First Republic offers about 15 certificate of deposit (CD) term options that span from three months to six years. This range opens it up to customers with both short- and long-term savings goals. Not all of its rates are as competitive as others out there, but First Republic’s CD terms over two years have rates that stack up well with the highest CD rates on the market.
The biggest knock on First Republic is the high account minimums. Most accounts require at least $10,000. Some short-term options may even require $25,000. That makes accounts inaccessible to many customers. However, it could be perfect for older customers who are saving for long-term goals.
In addition, interest on First Republic CDs compounds daily, and the bank allows you to choose how often your interest is credited.
Below we consider the pros and cons of opening a CD account with First Republic.
|CD Length||Minimum Deposit||APY|
|30 Day||$10,000||0.05%||Compare CD Rates|
|3 Month||$10,000||0.40%||Compare CD Rates|
|12 Month||$10,000||0.85%||Compare CD Rates|
|18 Month||$10,000||0.95%||Compare CD Rates|
|2 Year||$10,000||1.00%||Compare CD Rates|
|3 Year||$10,000||1.10%||Compare CD Rates|
|4 Year||$10,000||1.10%||Compare CD Rates|
|5 Year||$10,000||1.20%||Compare CD Rates|
|6 Year||$10,000||1.20%||Compare CD Rates|
Special CD Rates
|CD Length||Minimum Deposit||APY|
|5 Month||$10,000||1.00%||Compare CD Rates|
With First Republic Bank’s liquid CDs, you receive a guaranteed interest rate the same as you do with a normal CD. The difference is that you can use your money during your CD term without paying an early withdrawal penalty.
You can only withdraw funds once every seven days, but this still offers significantly more flexibility than with normal CDs. The caveat is that you need to maintain an account balance of $10,000. The minimum to open an account is also $10,000. If you do not maintain the account minimum, Frist Republic may close your account and transfer it to another type of account.
|CD Length||Minimum Deposit||APY|
|8 Month||$10,000||0.40%||Compare CD Rates|
30-Day CD Interest Rate Comparison
Overview of First Republic Bank CDs
First Republic has locations on both coasts in the six states of California, Connecticut, Florida, Massachusetts, New York and Oregon. Locations are predominantly in large cities, and there are only about 70 branch locations in the country. The bank specializes in delivering services through wealth advisors and other financial advisors.
The CD terms available from First Republic range from 30 days to six years. The CDs have a minimum deposit of $10,000. If you do not maintain that minimum, your CD will not earn interest.
Interest compounds daily and First Republic allows you to choose how often your interest is credited. You can choose to receive it on a monthly, quarterly or semi-annual basis. If your term is one year or less, you can also elect to receive only one interest payment when your CD reaches maturity.
If you need to remove any of the funds in your CD, your best bet is to wait until the CD reaches maturity. Starting the day after your CD reaches the end of its term, First Republic will give you a seven-day grace period. You can make any changes or withdrawals during that period. If you don’t make any changes by the end of the grace period, your CD will automatically renew for another CD of the same term length. The interest rate of the new CD will depend on the bank’s current rates.
Withdrawing money before the end of your term can get expensive. First of all, First Republic may not allow you to withdraw funds early. If it does, you will have to pay an early withdrawal penalty. The penalty amount depends on your term length and how much you withdraw. A CD with a term of one year or shorter has a penalty equal to six months’ interest on the amount of principal you withdraw. Withdrawals from a CD that is more than one year long will have a penalty equal to 15 months’ interest on the amount you withdraw.
Compare First Republic Bank to Other Competitive Offers
How Much You Earn With First Republic Bank CDs Over Time
How much you earn will depend largely on the length of your CD term. Short-term CDs will earn you relatively little interest. CD terms of two years or more have the highest rates and will earn you the most. Special CDs also have relatively high interest rates.
Your earnings will also depend on the account minimum. As is always the case, you will earn more if you contribute more to your account. Because some special accounts may have a $25,000 minimum, there’s a good chance people will contribute more to those accounts. That will increase your interest earnings.
The table below shows what your approximate total balance will be depending on your initial deposit and your term length.
|Initial Deposit||15-Month CD||18-Month CD||36-Month CD||60-Month CD|
How First Republic Bank’s CD Rates Compare to Other Banks
First Republic has competitive rates. This is especially true with CD terms of two years or more. Not many banks will offer higher rates on long-term CDs. If you want a higher rate, consider working with a broker. Vanguard and Edward Jones are two of the most well-known brokers. They both offer higher rates on CDs with term lengths of a few years. They also offer term options up to 10 years in length. Edward Jones, in particular, has the advantage of lower account minimums. You only need $1,000 to open any of its CD accounts. Vanguard has a minimum of $10,000 but it applies to all of its CDs. That’s different from First Republic, which requires $25,000 for some accounts.
If you are looking for short-term CDs and you don’t want to work with a broker, you will find a number of banks with lower minimums and higher interest rates than First Republic. Ally Bank has some of the most competitive rates on short-term CDs. There is no minimum for opening an account, but you can earn higher rates by contributing at least $5,000 or at least $25,000
|CD Account||First Republic Bank||Edward Jones||Ally Bank|
Should You Get a First Republic Bank CD Account?
First Republic offers competitive interest rates on CD terms of two years or longer. If you are looking at one of those term options, you should consider opening an account. It is possible to find higher rates but you will have to do some searching. Check brokers in particular.
Short-term rates are not as competitive with First Republic. Customers considering those terms should definitely compare CD rates from other banks. Be sure to consider online banks.
One major consideration with First Republic is the high account minimum. All CD accounts require you to contribute at least $10,000. Short-term CDs require even more at $25,000. You can find similar interest rates with much lower account minimums.
Finally, one reason you may want an account with First Republic is that you want to work with or are already working with one of its financial advisors. Access to financial advisors is a focus for First Republic. Advisors can help you create a financial plan that includes CDs as part of a larger investment portfolio.