Citizens Bank CD Rates (2024)

Citizens Bank CD Rates

On its website, Citizens Bank advertises only two CD options: eight-month and 14-month standard CDs. You can only open one of these accounts if you have a Citizens Private Client checking account (which requires at least $200,000 in deposits and investments with the bank) or a Citizens Quest checking account.

The eight-month CD term has a competitive APY that’s over three times the national average interest rate for a six-month CD term and over twice the average for a one-year term. However, it requires a very steep minimum deposit of $25,000, and these funds must be new to the bank.

The 14-month online CD offers a less competitive return, but it has a more manageable minimum deposit requirement of $1,000.

However, Citizen’s Personal Deposit Account Fees and Features Guide states that the bank offers standard CDs, breakable CDs (also known as no-penalty CDs) and individual retirement account (IRA) CDs. The standard and IRA CDs are offered in terms of one month to 10 years, and breakable CD terms range from three months to five years.

The bank doesn’t provide more information about rates or CD terms on its website. It recommends calling or visiting your local branch to learn about other terms or promotional CDs could be available.

Citizens Bank CD: Who It’s Best For

Since Citizens Bank’s advertised online CDs have specific requirements, they’re best for certain customers. These include:

People Who Have or Want a Citizens Checking Account

Citizens Bank requires having an eligible checking account before you can open one of the online CDs. If you don’t already have a checking account, keep in mind that one option has a monthly fee and the other requires you to keep large sums with Citizens.

Citizens Quest Checking has a $25 monthly fee that’s waived if you make $5,000 in total deposits per statement cycle or maintain $25,000 in combined deposits across eligible Citizens accounts. Citizens Private Client Checking is only available to customers who maintain combined deposits and investments of at least $200,000 across eligible accounts.

Those Who Can Afford a Large Deposit

Citizen Bank’s eight-month online CD requires a deposit of at least $25,000 from an external account, so it’s not accessible to all savers. The 14-month CD only requires a $1,000 deposit, but online banks such as Synchrony and BMO Alto have no minimum deposit at all.

Those Who Want Longer- or Shorter-Term CDs

While Citizens Bank only advertises two CD terms on its website, terms from one month to 10 years may be available if you open an account at a branch rather than online.

Savers Who Can Avoid Early Withdrawals

Citizens Bank is particularly expensive for early withdrawals, charging two fees for them: a portion of the interest earned, plus a $50 transaction penalty. So if you’re considering opening a CD with the bank, make sure you can keep your money deposited for the whole term.

Citizen Bank CDs: Additional Information

Before opening a Citizens Bank CD, you should understand the requirements, interest payments and account features. Here are important details to consider:

Minimum Opening Deposit Requirements

Citizens Bank requires at least $1,000 to open an online standard CD. You’ll need at least $250 to get a Citizens Bank IRA CD and $10,000 to get a Breakable CD.

CD Terms

While the options shown online are for shorter-term CDs, you may have additional term options if you call the bank or open a CD at a branch.

Compounding Schedule

Interest on your Citizens Bank CD will be compounded monthly. The more often interest is compounded, the faster a deposit earns interest.

Interest Payments

Citizens Bank adds your monthly interest payments to your CD balance by default. But if you make at least a $5,000 minimum opening deposit, you can have these payments sent to a connected bank account or mailed via check each month.

Early Withdrawal Penalties

For terms that are less than one year, the early withdrawal penalty is 90 days of interest on the withdrawn amount or half of the remaining interest to be earned (whichever is greater).

For terms of one year or more, the penalty is 180 days of interest on the withdrawn amount or the remaining interest to be earned (whichever is greater). There’s also a $50 transaction penalty regardless of the term.

Deposit Insurance

Citizens Bank is insured by the Federal Deposit Insurance Corp. (FDIC), so your combined money across CDs and other deposit accounts is protected for up to $250,000 per depositor, per account.

Citizens CD Rates vs. Other Top Banks

Citizens Bank doesn’t advertise a one-year CD term online, but its 14-month online CD has a similar term length to the one-year CDs available through many top financial institutions.

While several competitors have higher-earning CD options, some traditional banks offer much lower standard rates for this CD term. Citizens’ $1,000 minimum deposit requirement is similar to a few competitors’ minimums, but some online banks don’t require a minimum deposit.

Here’s how Citizens Bank stacks up against some of its competitors:

Additional Ways To Save With Citizens Bank

In addition to CDs, Citizens Bank offers three savings accounts and three money market accounts. They generally have low interest rates for most balances.

• One Deposit Savings from Citizens: There’s no minimum deposit to open an account, and you can avoid the $4.99 maintenance fee by making at least one deposit per month.
• Citizens Quest Savings: This account has a higher APY and no minimum deposit or monthly fee.
• Citizens Private Client Savings: Along with higher rates, account holders get fees waived for things including wire transfers and stop-payment requests.
• Personal Money Market: There’s no minimum opening deposit, and the $10 monthly maintenance fee is waived if the account keeps a $2,500 minimum daily balance.
• Citizens Quest Money Market: This account doesn’t have a minimum deposit, and the interest rate is based on the account balance.
• Citizens Private Client Money Market:Account holders get unlimited rebates on other banks’ ATM fees, and higher balances get higher interest rates.

The Bottom Line: Is a Citizens Bank CD Right For You?

Citizen Bank’s standard online CDs can be good if you can deposit at least $1,000 and also need a checking account. The bank is also worth considering if you prefer branch support and don’t mind contacting the bank for more details on the CDs available in your area. But if you have less saved or don’t want to open a checking account to get a CD, some competitors offer more options and better rates.