This Is How Much You Need to Open CDs at Chase and 18 Other Banks

Find out how much you need to open a CD account.

A certificate of deposit is a bank-issued investment that is insured by the FDIC. Most CDs carry this federal insurance, but CDs issued by different banks can have dramatically different characteristics. You can invest in CDs at most brick-and-mortar or online banks, but understand the differences and requirements so you can choose the CD account that works best for your financial strategy.

Here’s the minimum deposit to open a CD at some of the top banks in the nation.

What Is the Minimum Deposit for a CD Account?

Depending on where you choose to open your account, your CD investment can have no minimum CD amount. “Jumbo CDs” are those that carry investment minimums of $100,000; jumbo CDs often carry higher rates to entice investors to place more money with a bank. You might want to consider capping your investment at $250,000, as that is the FDIC insurance limit.

If you want a higher rate but can’t afford a jumbo CD, you can choose a CD with a longer term. Typically, the longer you agree to invest your money, the higher the interest rate on your CD.

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Find Out: Why Banks Require a Minimum Balance

Current CD Minimums and Rates

Use this table to quickly see minimum deposit requirements and interest rates on a Chase CD, Bank of America CD, Wells Fargo CD and CDs from other top banks:

Minimum Deposit Required to Open a CD
Bank Type of CD Minimum Deposit APY for 12-Month CD
Ally Bank High Yield CD $0 0.55%; but increases with larger deposits
American Express Bank American Express CD $0 0.20%
Bank of America Bank of America Standard Term CD $1,000 0.05%
Barclays Bank Delaware Online CD $0 0.25%
BBVA BBVA CD $500 0.00%
Capital One Capital One 360 CD $0 0.20%
Chase Chase Bank Chase CD $1,000 0.05%
CIT Bank Term CD $1,000 0.30%
Citibank Citibank CD Might vary 0.10%
Discover Discover Bank Discover CD $2,500 0.50%
Fifth Third Bank Standard CD $500 0.01%
HSBC Bank USA Online CD $1,000 0.30%
PNC Bank Fixed Rate CD $1,000 0.02%
SunTrust Bank SunTrust CD $2,000 0.05%
Synchrony Bank Synchrony CD $2,000 0.55%
TD Ameritrade Brokered CD $2,000 0.05%
U.S. Bank U.S. Bank CD Special $1,000 0.05%
Vio Bank High Yield Online CD $500 0.15%
Wells Fargo Wells Fargo CD $2,500 0.02%
All rates accurate as of today, except for American Express Bank, which is accurate as of September 12, 2019.

Pros and Cons of CD Accounts

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As with any investment, there are both advantages and disadvantages when it comes to buying CDs. To decide what CD is right for you, consider how fast you’re trying to grow your money, when you need to access that money and what comparable investments are available. Then, consider the other benefits and drawbacks of a CD account.

Pros of Opening a CD Account

For the right investor, CDs can offer great benefits. Here are the positive aspects of this kind of investment account:

  • Minimum Initial Investment: At several banks, low minimum requirements for CDs allow you to open an account with a small deposit. Some of the best CD accounts even offer a minimum deposit of $0, although technically you’d have to invest some money.
  • Premium Rates: If you have some spare cash sitting in your checking or savings account, a CD might be an ideal investment option for you. Depending on how long you can invest the money, even by opening a minimum-investment CD, you can generally earn a higher rate of interest than other traditional bank accounts can offer. Some CDs are billed as high-yield CDs, promising higher rates over typically longer terms.
  • Safety: CDs are decidedly low-risk, as an FDIC-insured investment guarantees that investors will receive the full amount of the original investment — plus interest — at the end of the term, up to the $250,000 limit. Additionally, as a CD is an electronic investment at a bank, there’s no risk of theft or casualty loss, such as from a fire in your home.

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Don’t Miss: 10 Best CD Accounts of 2018

Cons of Investing in CDs

CDs offer relatively few disadvantages to investors, particularly in the risk department. They aren’t without potential negative aspects, though. Here are a couple of features that could be drawbacks when it comes to investing in a CD:

  • Early Withdrawal Penalties: Unlike a checking or savings account, you’ll have to pay a penalty if you take money out of your CD before it matures. Early withdrawal penalties can apply whether you put in a meager $100 or tens of thousands of dollars. In some cases, the amount of the penalty can exceed the interest you have earned on the CD, thereby costing you some principal.
  • Automatic Renewal: Many CDs automatically renew at maturity. If you need your money at the end of the term, you’ll have to inform your bank in advance. Otherwise, that money will become unavailable again for another term — unless you pay the early withdrawal penalty.

Learn: How to Close Your CD Early Without Paying a Fee

Understanding CD Terms and Conditions

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CDs might seem like a simple bank investment, but they have terms and conditions that make them distinct from other bank offerings, such as checking and savings accounts.

A CD is a special type of interest-bearing investment known as a time deposit. Banks can afford to offer you interest payments and the safe return of your principal because you promise to leave your money with them for the length of the investment term. Checking and savings accounts, on the contrary, typically allow withdrawals at any time. As a result, the interest rates they pay — if any — usually can’t compete with CD rates.

On the plus side, some banks offer no-penalty CDs, meaning you won’t face any withdrawal penalties if you take your money out early. Ally Bank’s No Penalty CD, for example, allows you to withdraw all your money without penalty, including any interest you’ve earned, as long as your withdrawal is more than six days after your initial investment.

Related: CD Loans — How to Borrow Against Your Certificate of Deposit

More on Banking and CD Rates

Sean Dennison contributed to the reporting for this article.

This content is not provided by the companies mentioned. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved, or otherwise endorsed by the companies mentioned.

Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been endorsed by American Express.

Editorial Note: This content is not provided or commissioned by the bank advertiser. Opinions expressed here are author’s alone, not those of the bank advertiser, and have not been reviewed, approved or otherwise endorsed by the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.

About the Author

John Csiszar

After earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients.

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