Q:

Which banks pay the highest rates on CD accounts?

A:

Quick Answer

Chartway Federal Credit Union, Connexus Credit Union and CIT Bank pay the highest rates on certificate of deposit, or CD accounts, ranging from 1.19 percent to 1.30 percent, compounded both quarterly and daily. Other bank rates on CD accounts can be viewed on the Bankrate website.

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Full Answer

When deciding on a CD account, it is important to consider a few factors, one being the terms of commitment. For example, Bank of America offers three options spanning 9 months, 12 months and a standard account which ranges from 28 days to 10 years. The options offer perks like fixed rates on all balances and penalty-free access to the account holder's money. The account options also range from a minimum deposit of $1,000 for a standard CD account and up to $10,000 dollars for the premium account.

Additionally, benefits like predicable return as well as savings on each term are important factors to consider. CD accounts through Bank of America also provide the account holder to access their CD through an online banking service, and the account holder is guaranteed to be FDIC insured. It is also important to take note of associated fees and limitations with the account — Bank of America explicitly states that deposits cannot be made until the CD matures and early withdrawal is subject to a fee.

Before deciding on a bank to open a CD account, make sure to research the specific details to ensure the account fits the holder's needs.

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