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Citizens Bank CD Rates: January 2025

3 days ago
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Get an overview of Citizens Bank’s CD and see if it’s right for you

Fact checked by Michael Rosenston

alvaro gonzalez / Getty Images

alvaro gonzalez / Getty Images

While many banks offer CDs with multiple terms and APYs, Citizens Bank, which offers rates as high as 4.50%, doesn’t offer many CD options. Let’s look at Citizens Bank CD rates, account features, and how Citizens’ CDs compare to some of the best high-yield CD accounts.

Online CD Overview

Compare Citizens Bank CD Rates

Citizens Bank offers fairly competitive CD rates on its highest paying CD, which has a term of 8 months. Compare terms and interest rates from other banks before determining which CD best fits your needs and offers the highest rates.

Citizens Bank CD: Key Features

The Citizens Bank’s online CD has a strong APY, but some competitors do even better, and may offer APYs of 4.50% or greater. Its minimum balance requirement of $1,000 is fairly standard. But its early withdrawal penalties are relatively steep, so ensure you can afford to leave the money deposited in the CD until it matures. 

If you’d like to receive monthly interest disbursements by check or transfer, you’ll need to make a minimum opening deposit of $5,000.

In the past, Citizens offered a breakable CD that allowed account holders to make a partial withdrawal before their CD matured. However, it doesn’t offer this account type any longer. You must keep your funds in the CD for the entire term to avoid penalties.

Pros and Cons of Citizens Bank CDs

Pros

  • Competitive rate

  • Some flexibility

Cons

  • Limited options

  • Potentially higher rate elsewhere

Pros Explained

  • Competitive rate: Citizens Bank’s 8-month CD offers an interest rate of 4.50% which is fairly high for CDs and its higher than you can get on the average savings account.
  • Some flexibility: Citizens Bank’s CD terms range from 8 months to 14 months. While you can easily find CDs with longer terms, the varying lengths provides some flexibility.

Cons Explained

  • Limited options: Citizens Bank does offer some flexibility, but the maximum term length you can get is 14 months. If you want a CD with a longer term, you’ll have to look elsewhere.
  • Potentially higher rate elsewhere: You can get a competitive rate on Citizens Bank’s 8-month CD. However, you can likely find even higher interest rates by shopping around.

About Citizens Bank: Other Options

Citizens Bank, based in Providence, Rhode Island, offers a range of products and services. As a customer, you can also open a checking account, savings account, money market account, or IRA retirement savings account.

You can apply for a credit card, student loan, or home loan as well. Citizens Bank offers a range of resources for financial education and wealth management.

Alternatives to Citizens Bank CDs

  • High-yield savings accounts: If you’re willing to open an online savings account elsewhere, you may be able to earn higher rates than what Citizens Bank offers. See the best high-yield savings account rates to compare how much you could earn.
  • High-yield checking accounts: You may find relatively high rates with some checking accounts. Be aware of their requirements and limits. The best high-interest checking accounts give you easy access to your money.
  • Certificates of deposit (CDs): Citizens Bank offers fairly competitive rates on its CDs. You can also choose from a range of CDs from other financial institutions.
  • Money market account: Money market account can also provide a return on your savings. Check the best money market account rates to see how it compares.
  • Treasury securities: These government-backed bills, notes, and bonds sometimes offer even higher rates than CDs and may be more liquid. 

Frequently Asked Questions (FAQs)

Is Citizens Bank’s CD Rate a Good Deal?

Citizens Bank’s CDs may have APYs higher than many savings accounts, but they tend to be fairly low compared to some competitors’ CD offerings. As with any new bank account, it’s smart to compare rates before applying. Start by checking out the best savings account rates and best CD rates today.

Is It Better to Get a Citizens Bank CD or a Savings Account?

Whether a Citizens Bank CD or savings account is right for you depends on your unique situation. If you have some extra money to deposit and are comfortable leaving it in an account for a while, a Citizens CD may be a smart choice. You’ll get a higher APY than you would with a Citizens savings account. 

But with a Citizens savings account, you can access your money anytime without penalty. While you’ll get a lower APY than you would with a CD, this accessibility can be useful if you need money to cover day-to-day costs or if an unexpected expense arises. Learn more about Citizens Bank and its various offerings.

Is Citizens Bank’s CD FDIC Insured?

Yes, Citizens Bank deposit accounts, including its CDs, are FDIC-insured for up to $250,000.

Your Guide to CDs

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