CFG Bank offers a 1-year CD with an APR of 5.28%

The same applies Deposit receipt (CD) Rates. In May 2022 the average national tariff for a 1-year CD was 0.21%. Since that Average is up 1.59%, with bids from many banks and credit unions well above the national average.

One of the top contenders right now: CFG Bank’s 12-month CD.

CFG Bank: 1-year CD offers 5.28% APR

founded in 2009, CFG bank is a Maryland-based bank offering one- to five-year CDs, money market accounts, traditional checking accounts, and commercial banking products. They have a handful of brick-and-mortar locations throughout Maryland, although CFG customers can also bank online or through the mobile app.

Currently, CFG’s 1-year CD offers an APR of 5.28% – just over three times the national average. Savers wishing to take advantage of this APR can open an account online or at one of CFG’s physical branches.

key numbers

Minimum deposit to open: $500

1-year APY: 5.28%

Penalty: 90 days worth of simple interest

Savers must make a minimum initial deposit of $500, but no more than $500,000, and maintain a minimum daily balance of $500 to earn the 5.28% APR. If needed, account holders can make withdrawals within the first 30 days. From this point on, however, a penalty will be imposed for every withdrawal.

Advantages and disadvantages of a CD

CDs work a little differently than a traditional savings account. As such, it may not be the right account type for every saver. Pros and cons to consider include:

• Higher interest rates than a traditional savings account: CDs require you to commit to locking up your money for the duration of your term. Because of this, These accounts usually offer a higher APR than traditional savings accounts.
• CDs offer a fixed interest rate: Unlike a traditional savings account or money market account, CDs offer a fixed interest rate. For this reason, savers who prefer stability and do not want to be exposed to the effects of federal rate hikes or market fluctuations may prefer a CD.
• Binding yourself to a CD can keep you from higher tariffs: One potential downside to CDs is that a fixed interest rate may also prevent you from earning the highest possible APR if interest rates rise.
• CDs do not offer the same liquidity as other savings instruments: Savers who want a bigger safety net and would prefer to have access to their money could opt for a savings account that doesn’t penalize them if they withdraw before a certain time. Although there are no-penalty CDs, most CDs charge savers a penalty for a withdrawal before their CD is due.

take that away

For savers willing to lock up their money for a period of time, CDs can be part of a lucrative savings strategy. With many financial institutions offering APYs well above the national average, savers should consider parking their savings on a CD to top up their savings.