A Utah-based bank is offering beginning savers (or anyone with just a bit of cash to spare) a good offer on its 5-year CD.
TAB Bank's 60-month CD pays 2.28 percent APY with a $1,000 minimum deposit. There are a few long-term certificates of deposit that offer a slightly higher return, but this CD's low minimum deposit requirement makes it an attractive option for someone just getting started in investing.
Here's how it compares with other top 5-year CDs:
- Popular Direct: 2.30 percent APY, $10,000 minimum deposit
- Synchrony Bank: 2.30 percent APY, $25,000 minimum deposit
- Ally Bank: 2.25 percent APY, $0 minimum deposit
- Goldman Sachs Bank USA: 2.25 percent APY, $500 minimum deposit
Compare these offers then calculate the interest you'll earn when your CD matures.
How to open a TAB Bank CD
This 60-month CD is available nationwide, but account holders must:
- be at least 18 years old
- be a U.S. citizen (not necessarily a U.S. resident)
- have a Social Security number
- have a driver's license
Though it's not listed on the site, the CD can be found in the online application and is also offered as an IRA.
If you think you'll need your money before the CD matures, this might not be the right saving option for you. CDs often pay a higher interest rate than savings accounts because you are required to leave your money in the account for an allotted period of time. You may not withdraw the funds until the CD’s maturity date without incurring a financial penalty.
TAB Bank charges 180 days of interest if you withdraw money early.
About TAB Bank
TAB Bank opened in 1998, with a focus on helping people build businesses. It is FDIC insured and received a four-star (out of five-star) rating on Bankrate’s Safe & Sound Rating System, which measures the financial health of banks and credit unions throughout the United States.
Looking for something a little more liquid? Try a regular savings account instead.