Fifth Third Bank offers certificate of deposit (CD) terms ranging from seven days to seven years. This is a wider range than most banks offer and it could make Fifth Third Bank a great choice for people with either short-term or long-term savings goals. The minimum deposit of $500 is also low enough to make CDs a viable option for many people. And of particular interest to those saving for the long term, you may be able to use these standard CDs in a 529 college savings account or an individual retirement account (IRA).
However, the interest rates don’t compare very well with the best CD rates on the market. Promotional CDs can help you get better rates, but they come with higher minimum deposits and fewer term options. That means the average saver may not be able to afford competitive rates. Regardless of how much you can put into an account, here’s the important information to know when considering a CD with Fifth Third Bank.
|CD Length||APY: Less Than $5,000 Deposit||APY: $5,000 - $9,999 Deposit||APY: $10,000 - $24,999 Deposit||APY: $25,000 - $49,999 Deposit||APY: $50,000 - $99,999 Deposit|
|7 to 89 Day||0.05%||0.05%||0.05%||0.05%||0.05%|
|3 to 6 Month||0.05%||0.05%||0.05%||0.05%||0.05%|
|6 to 12 Month||0.05%||0.05%||0.05%||0.05%||0.05%|
|12 to 24 Month||0.05%||0.10%||0.10%||0.15%||0.15%|
|24 to 36 Month||0.15%||0.15%||0.15%||0.20%||0.20%|
|36 to 48 Month||0.20%||0.20%||0.20%||0.30%||0.30%|
|48 to 60 Month||0.30%||0.30%||0.30%||0.40%||0.40%|
|60 to 84 Month||0.40%||0.40%||0.50%||0.50%||0.50%|
|CD Length||Minimum Deposit||APY|
Overview of Fifth Third Bank CDs
Fifth Third Bank has its headquarters in Cincinnati, Ohio and has branch locations in 10 states: Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, Tennessee and West Virginia. If you live outside of those states, banking with Fifth Third Bank may not be practical, though you can open many accounts online.
There are two main CD types at Fifth Third Bank: standard and promotional. Standard CDs range in term length from seven days to 84 months. This range is significant because most banks only offer CD terms ranging from three months (about 90 days) up to five years (60 months).
Short-term options aren’t accessible to everyone, though, because CDs with a term length between seven and 84 days require a minimum deposit of $5,000. Terms of three months or longer require a minimum deposit of just $500. It is common for short-term CDs to have higher minimum deposits, but there may be other banks near you with lower minimums. Always make sure to compare CD rates.
The exact interest you earn on a standard CD will depend on how much you contribute to your account. Higher contributions may receive higher interest rates. There are five categories for determining your rate:
- less than $5,000
- $5,000 - $9,999
- $10,000 - $24,999
- $25,000 - $49,999
- more than $50,000
Note that you may also be able to use these standard CDs in a 529 plan or an IRA.
In addition to the standard options, Fifth Third Bank also has promotional CDs. There are currently three promotional offers with terms of 11, 18 and 27 months. These CDs have significantly higher interest rates than the standard CDs and offer the most competitive rates from Fifth Third Bank. Unfortunately, they require a minimum deposit of $5,000.
The interest for all CDs is compounded continuously with Fifth Third Bank crediting it to you monthly. The automatic option is to leave the interest in your CD account. You can also choose to transfer it to a savings or checking account that you have with the bank.
If you wish to withdraw your principal early from a CD account, you will pay an early withdrawal penalty. The charge amount depends on the length of your CD term and how much of the principal you withdraw. For CDs between seven and 364 days in length, the penalty is 1% of the principal you withdraw. CDs between 365 days and 36 months have a penalty worth 2% of the principal withdrawn. You will pay a penalty worth 3% of the principal withdrawn for any CD longer than 36 months.
You can transfer money without a penalty if you wait until your CD has reached maturity (the end of its term). The day after the end of your term, Fifth Third Bank will give you a grace period. You can make any changes to your account, or even close your account during this time.
How Much You Earn With Fifth Third Bank CDs Over Time
The interest rates for standard CDs are quite low. You won’t earn much more than a few cents if you’re contributing the minimum amount to a short-term CD. If you want to maximize your earnings with a standard CD, you will need to contribute significant amounts and choose a long-term option.
However, you can earn a fair amount of interest with the promotional CDs from Fifth Third Bank. For example, the rate on the 18-month promotional CD is 20 times more than the rate for a standard 18-month CD. If you contribute $5,000 (the minimum for a promotional CD), you will earn about $145 more in interest than with the standard 18-month CD.
The table below shows what your approximate total balance will be depending on your initial deposit and your term length. The rates used below are for the standard CDs.
|Initial Deposit||6-Month CD||12-Month CD||36-Month CD||60-Month CD|
Compare Fifth Third Bank to Other Competitive Offers
How Fifth Third Bank’s CD Rates Compare to Other Banks’
The interest rates for Fifth Third Bank’s standard CDs are significantly lower than the rates from other banks. If you are planning on opening an account, you will only get competitive rates with the promotional CDs. Even then, other banks will offer higher rates with lower deposit minimums.
Capital One has no minimum deposit for its CDs and boasts higher interest rates than Fifth Third Bank’s promotional offers. Marcus by Goldman Sachs also has higher rates with an account minimum of just $500. Another advantage with Marcus is that it has a six-year CD offering. Some people may be drawn to Fifth Third Bank because of its 84-month (seven-year) option. While Marcus’ longest offering is 12 months shorter, it still has a high interest rate.
If your primary goal is long-term savings or if you’re interested in creating CD ladders, you may also want to consider an account with some brokers such as Vanguard and Edward Jones. They typically have CDs of up to 10 years in length.
|CD Account||Fifth Third Bank||Capital One||Marcus|
Should You Get a Fifth Third Bank CD Account?
If you are considering a CD with Fifth Third Bank, promotional CDs will earn you the most interest. The challenge is that promotional CDs have a deposit minimum of $5,000. You should certainly consider other banks if you plan to open a standard CD. As mentioned, the standard options have low interest rates that won’t earn you much unless you contribute high amounts with long terms lengths. Even if that’s what you plan to do, you will be able to find much higher rates elsewhere.