Finding the best CD rate in Pennsylvania can be a hassle. There are many terms to understand and hundreds of banks to choose from. Each CD account has its own advantages and disadvantages.
For example, some accounts offer higher yields for short-term CDs, while others are better for the long run. Some accounts have attractive rates but limited terms, while others have more terms but lower rates. You also need to consider the minimum deposit requirements and early withdrawal fees.
This article provides a quick overview of some of the best CD accounts in Pennsylvania. However, remember that it's not just about competitive rates. You should also consider things like account terms, minimum deposit requirements, and options for early withdrawal.
Sallie Mae
APY Range
Minimum Deposit
Terms
Fees
Sallie Mae presents itself as an excellent choice for customers residing in Pennsylvania, offering highly competitive interest rates and a wide range of term choices. This makes it an ideal solution for individuals seeking an online banking facility.
All certificate of deposit (CD) accounts require an initial deposit of at least $2,500 when opening the account. Additionally, you have the option to transfer the accrued interest to a linked bank account during these intervals. Sallie Mae provides lower penalties for early withdrawals compared to its competitors.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
6 Months | 4.80% | 90 days of interest |
9 Months | 4.85% | 90 days of interest |
12 Months | 4.95% | 90 days of interest |
18 Months | 4.75% | 180 days of interest |
24 Months | 4.50% | 180 days of interest |
30 Months | 4.00% | 180 days of interest |
36 Months | 4.00% | 180 days of interest |
60 Months | 4.00% | 180 days of interest |
Sallie Mae Bank operates under the umbrella of the SLM Corporation, a renowned provider of federal student loan services. With a primary focus on online banking services, Sallie Mae offers various savings options to its customers, including savings accounts, CD accounts, and a money market account.
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Marcus
APY Range
Minimum Deposit
Terms
Fees
Pennsylvania residents can also consider Marcus, a financial institution that's part of Goldman Sachs. They offer different financial products, including CDs with various terms and competitive interest rates.
Marcus is a great choice for CD laddering because they have very good CD rates compared to other online banks. You don't need a lot of money to start, and the fees for taking out your money early are reasonable.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
6 Months | 4.80% | 90 days interest |
9 Months | 4.90% | 90 days interest |
12 Months | 4.90% | 180 days interest |
13 Months – No Penalty | 4.15% | / |
18 Months | 4.60% | 180 days interest |
24 Months | 4.90% | 180 days interest |
36 Months | 4.15% | 180 days interest |
48 Months | 4.05% | 180 days interest |
60 Months | 4.00% | 180 days interest |
72 Months | 3.90% | 270 days interest |
Marcus is a reputable and well-known online bank, but they don't have physical branches. You can easily reach their customer support through their website, app, or phone. Opening a CD with Marcus is quick and only takes a few minutes.
Alliant Credit Union
APY Range
Minimum Deposit
Terms
Fees
Alliant Credit Union offers highly competitive rates across a wide range of terms, including certificates with durations exceeding one year. It presents a favorable choice for investors interested in CD laddering due to its multiple terms and attractive rates on each.
The interest accrued on Alliant Credit Union's certificates is compounded monthly, and the minimum balance requirement is reasonable.
Term | APY | Early Withdrawal Penalty |
|---|---|---|
3 Months | 4.25% | 90 days of interest |
6 Months | 5.00% | 90 days of interest |
12 Months | 5.15% – 5.20 | 90 days of interest |
18 Months | 4.90% – 4.95% | 120 days of interest |
24 Months | 4.30% – 4.40% | 180 days of interest |
36 Months | 4.20% – 4.30% | 180 days of interest |
48 Months | 4.05% – 4.10% | 180 days of interest |
60 Months | 4.00% – 4.05% | 180 days of interest |
Established in 1935, Alliant is the ninth largest credit union in the United States, measured by asset size, with $14 billion in assets. It caters to over 600,000 members nationwide. Joining Alliant is a straightforward process, as membership is open to all Americans, including eligible non-U.S. residents.
Synchrony Bank
APY Range
Minimum Deposit
Terms
Fees
If you live in Pennsylvania and want to find an online bank with good CD rates, consider Synchrony Bank. They have competitive rates on CDs and offer two special types of CDs called bump-up CDs and no-penalty CDs. These options are great if you want flexibility in your investments.
Synchrony Bank has different terms for CDs, and there's no minimum deposit required. Their rates are good for short and long-term CDs. The fees for withdrawing money early are similar to what other banks and credit unions charge.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
3 Months | 0.25% | 90 days of interest |
6 Months | 5.15% | 90 days of interest |
9 Months | 4.90% | 90 days of interest |
12 Months | 4.80% | 90 days of interest |
11 Months – No Penalty | 0.25% | / |
18 Months | 4.50% | 180 days of interest |
24 Months | 4.20% | 180 days of interest |
36 Months | 4.15% | 180 days of interest |
48 Months | 4.00% | 365 days of interest |
60 Months | 4.00% | 365 days of interest |
Remember, Synchrony Bank only gives you a 10-day grace period. During this time, you have a few choices. You can add more money to your CD account, renew your CD, transfer the funds to another account, or withdraw your money.
Pen Fed Credit Union
APY Range
Minimum Deposit
Terms
Fees
PenFed Credit Union operates two branches within the state of Pennsylvania and offers a diverse range of Certificate of Deposit (CD) terms, featuring competitive interest rates across various durations.
In addition to the standard rates, PenFed customers have the opportunity to open an 84-month CD which is long and quite rare, and guarantees 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's membership was restricted exclusively to individuals employed by organizations affiliated with national defense.
However, PenFed has now expanded its membership criteria to include individuals from all backgrounds. If you are a U.S. citizen or a permanent resident with a valid government-issued photo ID, you can apply to become a member of PenFed.
LendingClub
APY Range
Minimum Deposit
Terms
Fees
Although LendingClub Bank does not provide an extensive range of certificates of deposit (CDs) as some other financial institutions do, it offers commendable options. LendingClub exclusively offers traditional CDs, yet the rates remain competitive across the entire spectrum.
The minimum deposit requirement is notably high, $2,500, and the deposits are safeguarded by FDIC insurance. Additionally, you will be granted a 10-day grace period to either withdraw the funds or make supplementary deposits before automatic renewal.
Term | APY | Early Withdrawal Penalty |
|---|---|---|
6 months
| 5.00% | 90 days of interest |
12 months | 5.15% | 90 days of interest |
18 months | 5.00%
| 180 days of interest |
24 months
| 4.50% | 180 days of interest |
36 months | 4.30% | 180 days of interest |
60 months | 4.00% | 180 days of interest |
LendingClub is a financial services company headquartered in San Francisco, California. It gained prominence as the pioneering peer-to-peer lender with a primary focus on loans. Subsequently, it expanded its suite of services to include personal banking and investment opportunities.
TD Bank
APY Range
Minimum Deposit
Terms
Fees
Despite the generally unfavorable certificate of deposit (CD) rates offered by traditional banks, we have chosen to provide an option for Pennsylvania residents who prefer conventional banking.
Among the physical banking institutions, TD Bank, with its network of over 20 branches in Pennsylvania, presents highly competitive CD rates for specific terms, which rank among the nation's highest.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
3 Months | 1.00% – 2.50% | 3 months of interest
|
6 Months | 1.00% – 5.00% | 3 months of interest
|
12 Months | 1.00% – 4.00% | 6 months of interest
|
18 Months | 1.00% – 2.50% | 6 months of interest
|
24 Months | 1.00% – 2.50% | 9 months of interest
|
36 Months | 1.00% – 2.50% | 12 months of interest
|
48 Months | 0.05% | 18 months of interest
|
60 Months (Step Rate CD) | 1.00% – 2.50% | 24 months of interest
|
However, keep in mind that in order to avail of the higher rate, you must maintain a checking account with TD Bank. The minimum deposit required is relatively modest and can be easily fulfilled.
Also, if you are seeking a long-term CD, it would be advisable to explore alternative options, as the rates for such CDs are presently quite low.
Jumbo CDs In Pennsylvania
Jumbo CDs require a higher minimum deposit than regular CDs. The specific minimum amount can vary depending on the bank, but it's usually more than $100,000. Other terms and conditions are similar to regular CDs.
If you want a jumbo CD in Pennsylvania, you have a couple of options.
- The first option is to search online for better rates on jumbo CDs. You can try typing “best Jumbo CDs” and see what comes up. 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.
- 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, talk to them and see what they can offer you. You might be surprised by the rates they can provide.
- The last option is to visit a couple of traditional banks in Pennsylvania. Traditional banks advertise their rates online, but by having a personal meeting or a phone call, you can often secure even better rates. Putting in a little effort can potentially save you thousands of dollars.
Can I Find Better CD Rates In Pennsylvania
Yes, it's possible to find better rates for specific terms in Pennsylvania. There are many banks and credit unions in the area, and they often change their rates.
It's a good idea to compare them regularly because they may offer promotions on certain terms. The list we provided includes not only the best CD rates in Pennsylvania but also other important factors like minimum deposit, early withdrawal fees, and ease of use.
Different types of customers in Pennsylvania can benefit from these banks and credit unions, whether they're individuals building an emergency fund, families saving for a down payment, or people who prefer traditional banks, credit unions, or online banking.
We've covered all these options and included competitive rates and favorable CD conditions.
How To Smartly Compare CDs?
Here are the important things to think about when comparing and choosing a CD:
Interest Rate: Check the interest rates offered by different CDs. The interest rate decides how much money you'll earn from your investment. Look for CDs with good rates that will give you the most return.
- Early Withdrawal Penalty: Find out about the rules for withdrawing money early. If you think you might need your money before the CD matures, look for CDs with lower penalties or flexible withdrawal options.
Term: CDs have specific lengths, like 3 months, 1 year, 5 years, and so on. Think about your financial goals and needs to decide how long you want to invest your money. Longer-term CDs generally have higher interest rates, but you won't be able to access your money for a longer time.
Bank Reputation: Put your money in a place where you feel comfortable. Read reviews online, learn about the bank's stability, and check their customer service.
- CD Type: Some CDs might have extra features, like increasing interest rates over time or allowing you to make additional deposits. Think about these features to see if they fit with your investment strategy.
Minimum Deposit Requirements: Some CDs have a minimum amount you need to deposit. Make sure you can meet the minimum deposit before opening the account. Consider if you're okay with the required deposit and if it matches your investment goals.
Compounding Method: CDs can compound interest at different times, like daily, monthly, quarterly, or yearly. The more often interest is compounded, the more money you'll earn overall.
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Best CD Rates In Pennsylvania: Research Methodology
The Smart Investor team extensively researched to identify the best CD rates in Pennsylvania. We assessed them based on four main categories:
- Interest Rates and Terms (50%): We examined the interest rates offered by CD accounts in Pennsylvania 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 Pennsylvania to meet their financial needs.
