Best CD Rates in New Jersey
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Hunting for the top CD rates in New Jersey? Lock in one of the top choices and start growing your savings today.
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Here are some banks and credit unions with the best CD rates in New Jersey:
- mph.bank:
60-Month Callable CD - 4.42% APY - mph.bank:
36-Month Callable CD - 4.38% APY - Southwestern National Bank:
4-Month High-Yield CD - 4.31% APY - Ponce Bank:
3-Month High-Yield CD - 4.30% APY - SkyOne Federal Credit Union:
48-Month Callable CD - 4.25% APY - HealthcareBank:
7-Month High-Yield CD - 4.25% APY - SkyOne Federal Credit Union:
12-Month Callable CD - 4.20% APY - First Mid Bank & Trust:
6-Month High-Yield CD - 4.10% APY - Western Alliance Bank:
5-Month High-Yield CD - 4.10% APY - First Mid Bank & Trust:
9-Month High-Yield CD - 4.08% APY - Parke Bank:
6-Month CD - 4.50% APY - First Commerce Bank:
7-Month CD - 4.35% APY - Limelight Bank:
6-Month CD - 4.35% APY - Bank of Hope:
3-Month Preferred CD - 4.30% APY - Flagstar Bank:
7-Month CD - 4.25% APY - New Millennium Bank:
6-Month Certificate - 4.25% APY - Andrews Federal Credit Union:
12-Month CD - 4.25% APY - Together Credit Union:
12-Month CD - 4.20% APY - Santander Bank:
6-Month CD - 4.15% APY - Cross River Bank:
6-Month CD - 4.15% APY
Searching for a CD in New Jersey? With so many options, you're spoiled for choice.
New Jersey banks and credit unions offer some competitive CD rates with various terms. A CD with a good rate can set you with months or years' worth of passive income.
Check out the highest CD rates in New Jersey today.
Best National Bank CD rates in New Jersey
If you're looking for a well-known national bank, some offer solid CD rates worth considering. Check out these special rates for New Jersey residents:
- Charles Schwab Bank:
1-Year CD - Up to 4.50% APY - Huntington:
5-Month CD - 4.34% APY - PNC Bank:
4-Month CD - 4.15% APY - Santander Bank:
6-Month CD - 4.15% APY - BMO Alto 12-Month CD:
4.10% APY - Valley National Bank:
3-Month Fixed Rate CD - 4.10% APY - M&T Bank:
6-Month Select CD - 4.10% APY - Wintrust Bank:
7-Month CD - 4.05% APY - TD Bank:
9-Month - 4.00% APY (Relationship) - Capital One:
1-Year CD - 4.00% APY
Best Local Bank CD rates in New Jersey
If you'd rather get a CD from a local New Jersey bank, take a look at some of the top CD rates available:
- Parke Bank:
6-Month CD - 4.50% APY - First Commerce Bank:
7-Month CD - 4.35% APY - Limelight Bank:
6-Month CD - 4.35% APY - Bank of Hope:
3-Month Preferred CD - 4.30% APY - Flagstar Bank:
7-Month CD - 4.25% APY - New Millennium Bank:
6-Month Certificate - 4.25% APY - Santander Bank:
6-Month CD - 4.15% APY - Cross River Bank:
6-Month CD - 4.15% APY - Valley National Bank:
3-Month Fixed Rate CD - 4.10% APY - M&T Bank:
6-Month Select CD - 4.10% APY
Best Credit Union CD rates in New Jersey
Credit unions can be a great choice for competitive rates and added perks for their members. Check out these credit unions in New Jersey with impressive CD rates:
- Andrews Federal Credit Union:
12-Month CD - 4.25% APY - Together Credit Union:
12-Month CD - 4.20% APY - Navy Federal Credit Union:
12-Month EasyStart Certificate - 3.95% APY - Pentagon Federal Credit Union:
1-Year CD - 3.65% APY - Jersey Shore Federal Credit Union:
60-Month CD - 3.10% APY
Best Online CD rates in New Jersey
Online banks are generally accessible to most people, although certain restrictions may still apply depending on where you live. Here are some top online CDs to check out:
- Bask Bank:
3-Month CD - 4.65% APY - Popular Direct:
Certificate of Deposit - Up to 4.45% APY - mph.bank:
60-Month Callable CD - 4.42% APY - My eBanc:
6-Month CD - 4.40% APY - Limelight Bank:
6-Month CD - 4.35% APY - Marcus:
9-Month High-Yield CD - 4.30% APY - Walpole Co-operative Bank:
7-Month CD - 4.25% APY - Quontic:
6 Month CD - 4.25% APY - Synchrony Bank:
13-Month CD - 4.25% APY - Alliant Credit Union:
12-Month CD - 4.25% APY
Best CD Rates in New Jersey by Term
If you're considering a CD for a specific term, check out these top CD rates in New Jersey, sorted by term length:
Best 3-month CDs in New Jersey:
- Bank of Hope:
3-Month Preferred CD - 4.30% APY - Valley National Bank:
3-Month Fixed Rate CD - 4.10% APY - Cross River Bank:
3-Month CD - 3.50% APY - FirstBank (NJ):
3-Month CD - 3.50% APY - TD Bank:
3-Month - 3.00% APY (Relationship)
Best 6-month CDs in New Jersey:
- Parke Bank:
6-Month CD - 4.50% APY - Limelight Bank:
6-Month CD - 4.35% APY - New Millennium Bank:
6-Month Certificate - 4.25% APY - Bank of Hope:
6-Month Preferred CD - 4.20% APY - Santander Bank:
6-Month CD - 4.15% APY
Best 1-year CDs in New Jersey:
- Andrews Federal Credit Union:
12-Month CD - 4.25% APY - Parke Bank:
12-Month CD - 4.25% APY - Limelight Bank:
12-Month CD - 4.25% APY - Together Credit Union:
12-Month CD - 4.20% APY - Capital One:
1-Year CD - 4.00% APY
Best 2-year CDs in New Jersey:
- Andrews Federal Credit Union:
24-Month CD - 3.90% APY - Columbia Bank:
24-Month CD - 3.75% APY - Together Credit Union:
24-Month CD - 3.70% APY - TD Bank:
24-Month - 3.00% APY (Relationship) - 1st Colonial Community Bank:
24-Month CD - 2.69% APY
Best 5-year CDs in New Jersey:
- Andrews Federal Credit Union:
60-Month CD - 3.60% APY - Parke Bank:
60-Month CD - 3.50% APY - Navy Federal Credit Union:
5-Year Certificate - 3.50% APY - Capital One:
5-Year CD - 3.50% APY - Bank of Hope:
60-Month Preferred CD - 3.35% APY
What Is a CD?
A certificate of deposit (CD) is a savings account where you deposit a fixed amount for a set period, earning a fixed APY throughout that time.
The APY on a CD is usually higher than a regular savings account, but you can't access your money until it matures. This lock-in period lets banks offer those attractive rates, so you trade convenient access for better returns.
If you withdraw early, be ready to pay early withdrawal penalties. It can range anywhere from 3 months to 1 year's interest, depending on the term.
Usually, no. CDs are considered low-risk investments. Your deposits are federally insured up to $250,000 for banks or credit unions that are FDIC or NCUA members. But, you can lose some of your money to penalties if you withdraw early enough.
How Much Interest Does a CD Earn?
If you deposit $10,000 in a 1-year CD with a 5% APY, you'll earn $500 after a year. Your earnings on a CD depend on the term, APY, and your deposit amount.
Generally, the longer the term, the higher the APY, and the larger the deposit, the greater your interest earnings will be.
Here's a simple CD calculator to see how much your CD can earn:
Yes, interest earned on CDs is subject to New Jersey state income tax. Additionally, you must pay federal income taxes on interest earned on CDs.[1]
Short Term vs Long Term CDs
Short-term CDs are typically 1 year or less, and are ideal for short-term goals where you'll need access to your money soon. On the other hand, long-term CDs can go up to 10 years and offer the stability of a fixed APY for an extended period.
Choose a short-term CD if you:
- Are saving for a near-future goal
- Want to avoid the temptation of spending the money
- Expect interest rates to rise soon
Choose a long-term CD if you:
- Want to preserve capital and earn guaranteed returns
- Don't need the funds in the near future
- Expect interest rates to fall soon
What's better for you depends on your goals, how soon you'll need access to your funds, and the current financial environment.
Where to Find the Best CDs in New Jersey?
If you're focusing on offers in New Jersey, consider checking out CD specials from community banks and credit unions. They often have promotional CDs available for a limited time, typically featuring attractive rates and specific opening criteria.
National banks may also offer CD specials, but these can vary by location and may have qualification requirements.
Online banks typically give high CD rates too. Plus, the region is not restricted, so you can easily open a CD with them.
One of the highest CD rates in New Jersey is Parke Bank:
Pros and Cons of a CD
Pros:
- Fixed rate for a fixed term
- Usually offers higher APY than regular savings
- Keep earning at the same APY even if the interest rate drops
- Federally insured up to $250,000 by the FDIC or the NCUA
Cons:
- Can't withdraw until the CD matures
- Early withdrawal penalties can be costly
- Some restrictions like membership and minimum deposit
- Miss out on better APY and investments due to the fixed term
If you can park your money for months or years, a CD is a good option to lock in high rates. But if you need easy access to your money, liquid accounts like a savings account might be a better choice.
Should I Get a CD?
Deciding whether to get a CD depends on your financial goals. CDs are safe investments if you're saving for the short term and want to secure a good interest rate.
The main thing to consider is whether you can afford to lock away your funds for months or years as you typically can't withdraw your CD without incurring a penalty until it matures.
If you think you might need access to your money sooner, consider opting for more liquid and convenient accounts. For instance, many high-yield savings accounts offer competitive APYs and could serve as good alternatives.
- Western Alliance Bank:
High-Yield Savings Premier - 4.30% APY - Discover® Online Savings:
$200 Cash Bonus - CIT Bank Platinum Savings:
4.35% APY - Mission Valley Bank:
High Yield Savings Account - 4.35% APY - DR Bank:
High-Yield Savings Account - 4.35% APY
How to Choose the Best CD Rates in New Jersey?
When you're hunting for a CD in New Jersey, ask these questions:
How long is the term?
You want a CD term that fits your financial goals. Some banks or credit unions may offer more term options in-branch. If you can, inquire with a branch near you.
What is the APY?
Get the highest APY to maximize your earnings on a CD. Ask your local bank or credit union if they have CD specials in New Jersey.
Are there any requirements or restrictions?
Some CDs may only be available for residents in a certain county. Or some offers may be available to new customers only. Be sure to ask before you open an account.
What is the minimum deposit required?
The CD may have a minimum deposit. If you can't commit to or meet the requirement, look for CDs with little to no deposit requirements.
Most CDs will have early withdrawal penalties. So if you need to close your CD before it matures, be prepared to pay the penalties. Or if you're not sure if you can commit, find no penalty CDs to avoid paying any fees.
What Are the Types of CDs Available?
Here's a list of different types of CDs that may be available in New Jersey:
- Term CD: Standard CDs with a fixed rate for a fixed term
- No-Penalty CD: Allows you to withdraw money early without any penalties
- Jumbo CD: Requires large deposits (usually $100k+)
- IRA CD: Offers tax advantages for retirement savings
- Bump-Up CD: Increase your rate during your CD term
- Add-On CD: Add more deposits during your CD term
Bottom Line
New Jersey offers more than just scenic coastal views - it also has lots of CD options for you to explore. With plenty of banks and credit unions to choose from, you're sure to find one that fits your needs.
That said, some CDs may have restrictions when opening. If you want to avoid the extra steps, consider online banks with high-yield CDs, which often have fewer requirements.
References
- ^ IRS. Topic no. 403, Interest received, Retrieved 05/15/2024
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Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
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