Banking » Savings » What’s The Minimum Deposit To Open A CD Account?
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What’s The Minimum Deposit To Open A CD Account?

The average minimum deposit for a CD typically ranges from $500 to $1,000. Here's a comparison - which banks offer the lowest deposit?
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
Interest Rates Last Update: April 15, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
Interest Rates Last Update: April 15, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

Table Of Content

Why Do Banks Require A Minimum Deposit?

Banks require a minimum deposit when opening a Certificate of Deposit (CD) for a few reasons:

  1. Guaranteeing a Return on Investment: Banks offer higher interest rates for CDs compared to regular savings accounts. By requiring a minimum deposit, they can ensure that customers are serious about investing their money for a fixed period of time. This allows banks to use these funds to lend to other customers, and guarantees a return on their investment.

  2. Covering Administrative Costs: Banks have administrative costs associated with opening and maintaining accounts. By requiring a minimum deposit, they can cover these costs and ensure that the account is profitable for them.

  3. Managing Risk: CDs have a fixed term, meaning customers cannot withdraw their money before the end of the term without paying a penalty. Requiring a minimum deposit helps banks manage the risk of having to pay out large amounts of money in penalties if customers withdraw their funds early.

What Is The Minimum Deposit For A CD?

The minimum deposit required to open a Certificate of Deposit (CD) can vary widely depending on the bank or credit union offering the CD, the term of the CD, and other factors.

That being said, the average minimum deposit for a CD typically ranges from $500 to $1,000. However, while there are banks that offer no minimum, some banks may require a higher minimum deposit, such as $2,500 or $5,000,

Which Banks Offer CDs With No Minimum Deposit?

While most financial institutions do require a deposit, some banks don't require a minimum deposit. If you would like to start and don't have more than $1,000, they can be a great place to start saving. 

Also, some of the such as Capital One and Ally, offer some of the highest rate in the market, as of May 2024.

Minimum Deposit
CD Range
Barclays Bank
$0
3.50% – 5.30%
PNC Bank
$1
5.05%
Capital One
$0
4.00% – 5.10%
Ally Bank
$0
3.00% – 4.50%
Synchrony Bank
$0
2.05% – 5.15%

Which Banks Offer Up To $1,000 Minimum Deposit?

The Majority of banks require a $1,000 minimum to open a CD account. This is a reasonable minimum for most savers, and you can find institutions that offer a high CD rate, such as Alliant credit union, CIT Bank, Marcus and a variety of brokerage firms such as Fidelity, Vanguard and Charles Schwab.

Minimum Deposit
CD Range
Marcus
$500
4.00% – 5.05%
Axos Bank
$1,000
0.20%
Quontic Bank
$500
4.30% – 5.30%
PenFed Credit Union
$1,000
2.00% – 4.35%
Alliant Credit Union
$1,000
5.08%-5.20%
Bread Financial
$1,500
4.25% – 4.75%
Chase Bank
$1,000
3.00% – 4.75%
CIT Bank
$1,000
0.30% – 3.50%
Citi Bank
$500
0.05% – 4.75%
Fidelity
$1,000
4.95% – 5.35%
Charles Schwab
$1,000
5.00% – 5.40%
Vanguard
$1,000
4.05% – 5.40%
BMO Harris
$1,000
0.05% – 4.50%
Citizen Bank
$1,000
2.75% – 5.50%

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Which Banks CDs Require The Highest Minimum?

If you want to put your money in CDs of the following financial institutions, you'll need to put a minimum of at least $2,500:

Minimum Deposit
CD Range
Sallie Mae
$2,500
4.00% – 4.95%
Discover Bank
$2,500
2.00% – 4.70%
Connexus Credit Union
$5,000
3.51% – 4.85%
Merrick Bank
$25,000
4.05% – 5.25%
Wells Fargo
$2,500
4.75%- 5.01%
LendingClub
$2,500
4.00% – 5.15%

When You Should Deposit The Initial Payment?

The timing of when you should deposit the initial payment for a Certificate of Deposit (CD) will depend on the specific requirements of the bank where you are opening the CD. Typically, banks require the initial deposit to be made at the time of account opening.

In most cases, you can make the initial deposit in person at a bank branch, through an online transfer from an account at another bank, or by mailing a check or money order to the bank. Some banks may also allow you to make the initial deposit through a mobile banking app or over the phone.

FAQs

Usually, it's not possible. However, add-on CDs may allow you to add funds to your CD during the term, but you should check with your bank for their specific policies.

You may not be able to open a CD with that bank or credit union, or you may be required to choose a CD with a lower minimum deposit.

The time it takes to open a CD can vary depending on the bank and their specific requirements, but it usually takes just a few minutes to fill out an application and make the initial deposit.

No, you can usually open a CD even if you don't have an existing account with a bank or credit union.

Choosing the right CD term depends on your financial goals and when you will need access to the funds. Longer-term CDs generally offer higher interest rates but require a larger minimum deposit.

You can compare CDs based on factors such as the interest rate, minimum deposit requirement, and term length to find the best option for your financial goals.

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Picture of Lorraine Smithills

Lorraine Smithills

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
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