Deposit Diary Daily #95
Best Nationally Available Add-On CDs (26 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.
Add-On CDs with No Penalty Withdrawal Options
One bank and four credit unions currently offer a total of eight Add-On CDs that also have penalty-free withdrawal(s). Complete details are listed in the attached spreadsheet.
Climate First Bank •5.00% • $500 min • 15-month Flex CD
Credit Human •4.30% (↓30 bps) • $5k min • 12-month Liquid Share Certificate
Kinecta Federal Credit Union •4.25% • $10k min new money • 9-Month Liquid Certificate
Genisys Credit Union •3.48% • $100 min • 1-Year Flex CD Special
Bellco Credit Union •3.40% • $2.5k min • 30-month Smart Move CD
Bellco Credit Union •3.40% • $2.5k min • 24-month Smart Move CD
Bellco Credit Union •3.15% • $2.5k min • 36-month Smart Move CD
Kinecta Federal Credit Union •3.00% • $100 min •12-Month Liquid Certificate
Best Nationally Available Add-On CDs
While the top five Add-On CD rates remain unchanged, there have been three rate decreases in the past two weeks.
Credit Human •4.30% (↓30 bps) • $5k min • 12-month Liquid Share Certificate
Michigan State University FCU • 4.15% (↓35 bps) • ($100k min) • 1-year Add-On Jumbo Certificate
Michigan State University FCU • 4.00% (↓25 bps) • ($50 min) • 1-year Add-On Certificate
Top Five Nationally Available Add-On CDs
5.30% • $50 min/$3k max • 12-month Special EasyStart Certificate
Unlimited deposits (not to exceed $3k cap) during term, checking relationship, direct deposit, limit one per member
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% • $25 min • 12-month Smart Start CD
Unlimited deposits ($25 min) during term
5.00% • $500 min • 15-month Flex CD
Additional deposits ($100 increments) up to one-half of initial principal balance, one penalty-free withdrawal up to 50% of balance, one-time bump rate
