What Is the Typical Minimum Balance of a Certificate of Deposit?

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Interest rates on CDs are pretty attractive right now. Still, you may be wondering about certificate of deposit typical minimum balance requirements and whether you have enough money to take advantage of those higher APYs. Keep reading for a brief overview of CD balance requirements and how much rates and terms can differ by bank.

What’s the Minimum Balance for a Certificate of Deposit?

A minimum deposit of $500 or $1,000 is typical, although some banks may require $2,500 or $5,000 for some CD products — every financial institution sets its own minimum balance requirements for CDs. Conversely, some banks allow you to open a CD with any amount.

Minimum Balance and APY

With some banks and credit unions, the higher the deposit amount, the better the APY, regardless of whether the CD maturity term is a few months or years. Other financial institutions may offer the best APYs on long-term CDs, such as two to five years. Still others have tiered rates that vary based on both the term and the deposit amount.

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Also, banks may occasionally offer a special APY on a specific CD term, so comparing rates, maturity terms, minimum deposit requirements and early withdrawal penalties is essential before opening a CD.

For instance, what is the best rate for a $100,000 CD? You can currently find rates as high as 5.00%, depending on the financial institution and the CD term, but some offer an APY as low as 0.05% for short maturity terms. Comparing several banks’ offerings is essential, especially for more significant deposit amounts.

Minimum Deposit Requirements at Different Banks

Here is a look at how three different financial institutions differ in their minimum deposit amounts, maturity terms and APYs.

Capital One 360

Capital One has no minimum deposit requirements for its CDs. The APY varies by term, with CDs as short as six months and as long as 60 months. No matter how much you have to put into Capital One 360 CDs, you’ll typically get the best rate on a CD with a 24, 30 or 36-month term. The APYs on CDs with shorter or longer maturity terms are slightly lower.

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Capital One, like many banks, sometimes runs limited-time offers at an exceptional rate for a specific term.

Navy Federal Credit Union

Navy Federal Credit Union has some CD options with a minimum deposit requirement of $50. However, you’ll get a better APY with a minimum deposit of $1,000. NFCU members earn an additional 0.05% when depositing a minimum of $100,000.

Navy Federal offers its best APY on CDs with a term of 24 months or longer, although it sometimes offers a special rate certain CDs, so it’s worth checking its CD rates if you’re a member.

BMO Harris Bank

BMO Harris has a minimum deposit requirement of $1,000, though if you have $100,000 to invest, you’ll have more term options.

With BMO Harris standard CDs, you’ll typically get the best APY on terms of three years and longer regardless of the deposit amount.

What Is the Deposit Limit for a Certificate of Deposit?

The deposit limit on CDs varies by financial institution. You may find deposit maximums of $250,000 or as much as $1 million or more. Some banks may have a limit on the number of CDs you can open.

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When opening CDs, it is important to note that you will only be insured up to $250,000 across all your deposit accounts at any one FDIC-insured bank or NCUA-insured credit union.

Can You Regularly Add to a Certificate of Deposit Balance?

Most CDs do not allow additional deposits beyond the opening deposit, unless it is an add-on CD, or what some banks call an add-to option. Not all banks offer add-on CDs, and those that do may require deposits from a checking or savings account from the same bank.

Final Take

A certificate of deposit typical minimum balance is $500 or $1,000 with many banks, but some have low or no minimum balance requirements — and some have higher. While long-term CDs often have better APYs, that doesn’t mean you should discount CDs with shorter terms simply because the APY may be lower. For instance, a 6-month CD can be worth it if the alternative is putting money in a lower-rate savings account.

The same logic goes for depositing a significant amount in one CD. If you think you may need access to some of your money before the CD maturity date, you may be better off building a CD ladder: buying several CDs in smaller amounts for varying terms rather than one large CD, even if some have slightly lower APYs.

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About the Author

Andrea Norris has been in the web publishing business for the past 15 years both as a content contributor and a copy editor specializing in personal finance, frugal living, home and auto topics. She writes both short and long-form content and is well-practiced in SEO keyword research and writing.
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