BB&T Bank offers a range of certificate of deposit (CD) accounts, including ones designed to help you save for college or a home purchase. You can open a standard CD for terms stretching from just seven days to five years. So these CDs may be good for people with short-term savings needs or those investing for specific goals. But across its suite of CDs, the bank doesn’t offer the best CD rates. Still, these CDs may appeal to customers who value the convenience of having access to physical branches and face-to-face customer service. Interest is compounded daily and credited monthly. All CDs renew at maturity, or the end of their terms, under the same conditions set forth in your initial contract.
It’s important to note that BB&T CD rates may change on a daily basis, which is why the firm doesn’t publish all its rates online. To give you an estimate, the following refers to rates as of June 1, 2018, based on calls made to multiple BB&T branches.
7-Day To 60-Month CDs
These are the bank’s standard CD accounts, and you can open one with a minimum of $1,000 for terms ranging from seven days to 60 months (or five years). Longer-term options generally cary higher interest rates. Overall, these rates reflect what you would likely find at brick-and-mortar banks for the same terms. The table below provides more details.
But to get a better glimpse of what’s out there, you can compare CD rates from among options at banks, credit unions and online banks throughout the country.
|Term Length||Minimum Deposit||APY|
|3 Month||$1,000||0.05%||Compare CD Rates|
|6 Month||$1,000||0.05%||Compare CD Rates|
|1 Year||$1,000||0.20%||Compare CD Rates|
|2 Year||$1,000||0.30%||Compare CD Rates|
|3 Year||$1,000||0.45%||Compare CD Rates|
|4 Year||$1,000||0.65%||Compare CD Rates|
|5 Year||$1,000||1.00%||Compare CD Rates|
Stepped Rate CD
BB&T Bank also offers an evolving CD of sorts. You can open a Stepped Rate CD for a term of 12 months and the rate will increase every 12 months for a total term length of 48 months or six years.
Stepped Rate CDs allow you to deposit up to $10,000 during each 12-month interval. Furthermore, you can make a penalty-free withdrawal from what you deposited into your CD following the 2-year mark. This benefit may come in handy if you’re not very satisfied with the interest hike. The table below indicates rates as of June 1, 2018.
|Term Length||Minimum Deposit||APY|
|12 Month||$1,000||0.05%||Compare CD Rates|
|24 Month||$1,000||0.40%||Compare CD Rates|
|36 Month||$1,000||0.55%||Compare CD Rates|
|48 Month||$1,000||0.75%||Compare CD Rates|
Can’t Lose CD
This CD does not act as the name implies, and you should be aware of the risks involved. The Can’t Lose CD is tied to current market rates and is available only in a 30-Month term. After the first 12 months of each term, you can deposit up to $10,000 into the CD. In this sense, you can bump up your principal if your CDs interest rate rises. You’re also allowed to make one penalty-free withdrawal, which you can take advantage of in case rates dip below what you can stomach. However, you’d have to meet the following requirements to make the penalty-free withdrawal.
- Your initial deposit must remain in the CD for the first 12 months before withdrawal.
- Any additional deposits you’ve made must have had been in the CD for at least seven calendar days before your withdrawal.
- You have made no nonqualified (penalty-inducing) withdrawals within the six calendar years preceding the withdrawal.
Home Savers CD
If you’re thinking of becoming a homeowner and you’re concerned about pooling money for a down payment on your mortgage, you may be interested in opening a Home Savers CD with BB&T Bank.
You can open one with as little as $100 for a 36-month term. And you can withdraw your money at any time penalty-free as long as you use the funds toward the purchase of your new home. You may benefit from using these savings on closing costs and other expenses associated with homeownership, especially if you’re a first-time homebuyer. However, you’d need to set up a monthly deposit of at least $50 from a BB&T checking or savings account. You can always add additional funds to this CD at any time.
The current APY for the bank’s Home Savers CD is 0.40%.
College Savers CD
If you’re considering going back to school or you’re thinking about ways to save for your child’s future college education, you may be interested in opening a College Savers CD. This option is available for 36, 48 and 60-month terms. You can withdraw funds up to four times per year without incurring a penalty as long as you use the money to fund qualified higher education expenses. College Savers CD
The APY for the BB&T Bank College Savers CD is currently 0.40%, which doesn’t really hold up against standard CDs for similar term lengths at online banks and even some of BB&T’s brick-and-mortar counterparts. So this may not be the best option especially if you don’t expect to fund an education until a considerable number of years down the road.
In addition, there are several college savings plans out there that may offer better rates and benefits that adhere to your particular situation.
But if the College Savers CD appeals to you, you can open one with a minimum of $100. As with the Home Savers CD, you’d need to set up an automatic monthly transfer of at least $50 from a BB&T checking or savings account.
With BB&T, you can open a Treasury CD for a six-month term. Its interest rate will always be tied to the U.S. Treasury Bill (T Bill). So your rate can fluctuate throughout the life of your investment. However, you can deposit at least $100 into this CD at any time and make one penalty-free withdrawal per month.
Overview of BB&T Bank CDs
BB&T Bank CD rates aren’t the strongest out there, but the bank does offer some distinct options its customers may find of value. For example, you can open a Homeowners CD or College Savers CD as long as you also open a checking or savings account with the bank and set up an automatic transfer to either CD. The bank also offers some flexibility by allowing you to add additional deposits to some CDs and make penalty free withdrawals from certain CDs under specific circumstances. That said, BB&T Bank may suit someone who’s new to CD investing and saving for a very specific short-term goal.
However, the minimum deposit of $1,000 for most CDs offered may be steep considering the overall low rates. You can lock in better rates for the same or smaller minimum deposits and with fewer restrictions at other banks.
How Much You Earn With BB&T Certificate of Deposits Over Time?
Due to their low and often fluctuating interest rates, your deposits may not have risen much by the time of maturity. Generally, you earn a higher APY if you open a BB&T CD with a longer term. So you’d need to make a large minimum deposit and sock your money away for at least five years to make the most out of your investment.
|Initial Deposit||6-Month CD||12-Month CD||60-Month CD|
Also, remember that CDs are designed to hold your money in exchange for earned interest. So you’ll face a penalty if you dig into your savings before the end of your term. As with any bank, early withdrawal penalties can shave a sizable chunk off your savings. Penalties at BB&T Bank are as follows.
- For CDs with a term of less than three months, the penalty would be all interest that would have been earned or $25 (whichever is greater)
- For CDs with a term of three to 12 months, the penalty would be an amount equal to three months of interest earned on the principal amount withdrawn, or $25 (Whichever is greater).
- For CDs with a term of 13 to 23 months, the penalty shall be an amount equal to six months of simple interest earned on the principal amount withdrawn, or $25 (Whichever is greater)
- For CDs with a term of 24 months or greater, the penalty will be an amount equal to 12 months of simple interest on the principal amount withdrawn or $25, whichever is greater.
How Does BB&T Bank Compare to Other Banks
BB&T Bank CD rates aren’t very competitive with those offered by online banks. But its rates are competitive with those of some of its brick-and-mortar counterparts—even major ones. As you can see, you can secure a BB&T Bank CD with a six-month term and a 0.05% APY today. At Chase, its offering dings you 0.01%.
But overall, you may find better rates and even smaller minimum deposits at other financial institutions. At Marcus by Goldman Sachs, an online entity, you can get a similar CD with an annual percentage yield (APY) of 0.60% and a smaller minimum deposit of $500.
|CD Account||BB&T||Chase||Marcus by Goldman Sachs|
Should You Get a BB&T CD Account?
That decision is ultimately up to your individual preferences. You may find higher CD rates under similar terms at online banks. But you may also appreciate access to physical branches and face-to-face customer service, as well as some wiggle room when it comes to withdrawing your money and making additional deposits into your CD. Your short-term goals may also revolve around saving for college or a home purchase. In that regard, you may find a suitable option at BB&T Bank. But remember that the bank’s rates can change daily, so it’s best to reach out to your local branch for the latest offers.