KeyBank offers three certificate of deposit accounts: Key Short Term CDs, Key Tiered CDs and Key Jumbo CDs. Having these options allows you to choose the CD account that best fits your financial situation and savings goals. For example, if you don’t have much time to grow your savings, a Key Short Term CD might work better for you. The longest Short Term account lasts for six months, compared to the Key Tiered CDs that can last for up to 10 years. You can still open a Key Tiered CD for six months, but its rate is much lower than its Key Short Term counterpart.
Unfortunately, KeyBank doesn’t offer very favorable CD interest rates. As you’ll see below, most accounts and tiers don’t reach past 1%. You’ll have to find the standout accounts, like an 18-month Key Tiered CD, to really see some growth.
Key Short Term CD
A Key Short Term CD comes offers short-term savings from seven to 179 days. This allows you to stash away some money and get it back, plus interest, with a pretty quick turnaround. This is an ideal timeline for those who cannot safely afford to put away sums of money for a long period of time.
You do have the opportunity to earn at a slightly higher rate with a Key Short Term CD. You can earn these Relationship Rewards by owning a Key Advantage Checking®, Key Privilege Checking® or Key Privilege Select Checking® account and enrolling it in KeyBank Relationship Rewards.
|Key Short Term CD||Minimum Deposit||Standard APY||Relationship APY|
|7 - 119 Day||$2,500||0.10%||0.10%|
|120 - 179 Day||$2,500||0.10%||0.10%|
Key Tiered CD Accounts
Key Tiered CDs offer a wider range of terms, better rates and chances to boost your rates with higher balances. You can open a Key Tiered CD of six months to 10 years. A good move could be to create a CD ladder with multiple Key Tiered CD accounts. This involves opening multiple CDs at once, each account with a different maturity date. That way, you can withdraw your earnings every few months or so depending on how you build your ladder. Just make sure that you’re responsibly stashing your money away into these various accounts.
Not all Key Tiered CD accounts have great rates. Most terms don’t carry high-earning rates. However, you can boost your rate by having a higher balance. You may also be able to earn at Relationship Rewards Rates. You can qualify for Relationship Rates by owning a Key Advantage Checking®, Key Privilege Checking® or Key Privilege Select Checking® account and enroll in KeyBank Relationship Rewards.
|Key Tiered CDs - Standard Rates||$2,500 - $9,999||$10,000 - $24,999.99||$25,000+|
|6 - 9 Month||0.10%||0.10%||0.10%|
|14 & 15 Month||0.20%||0.20%||0.20%|
|16, 17, 19 - 26, 28, 30 - 34 Month||0.10%||0.15%||0.25%|
|35, 36, 38, 40 - 46, 48 - 59 Month||0.15%||0.20%||0.30%|
|6 - 9 Year||0.35%||0.40%||0.50%|
|Key Tiered CDs - Relationship Rewards Rates||$2,500 - $9,999||$10,000 - $24,999.99||$25,000+|
|6 - 9 Month||0.20%||0.20%||0.20%|
|10, 12 Month||0.25%||0.25%||0.25%|
|14 & 15 Month||0.30%||0.30%||0.30%|
|16, 17, 19 - 23 Month||0.20%||0.25%||0.35%|
|24 - 26, 28, 30 - 32 Month||0.30%||0.35%||0.45%|
|36, 38, 40 - 46 Month||0.50%||0.55%||0.65%|
|49 - 59 Month||0.55%||0.60%||0.70%|
|6 - 9 Year||0.85%||0.90%||1.00%|
Key Jumbo CDs
Key Jumbo CDs range in term length from seven days to 120 months. KeyBank’s Jumbo CD rates mimic the Key Tiered CD rates given above. However, to qualify for a Jumbo CD, you need to have a minimum initial deposit of $100,000. Your deposit cannot exceed $499,999.99.
Compare KeyBank National Association to Other Competitive Offers
Overview of KeyBank CDs
With three CD account types, KeyBank offers each customer the chance to find an account that works for them. The Key Short Term CD accounts work for KeyBank customers who need to save within a more limited timeline. The shortest term lasts for seven days, allowing you to boost your savings a bit for an upcoming expense. If you need to save for an expense further in the future, you can open a long-term Key Tiered CD account instead since those range up to 10 years. Plus, if you plan to deposit at least $100,000, you have Key Jumbo CDs there to earn you interest on terms from seven days to 120 months.
Whichever CD account you choose, you’ll want to be careful of making any early withdrawals. If you have a shorter term, it will be much easier to wait it out if you’re strapped for cash. However, this will be harder for longer-term accounts where you might have to wait 10 years to get ahold of your money. Still, making an early withdrawal will trigger heavy penalties that you won’t want to pay.
For accounts between seven and 31 days, you’ll have to pay a penalty of all simple interest earned with a minimum penalty of seven days’ simple interest. Accounts from 32 to 89 days assess a penalty of one month’s simple interest. Accounts from 90 to 359 days carry an early withdrawal penalty of three months’ simple interest. Early withdrawals on accounts of 360 days to 23 months cost six months’ simple interest. Accounts of 24 to 47 months carry a penalty of nine months’ simple interest and any accounts of 48 months or longer charge a penalty of 12 months’ simple interest.
How Much You Earn With KeyBank Certificate of Deposits Over Time
With low to mediocre interest rates, KeyBank won’t often earn you too much in a CD. With a standard CD, you’ll typically earn a few dollars. However, keep an eye out for certain terms that do have special high rates like the 18-Month Key Tiered CD. Opening those accounts will help you earn more than usual. You can also boost your earnings by qualifying for Relationship Rates and having a large deposit. Again, not every term offers higher rates for larger deposits, so it’s important to check the rates of the account you’re planning to open.
KeyBank compounds interest daily which helps your deposit grow even more efficiently. Daily compounding means that your deposit will earn interest today, that new amount will earn interest tomorrow and so on. This results in higher payouts than compounding weekly, for example.
Note that the amounts given below reflect what your final account balance could be. Your exact payout will depend on your initial deposit, term length and rate at the time you open the account.
|Initial Deposit||6-Month Key Tiered CD (Standard)||6-Month Key Tiered CD (Relationship)||18-Month Key Tiered CD (Standard)||18-Month Key Tiered CD (Relationship)||5-Year Key Tiered CD (Standard)||5-Year Key Tiered CD (Relationship)|
How KeyBank CDs Rates Compare to Other Banks
KeyBank is certainly on the lower end of the CD rates spectrum. As a big bank, it doesn’t offer the best rates, especially with the wide range of term lengths it offers. Still, other big banks like Chase offer even lower-earning rates.
To find the best rates in the industry, you’ll want to turn to an online bank or credit union. Online banks like Ally and Marcus by Goldman Sachs don’t have to keep up with the costs of brick-and-mortar locations. That allows them to offer bigger savings to their customers. Ally is a more accessible option, too, since it doesn’t implement a minimum deposit requirement. Marcus, while it does have a minimum, has a lower amount of $500.
The KeyBank Rates given here are the bank’s Standard rates. For the accounts with balance tiers, we’ve given the lowest tier rate.
|CD Account||KeyBank||Chase||Ally||Marcus by Goldman Sachs|
Should You Get a KeyBank CD Account?
You should get a KeyBank CD account if you already have a checking account or savings account, with KeyBank. These CD rates aren’t high enough to really warrant going through the whole new account process with a new bank. Plus, if you already have a qualifying KeyBank checking account, you just need to enroll in Relationship Rewards and you’ll be set to earn at the higher Relationship Rates.
If you do want to open a KeyBank CD, you should check out which terms offer the highest rates. This includes the 13-month and 18-month Key Tiered CDs. If open one of those accounts, you’ll see bigger savings.