BBVA has announced plans to merge with PNC Bank. Accounts will be migrated automatically in October of 2021.
BBVA bank has branch locations in seven states. If you don't live near a branch in one of those states, you will need to go with an online certificate of deposit (CD) account. You may want to open an online CD regardless because they usually offer the highest interest rates. Rates are still lower than some of the best CD rates available, but they are competitive. The minimum deposit of $500 is also relatively low compared to similar banks.
The biggest drawback of BBVA is that there aren't many CD term options. Local branches may have additional offerings but online CDs only come with terms lengths between eleven months and three years. Customers looking to use a CD as part of their retirement savings will like that all CDs are also available as part of an individual retirement account (IRA).
No matter your savings goals, read on for the information you need to help you make the right decision.
|CD Length||Minimum Deposit||Online APY|
|11 Month||$500||0.05%||Compare CD Rates|
|12 Month||$500||0.05%||Compare CD Rates|
|18 Month||$500||0.05%||Compare CD Rates|
|36 Month||$500||0.05%||Compare CD Rates|
12-Month CD Interest Rate Comparison
Overview of BBVA CDs
BBVA, which is officially BBVA Bancshares, Inc. and was formerly Compass Bank, has branch locations in seven states: Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas.
There are currently four CD term options available with lengths between eleven months and three years. If you’re looking for shorter or longer term options, call a local branch. It’s possible that there are additional terms available. The minimum deposit for all CDs is $500.
The interest rates vary by location. Local branches in different areas may offer different rates, so you should call a local branch to get the latest rates. However, the highest rates are usually for online CDs.
All of BBVA's CD options are available to open in an IRA. With an IRA CD, you can also make two deposits per calendar year (in addition to an opening deposit).
When you open a CD a local branch, you have a choice in how often you receive your interest payments. Interest pays either monthly, quarterly, semi-annually, annually or at maturity. You can also elect the interest you earn to stay in your CD account, get transferred into another account you have with BBVA or get paid to you as a check. If you open a CD online, interest will only pay at maturity and it will credit to your account.
After your CD reaches maturity, BBVA will give you 10 days to make any changes to your account. During this grace period you can contribute additional money or remove money without paying any penalties. After the 10 days BBVA will renew your account for another CD of the same term length.
If you want to withdraw money before your CD reaches maturity, it’s possible. But you’ll have to pay an early withdrawal penalty. The penalty amount depends on the length of your CD term. CDs with a term length of 365 or less have a penalty of $25 plus 1% of the amount withdrawn. CDs with a term greater than 365 days have a penalty of $25 plus 3% of the amount withdrawn.
How Much You Earn With BBVA CDs Over Time
The amount you earn in interest will depend on our interest rate. As mentioned, rates vary by location and online rates are usually higher than the rates you get in person at a branch. If you open an online CD, which will have rates similar to those in the table above, you will earn a decent amount in interest. While these aren’t the highest rates around, they are higher than those at many other banks. You can maximize earnings by opening a longer-term CD. You will also earn more with a larger opening deposit.
The table below shows what your approximate total balance will be based on different initial deposits and term lengths. These earnings are based on the online rates in the table above.
|Initial Deposit||12-Month CD||18-Month CD|
How BBVA CD Rates Compare to Other Banks'
Before you open any CD accounts, you should always compare CD rates from at least a few banks. When you do that, you will see that while BBVA has better rates than many other banks, there are also banks with higher rates and more term options.
If you are considering an online account with BBVA, you should also consider online banks. Ally Bank, one of the most well-known online banks, offers higher rates than BBVA. It also has term options starting at three months. The short-term options from Ally (two years or shorter) have the most competitive rates.
People looking for term lengths of more than a couple of years should also consider banks like Capital One. Capital One has competitive rates and there is no minimum deposit for opening an account. That means you can start one even if you can’t afford the $500 minimum from BBVA.
Another option with competitive rates is Synchrony Bank. Like Ally, Synchrony operates entirely online with no physical branch locations. However, it offers higher rates on long-term CDs. The longest term from Synchrony is five years, and it comes with an account minimum deposit of $100.
|CD Account||BBVA||Ally Bank||Capital One|
Compare BBVA to Other Competitive Offers
Should You Get a BBVA CD Account?
Whether or not you should get a CD with BBVA will depend on your savings goals. If you want a CD that is six or nine months long or more than three years long, you will need to go to another bank. BBVA only has a few term options and they are all between eleven months and three years in length. (Again, local branches may offer more term options so be sure to call around.) The rates are competitive, but you can certainly find higher rates. If you are already planning to bank entirely online, consider some online banks like Ally or Synchrony.
If your primary goal is an IRA CD, BBVA is enticing, because it allows you to make multiple contributions per year. Other banks and brokers do offer longer term options though.