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A certificate of deposit, also known as a CD, is an investment in which you deposit money and it earns interest over a set amount of time. It’s a safe, no-risk investment but the potential to earn money on a CD is fairly limited.
The terms and date of maturity on a CD determines when your money becomes liquid without you having to pay a penalty. Basically, if you were to open a CD with a term of 48 months, if you took money out before that time, you would have to pay a fee.
The following provides some information about Citizens Bank and their CD products as well as the currently available rates.
Jump to a section:
- Citizens Bank CD Rates
- Eligibility Requirements
- Minimum Account Opening Amount
- Early Withdrawal Penalty
- Who are Citizens Bank CD Rates Best for?
Citizens Bank Overview
Citizens Bank is one of the largest retail banks in the U.S., and they work with more than 5 million customers including individuals, companies, and non-profits. Citizens has around 1,150 branches in the U.S and 3,200 ATMs. Citizens has assets totaling more than $155 billion and deposits of more than $117 billion. The bank has a brick-and-mortar presence in New England, the Mid-Atlantic, and the Midwest regions.
Citizens Bank CD Rates
The following offers an overview of the currently available Citizens Bank CD rates.
|Term Length||APY||APY with Platinum Checking||APY with Platinum Plus Checking|
|12 months||0.10 percent APY||1.70 percent APY||2.00 percent APY|
|13 months (online only)||1.00 percent APY||N/A||N/A|
|36 months||0.10 percent APY||1.80 percent APY||2.50 percent APY|
There aren’t any real eligibility requirements to open a Citizens Bank CD except that you need to live in an area where CDs are available and their promotional rates are also available. Also, while you don’t have to, it’s advantageous to have a relationship with Citizens in the form of a Platinum Checking or Platinum Plus Checking Account.
APYs go up significantly for customers who have these accounts when they open a Citizens CD. Beyond that, the requirements are fairly basic for opening most kinds of bank accounts. You’ll need to be able to fund your account, and to open a CD with Citizens, you need to be 18 or older.
Minimum Opening Deposit & Balance Requirements
The minimum balance to open each of the available CDs from Citizens is $1,000. Balance requirements are the same to earn the associated APY.
Early Withdrawal Penalty
The terms for CDs from Citizens can vary. If you withdraw your funds before the maturity date, you will have to pay a penalty. According to Citizens, they may agree to let you withdraw the principal from your account, but if they don’t agree to that, then they will likely assess the penalty.
For short-term CDs, which are less than a year, the penalty is 90 days’ interest on the withdrawal amount or half the interest that remains to be earned, whichever is greater.
With long-term CDs, which are one year or longer, 180 days’ interest is charged on the withdrawn amount or half the remaining interest to be earned, whichever is greater. There is also a transaction penalty of $50.
Pros of Citizens Bank CDs
The biggest pro of Citizens Bank’s CDs is the spike in interest rates you get if you have a certain checking account with the bank. If so, the interest rates become fairly competitive. Minimum deposit requirements are low, but if you aren’t located near a Citizens Bank location, you might reconsider this bank. Their terms are usually promotional and might not apply to you, even if you try to open the online-only account.
Cons of Citizens Bank CDs
Overall, and especially without a checking account with Citizens, the rates are low. For example, if you don’t have a Platinum checking account with Citizens, the APY on the 12-month CD is only 0.10 percent. Even with the online-only CD that has a 1.00 percent APY, it’s well below what some other banks offer, especially online-only banks.
Who It’s Best for
A Citizens Bank CD is undoubtedly best for someone who is already a customer of the bank, and particularly a checking account customer. Otherwise, you should probably look elsewhere for better rates.
How Citizens Bank CD Rates Compare
This is considered above, but overall the Citizens Bank CD rates tend to be on par with most major traditional banks’ rates but well below online-only banks. Make sure to compare your options to find the best CD rates for your money.
If you’re interested in opening a CD account with Citizens or any financial institution, doing your research and comparing your rates are essential. You also need to think realistically about how much liquidity you could need and how high the penalty fees would be if you had to withdraw money from your CD before its maturity date.
Author: Ashley Sutphin