Deposit Diary Daily #61
Best Nationally Available Add-On CDs (22 July 2024)
Add-On CD Defined
An add-on CD is a type of certificate of deposit usually that allows multiple deposits throughout its term, unlike traditional CDs that typically require a single lump sum at the time of opening. This flexibility enables savers to continue contributing to their CD even after the initial deposit, creating opportunities for incremental growth.'
Add-On CD Key Considerations:
Interest Rates: Add-on CDs feature fixed interest rates that apply to all subsequent deposits.
Deposit Flexibility: Continuous deposits make add-on CDs practical for savers who plan to add funds regularly.
Market Rate Protection: Add-on CDs can protect against declining market rates but may not benefit from rising rates.
The Perfect Add-On CD:
Low minimum opening deposit
Unlimited deposits in any amount at any time during the term
No balance cap on additional deposits
Multi-year term of at least 2 years
Competitive rate when compared to regular CDs of the same term length
While the perfect Add-On CD has yet to be found, a list of competitive nationally available Add-On CDs is attached below. The links go directly to each financial institution’s rate page.
Best Nationally Available Add-On CDs
While top Add-On CD rates have not changed, the three Asset Builder Certificates offered by AgFed Credit Union saw rate decreases of 10-15 bps. Rising Bank’s 18-month and 26-month Rising CD rates plummeted by 80 bps and 105 bps, respectively.
5.30% • ($50 min/$3k max) • 12-month Special EasyStart Certificate
Unlimited deposits during term, checking relationship, direct deposit
5.25% • ($5 min/$100k max ) • 12-month Growth Certificate
Funds, in any amount, can be added at any time, but an individual member is limited to an aggregate $100k in any one or combination of Growth CDs.
Unlimited deposits during term, min $10 automatic monthly deposit
5.25% • ($5 min/$100k max) • 6-month Growth Certificate
Funds, in any amount, can be added at any time, but an individual member is limited to an aggregate $100k in any one or combination of Growth CDs.
Unlimited deposits during term, min $10 automatic monthly deposit
4.91% • ($25 min) • 12-month Smart Start CD
Unlimited deposits ($25 min) during term
SchoolsFirst FCU 6-Month Add On Promo Share Certificate, 4.50% APY
SchoolsFirst Federal Credit Union is currently offering a 6-month Add-On Promotional Share Certificate earning 4.50% APY. The minimum opening deposit is $500.
According to the landing-page,
Additional deposits up to the initial opening deposit amount can be made at any time without penalty.
The 6-month Add-On Promotional Share Certificate is subject to the following early withdrawal penalty:
If your Share Certificate has a term that is greater than 30 days but less than 18 months, you will be charged an amount equal to 90 days of dividends on the principal amount withdrawn.
SchoolsFirst FCU is the fourth largest credit union in the nation, with nearly 1.4 million members and assets in excess of $30 billion as of Q1 2024. The SchoolsFirst FCU field of membership includes educational communities in California:
A current or retired school employee of an eligible school.
An immediate family member of a SchoolsFirst FCU Member, including spouse, domestic partner, parent, sibling, child, grandparent or grandchild.
An employee of a company whose primary business is to provide a direct service to an eligible school or district in California.
A college student enrolled in an eligible education program with a student teaching requirement.