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The high deposit requirements of the Citizens Online CDs may prohibit some from opening one, but those who can afford it will earn a competitive rate with any term they choose.
APY = Annual Percentage Yield
You'll have to lock your money up for at least a year to open a Citizens Online CD -- and it'll have to be at least $5,000 to satisfy the minimum deposit. That said, the APYs available aren't bad.
1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|
5.00% | 4.00% | 3.35% | 3.40% | 3.45% |
Few online banks can match the certificate of deposit (CD) rates Citizens offers. Its APYs are competitive for all terms, making it a great choice for those looking to build a CD ladder.
Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
---|---|---|---|---|
Member FDIC.
| APY: 4.70% | Term: 1 Year | Min. Deposit: $2,500 |
Open Account for Discover® Bank CD
On Discover Bank's Secure Website. |
Member FDIC.
| APY: 5.20% | Term: 10 Months | Min. Deposit: $2,500 |
Open Account for
On Secure Website. |
Member FDIC.
| APY: 5.00% | Term: 1 Year | Min. Deposit: $0 |
Open Account for Barclays Online CD
On Barclays' Secure Website. |
Citizens currently offers two types of CDs: online CDs and a liquid CD.
Citizens Online CDs offer nearly all the term lengths common among certificate of deposit (CD) providers. It doesn't offer any short- or long-term CDs with terms of less than one year or longer than five years, but this shouldn't be a problem for most people. The only popular CD term it's missing is a six-month CD.
The $5,000 minimum deposit requirement is a little steep, but those who can afford it can stand to earn quite a bit in interest, especially if they choose to build a CD ladder. Those looking to maximize their profits should consider reinvesting their interest payments over time.
Citizens offers a liquid CD with an 11-month term and a $5,000 minimum deposit requirement. This is a no-penalty CD, which means that you can withdraw your funds penalty-free at any point after the first seven days of account funding. However, if you choose to do this, you must withdraw all your money at once.
This account offers a much lower APY than the Citizens Online CDs, so it's not the best choice for most people. If you're worried about having to withdraw your money early, consider putting your money in a high-yield savings account instead. Otherwise, go with an Online CD with a one-year term.
A Citizens Online CD is right for anyone who has at least $5,000 to spare and is comfortable leaving that money untouched for at least one year.
At The Motley Fool Ascent, certificates of deposit (CDs) are rated primarily focusing on annual percentage yield (APY) and early withdrawal penalty fees. Our highest-rated CDs generally include competitive APYs without complex qualification tiers, low withdrawal fees, reliable brand trust and reputation, and ease of use.
Learn more about how The Motley Fool Ascent rates bank accounts.
A Citizens Online CD offers a high rate of interest on your savings. You can earn much more with one of these than you can with a brick-and-mortar bank account or even many online savings accounts.
A Citizens Online CD could be worth it if you don't think you'll need to access your funds during the CD term. But you also need to consider the rate environment at the time. When APYs are climbing, locking your money away in any CD generally isn't wise.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.