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SunTrust is a relatively large U.S. bank with a variety of personal banking products available. Savings options from SunTrust include their Essential Savings and Select Savings Account, the Signature Money Market Savings, and Personal Certificates of Deposit. SunTrust CDs are available with terms ranging from seven days up to 10 years.
Jump to a section:
- SunTrust CD Rates
- Eligibility Requirements
- Minimum Account Opening Amount
- Early Withdrawal Penalty
- Are SunTrust CD Rates Right for You?
Introduction to SunTrust CDs
A certificate of deposit, or a CD, is a form of savings account that earns interest. When someone opens a CD account, they’re agreeing that their money is going to be inaccessible for a period of time—the length of the term. On the day of maturity, the money is available and can be withdrawn without a penalty. If someone takes their money out of a CD before the maturity date, they will have to pay a penalty for doing so.
CDs earn interest that’s usually higher than a savings account, the funds are insured, and there’s no risk of loss associated with these accounts. They’re a no-risk place to put money to have it earn interest. The amount of interest earned on deposits in a CD account is lower than what someone might get with higher-risk investment strategies, however.
SunTrust is a bank based in Atlanta. They are one of the largest financial companies in the U.S. SunTrust has branches and ATMs throughout much of the country, particularly in the Southeast region. Products available from SunTrust include personal banking accounts and services, credit cards, mortgages and other loans, retirement accounts and planning, and small business services.
SunTrust CD Rates
The following highlights the available CD rates from SunTrust being advertised right now. It’s important to note these are promotional rates, and these can in some cases vary depending on your location. These rates can also change quickly, so be sure to check with SunTrust for the current rates.
|Term Length||CD Rate (APY)|
|6 months||0.50 percent APY|
|12 months||2.00 percent APY|
|18 months||2.20 percent APY|
|24 months||2.40 percent APY|
|58 months||2.75 percent APY|
If someone wasn’t eligible for these promotional rates for some reason, or they were going to open a shorter-term CD, the rates would be much lower. For example, if you were to open a seven-day account, your rates would be around 0.01 percent APY.
As was briefly touched on, to be eligible for certain SunTrust CD products or promotional rates, you may need to live in certain areas. Some SunTrust products may not be available to people who don’t reside in specific zip codes.
If you want to open a CD account, you can do so online. You will need an ID, your personal information, and you will have to be ready to fund your account either with another bank account or in a branch. The process to open a SunTrust CD is going to be easier if you already have an account with the company.
If you are thinking of opening a SunTrust CD, you should know that, unless you are told otherwise upon opening an account, when the CD matures, it automatically renews. The automatic renewal will be for the same period as the original term of the CD. It will renew at the same SunTrust standard interest rate based on your local area and your balance tier.
Minimum Opening Deposit and Balance Requirement
The minimum opening deposit for all CDs at SunTrust is $2,000. The maximum opening deposit is $250,000.
Early Withdrawal Penalty
CDs are not a good option for someone who needs liquidity with their savings or even thinks that they might need access to their funds in the near future. If you open a CD with SunTrust and you have to withdraw your money before the maturity date, you’ll have to pay a penalty.
The Early Withdrawal Penalties Include:
- If you have a CD with a term of up to 31 days, you’ll have to pay a withdrawal penalty that’s equal to seven days’ interest
- If you have a CD with a term of one to six months, the penalty is equal to six months’ interest
- If you have a CD with a term of six to 12 months, the penalty is equal to nine months’ interest
- If you have a CD that has a term between 12 and 24 months, the penalty is equal to 12 months’ interest
- For SunTrust CDs with terms of 24 to 60 months, the penalty is 24 months’ interest
Deciding If SunTrust CDs Are Right for You
SunTrust CDs have pros and cons as with any financial product. The following are some considerations to keep in mind if you’re thinking of opening a CD with SunTrust.
Pros of a SunTrust CD
If you are eligible for the promotional rates from SunTrust, the APY can be relatively high. The opening minimum deposit and balance requirement sare fairly low, opening an account is easy, and there are short-term CDs available.
Cons of a SunTrust CD
Outside of the advertised promotional rates, the normal rates paid on a SunTrust CD are very low. It would be difficult to earn much of anything on an account if you weren’t eligible for whatever promotional rates were being offered. Most high-yield savings accounts will offer more than the non-promotional SunTrust CD rates.
How SunTrust Rates Compare
The SunTrust promotional rates are fairly similar to other big, traditional banks like Chase. The terms are fairly similar as well. The rates, in general, aren’t great with a SunTrust CD, especially when compared to an online bank like Ally. If you want the best CD rates, it’s likely a better idea to go with an online bank.
If you are still interested in a SunTrust CD, you should contact the bank. Since they do offer localized rates and promotions, they may have options available that aren’t listed on the site. Otherwise, a SunTrust CD may be a fine product, but it’s not on par—at least regarding earning potential—with an online bank.
Author: Ashley Sutphin