July 31, 2017 in CDs

These are 2 of the best CDs for new investors

You don’t have to be rich to start investing. At one Kansas bank, all you need is $500.

KS StateBank raised the rates tied to some of its CDs in late July. Savers across the U.S. who purchase a 1-year CD can earn 1.65 percent APY. Amboy Direct offers the same yield.

The deal beats the best 1-year CDs at M.Y. Safra Bank and EverBank by nine basis points. A basis point is one-hundredth of a percentage point.

Top nationally available 12-month CD rates
Institution APY Minimum deposit
Amboy Direct 1.65% $10,000
M.Y. Safra Bank 1.56% $5,000
EverBank 1.56% $5,000
Popular Direct 1.55% $10,000
First Internet Bank of Indiana 1.52% $1,000

There’s just one downside: Interest compounds quarterly. So you’ll earn less interest than you would if it compounded daily.

Compare this offer to other top CD rates. Then calculate how much you could earn at maturity.

2-year CD deal

KS StateBank’s 2-year CD offer isn’t as competitive. Its 1.83 percent APY is just two basis points higher than the best 24-month CD rates at EverBank and First Internet Bank of Indiana.

Top nationally available 24-month CD rates
Institution APY Minimum deposit
First Internet Bank of Indiana 1.81% $1,000
EverBank 1.81% $5,000
Northern Bank Direct 1.80% $500
Popular Direct 1.80% $10,000
M.Y. Safra Bank 1.71% $5,000

Still, it could be worth buying if your existing bank has a lower yield. Its minimum deposit is also $500.

If you’re planning to ditch your CD before it matures, you’ll pay an early withdrawal penalty.

For the 1-year CD, it’s equal to six months’ interest on the amount withdrawn. That’s standard. The penalty for 2-year CDs is a bit more harsh: nine months’ interest.

How to buy KS StateBank CDs

Both regular and jumbo CDs are available for purchase online. If you’re under the age of 18, you must purchase a regular CD in a branch.

Expect to spend about 10 minutes filling out the online application. To apply, you’ll need to:

You can add funds to your account through a wire transfer or an electronic bank transfer. Mailing a check is also an option.

Once your CD matures, it will automatically renew unless you claim your funds (or change your term length) within 10 days.

About KS StateBank

KS State Bank has six branches in Kansas and one in Phoenix. Based in Manhattan, Kansas, it’s an FDIC-insured institution.

The bank earned five out of five stars on Bankrate’s latest Safe & Sound Ratings, which measures the financial health of banks and credit unions throughout the United States.