Advertiser Disclosure: This post contains references to Goldman Sachs Bank USA, a Bankrate advertising partner.
An online bank raised most of its CD rates for the third time since early April.
Goldman Sachs Bank USA offers CDs with terms ranging from six months to six years. At the end of August, the yields tied to most of these accounts increased by at least one-tenth of a percentage point.
The bank bumped its 60- and 72-month CD rates by 15 basis points. A basis point is one-hundredth of a percentage point.
The 60-month CD now pays 2.4 percent APY. Nationwide, that’s one of the best long-term CD rates available. It’s five basis points higher than the best 5-year CD rates offered by Popular Direct and Synchrony Bank.
|Goldman Sachs Bank USA||2.40%||$500|
|First Internet Bank of Indiana||2.30%||$1,000|
New savers will love this: The minimum deposit for all GS Bank CDs is just $500.
3-year CD deal
Another offer worth mentioning is GS Bank’s 36-month CD deal. It pays 2 percent APY.
That’s the best 3-year CD yield offered by banks throughout the country (although there are credit unions with higher rates). You can find the same rate at Connexus Credit Union, EverBank and Salem Five.
Typically, you’ll earn more interest by purchasing a CD with a longer term. But you’ll likely get stuck with a higher penalty for early withdrawals. That’s true at GS Bank.
For CD terms between 12 months and five years, the penalty is 270 days’ simple interest on the principal. For terms less than 12 months, it’s only 90 days’ simple interest on the principal, according to the Truth in Savings Disclosure.
How to buy Goldman Sachs Bank USA CDs
To purchase GS Bank CDs, fill out an online application or call the bank. Account owners must:
- Be at least 18 years old
- Have a Social Security number
- Have a valid U.S. address
- Have an email address (if applying online)
Applicants can buy multiple CDs at once. You can make your first deposit through an electronic or wire transfer. You can also mail in a check.
Interest compounds daily and is credited to CD accounts monthly. While you can’t withdraw your principal without facing a penalty, you can withdraw the interest you earn every month. Just note that doing so will lower your annual percentage yield.
About Goldman Sachs Bank USA
GS Bank was launched in 2016 when Goldman Sachs acquired GE Capital Bank. Besides certificates of deposits, the bank offers an online savings account.
The FDIC-insured institution 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.
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