Deposit Diary Daily #75
Best Nationally Available Add-On CDs (5 August 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 the four Add-On CD rates remain unchanged, All In Credit Union added 21 bps to its 12-month Smart Start CD, boosting the rate to 5.12% APY.
The three Asset Builder Certificates offered by AgFed Credit Union experienced significant rate decreases (30-35 bps), while the Credit Human 12-month Liquid Share Certificate and the NASA Federal Credit Union 12 months Add-On Share Certificate rates lost 5 bps.
New additions to the list include:
Climate First Bank • 5.00% • ($500 min) • 15-month Flex CD
Kinecta Federal Credit Union • 4.25% • ($10k min new money) • 9-Month Liquid Certificate
Kinecta Federal Credit Union • 3.% • ($100 min) • 12-Month Liquid Certificate
Top Five Nationally Available Add-On CDs
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
5.12% (↑21 bps) • ($25 min) • 12-month Smart Start CD
Unlimited deposits ($25 min) during term
Let me mention one more detail -- and it can make a world of difference. Which add-on CDs allow one or more penalty-free withdrawals during the term?
I have exactly that at Credit Human in Texas. What they call their "Liquid CD." It's a 1-year term, currently paying 4.5% APY. Minimum to start is $5,000, and it may never go below $5,000. You can add what you want at any time, as many deposits as wanted. A significant benefit, you can make two penalty-free withdrawals during the term, as long as you don't go below $5,000, plus at maturity, of course.
Are there any similar deals for add-on CDs, with some number of penalty-free withdrawals?
I, and I'm sure many others, can't get sqaut for savings accounts, not reliably. You open a good one, and six months later they cut rates to zip. I need to keep a significant amount on the side for certain reasons, and that means liquid. I might never need it, but I very well might at any time. But I can't get only a pidding 0.10%, or 0.25%, or even 3.25% on it in a savings account - that ought to be paying $5%+ now, with the Fed rate at 5.24%-5.5%! 4.5% locked in now likely will seem a good deal in two months. People now in savings accounts at 5%+ might find they are getting a lot less in two months - their return is not reliable. I would not mind other options thatn Credit Human (although I have been satisfied with them), maybe someone will offer 4.75%, whatever. (4.5% bothers me right now, as I previously got this Liquid CD at 5.7%, and am still getting that for the next two months. It kills me to drop to 4.5%!)
Please check that one more detail when checking whatever list you have of add-on CDs. Thank you.
Notice for AgFed Credit Union Asset Builder Certificates.
Rates are subject to change without notice and during my opening Asset Builder Certificate the website says " Variable rates APY". Agent on the phone confirmed, they can change APY rates during its term.