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A certificate of deposit, also known as a CD, offers a no-risk way for people to set unused money aside and earn interest on that money. CDs have terms that usually can range from months to years. These terms indicate when someone can once again have access to the money. If you open a CD and take the money out before the term ends, then you’ll usually have to pay a penalty.
Deposits into Chase CD accounts are insured up to FDIC limits, and the interest rate is guaranteed. This can make CDs a more lucrative alternative to savings accounts, which earn very little interest, and a safer alternative to investing in riskier options, which can suffer losses.
Below we highlight the currently available Chase CD rates and review these products in detail.
Chase is one of the largest banks in the U.S., serving almost half of all the households in the country. It offers a wide variety of financial services and products like personal banking, credit cards, investments, loans for small business, mortgages, and payment processing.
Chase is a traditional bank with 5,100 branches and more than 16,000 ATMs throughout the U.S. Its service is in contrast to online-only banks, which may offer lower fees and more competitive rates but perhaps less personalized customer service. Chase’s Mobile app provides more accessibility.
Chase CD Rates
The following is a breakdown of the currently available Chase CD rates. Note that the APY can change slightly depending on the amount of money deposited with Chase, but the rates below are for deposits of up to $9,999.99. Also, these rates are for customers who have a linked Chase personal checking account.
|Term Length||CD Rate (APY)|
To be eligible for these rates, you must have a linked Chase personal checking account. Depending on how much you deposit into your Chase CD account, rates may vary slightly, although rates are relatively similar even with higher deposits.
Minimum Opening Deposit and Balance Requirement
The minimum opening deposit and balance requirement with a Chase CD is $1,000. If you deposit more than $100,000 into a CD with Chase, you need to do it in person at a Chase branch.
Early Withdrawal Penalty
Most CD products charge a penalty if you withdraw the funds before the date of maturity date. Chase offers a 10-day grace period after the date of maturity.
During that grace period, customers can change their CD terms, make an additional deposit, or withdraw the principal. It’s important for customers to check and see if their CD is automatically renewable because these CDs automatically renew on the date of maturity.
Withdrawal penalties with a Chase CD are as follows:
- If the terms of the CD are less than 24 months, the penalty for an early withdrawal is 1 percent of the amount withdrawn. It can’t be more than the total amount of interest earned during the current term.
- For CDs with terms of 24 months or more, the withdrawal penalty is 2 percent of the amount withdrawn. It can’t be more than the total interest earned during the term of the CD.
- If someone makes a withdrawal fewer than seven days after opening a CD, the penalty is calculated in the same way, but it can’t be less than seven days’ worth of interest.
Pros of Chase CDs
The biggest pro of a CD from Chase is the fact that there are so several options for in term lengths. If you want a short-term savings option, a Chase CD can offer that. Also, if you want to do all your banking in one place, Chase simplifies that as well.
Cons of Chase CDs
On the downside, the APY on Chase CDs is not very competitive, particularly for shorter term CDs. The penalties for early withdrawal can take a chunk out of your principal. And if you aren’t a Chase checking account customer, you’re not going to earn the maximum APY rate.
Chase CD rates don’t compare particularly well to other banks — especially online-only banks. Someone might like the reputation and convenience of Chase, but for the highest rates on CDs, Chase probably isn’t the best option.
If you are interested in opening a CD, it’s important to compare the best CD rates and read the fine print. A CD can be a good way to set aside money and earn a bit of interest. You might consider a CD as part of a larger and more diversified approach to investing, as they can add stability to balance riskier but higher-earning investments like stocks.
Author: Ashley Sutphin