Looking for the best CD rates in New Jersey can be quite tough. There are so many options and different banks to choose from, and comparing them all is almost impossible. Each CD account has its pros and cons.
For example, some accounts offer higher interest rates for short-term CDs, while others are better for long-term investments. Some accounts may have good rates but have certain restrictions, while others give you more flexibility but with lower rates. You also need to consider how much money you need to deposit and if there are any fees for taking out your money early.
This article gives a quick overview of some of the top CD accounts in New Jersey. But remember, it's not just about getting the highest rates. You should also consider how long you want to invest, the minimum amount you need to deposit, and if there are any penalties for withdrawing your money early.
TIAA Bank
APY Range
Minimum Deposit
Terms
Fees
If you're in New Jersey and want a bank with good interest rates, TIAA Bank is a great option. They don't require a large initial deposit, and you can choose from different term options.
On top of that, there are no monthly fees, and they give you a heads-up 20 days before your CD matures. If you don't take out the money, they automatically renew it. They also have a bump rate CD, but the interest rate is slightly lower.
CD Term | APY |
|---|---|
3 Months | 4.00% |
6 Months | 4.00%
|
9 Months | 5.25%
|
12 Months | 5.00%
|
18 Months | 4.60% |
24 Months | 4.40% |
30 Months | 4.10% |
36 Months | 4.10%
|
48 Months | 4.05%
|
60 Months | 3.95%
|
TIAA Bank is a well-known U.S. bank that provides various banking and lending services to individuals and institutions. It's a division of TIAA.
Pen Fed Credit Union
APY Range
Minimum Deposit
early
Terms
Fees
PenFed Credit Union has a single branch in New Jersey and offers a variety of CD options with competitive interest rates for different durations.
On top of the regular rates, PenFed customers can open an 84-month CD, which is rare and provides a fixed and competitive interest rate of 3.40%.
Term | APY | Early Withdrawal Penalty |
|---|---|---|
6 Months | 3.00% | 90 days of dividends |
12 Months | 4.20% | 365 days / 30% of dividends |
18 Months | 4.20% | 365 days / 30% of dividends |
24 Months | 4.20% | 365 days / 30% of dividends |
36 Months | 3.60% | 365 days / 30% of dividends |
48 Months | 3.50% | 365 days / 30% of dividends |
60 Months | 3.50% | 365 days / 30% of dividends |
84 Months | 3.40% | 365 days / 30% of dividends |
Initially, PenFed was only open to people working for defense-related organizations. However, their membership criteria have expanded to include individuals from all backgrounds.
If you're a U.S. citizen or a permanent resident with a valid government-issued photo ID, you can apply to become a member of PenFed.
Ally Bank
APY Range
Minimum Deposit
Terms
Fees
Ally Bank has some really good deals on CDs, with different options ranging from three months to five years. This gives people in Washington the flexibility to choose the best option. Plus, Ally has a special CD that lets you withdraw your money early without any penalties.
One of the great things about Ally is their low fees for early withdrawals. They charge much less compared to other banks and credit unions.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
3 Months | 3.00% | 60 days of interest
|
6 Months | 4.40% | 60 days of interest
|
9 Months | 4.45% | 60 days of interest
|
12 Months | 4.50% | 60 days of interest
|
11 Months – No Penalty | 4.00%
| / |
18 Months | 4.45% | 90 days of interest
|
36 Months | 4.00% | 90 days of interest
|
60 Months | 3.90% | 150 days of interest
|
Even though Ally Bank is relatively new, starting in 2009, it has quickly gained a strong reputation in the industry. They offer a wide range of financial services, including savings accounts, money market accounts, loans, mortgages, checking accounts, investments, and retirement services.
Merrick Bank
APY Range
Minimum Deposit
Terms
Fees
Merrick Bank is a great choice for New Jersey residents who are willing to deposit a large amount of money. Their interest rates are usually higher than those offered by online banks and credit unions, and their short-term CDs are considered exceptional nationwide.
You can select a CD term from the available options and earn a good interest rate throughout the duration. However, there's one drawback: you need to deposit at least a certain minimum amount all at once, which might be too much for many people.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
3 Months | 5.25% | 90 days of interest
|
6 Months | 5.25% | 90 days of interest
|
9 Months | 5.15% | 90 days of interest
|
12 Months | 4.95% | 180 days of interest
|
18 Months | 4.65% | 180 days of interest
|
24 Months | 4.40% | 180 days of interest
|
36 Months | 4.20% | 180 days of interest
|
48 Months | 4.10% | 270 days of interest
|
60 Months | 4.05% | 270 days of interest
|
Merrick Bank is a subsidiary of Cardworks, a company based in New York. They've been in operation since 1997 and primarily focus on providing credit cards and loans.
Lafayette Federal Credit Union
APY Range
Minimum Deposit
Terms
Fees
Lafayette Federal Credit Union (LFCU) has different options for CDs with varying interest rates. The rates start at 4.37% for a 7-month term and go up to 4.32% for a 5-year term. You need to deposit at least $500 to open a CD at LFCU.
Compared to other credit unions and banks, LFCU is very competitive. Right now, their 1-year CD rates are among the best in the market, and their rates for other terms are also competitive.”
Term | APY |
|---|---|
7 Months | 4.37% |
12 Months | 5.04% |
24 Months | 4.78% |
36 Months | 4.52% |
48 Months | 4.42% |
60 Months | 4.32% |
Regarding membership, you can join Lafayette Federal Credit Union by paying a one-time fee of $10 to the Home Ownership Financial Literacy Council (HOFLC). Even if you're not in Maryland, Washington, D.C., or Virginia, you can still join from anywhere in the US, including New Jersey.
Barclays Bank
APY Range
Minimum Deposit
Terms
Fees
Barclays CDs have great interest rates for different periods, so they're trendy in New Jersey and everywhere else. You can open an account online easily and quickly without needing a minimum deposit. The only downside is that they don't offer CDs for three, six, and nine months, which can be a little inconvenient if you want to do CD laddering.
Barclays Bank USA gives you a 14-day grace period when your CD reaches maturity. You can close your Barclays CD and withdraw your money, renew it for a different period, or simply let it renew automatically.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
12 Months | 5.00% | 90 days of interest |
18 Months | 4.50%
| 90 days of interest |
24 Months | 4.00% | 180 days of interest |
36 Months | 3.50% | 180 days of interest |
48 Months | 3.50% | 180 days of interest |
60 Months | 3.75% | 180 days of interest |
Barclays Bank US is a major credit card provider and is part of Barclays Bank, which is based in the UK.
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Bank of America
APY Range
Minimum Deposit
Terms
Fees
Even though regular banks usually don't offer high CD rates, many still prefer to stick with a reputable bank they trust. That's why we've included one such bank on our list.
Bank Of America is one of the biggest banks in the US and has over 15 branches in New Jersey. They offer good CD rates, but only for specific periods called ‘featured CDs.' It's important to choose wisely because not all CD periods have good interest rates.
CD Term | APY |
|---|---|
6 Months | 0.03% |
7 Months (Featured) | 4.75% |
12 Months | 0.03% |
13 Months (Featured) | 4.30% |
24 Months | 0.03% |
25 Months (Featured) | 3.20% |
36 Months | 0.03% |
To make the best decision, it's recommended to check out the available featured CD periods and talk to a bank representative about the current opportunities.
Furthermore, if you have a lot of money to deposit, Bank Of America, a traditional bank, allows for negotiating rates. So, if you're in this situation, it's a good idea to use this opportunity and get the best rate possible
Jumbo CDs In New Jersey
Jumbo CDs are basically like regular CDs, but you need to deposit a larger amount of money. The specific minimum deposit required can vary depending on the bank, but it's usually more than $100,000. Other than that, the terms and conditions are pretty much the same as regular CDs.
If you're interested in getting a jumbo CD in New Jersey, you have a couple of options.
- The first option is to search online for better rates on jumbo CDs. However, keep in mind that only a few online banks offer slightly higher rates on jumbo CDs, usually around 0.05% to 0.25% higher. Also, these comparison websites may not show you all the available options, so take that into consideration.
- Another option is to check with your regular bank. Traditional banks are often willing to offer higher rates for large deposits, and they may be open to negotiating. Since you already have a relationship with your banker, have a chat with them and see what they can offer you. Don't forget to mention the rates you found online as a benchmark for comparison.
- The last option is to visit 5-6 traditional banks in New Jersey. Before committing to your own bank, take some time to explore what other banks are offering. Traditional banks usually advertise their rates online, but by having a personal meeting or a phone call, you can often secure even better rates.
How New Jersey CDs Compare?
The competition in the CD market is the toughest it has been in 15 years. With the interest rates going up, banks and credit unions are offering rates that were unimaginable just a few years ago.
That's why it's always better to compare rates, not just in New Jersey but across the country. Online banks are accessible from anywhere and usually have the highest rates.
Here are some attractive options that we didn't include in our CD list for New Jersey:
CD APY Range | Minimum Deposit | |
|---|---|---|
4.00% – 5.05% | $500 | |
4.14% – 5.31% | $1,000 | |
5.05% | $1 | |
4.30% – 5.30% | $500 | |
5.08%-5.20% | $1,000 | |
4.00% – 4.95% | $2,500 | |
4.25% – 4.75% | $1,500 | |
4.00% – 5.10% | $0 | |
3.00% – 4.75% | $1,000 | |
2.00% – 4.70% | $2,500 | |
0.30% – 3.50% | $1,000 | |
0.05% – 4.75% | $500 | |
3.51% – 4.85% | $5,000 | |
4.95% – 5.35% | $1,000 | |
5.00% – 5.40% | $1,000 | |
4.05% – 5.40% | $1,000 | |
0.05% – 4.50% | $1,000 | |
4.75%- 5.01% | $2,500 | |
2.05% – 5.15% | $0 | |
2.75% – 5.50% | $1,000 | |
1.00% – 5.00% | $250 | |
4.85% | $1,000 | |
4.00% – 5.15% | $2,500 | |
3.95% – 5.15% | $1,000
| |
0.05% – 0.25% | $500 | |
0.05% – 5.00% | $1,000 |
Compare CD Rates Side By Side
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Best CD Rates In New Jersey: Research Methodology
The Smart Investor team extensively researched to identify the best CD rates in New Jersey. We assessed them based on four main categories:
- Interest Rates and Terms (50%): We examined the interest rates offered by CD accounts in New Jersey and any accompanying terms, such as the duration of the CD term, early withdrawal fees and minimum deposit requirements. CD accounts with higher interest rates and more favorable terms received higher ratings in this category.
- Account Features (20%): This category evaluated additional features offered by CD accounts, such as the option for automatic renewal at maturity, flexibility in terms of interest payout frequency (e.g., monthly, quarterly, or at maturity), and any special promotions or bonuses. CD accounts with extra features and flexibility earned higher scores.
- Customer Experience (20%): We analyzed the ease of opening a CD account, communication with customer service representatives, the usability of online banking platforms (tested by our team), and the availability of support channels. CD accounts offered by banks with user-friendly interfaces, responsive customer support, and efficient digital banking tools received higher ratings.
- Bank Reputation (10%): Our team scrutinized each bank's reputation based on factors such as customer satisfaction ratings, JD Power scores, TrustPilot reviews, and the bank's Better Business Bureau (BBB) profile. Banks with positive reputations and minimal customer complaints regarding CD account services received higher ratings.
We assigned weights to various features and qualities within each category to ensure a comprehensive evaluation of each CD account's offerings. Our ratings were based on a combination of these factors to assist consumers in selecting the best CD account in New Jersey to meet their financial needs.
