Best Certificates of Deposit in Rhode Island for 2025
- Expect $1,000 minimum deposits at most banks, but some are moving to a $500 minimum.
- CIT Bank offers a Jumbo CD for those who want to invest $100,000 or more.
- Washington Trust offers consistently high rates with only a $500 minimum deposit.
- HarborOne Bank often has enticing CD specials with unique terms.
Rhode Island is home to many local and online banks that offer CDs, a strong option for those who want to earn solid interest rates on their money. CDs work well for long-term or short-term investments. With as little as $500 (or sometimes less), Rhode Island residents can open a CD and ensure their money continues growing.
Read on to learn more about the certificate of deposit rates from banks and credit unions in Rhode Island.
CD Rates in Rhode Island
Popular Banks and Credit Unions in Rhode Island
HarborOne Bank: Special CDs allow for much higher yields and offer the opportunity for unique terms, such as the 7-month CD.
Washington Trust: Offers exceptional rates for special CDs, but you must have a checking account to take advantage of the offer.
Navigant Credit Union: Expect consistently high rates for up to 60 months and only $500 to open the CD.
Online Banks: While local banks offer the convenience of in-person banking, online banks often have better rates than local branches. To grow money quickly, consider the flexible terms and convenience of opening an account through an online bank.
Online Banks Offering CDs
Online banks are great for those who like to handle their money online. Here are some of the reasons why an online bank might be the best idea for you:
- Higher Interest Rates: Online banks don’t have as much overhead as brick-and-mortar banks, so they can pass that savings on to you through better rates.
- Low Minimum Deposits: Though most banks require $1,000 to open a CD, many online banks drop that minimum to $500 or less.
- FDIC Insurance: Online institutions can be just as reputable as local banks, offering the same FDIC or NCUA protections, up to $250,000 per account, per depositor.
- 24/7 Accessibility: Local banks might require you to set up a CD in person, but mobile banking can allow easy setup through their website or mobile app.
- Quick Account Setup: If you already have an account with an online bank, opening a CD is often a matter of just a few clicks.
Ally Bank: This popular bank offers various options, including CDs that allow you to step up your contributions throughout the term, those with no penalty, and loyalty rewards for those who choose to renew their CDs.
Capital One 360: Known for exceptional interest rates, Capital One offers terms of 6 months to 60 months and occasional specials. There is usually no minimum deposit required.
CIT Bank: No-penalty CDs are a great option here, and special CDs, such as the 11-month CD, offer impressive interest rates. CIT Bank offers the Jumbo CD for those with $100,000 or more to spare.
Online banks offer many perks and options, making them quite competitive with local banks in Rhode Island.
Factors to Consider When Choosing a CD in Rhode Island
Are you ready to open a CD in Rhode Island? Consider these factors before you do.
Interest rates
As a general rule, online banks have higher interest rates than local banks do. But don’t discount CD specials, which are popular among local and regional banks and can provide a hefty interest rate for a set term.
Term lengths
Some CDs offer very short terms, even as short as 7 days, while others offer a month, three months, one year, or even several years for your money to earn interest.
Early withdrawal penalties
Early withdrawal penalties are usually a percentage of the interest earned plus a flat fee, which can mean you actually lose money on the CD. Before you choose a CD, make sure you can afford to have that money “locked away” for the set term.
Minimum deposit
Though $1,000 is the usual minimum deposit for online and local banks, some are moving to a $500 minimum. Others might have no minimum at all, or the minimum might vary depending on the type of CD.
Insurance
Ensure your bank or credit union has protection through the FDIC or NCUA. Never work with a bank that doesn’t offer these consumer protections.
Customer service
Choosing an online bank versus a local bank often comes down to the assistance you need. Online banks usually have excellent customer service, but local banks have in-person help. Choose which option makes you most comfortable.
Promotional offers
Local and online banks often offer enticing promotional offers, usually in the form of higher interest rates for a particular CD special. These offers are limited in time, so check occasionally to find the best options.
Pros and Cons of CDs
As with any other banking product, the CD has pros and cons. Here’s what you need to know.
Pros
- Your interest rate is locked in for the term you choose.
- Expect higher rates on CDs than on savings accounts.
- You can stack several different terms to keep your money growing.
Cons
- Most CDs impose penalties for early withdrawal.
- Stocks and bonds might bring more of a return than a CD.
- You are choosing to lock your money away for a specific term.
Start Saving with CDs in Rhode Island
Competitive interest rates are one way that banks in Rhode Island fight for your business. Compare the rates for CDs today.
FAQs
Unlike a traditional CD that locks you into one set rate for the term you choose, a step-up CD increases the interest on the CD on a planned schedule. For instance, you could choose a five-year CD with a five-year term, and the interest would tick upward each year, allowing for even greater savings.
A CD ladder uses several CDs to ensure that your money is always in “rotation.” For instance, you might choose to open up CDs with 3-month, 6-month, 12-month, and 18-month terms. When the first CD matures in three months, you can either pull it out or put the money into a new one. By doing this, your returns continue to grow as you move up the “ladder.”
It depends on the type of CD, but in most cases, the interest you earn from a CD will be considered taxable income. There are some caveats to this, so it’s a good idea to consult with a tax professional, especially if you will put a good amount of money into a CD.
