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

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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 Standard Term CD $1,000 0.05%
Barclays Bank Delaware Online CD $0 0.25%
BBVA BBVA CD $500 0.00%
Capital One 360 CD $0 0.20%
Chase Bank Chase CD $1,000 0.05%
CIT Bank Term CD $1,000 0.30%
Citibank Citibank CD Might vary 0.10%
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 0.50%
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:

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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:

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.

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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.

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