Apple Bank, which is based in New York City, offers certificate of deposit (CD) accounts with rates that can compete with some of the best CD rates across the industry. With Apple Bank, you have access to physical branches and face-to-face customer service. You can open a CD for terms stretching from three months to 5 years. Interest compounds daily. And you can have interest sent directly to you each month or quarter as long as you’ve earned at least $10 in that time span.
Even though you need a minimum deposit of $1,000 to open a CD account with Apple Bank, your options carry impressive rates, especially considering that Apple Bank manages physical branches throughout New York. And if you’ve earned at least $10 worth of interest, you can have it sent directly to you each month or quarter. You can have your payments sent via check or directly to your Apple Bank checking, savings or money market account (MMA). In addition, every CD renews at maturity under the same terms and conditions. The table below illustrates the current interest rates in detail.
To calculate how much interest you could earn with a CD, try using SmartAsset's CD calculator.
|CD Length||Minimum Deposit||Rate|
|3-Month||$1,000||3.50%||Compare CD Rates|
|6-Month||$1,000||3.50%||Compare CD Rates|
|7-Month||$1,000||4.50%||Compare CD Rates|
|9-Month||$1,000||3.75%||Compare CD Rates|
|1-Year||$1,000||4.00%||Compare CD Rates|
|15-Month||$1,000||3.50%||Compare CD Rates|
|18-Month||$1,000||3.50%||Compare CD Rates|
|2-Year||$1,000||3.50%||Compare CD Rates|
|3-Year||$1,000||3.50%||Compare CD Rates|
|4-Year||$1,000||3.50%||Compare CD Rates|
|5-Year||$1,000||3.50%||Compare CD Rates|
6-month CD Interest Rate Comparison
Overview of Apple Bank CDs
Apple Bank offers a range of fixed-rate CDs with terms ranging from as little as 3 months to as much as 5 years. Overall, the bank offers competitive rates that many brick-and-mortar banks, even large ones, can’t easily beat. Interest on each CD compounds daily, which means your interest earns interest on a daily basis.
In addition, you can open a CD that combines the tax advantages of an individual retirement account (IRA) with the peace of mind that comes with locking in an interest rate through a CD. You can open Apple Bank’s IRA CDs for the same term lengths and corresponding rates as fixed-rate CDs.
Apple Bank also participates in the Certificate of Deposit Account Registry Services (CDARS) program. This means you can open CDs issued by different banks with competitive rates and different term lengths through Apple Bank.
By opening several CDs, you can take advantage of CD ladders. This strategy allows you to have access to different pockets of your savings and earned interest at different time intervals by enrolling in several CDs of different term lengths. The CDARS program also allows you to receive additional FDIC protection on larger deposits. The FDIC can currently insure up to $250,000 held in your accounts with a single bank. Through CDARS, you can stretch out larger balances throughout multiple financial institutions for added protection. However, you’ll need a larger minimum balance of $100,000 to open a CDARS account through Apple Bank. And because other banks may issue these CDs, they may be subject to different terms and conditions. So be sure to speak with an Apple Bank representative about the risks and benefits of investing in a CDARS account.
In addition, you should be aware that CD accounts are designed to lock in your money for a set amount of time in exchange for earned interest. Unless Apple Bank provides an exception, you will face a monetary penalty if you withdraw the money you deposited into your CD before your term ends.
At Apple Bank, early withdrawal penalties are applied as follows.
- For CDs with terms of less than one year: $50 plus 1% of the amount withdrawn
- For CDs with terms of one year or longer: $50 plus 3% of the amount withdrawn
If the penalty reduces your principal balance (money in the CD minus interest you’ve earned) to less than $1,000, Apple Bank will close your account.
IRA CDs are subject to the same early withdrawal penalties with a few exceptions. You may withdraw up to 20% of the principal from an IRA CD penalty-free if the withdrawal is made during the calendar year in which you turn 70.5 years old and every calendar year subsequent to that date. You should seek a qualified tax professional or financial advisor to discuss the potential tax implications of withdrawing money from an IRA CD.
But overall, early withdrawal penalties are quite severe at any financial institution that offers CDs. With that said, you should open a CD with a term length you can comfortably invest for without touching your deposit. If you want easier access to your savings, you can explore the best savings accounts and MMAs that offer high-interest rates with few or no restrictions on getting a hold of your money when you need it.
How Much You Earn With Apple Bank Certificate of Deposits Over Time?
Longer-term CDs at Apple Bank offer the highest interest rates. However, the firm’s six-month CD has an annual percentage yield (APY) of 3.50% which is on par with other banks. You should be able to generate a reasonable return if you invest a large amount and keep it parked for the duration of your CD’s term. The table below provides a few estimates based on current offerings and corresponding APYs.
|Initial Deposit||6-Month CD||1-Year CD||2-Year CD|
How Apple Bank CDs Rates Compare to Other Banks
Apple Bank’s CDs offer some of the highest rates we’ve seen across banks with physical branches, and the New York-based financial institution even gives some online banks a run for their money. For instance, Apple Bank’s six-month CD offers an APY of 3.50%. Its counterparts at Ally Bank and Capital One both have lower APYs of 3.30% and 3.40%, respectively.
It’s important to note, however, that both Ally and Capital One CDs require no minimum deposit, while Apple does. Apple also doesn't boast as wide a variety of CD rate terms as Capital One or Ally. Still, you can technically earn a higher return by investing a larger minimum amount into an Apple Bank CD for the long term.
The table below shows the current APY rates you’d get by opening CDs at different banks with a minimum $1,000 deposit.:
|CD Account||Apple Bank||Capital One||Ally Bank|
Compare Apple Bank to Other Competitive Offers
Should You Get an Apple Bank CD Account?
If you live in New York and you’re looking for high-yield CDs with varying term lengths, you’d be hard-pressed not to find a suitable option at Apple Bank. CD accounts may require a minimum deposit of at least $1,000, but their interest rates are competitive across the industry. If you're eyeing retirement, you can also park your nest egg in an IRA CD with a fixed interest rate. Apple Bank also gives you a few options to take advantage of your earned interest before your CDs term ends.