Beef up your savings with this 18-month CD special

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Buying a short-term certificate of deposit is one of the best ways to beat the low savings account yield your bank is offering. An online bank based in Massachusetts is one of several institutions offering competitive 18-month CD rates to savers across the country.

Bank5 Connect is an online division of BankFive. Its 18-month CD pays 1.75 percent APY.

Here’s how you know that’s a good deal: The interest rate is 4 basis points higher than what’s available at M.Y. Safra Bank. It’s 5 basis points higher than the best 18-month CD rates at Goldman Sachs Bank USA and First Internet Bank of Indiana. A basis point is one-hundredth of a percentage point.

Top nationally available 18-month CD rates
Institution APY Minimum deposit
M.Y. Safra Bank 1.71% $5,000
Goldman Sachs Bank USA 1.70% $500
First Internet Bank of Indiana 1.70% $1,000
EverBank 1.70% $5,000
My e-BanC 1.68% $5,000

Snagging a slightly higher interest rate could significantly boost your savings over time. And luckily, Bank5 Connect only requires a $500 minimum deposit. That makes its CDs ideal for new investors.

Compare this offer to other top CD rates.

Why you’ll want an 18-month CD

Longer-term CDs tend to offer better interest rates. So if the best 12-month CD rates don’t pay enough interest, an 18-month CD may quench your thirst for a higher yield.

And don’t worry, you won’t miss out on too many other CD deals by locking up your funds for an extra six months. The Federal Reserve is on track to continue raising interest rates, but it will take time for savers to reap the benefits.

Calculate how much interest you could earn by the end of your CD term. Just remember that early withdrawals take a bite out of your earnings. The penalty on an 18-month Bank5 Connect CD is six months of interest.

How to buy Bank5 Connect CDs

Visit Bank5 Connect’s website to buy your CD. The application process should take roughly 10 minutes. To qualify for an account you must:

  • Be at least 18 years old
  • Be a U.S. citizen or U.S. resident alien
  • Live in a state outside of Massachusetts or Rhode Island
  • Have a Social Security number
  • Have a valid ID (passport, state ID, driver’s license or military ID)

Once you apply for your CD, you can fund it by transferring funds from a checking or savings account or mailing in a check.

To earn 1.75 percent APY through the 18-month CD special, the maximum amount you can deposit is $100,000. Any amount you invest is fully insured through the Federal Deposit Insurance Corp. and the Depositors Insurance Fund.

Interest compounds daily and is deposited monthly. All of the bank’s CDs earn interest as long as you maintain a balance of $500.

About Bank5 Connect

Bank5 Connect is an internet bank headquartered in Fall River, Massachusetts. Its parent company, BankFive, has served customers as a community bank since 1855.

BankFive earned four 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.