Nationwide Bank is part of a larger group of companies that offer life insurance products and other financial services. Nationwide does not have physical branches so you will handle all of your accounts through online banking. You also have the ability to handle some matters over the phone. The interest rates on certificates of deposit (CDs) from Nationwide are competitive and compare well to the best CD rates. The minimum deposit of $500 also makes them accessible for most people. So whether you want to build short-term savings or strengthen your retirement savings, here’s a guide to help you decide if Nationwide is right for you.
|3 Month||0.75%||Compare CDs|
|6 Month||1.55%||Compare CDs|
|9 Month||1.75%||Compare CDs|
|12 Month||2.70%||Compare CDs|
|18 Month||2.80%||Compare CDs|
|24 Month||2.90%||Compare CDs|
|36 Month||2.45%||Compare CDs|
|48 Month||2.50%||Compare CDs|
|60 Month||2.56%||Compare CDs|
3 Month CD Interest Rate Comparison
Overview of Nationwide Bank CDs
Nationwide is well-known for offering life insurance products, but it is also a large provider of other financial services. Nationwide offers about 10 CD options with terms ranging from three months to five years in length. To open an account you will need to complete an online application or call Nationwide’s Customer Care Center.
The minimum deposit for all CDs is just $500. Interest rates are generally higher with longer terms, but that isn’t always the case. Make sure to check the current rates before deciding which CD to open. Interest compounds daily and Nationwide credits interest to your account monthly. You can then withdraw the interest if you choose. However, you cannot withdraw any of the principal.
Withdrawing principal from your account will result in an early withdrawal penalty. The penalty amount depends on your CD term, how much you withdraw and your interest rate. CDs with term lengths between three months and six months have a fee equal to 30 days’ interest on the amount that you withdraw. Terms between six months and 24 months long have a penalty worth 90 days’ interest on the amount you withdraw. The fee is 180 days’ interest for terms of at least two years but less than four years. Any CD term of four years or longer has an early withdrawals penalty of 360 days’ interest.
If you want to withdraw funds without paying a penalty, you will need to wait until your CD reaches maturity. After the end of your term you will get a 10-day grace period. You can make any changes to your account, withdrawals or additions during that period without fear of penalty. If you don’t remove your funds by the end of the grace period, Nationwide will renew your account for a new CD of the same term length. The interest rate on the new CD will depend on the available rates.
How Much You Earn With Nationwide Bank CDs Over Time
There is quite a bit of variability in the interest rates from Nationwide. Unlike many other banks, interest rates do no increase linearly as terms get longer. The result is that the interest you earn depends greatly on your term length.
In general, the interest rates form Nationwide are competitive and will earn you good interest. Even if you can only afford to deposit the minimum amount in a six-month CD, you will earn a few dollars of interest.
Even though interest rates vary, you can still maximize interest earnings by opening a long-term CD with as much as you can afford to deposit.
The table below shows what your approximate total balance will be based on different initial deposits and term lengths.
|Initial Deposit||6-Month CD||18-Month CD||36-Month CD||60-Month CD|
How Nationwide Bank CD Rates Compare to Other Banks
Most of the interest rates from Nationwide are competitive. There are some exceptions though because Nationwide’s rates vary by term length. So regardless of what CD term length you’re looking for, you should compare CD rates from other banks.
As you look around, you’ll see that Ally Bank has some of the best rates on short-term CDs. If you want something for one year or less, you will have a tough time finding higher rates. Ally also has no minimum deposit. It’s important to note that Ally is an online bank so you will handle all of your account details online, much the way you will with Nationwide.
Synchrony Bank, which also operates entirely online, has similar rates to Ally and Nationwide but has higher rates for terms of three years or more. Synchrony has a much higher minimum at $2,000.
If you would like a bank that has physical branches in addition to online banking options, consider Capital One. Capital One has competitive rates and does not require a minimum deposit. That makes it a viable option if you can’t afford Nationwide’s $500 minimum deposit.
|CD Account||Nationwide Bank||Ally Bank||Capital One|
Compare Nationwide Bank to Other Competitive Offers
Should You Get a Nationwide Bank CD Account?
Nationwide has competitive interest rates and a good selection of CD term lengths. You should consider banking with Nationwide regardless of what CD term you’re looking for. However, you should make sure to check the latest interest rates before opening an account. Rates vary and longer terms don’t necessarily have higher rates than shorter terms.
Whether you are looking for short- or long-term CDs you should also consider other banks. For example, other online banks may offer better short-term rates. Keep in mind that you can also get similar interest rates from some high-interest savings accounts. Savings accounts offer more flexibility than CDs, which might be more in line with your savings goals.