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Hoping to buy more than one CD in 2018? To get the best bang for your buck, you may have to open accounts at multiple banks. Fortunately, that’s not always the case.

In early January, Northern Bank Direct started offering the nation’s best 48-month CD rate. It also offers a competitive 2-year CD rate.

Savers across the country who opt for the bank’s 4-year CD can earn 2.51 percent APY. That’s higher than the yields offered by banks like TIAA Direct and Live Oak Bank. The minimum deposit for all Northern Bank Direct CDs is just $500.

Top nationally available 48-month CD rates
Institution APY Minimum deposit
Northern Bank Direct 2.51% $500
KS StateBank 2.40% $500
TIAA Direct 2.30% $1,000
Live Oak Bank
2.30% $2,500
Compare high-yield CD rates across multiple terms. Then calculate how much interest you could earn when your CD matures.

2-year CD deal

Four years is a long time to keep money in a single account. And with interest rates expected to rise over the course of the year, signing up for a long-term CD may not be the smartest financial move. You could buy a 48-month CD today only to find a much better offer next week.

Top nationally available 24-month CD rates
Institution APY Minimum deposit
Connexus Credit Union
2.27% $5,000
Northern Bank Direct 2.26% $500
KS StateBank 2.15% $500
USALLIANCE Financial 2.12% $500
ConnectOne Bank
2.12% $500

That’s why Northern Bank Direct’s 2-year CD deal may be more appealing. You’ll earn more interest than you would from a standard savings account without having to make a long-term commitment. The bank’s 24-month CD pays 2.26 percent APY, making it one of the best deals on the market.

Early withdrawal penalty

Keep in mind that there’s an early withdrawal penalty for all Northern Bank Direct CDs. If you decide you need to bail before your 24- or 48-month term is over, you risk losing either 12 or 36 months of interest. As far as penalties go, those are pretty harsh.

You can withdraw any interest you earn, however, at any time without penalty. You can have it transferred into another bank account or sent to you in the form of a check.

Compound interest helps your savings grow more quickly. Just note that at Northern Bank Direct, interest compounds monthly, not daily.

How to buy Northern Bank Direct CDs

If Northern Bank Direct’s CDs seem like a good fit for your investment portfolio, you can purchase them online. When you fill out an application, you’ll need to provide details including:

  • Your Social Security number and date of birth
  • Your driver’s license number
  • Your employment status and home address

Northern Bank Direct makes it easy to purchase two or three CDs at the same time. You can fund your accounts through an electronic transfer from another bank. You can also mail in a check.

About Northern Bank Direct

Northern Bank Direct is the online division of Northern Bank, a community bank founded in 1960 and headquartered in Woburn, Massachusetts.

In Bankrate’s latest review of its financial health, the bank earned four out of five stars.

Some of today’s top current cd rates include:

Goldman Sachs Bank USA. The interest rate Goldman Sachs Bank’s Term CD offers is 2.55 percent APY for a 6-year CD, and the minimum deposit requirement is just $500. Virtually all CD accounts except for the bank’s six-month option are typically available as IRA CDs.