9-month CDs offer a relatively low-risk investment option that typically provides higher yields than traditional savings accounts.
In this article, we'll be comparing the 9-month CD rates, early withdrawal rates, and minimum deposit requirements of several leading financial institutions to help you make an informed decision when it comes to investing your hard-earned money.
Compare 9-Month CD Rates
When you're looking to compare 9-month CDs, the first step is to research current CD rates offered by different banks and credit unions. This is an important step as the interest rate offered by the bank or credit union will determine the return on your investment.
While interest rates are an important factor to consider when comparing 9-month CDs, they shouldn't be the only factor. Also, consider the minimum deposit required and the overall financial stability and reputation of the institution when comparing rates, as a higher rate from an unstable or less reputable institution may not be worth the risk.
Financial Institution | 9 Month CD APY | Minimum Deposit |
|---|---|---|
4.85% | $0 | |
4.80% | $0 | |
4.88% | $1,000 | |
3.75% | $500 | |
4.25% | $0 | |
5.10% | $2,500 | |
4.70% | $2,500 | |
5.25%
| $1,000
| |
4.45% | $1,000 | |
4.80% | $500 | |
4.55% | $25,000 | |
4.48% | $1,000 | |
4.50% | $1,000 |
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Compare Early Withdrawal Penalty For 9-Month CDs
For 9-month CDs, early withdrawal penalties are generally lower than longer-term CDs such as 5-year CDs and even 3-year CDs, but they can still vary depending on the institution.
The penalty may be a percentage of the amount withdrawn or a certain number of months of interest, and can range from a small percentage to the full amount of interest earned.
Financial Institution | Early Withdrawal Penalty |
|---|---|
90 days of interest
| |
60 days of interest
| |
182 days of interest | |
90 days interest
| |
3 months interest
| |
3 months interest
| |
90 days of interest
| |
25% of interest | |
N/A | |
90 days interest
| |
90 days of interest
| |
N/A |
When You May Want To Consider 9-Month CDs?
9-month CDs can be a good investment option for a variety of individuals. Here are some profiles of people who may want to consider short-term CDs:
Savers looking for a low-risk investment: 9-month CDs offer a low-risk investment option for savers who want to earn higher interest rates than traditional savings accounts without taking on significant risk. The fixed interest rate and term of the CD make it a predictable investment option.
Individuals with short-term savings goals: If you have a short-term savings goal, such as saving for a vacation or a down payment on a house, a 9-month CD may be a good option. The fixed term of the CD can help you save towards your goal and the interest earned can help you reach it faster.
Individuals who may need access to funds in the near future: While CDs typically have early withdrawal penalties, 9-month CDs may have lower penalties than longer-term CDs. If you anticipate needing access to your funds in the near future, a 9-month CD may be a good option.
Retirees looking for income: Retirees who are looking for a steady source of income may want to consider a laddered CD strategy. This involves investing in multiple short-term CDs with varying maturity dates. This can provide retirees with a regular stream of income while still maintaining the flexibility to adjust their investment strategy as needed.
9-Month CD vs. Savings Account
Both a 9-month CD and a savings account serve as savings vehicles, but they differ in a few key ways.
Firstly,9-month CDs usually offer higher interest rates compared to savings accounts due to a longer investment term, while savings accounts offer greater liquidity, allowing you to withdraw funds without penalties.
Secondly, savings accounts are more flexible as you can make deposits or withdrawals at any time, but with a 9-month CD, you cannot make changes until maturity.
Ultimately, choosing between a 9-month CD and savings account depends on your financial goals and risk tolerance. If you prioritize accessibility, a savings account may be a better option. On the other hand, if you are willing to lock in your funds for a fixed period of time in exchange for a higher return, a 9-month CD may be more suitable.
Financial Institution | 9 Month CD APY | Savings Account APY |
|---|---|---|
Synchrony Bank
| 4.85% | 4.65% |
Ally Bank
| 4.80% | 4.20% |
NASA Federal
| 4.88% | 0.10% |
Citi Bank
| 3.75% | 4.30% |
Capital One Bank | 4.25% | 4.25% |
Discover Bank
| 5.10% | 4.25% |
Sallie Mae | 4.70% | 4.50% |
TIAA Bank
| 5.25%
| 5.05% |
Fidelity | 4.45% | N/A |
Marcus | 4.80% | 4.40% |
Merrick Bank | 4.55% | N/A |
Charles Schwab | 4.48% | N/A |
FAQs
How does a 9-month CD work?
You deposit a fixed amount of money for 9 months in exchange for a fixed interest rate. At the end of the term, you can choose to renew the CD or withdraw your funds.
What is the minimum deposit required for a 9-month CD?
The minimum deposit required for a 9-month CD can vary depending on the institution and it's typically between $500 and $1,000. However, with Synchrony, Ally and Discover bank there is no minimum at all.
What happens when a 9-month CD matures?
At maturity, you can choose to renew the CD or withdraw your funds.
Can I open a 9-month CD online?
Yes, many banks and credit unions such as Marcus, Citi and TIAA bank offer the option to open a 9-month CD online.
What happens if I forget to renew my 9-month CD?
If you forget to renew your 9-month CD, it may automatically renew at the current interest rate or roll over into a new CD term with a different interest rate.
How We Picked The Best 9-Month CD Rates: Methodology
The Smart Investor team has conducted an in-depth review of banks and credit unions to uncover the best 9-month CD (Certificate of Deposit) rates available. Our assessment focused on four primary categories to rate them effectively:
Interest Rates and Terms (50%): We scrutinized the interest rates offered on 9-month CDs and any accompanying terms and conditions. Banks with higher interest rates and favorable terms, such as low minimum deposit requirements and reasonable penalties for early withdrawal, received higher ratings in this category.
Account Features (20%): This category evaluated the additional features and benefits provided by each 9-month CD. We considered factors like automatic renewal options, choices for interest payouts (monthly, quarterly, or at maturity), and eligibility for promotional rates. CDs offering more features or flexibility earned higher scores.
Customer Experience (20%): We assessed the ease of opening a 9-month CD, communication with customer service representatives, usability of online banking platforms (tested by our team), and availability of support channels. Banks with streamlined processes, responsive customer service, and user-friendly online interfaces received higher ratings.
Financial Stability and Reputation (10%): Our team analyzed each bank's financial stability and reputation, taking into account customer satisfaction ratings, JD Power scores, TrustPilot reviews, and the bank's Better Business Bureau (BBB) profile. Banks with strong financial standings and positive reputations were awarded higher ratings.
Through careful consideration of various features and qualities within each category, we ensured a comprehensive evaluation of each 9-month CD.
