Citizens Bank CD Rates (2024)

Citizens Bank CD Rates

On its website, Citizens Bank advertises only two CD options: eight-month and 14-month standard CDs. You can only open one of these accounts if you have a Citizens Private Client checking account (which requires at least $200,000 in deposits and investments with the bank) or a Citizens Quest checking account.

The eight-month CD term has a competitive APY that’s over three times the national average interest rate for a six-month CD term and over twice the average for a one-year term. However, it requires a very steep minimum deposit of $25,000, and these funds must be new to the bank.

The 14-month online CD offers a less competitive return, but it has a more manageable minimum deposit requirement of $1,000.

Citizens Bank CDAPY*Minimum Opening DepositEarly Withdrawal Penalty
8-month online CD5.25%$25,000 (new money only)$50 transaction penalty plus 90 days’ interest on the withdrawn amount or half the remaining interest to be earned, whichever is greater
14-month online CD2.75%$1,000$50 transaction penalty plus 180 days’ interest on the withdrawn amount or half the remaining interest to be earned, whichever is greater.
Breakable CDNot disclosed$10,000$50 transaction penalty plus 90 or 180 days’ interest on the withdrawn amount or half the remaining interest to be earned, whichever is greater.
IRA CDNot disclosed$250Subject to IRA tax regulations

However, Citizen’s Personal Deposit Account Fees and Features Guide states that the bank offers standard CDs, breakable CDs (also known as no-penalty CDs) and individual retirement account (IRA) CDs. The standard and IRA CDs are offered in terms of one month to 10 years, and breakable CD terms range from three months to five years.

The bank doesn’t provide more information about rates or CD terms on its website. It recommends calling or visiting your local branch to learn about other terms or promotional CDs could be available.

Citizens Bank CD: Who It’s Best For

Since Citizens Bank’s advertised online CDs have specific requirements, they’re best for certain customers. These include:

People Who Have or Want a Citizens Checking Account

Citizens Bank requires having an eligible checking account before you can open one of the online CDs. If you don’t already have a checking account, keep in mind that one option has a monthly fee and the other requires you to keep large sums with Citizens.

Citizens Quest Checking has a $25 monthly fee that’s waived if you make $5,000 in total deposits per statement cycle or maintain $25,000 in combined deposits across eligible Citizens accounts. Citizens Private Client Checking is only available to customers who maintain combined deposits and investments of at least $200,000 across eligible accounts.

Those Who Can Afford a Large Deposit

Citizen Bank’s eight-month online CD requires a deposit of at least $25,000 from an external account, so it’s not accessible to all savers. The 14-month CD only requires a $1,000 deposit, but online banks such as Synchrony and BMO Alto have no minimum deposit at all.

Those Who Want Longer- or Shorter-Term CDs

While Citizens Bank only advertises two CD terms on its website, terms from one month to 10 years may be available if you open an account at a branch rather than online.

Savers Who Can Avoid Early Withdrawals

Citizens Bank is particularly expensive for early withdrawals, charging two fees for them: a portion of the interest earned, plus a $50 transaction penalty. So if you’re considering opening a CD with the bank, make sure you can keep your money deposited for the whole term.

Citizen Bank CDs: Additional Information

Before opening a Citizens Bank CD, you should understand the requirements, interest payments and account features. Here are important details to consider:

Minimum Opening Deposit Requirements

Citizens Bank requires at least $1,000 to open an online standard CD. You’ll need at least $250 to get a Citizens Bank IRA CD and $10,000 to get a Breakable CD.

CD Terms

While the options shown online are for shorter-term CDs, you may have additional term options if you call the bank or open a CD at a branch.

Compounding Schedule

Interest on your Citizens Bank CD will be compounded monthly. The more often interest is compounded, the faster a deposit earns interest.

Interest Payments

Citizens Bank adds your monthly interest payments to your CD balance by default. But if you make at least a $5,000 minimum opening deposit, you can have these payments sent to a connected bank account or mailed via check each month.

Early Withdrawal Penalties

For terms that are less than one year, the early withdrawal penalty is 90 days of interest on the withdrawn amount or half of the remaining interest to be earned (whichever is greater).

For terms of one year or more, the penalty is 180 days of interest on the withdrawn amount or the remaining interest to be earned (whichever is greater). There’s also a $50 transaction penalty regardless of the term.

Deposit Insurance

Citizens Bank is insured by the Federal Deposit Insurance Corp. (FDIC), so your combined money across CDs and other deposit accounts is protected for up to $250,000 per depositor, per account.

Citizens CD Rates vs. Other Top Banks

Citizens Bank doesn’t advertise a one-year CD term online, but its 14-month online CD has a similar term length to the one-year CDs available through many top financial institutions.

While several competitors have higher-earning CD options, some traditional banks offer much lower standard rates for this CD term. Citizens’ $1,000 minimum deposit requirement is similar to a few competitors’ minimums, but some online banks don’t require a minimum deposit.

Here’s how Citizens Bank stacks up against some of its competitors:

BankAPY on 1-Year CD*Minimum Deposit$2,500 Deposit Value at Close of CD
Citizens BankN/A, 2.75% for a 14-month online CD$1,000$2,581.41
Bank of America0.03% (fixed-term CD)

4.00% (flexible CD)
$1,000$2,500.75 (fixed-term CD)

$2,601.85 (flexible CD)
Capital One5.00%$0$2,627.90
Chase0.01% (standard rate)

2.00% (relationship rate)
$1,000$2,500.25 (standard rate)

$2,550.50 (relationship rate)
Citibank2.00% (fixed-rate CD with balance below $100,000)$500$2,54.99 (fixed-rate CD with balance below $100,000
Discover4.70%$2,500$2,617.50
Synchrony Bank5.15%$0$2,619.78

Additional Ways To Save With Citizens Bank

In addition to CDs, Citizens Bank offers three savings accounts and three money market accounts. They generally have low interest rates for most balances.

  • One Deposit Savings from Citizens: There’s no minimum deposit to open an account, and you can avoid the $4.99 maintenance fee by making at least one deposit per month.
  • Citizens Quest Savings: This account has a higher APY and no minimum deposit or monthly fee.
  • Citizens Private Client Savings: Along with higher rates, account holders get fees waived for things including wire transfers and stop-payment requests.
  • Personal Money Market: There’s no minimum opening deposit, and the $10 monthly maintenance fee is waived if the account keeps a $2,500 minimum daily balance.
  • Citizens Quest Money Market: This account doesn’t have a minimum deposit, and the interest rate is based on the account balance.
  • Citizens Private Client Money Market:Account holders get unlimited rebates on other banks’ ATM fees, and higher balances get higher interest rates.

The Bottom Line: Is a Citizens Bank CD Right For You?

Citizen Bank’s standard online CDs can be good if you can deposit at least $1,000 and also need a checking account. The bank is also worth considering if you prefer branch support and don’t mind contacting the bank for more details on the CDs available in your area. But if you have less saved or don’t want to open a checking account to get a CD, some competitors offer more options and better rates.

FAQ: Citizens Bank CD Rates

On Citizens Bank’s website, the current CD rates are 5.25% APY for an eight-month term and 2.75% APY for a 14-month term. You’ll need to call or visit a local branch to find out what other CD terms or rates may be available.

While you likely won’t be able to get 6% APY on a CD at any financial institution, you may be able to earn 5% APY or more with a CD from a credit union or online bank. The best CD rates are often for shorter terms.

You’ll generally find the highest-paying CDs through online-only banks and credit unions. Many options offer at least 5% APY on short-term CDs.

*Rates accurate as of May 28, 2024

**Data accurate at time of publication

If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.

Citizens Bank CD Rates (2024)

FAQs

Can you get 6% on a CD? ›

You can find 6% CD rates at a few financial institutions, but chances are those rates are only available on CDs with maturities of 12 months or less. Financial institutions offer high rates to compete for business, but they don't want to pay customers ultra-high rates over many years.

Who is paying the highest CD rates right now? ›

The highest certificates of deposit (CDs) rates today are offered by Merchants Bank of Indiana (5.92%), First Federal of Lakewood (5.61%), Maries County Bank (5.51%) and Shoreham Bank (5.50%). You can see the full list of the highest-paying CDs here.

How much money do you make on a $5000 CD? ›

Depending on the bank, a $5,000 CD deposit will make around $25 to $275 in interest after one year.

Why should you put $15,000 into a 1 year CD now? ›

In summary, a certificate of deposit gives you steady and safe returns. Investing $15,000 in a CD could lead to substantial gains, regardless of the CD's length. However, make sure you won't need that money while the CD is active because withdrawing early usually incurs hefty penalties.

Which bank gives 7% interest on savings accounts? ›

Which bank gives 7% interest on a savings account? There are not any banks offering 7% interest on a savings account right now.

What is the biggest negative of putting your money in a CD? ›

1. Early withdrawal penalty. One major drawback of a CD is that account holders can't easily access their money if an unanticipated need arises. They typically have to pay a penalty for early withdrawals, which can eat up interest and can even result in the loss of principal.

How high will CD rates go in 2024? ›

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

What is the CD rate for Citizens bank 14 month term? ›

There are two featured CD rates at Citizens Bank: 8 months and 14 months. The APY for these CDs is 5.25% and 2.75%, respectively.

Do you pay taxes on CD interest? ›

How Are CDs Taxed? Interest earned on CDs is taxed as ordinary income at your individual federal income tax rate. This rate can range from 10% to 37% depending on your taxable income and filing status.

Which bank gives 8% interest on savings accounts near? ›

Which bank gives 8% interest on a savings account? Currently, no banks offer an interest rate of 8% on savings accounts. However, some banks provide a 7% APY on checking accounts.

What is the highest CD rate at bank of America? ›

Bank of America's current CD rates range from 0.03% to 5.00% APY. The highest Bank of America CD rate is a 5.00% APY, which is for its 13 months featured term.

Are citizens bank CDs FDIC insured? ›

Citizens Bank is an insured member of the Federal Deposit Insurance Corporation (FDIC), which means deposits in all types of accounts are insured, dollar-for-dollar, up to $250,000 per person. It's a pretty impressive security blanket for our nation's banking system, and we're proud to be a part of it.

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