of $10 that can’t be waived, and a required initial deposit of $25. Deposit up to $5,000 cash per statement cycle for free and make 200 payments or deposits before paying a $.75 fee per transaction.
  • TD Small Business Premium Money Market. Save for planned and unplanned expenses with TD Bank‘s highest interest option for small businesses, though specific rates vary by location. The $15 monthly maintenance fee can be waived by maintaining a minimum daily balance of $2,500. Open an account with an initial deposit of $25.
  • TD Business Savings. Waive the $5 monthly maintenance fee by maintaining a $5 daily balance. Expect an APY of .05%. Start earning interest by depositing a penny.

Explore TD Bank’s suite of business accounts

Other products

  • Mortgage loans. Build or buy a new home, or refinance the one you have. TD Bank‘s monthly mortgage calculator helps you estimate rates in advance.
  • Home equity. Take out a loan to help finance major purchases. Calculate your estimated rate and payment online.
  • Credit cards. It offers two credit cards for personal use and one for businesses. Earn cash back and points as you spend.
  • Personal loans. Choose from an express or unsecured loan, an unsecured line of credit, or a secured personal loan.

It offers a host of financial products for personal and business financial management. However, TD Bank is only available to people living in these states:

  • Connecticut
  • Delaware
  • Florida
  • Maine
  • Maryland
  • Massachusetts
  • New Hampshire
  • New Jersey
  • New York
  • North Carolina
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Vermont
  • Virginia
  • Washington, DC
(Video) TD Bank Review | FREE $500 Sign-Up Bonus

TD Bank is ranked 7th in the nation for total number of domestic deposits, landing just beneath Capital One and US Bank. Its tagline is “America’s Most Convenient Bank,” and has extended hours on weekends and evenings to help substantiate that claim.

Compared to other national banks, it has the 8th most physical locations. If you live in a state on the East Coast, you’ll have access to over 1,300 branch locations and 1,900 ATMs from Maine to Florida.

Checking accounts

Pros

  • Low opening deposits. You can open most checking accounts with as little as $0.
  • Several account options. This bank offers four personal checking accounts and three business checking accounts.
  • No foreign transaction fees. TD Bank doesn’t have foreign transaction fees and you can find free ATMs in parts of Canada.
  • Overdraft forgiveness. If you have a TD Beyond Checking account, TD Bank refunds two overdrafts per year.

Cons

  • Complicated fee structures. If you’re younger than 24 or older than 61, getting the monthly fee waived requires you to maintain a somewhat hefty balance, and for its Simple Checking account you’re stuck paying the $5.99 no matter what.
  • Service fees. You’ll pay $30 for outgoing domestic wire transfers and $35 for overdraft charges, up to 5 times a day. These fees are on top of potential monthly fees.
  • Small ATM network. TD Bank has around 2,000 ATMs scattered along the East Coast, which is far fewer than other banks.

Savings accounts

Pros

  • Tiered rates encourage savings. Interest increases as you put money away, an added perk that can help incentivize savings.
  • Relationship rates. Earn a higher APY when you keep your checking and savings account with TD Bank.
  • Low opening deposits for savings accounts. Most TD Bank savings accounts have low opening deposits, but you may need to maintain a high daily average balance to earn interest.

Cons

  • Less competitive APY on savings accounts. Even at its highest rates, TD Bank‘s savings account APYs don’t top 1%, which means it isn’t the most competitive option on the market.
  • Monthly fees. TD Bank doesn’t offer any free savings accounts, but there are several ways to avoid the monthly fees its accounts do have.
  • High minimum deposit for money market. If you want to open a TD Growth Money Market account, you’ll need at least $2,000 to get started.

CDs

Pros

  • Low opening deposit. You only need $250 to open a TD Bank CD and you won’t pay any monthly fees to maintain your account.
  • Wide range of terms. CD terms range from three months to five years.
  • Several CD options. Choose a no-penalty CD if you want one free withdrawal per term, a Step Rate CD if you want a guaranteed rate increase or a regular CD if you want to lock in the highest APY.

Cons

  • Low APYs. Current TD Bank checking customers can take advantage of higher, relationship CD rates, but even these are lower than the rates offered by other banks.
  • APYs vary by location. CD interest rates vary by state, so you’ll need to visit the bank’s website to find current rates in your area.
  • Early withdrawal penalty. Unless you have a no-penalty CD, you’ll pay a fee if you need to access your money before your CD term ends.
(Video) Difference between Savings account and CD account

Overall banking

Pros

  • Emphasis on convenience. TD Bank’s extended hours offer greater flexibility, since most banks close at noon on Saturdays and remain closed on Sundays. Plus, customer service is available by phone 24/7.
  • Access for people with disabilities. ATMs ate designed to meet wheelchair height and reach requirements. It also has telecommunication relay services for callers who are Deaf, hard-of-hearing, blind or speech-impaired.

Cons

  • Limited national presence. Even if the East Coast is your home base, if you travel regularly TD Bank‘s regional limitations could be inconvenient.
  • Some accounts must be opened in-person. Not all TD Bank accounts can be opened online. Some require you to fill out an application at a local branch.
  • Low APYs overall. As a whole, TD Bank has low APYs and high monthly fees. Unless you can meet its strict account requirements, you may pay more in fees each month than you’d earn in interest.

Compare TD Bank to the competition

  • TD Bank vs. Bank of America
  • TD Bank vs. Chase

      The BBB gave it an A+ rating, and it’s been officially accredited there since 2002. An average of 25 customer reviews average out to just one star, but that’s pretty normal for complaints about similarly sized banks. There are about 9,700 complaints on the CFPB website, but nearly all of them indicate a timely response.

      It’s a member of the FDIC, and the FFIEC has reviewed most branch locations as “outstanding” or “satisfactory.” In 2018, it was rated the Best Bank for Seniors by Money Magazine, and it tied for #1 in Global Finance World’s list of 50 Safest Commercial Banks.

      Get support from TD Bank through one of the below:

      • Phone: For online banking support, call 888-751-9000, open 24/7.
      • Facebook Messenger: Send a general question or comment through the social network’s IM.
      • Branch: Make an appointment online or drop in to a branch location for face-to-face service.
      • Twitter: Send a DM to @TDBank_US.

      TD Bank‘s expanded access may be appealing if it syncs with your lifestyle. But if you’re hoping for service with nationwide presence or simpler account structures, shop around to find a better fit.

      • Routing numbers vary depending on which state your account was opened in. Locate yours below:

        • Connecticut: 011103093
        • Florida: 067014822
        • Maine: 211274450
        • Massachusetts and Rhode Island: 211370545
        • Metro DC, Maryland and Virginia: 054001725
        • New Hampshire: 011400071
        • New Jersey and Delaware: 031201360
        • New York – Metro NYC or former Commerce customers: 026013673
        • New York – Upstate NY or former Banknorth customers: 021302567
        • North Carolina and South Carolina: 053902197
        • Pennsylvania: 036001808
        • Vermont: 011600033
        (Video) Best CD rates 2022 | Certificate of Deposit explained
      • Yes. Mail your deposit to:

        TD Bank, N.A.
        ME2-001-033
        PO Box 1190
        Lewiston, ME 04243

        Include your account information, and the total deposit amount. TD Bank will mail you a receipt.

        (Video) The 5 Best Bank Accounts 2022 | High-yield savings accounts, CDs, and iBonds for a recession!

      • Yes. It follows a typical bank holiday schedule, and is closed on New Year’s Day, Martin Luther King, Jr. Day, Easter, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas — though online banking is accessible all year round.

      FAQs

      Is it better to put your money in a CD or a savings account? ›

      CDs generally pay more interest than traditional savings accounts and the annual percentage yield (APY) is fixed. In a rising-rate environment, it's smart to build a CD ladder so that all your money isn't locked up at a lower rate as yields rise.

      What is the current CD rate at TD Bank? ›

      0.05% APY

      What is the drawback to CDs vs savings accounts? ›

      Drawbacks of a CD

      Need to wait for maturity: At its core, a CD requires more patience than a traditional savings account. Once you lock down your cash in a CD, it's there for the term's duration. Penalties for early withdrawal: The entire point of a CD is to keep the money in the bank for a set period of time.

      What are the disadvantages of TD Bank? ›

      The bank is fairly "fee heavy." You can't waive the fee by signing up for direct deposit. Checking and savings accounts require a minimum average balance or you'll pay a monthly fee. In exchange for their unique fee structure, TD tends to offer higher than average interest rates on their checking and savings accounts.

      How much does a $10000 CD make in a year? ›

      How much does $10,000 in a CD make in a year? This depends on the CD rate. A one-year CD with a rate of 1% APY earns $100, while a CD with a rate of 0.10% APY earns $10.

      Are CDs worth it 2022? ›

      CDs can potentially offer higher interest rates than savings accounts. Saving in a CD is safe and secure, with virtually zero risk of loss. CDs can offer a guaranteed rate of return on your money. A CD laddering approach can help you to capitalize on changing interest rates.

      Will CD rates go up in 2022? ›

      CD Interest Rates Forecast for 2022 and 2023

      Ken Tumin, founder and editor of DepositAccounts, expects CD rates to keep climbing this year and next.

      Who has the highest 12 month CD rate? ›

      Best Current 1-Year CD Rates:
      • State Bank of Texas - 3.85% APY.
      • USAlliance Financial - 3.75% APY.
      • Rising Bank - 3.70% APY.
      • Bread Savings - 3.60% APY.
      • Merrick Bank - 3.60% APY.
      • Merchants Bank of Indiana - 3.56% APY.
      • Banesco USA - 3.55% APY.
      • BankPurely - 3.55% APY.

      Does TD Bank pay interest on checking accounts? ›

      What you get with your checking account. Get more from your checking account. With TD Beyond Checking with Payback Plus, you'll earn interest and get reimbursed for non-TD ATM transactions, Overdraft Payback3 and more.

      Are CDs good for retirement? ›

      Key Takeaways. A CD might be a good investment choice if you need a specific amount of money to become available at a certain future time with no risk of losing all of your cash. The rate of interest on CDs is often less than the rate of inflation. When combined with taxes on the interest, you can lose money over time.

      What are the disadvantages of CDs? ›

      Cons of CD investing
      • Limited liquidity. One major drawback of a CD is that account holders can't easily access their money if an unanticipated need arises. ...
      • Inflation risk. ...
      • Comparatively low returns. ...
      • Reinvestment risk. ...
      • Tax burden.
      26 May 2022

      Does cashing in a CD count as income? ›

      The IRS treats interest you earn on a CD as income, whether you receive the money in cash or reinvest it in a new CD. (The same treatment applies to interest credited to a CD that allows you to withdraw funds early without penalty.) The interest is taxable, the IRS says, in the year it is paid.

      Does TD Bank have an account for seniors? ›

      We offer all of our customers the option of the Value Account, a low-fee, basic banking option. For seniors, TD offers the Plan 60 Chequing Account, which features unlimited free debit transactions and special discounts.

      Is TD Bank the best bank? ›

      TD Bank is worth considering if you're looking for a bank with great customer service and a few options for checking at different stages of your life. However, if you're looking for a bank in which to park your money to earn interest, the rates are quite low. You can find more-competitive rates elsewhere.

      Is Chase better than TD Bank? ›

      If you enjoy widespread branch accessibility, sign-up bonuses and different account options, Chase may be a suitable choice for you. However, if you don't mind minimal monthly fees and limited branch locations, you should consider TD Bank. Ultimately, you know your financial needs better than anyone.

      Do you pay taxes on CD interest? ›

      There is no specific tax rate for interest from CDs. You pay taxes at the ordinary income rate, which depends on your income level and other items on your return. As a result, your tax rate can change from year to year, and you might pay different rates on CD income each year.

      How much interest will I earn on $1000 dollars? ›

      How much interest can you earn on $1,000? If you're able to put away a bigger chunk of money, you'll earn more interest. Save $1,000 for a year at 0.01% APY, and you'll end up with $1,000.10. If you put the same $1,000 in a high-yield savings account, you could earn about $5 after a year.

      What is the best way to invest money? ›

      12 best investments right now
      1. High-yield savings accounts.
      2. Certificates of deposit (CDs)
      3. Money market funds.
      4. Government bonds.
      5. Corporate bonds.
      6. Mutual funds.
      7. Index funds.
      8. Exchange-traded funds (ETFs)
      5 days ago

      What will CD rates be in dec 2022? ›

      Top-yielding one-year and five-year CDs should reach 1.25 percent and 1.75 percent, respectively, while the average rate on a money market and savings accounts should reach 1.05 percent by the end of 2022.

      What happens to CD rates when interest rates rise? ›

      Today, interest rates are on the rise, which means you can find CDs with better interest rates than banks offered a few months ago, and often higher yields than what you'll get with most conventional big-bank savings accounts. But if rates continue to increase, a CD with the same term may offer more interest later on.

      Are CD rates going up any time soon? ›

      In general, top short-term CD rates are rising above 3%, and long-term CD rates are rising above 3.50%.

      What will CD rates be in 2023? ›

      In an Augusta interview with Forbes, Ken Tumin, founder and editor of DepositAccounts, said the highest yields for five-year CDs could hit a range of 4.00% to 4.50% by the end of 2023, based on the expectation that the Fed would hike rates a total of seven times this year and three or four times next year.

      What was the highest CD rate ever? ›

      The10 highest CD rates in history are as follows:

      16.691 % in October 1981. 16.487 % in September 1981. 16.424 % in November 1981. 16.024 % in August 1981.

      What will CD rates be in 2024? ›

      Rates are seen moving higher in 2022, 2023 and 2024 to about 3 percent, but they're starting from such a low base that the gains savers see on cash sitting in money market accounts and CDs will be modest.

      What is the interest rate on $100000 CD? ›

      Top National Jumbo CD Rates vs. Regular CD Rates
      BEST NATIONAL JUMBO CDs
      Best 4-Year Jumbo CDsRateMinimum
      EFCU Financial3.35% APY$100,000
      Luana Savings Bank3.35% APY$100,000
      Credit One Bank3.30% APY$100,000
      41 more rows

      What is the current interest rate on a 12 month CD? ›

      Marcus by Goldman Sachs: 3.00% APY, $500 minimum to open. Citizens: 3.00% APY, $5,000 minimum to open. Synchrony Bank: 3.15% APY, no minimum to open. Barclays: 3.05% APY, no minimum to open.

      Who has the highest 24 month CD rate? ›

      Best Current 2-Year CD Rates:
      • Connexus Credit Union - 3.56% APY.
      • PenFed Credit Union - 3.50% APY.
      • Live Oak Bank - 3.50% APY.
      • Elements Financial - 3.45% APY.
      • Department of Commerce Federal Credit Union - 3.43% APY.
      • Synchrony Bank - 3.40% APY.
      • USAlliance Financial - 3.40% APY.
      • Crescent Bank - 3.40% APY.

      How do I avoid TD Bank monthly fees? ›

      You pay no monthly fee if you have the minimum monthly balance indicated or more in your account at the end of each day in the month. Subject to credit approval.

      What is the minimum balance for TD senior account? ›

      Account Fees
      Monthly Fee$16.95
      Monthly Fee for Seniors (60 or older)$11.95
      Minimum monthly balance for monthly fee 2$4,000
      Transactions included per monthUnlimited 3
      Interac e-Transfer® transactionsFree
      4 more rows

      Can you have two checking accounts at TD Bank? ›

      A joint account is a chequing or savings account that is in the name of two or more people (at TD, you can add up to 9 people on a joint account).

      Who are CDs best for? ›

      They're federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
      • Certificate of Deposit (CD) CDs are best for individuals looking for a guaranteed rate of return that's typically higher than a savings account. ...
      • Checking account. ...
      • Savings / Money Market Accounts (MMA)

      Are CDs really worth it? ›

      When investing in a CD is not worth it. Though CDs are stable and safe, the reality is that you might not get the best return for your money. On top of that, both Jacobs and Blackman point out that even with a high yield, you're not likely to beat inflation with a CD investment.

      What is the biggest negative of putting your money in a CD? ›

      Compared to stocks or other securities, CDs are a relatively safe investment since your money is held at a bank. The biggest risk to CD accounts is usually an interest-rate risk, as federal rate cuts could lead banks to pay out less to savers. Bank failure is also a risk, though this is a rarity.

      What happens to CD if bank fails? ›

      What happens to my direct deposits if my bank closes? If the failed bank is acquired, all direct deposits, including Social Security payments, will automatically be re-directed to the deposit accounts at the acquiring bank.

      What happens when a CD matures? ›

      When a certificate of deposit (CD) matures, you get your money back without having to pay any early withdrawal penalties. The CD's term has ended, so there are no bank-imposed withdrawal restrictions at maturity. You can do what you want with the money, but if you buy another CD, you won't get the same interest rate.

      How can I avoid paying taxes on a CD? ›

      You can avoid immediate tax charges by purchasing a certificate of deposit (CD) through a tax-advantaged account like an individual retirement account (IRA) or a 401(k). If you paid any fees in withdrawal penalties, you can also include those penalty amounts as a tax deduction.

      How do you withdraw money from a CD? ›

      Certificates of Deposit

      You can usually withdraw money early from a CD by contacting the bank, but you'll face a penalty. In the first six days, that's equal to at least seven days' worth of interest. After that, it's up to the terms of the contract to which you agreed when you opened the account.

      Can you put a CD in someone else's name? ›

      You cannot gift a CD directly to an adult, but you can add someone to your own CD as a joint owner, in which case that person has equal rights to the funds in the account. You can also name someone as a pay-on-death beneficiary on your CD.

      Are CDs safer than savings accounts? ›

      Safety. Along with savings accounts and money market accounts, CDs are some of the safest places to keep your money. That's because money held in a CD is insured. So long as you purchase your CD account through an FDIC-insured bank, you're covered in case the bank shuts down or goes out of business.

      What are the disadvantages of a CD? ›

      Cons of CD investing
      • Limited liquidity. One major drawback of a CD is that account holders can't easily access their money if an unanticipated need arises. ...
      • Inflation risk. ...
      • Comparatively low returns. ...
      • Reinvestment risk. ...
      • Tax burden.
      26 May 2022

      Will CD rates go up in 2022? ›

      CD Interest Rates Forecast for 2022 and 2023

      Ken Tumin, founder and editor of DepositAccounts, expects CD rates to keep climbing this year and next.

      What is the benefit of putting money in a CD? ›

      One key benefit of a CD is that it's typically a safe way to increase your savings rate of return. If you're skittish about the stock market or tying up money in bonds, you might appreciate the security of a certificate of deposit. The FDIC insures CDs up to the maximum amount regulated by law.

      What is the biggest negative of putting your money in a CD? ›

      Compared to stocks or other securities, CDs are a relatively safe investment since your money is held at a bank. The biggest risk to CD accounts is usually an interest-rate risk, as federal rate cuts could lead banks to pay out less to savers. Bank failure is also a risk, though this is a rarity.

      Are CDs still worth buying? ›

      Believe it or not, CD sales actually grew in 2021. It was the first time that happened in 17 years. It's 2022 and streaming makes up about 85 percent of how all music is consumed. Vinyl is in a huge resurgence, of course, with sales growing year-after-year every year since 2005.

      Are CDs good for retirement? ›

      Key Takeaways. A CD might be a good investment choice if you need a specific amount of money to become available at a certain future time with no risk of losing all of your cash. The rate of interest on CDs is often less than the rate of inflation. When combined with taxes on the interest, you can lose money over time.

      Are CDs taxable when cashed? ›

      Just like deposit accounts, CDs earn interest over time until you cash them out at maturity. The amount you pay to buy the CD is generally not taxable, even when you cash it in; however, any interest you earned on the CD before it matured is taxable income, and you'll have to report it to the IRS.

      What happens to CD if bank fails? ›

      What happens to my direct deposits if my bank closes? If the failed bank is acquired, all direct deposits, including Social Security payments, will automatically be re-directed to the deposit accounts at the acquiring bank.

      Are you able to withdraw a CD at any time without paying fees? ›

      Federal law sets a minimum penalty on early withdrawals from CDs, but there is no maximum penalty. If you withdraw money within the first six days after deposit, the penalty is at least seven days' simple interest. Review your account agreement for policies specific to your bank and your account.

      Who has the highest 12 month CD rate? ›

      Best Current 1-Year CD Rates:
      • State Bank of Texas - 3.85% APY.
      • USAlliance Financial - 3.75% APY.
      • Rising Bank - 3.70% APY.
      • Bread Savings - 3.60% APY.
      • Merrick Bank - 3.60% APY.
      • Merchants Bank of Indiana - 3.56% APY.
      • Banesco USA - 3.55% APY.
      • BankPurely - 3.55% APY.

      What will CD rates be in 2023? ›

      In an Augusta interview with Forbes, Ken Tumin, founder and editor of DepositAccounts, said the highest yields for five-year CDs could hit a range of 4.00% to 4.50% by the end of 2023, based on the expectation that the Fed would hike rates a total of seven times this year and three or four times next year.

      What will CD rates be in 2024? ›

      Rates are seen moving higher in 2022, 2023 and 2024 to about 3 percent, but they're starting from such a low base that the gains savers see on cash sitting in money market accounts and CDs will be modest.

      Are there risks with CDs? ›

      Nearly every financial institution offers CDs as an option, and, like other banking deposits, the Federal Deposit Insurance Corp. (FDIC) insures standard CDs should the bank fail. 1 Therefore, CDs are among the lowest-risk investments and do not lose value.

      What is the average interest rate on a CD? ›

      The average rate for a one-year CD is 0.60% APY, and the average rate for a five-year CD is 0.74% APY. Let's compare national averages with an online example.

      What happens when a CD matures? ›

      When a certificate of deposit (CD) matures, you get your money back without having to pay any early withdrawal penalties. The CD's term has ended, so there are no bank-imposed withdrawal restrictions at maturity. You can do what you want with the money, but if you buy another CD, you won't get the same interest rate.

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