New York Community Bank started in New York City but now has locations in four other states as well. It operates under about a dozen different brand names across those states. You can find those names in the review below.
In general, the CD rates vary throughout the year. Terms range from less than one year up to seven years, but only particular terms will have rates that compare favorably with the best CD rates on the market. These CDs are also available in an individual retirement account (IRA) but as we’ll mention below, you may want to consider other banks for an IRA.
Continue reading to learn more about the many brands of New York Community Bank and how their CD accounts work.
|CD Term||Minimum Deposit||APY|
|12 Month Liquid||$500||1.60%|
6-Month CD Interest Rate Comparison
The Divisions of New York Community Bank
New York Community Bank was originally chartered in 1859 in New York City’s borough of Queens. The bank has since grown to have 223 branches across five states: Arizona, Florida, Ohio, New Jersey, and metro New York. Depending on where you live, you may know one of the bank’s smaller divisions.
There are 127 branch locations spread across New York City and they include five brand names. The only place you’ll actually see the name New York Community Bank is in the Bronx, where there are two branch locations. If you live in Queens County, you may see one of Queens County Savings Bank’s 31 branches. You will see Richmond Savings Bank on Staten Island with 20 locations. Brooklyn is home to seven branches of Roosevelt Savings Bank. The largest brand in New York City is Roslyn Savings Bank, which operates 41 locations in Nassau and Suffolk counties. Additionally, customers across Brooklyn, Long Island, Manhattan, Queens and Westchester County may see one of Atlantic Bank’s 11 branches.
In New Jersey you will find 42 branches under the name Garden State Community Bank. This brand has locations in Essex, Hudson, Mercer, Middlesex, Monmouth, Ocean and Union counties.
In 2009, the New York Community Bank added AmTrust Bank to serve customers in Florida and Arizona. There are 26 branches in Florida, spread primarily across the state’s Southern and coastal counties. The 14 branch locations in Arizona are mostly in the central part of the state. Desert Hills Bank is also a part of the bank’s presence in Arizona.
Ohio residents will see the bank under the name of Ohio Savings Bank, which currently has 28 branch locations.
Overview of New York Community Bank CDs
Even though New York Community Bank operates in multiple states and under multiple names, the CD offerings are largely the same across all brands. That being said, you should check with your local branch because available terms can vary by location. In particular, local branches may have special CD rates that you won’t find online.
In general, brands under the New York Community Bank umbrella have terms that range from less than a year up to 84 months (seven years). The minimum deposit for opening an account is $500. All terms are also available in an IRA with the same minimum deposit.
Interest typically credits to your account monthly. Shorter terms may only credit at maturity. You have the option to transfer interest earnings to another account with the bank, but keep in mind that removing interest early from your account will impact your overall earnings.
You should also be aware that you cannot withdraw any of your account principal (initial deposit) before the end of your term. If you do, the bank will charge an early withdrawal penalty. The amount of the penalty will depend on your term length and the amount you withdraw. It will be equal to at least 90 days’ interest on the amount you withdraw but you can expect larger penalties for longer terms.
The best way to avoid penalties is to wait until your term ends to make changes to your account. The bank will send you a notice when the end of your term is approaching. This will help you to plan your next steps. When your term ends, one of two things may happen. If you have a CD that is set to renew automatically, you will receive a seven-day period after your CD maturity date. You can make any deposits, withdrawals or other changes to your account during that grace period. If you don’t withdraw your funds, your account will renew for another CD of the same term length.
However, not all CDs renew automatically. (To know if yours does, you should ask your local branch before you open an account about the details of your term.) In the case that your CD is not set to renew, your money will go into post-maturity status. It will continue to earn interest but at a much lower rate (0.02% as of this writing). There is no limit on how long your money can sit in post-maturity. You can move your funds, whether into a CD or another type of account, at any time.
In addition to the standard CDs, there is something called a liquid CD. This option, typically available with a 12-month term, allows you to withdraw funds early from your account without paying a penalty. The only caveat is that you have to wait until at least seven days after opening your account to make a withdrawal. Partial and full withdrawals are allowed with a liquid CD. The interest rates for these CDs are typically the same as with standard CDs of the same term length.
How Much You Earn With New York Community Bank CDs Over Time
How much you earn in interest will depend on the specific CD term you choose. Many of the CD terms will not offer high interest rates, but certain terms will. This also means that going for a longer CD term is not always a good way to earn more interest (unlike with many other banks).
The table below shows what your approximate total balance will be based on different initial deposits and term lengths. Note that the 60-month CD term does not offer a special rate and so earnings are quite low.
|Initial Deposit||7-Month CD||12-Month CD||24-Month CD||60-Month CD|
Compare New York Community Bank to Other Competitive Offers
How New York Community Bank CD Rates Compare to Other Banks’
If you decide to go with New York Community Bank or one of its other brand names, note that only certain terms will give you a competitive rate. Currently, the rates are best for terms between seven and 24 months in length. The rates for the seven- and 12-month CDs are particularly high. You will have a tough time finding a higher rate elsewhere.
However, it’s still a good idea to compare CD rates before you open any accounts. For example, an online bank like Ally offers similar rates for CDs of one year or more. Ally also offers higher rates if you deposit at least $5,000. There is no minimum deposit. Ally is an online bank so you can open an account no matter where in the U.S. you live.
Another bank to consider is Capital One. The one-year CD from Capital One is high and its long-term rates (three to five years) are much better than the rates with New York Community Bank. Capital One does not have a minimum deposit requirement. It also allows you to open an online account from any state.
If you are looking strictly for the highest rates or just for IRA CDs, consider an account with a broker. One example is Edward Jones, which offers terms of up to 10 years in length. It requires a $1,000 minimum deposit but its rates (especially for the long-term) are hard to beat.
|CD Account||New York Community Bank||Ally Bank||Capital One|
*This is the rate for the seven-month CD.
Should You Get a New York Community Bank CD Account?
You should consider opening an account with New York Community Bank or one of its other brands if you are looking for a term between seven months and 24 months. Those are the best rates available at the moment and they stack up well with some of the best rates on the market. If you are looking for a CD with a shorter or longer term, choose another bank. The other terms from New York Community Bank do not offer competitive rates.