Headquartered in DeWitt, New York, a suburb of Syracuse, Community Bank, N.A. operates more than 230 locations in upstate New York, Northeastern Pennsylvania, Vermont and Massachusetts. The bank offers a wide range of certificate of deposit (CD) accounts, with term lengths as short as seven days and as long as five years. Although the standard rates are on the lower end of the spectrum, the bank also has two special CDs with much more competitive rates.
In order to open a CD account with Community Bank, you’ll have to visit one of their branch locations. So, if you don’t live in the Northeast or you’re a dedicated online banker, you’ll want to look elsewhere for your CDs.
Read on to learn about the ins and outs of CDs at Community Bank.
|Term Length||Minimum Deposit||APY|
|6 Month||$1,000||0.50%||Compare CD Rates|
|12 Month||$1,000||0.75%||Compare CD Rates|
|2 Year||$1,000||1.15%||Compare CD Rates|
|3 Year||$1,000||1.51%||Compare CD Rates|
|4 Year||$1,000||1.76%||Compare CD Rates|
|5 Year||$1,000||2.77%||Compare CD Rates|
Unlike many promotional CD offerings, Community Bank doesn’t require you to use new money (money that isn’t currently in a Community Bank account) to purchase one of its special CDs. The only things that differentiate these from the standard accounts is the higher rate and what happens when they mature. With the standard CDs, the bank will you renew you for a CD of the same term if you don’t act during your grace period. With the special CD, though, you’ll be renewed for a standard CD of similar length.
|Term Length||Minimum Deposit||APY|
|13 Month||$1,000||2.00%||Compare CD Rates|
|25 Month||$1,000||2.50%||Compare CD Rates|
Community Bank 11-Month Special CD Interest Rate Comparison
Overview of Community Bank CD Rates
The wide range of term lengths available with Community Bank CDs gives you a great deal of freedom to save on your terms. This flexibility is especially helpful if you’re looking to set up a CD ladder, with payouts coming to you at regular intervals.
If for some reason you need to withdraw some or all of your principal before your CD reaches maturity, then you’ll need to pay a fee known as an early withdrawal penalty. The exact amount of the early withdrawal penalty at Community Bank is determined by a number of factors, including the term length of the CD you purchased, how much money you’re withdrawing and how far along you are in your term length.
Once your CD reaches maturity, you will begin a nine-day grace period, during which you can withdraw your money without risk of penalty or transfer it into a CD with a different term length. If you choose to do nothing during your grace period, then the bank will automatically renew you for another CD of the same term. The only exceptions are the special CDs, which the bank will renew as standard accounts.
Compare Community Bank to Other Competitive Offers
How Much You Earn With a Community Bank CD Account Over Time
Interest on all Community Bank CDs compounds monthly, which means that if you’re purchasing a CD with a term length of under a month, you’re effectively earning simple interest. Although the montly frequency means slightly less interest than a daily or continuous frequency, the difference is often miniscule save for the largest deposits and longest term lengths.
If you can manage it, it’s often a good idea to capitalize on the highest rate you can find and then mold the length to your needs. For instance, if you are looking to invest for a longer period of time, your earning potential would be much higher if you purchased a 35-month special CD, let it mature and then purchased another 35-month special CD with your earnings than if you just purchased a 60-month CD. Your money would be unavailable for 10 extra months, and you’d be relying on the 35-month special rate still being around in 35 months, but that might be a tradeoff you’re willing to make for the extra interest.
|Initial Deposit||3 Month CD||11 Month Special CD||60 Month CD|
How Community Bank CD Rates Compare to Other Banks'
Although the CD rates at Community Bank aren’t on par with the best CD rates out there, they’re still far from the lowest we’ve seen. You’ll do better with a CD at Community Bank than you would at a big, national bank like CitiBank. However, there are other regional banks as well as online establishments that offer much more competitive rates, even when considering Community Bank’s special accounts.
Berkshire Bank, another regional bank in the Northeast, has several standard accounts with rates above 2%. Additionally, online banks like Marcus by Goldman Sachs can offer significantly higher rates since they don’t have to deal with the expenses of maintaining brick-and-mortar locations.
|Term Length||Community Bank||Berkshire Bank||CitiBank||Marcus by Goldman Sachs|
|12 Month||0.75%||2.00% (13 Month)||0.25%||1.85%|
Should You Get a Community Bank CD Account?
If you live in the Northeast and you already bank with Community Bank, then you might appreciate the convenience of having all your assets handled under one roof. If this is your situation, you’ll most likely want to consider the two special CDs, as the rates are the most competitive by far. If you don’t live in the Northeast, it won’t make much sense for you to consider Community Bank, as you have to visit a branch to purchase a CD.
If you are dead-set on earning at the highest possible rates, you’ll likely be better served by heading online or looking at some other regional banks with more competitive offerings.