Headquartered in Harwood Heights, Illinois, Parkway Bank has been providing financial and banking services since 1964. The bank functions as a locally owned financial institution and currently operates around 32 branches across Illinois and Arizona. In addition to offering a range of banking options, including checking and savings accounts, Parkway provides some of the best certificate of deposit (CD) rates in Illinois. The bank also gives you a variety of CD terms to choose from, so you shouldn’t have a problem finding a suitable one.
Some perks that come with Parkway CDs are fixed interest rates, automatic renewals and nonexistent account fees. Parkway’s certificates are also FDIC-insured up to $250,000.
If you’re considering more convenient routes for your banking, however, you can utilize its online and mobile banking features. Both allow you to perform basic actions like accessing your accounts, making transfers and paying bills.
Parkway Standard Certificates
Through Parkway’s standard certificates, you’ll be able to select any term ranging from 91 days to 60 months. These terms come with a $1,000 minimum deposit. As with most banks, you’ll receive a higher rate by opening a longer-term CD. In other words, your money will grow faster with a 12-month CD than with a three-month one. In addition to its standard CDs, Parkway offers an additional certificate option for users who deposit $100,000. It calls these jumbo CDs.
Both CD rates options, however, come with early withdrawal penalties. So you’ll only be able to touch your CD at the date of its opening and at the date it reaches maturity. While Parkway offers an automatic renewal option for its standard CDs, it doesn’t for the jumbo CDs.
|Standard CD||Minimum Deposit||APY|
|91 Day||$1,000||0.40%||Compare CD Rates|
|6 Month||$1,000||0.70%||Compare CD Rates|
|9 Month||$1,000||0.90%||Compare CD Rates|
|12 Month||$1,000||1.50%||Compare CD Rates|
|18 Month||$1,000||2.10%||Compare CD Rates|
|24 Month||$1,000||2.10%||Compare CD Rates|
|Standard CD||Minimum Deposit||APY|
|30 Month||$1,000||2.10%||Compare CD Rates|
|36 Month||$1,000||2.20%||Compare CD Rates|
|42 Month||$1,000||2.20%||Compare CD Rates|
|48 Month||$1,000||2.30%||Compare CD Rates|
|60 Month||$1,000||2.30%||Compare CD Rates|
91-Day Standard CD Interest Rate Comparison
Overview of Parkway CDs
All of Parkway’s CDs, whether standard or jumbo, allow you to generate greater return with longer terms. Additionally, its CDs come with fixed interest rates. This means that the interest rate at which you opened a certificate will be the same rate at which it matures. Furthermore, if you’re looking for greater savings growth, you’ll be better off by starting at the 12-month mark. Parkway doesn’t compound interest for CDs under one year, so you should keep this in mind when choosing a term.
While we’ve already covered the deposit differences between Parkway’s standard and Jumbo CD rates, let’s analyze the perks that come with each. For its standard CDs, Parkway offers locked-in rates, various term options and automatic renewal. This is the same for its jumbo CDs, except for the automatic renewal option. If you open a jumbo CD, you won’t have the luxury of automatic renewal. If you want to renew the CD, you’ll have to do so yourself.
Both rates options also come with early withdrawal penalties. For instance, Parkway charges you six months of interest for early withdrawals made on CD terms from one to five years. For jumbo CDs, however, you may lose one month of interest for an account with an original maturity of up to 90 days. For accounts with original maturities over 90 days, you may lose three months of interest.
How Much You Earn With Parkway Certificate of Deposits Over Time
Parkway’s CD rates are fairly unique. The bank doesn’t compound interest for CD terms under a year. They also don’t compound interest for its jumbo CDs. For standard CD terms of one to five years, however, interest is compounded daily. But you’ll ultimately be able to earn more money over time with Parkway’s interest rates. Plus, your interest will compound daily at a 2.50% annual percentage yield (APY) for the five-year CD.
|Initial Deposit||12-Month CD||24-Month CD||60-Month CD|
Compare Parkway Bank to Other Competitive Offers
How Parkway CD Rates Compare to Other Banks'
While Parkway offers some competitive rates, other banks like Capital One also offer similar, high-performing CD rates. Though its U.S. segment only offers online-only banking, Barclays also provides similarly competitive rates.
Parkway requires a minimum deposit, but you’ll be able to open a Capital One 360 CD without one. In addition, Capital One 360 CD terms range from six months to 60 months, so you’ll have a variety of terms to choose from. Through Capital One, your interest also accrues daily and compounds monthly. So although your money won’t be compounded at the same rate of Parkway CDs, you’ll still make more money with longer terms. Finally, Capital One also allows you to simultaneously invest money in up to 50 CDs. This way, you can open and contribute to another CD without receiving an early withdrawal penalty for your current one.
Barclays CD terms range from three months to 60 months and come without a minimum deposit. Though Barclays’ and Parkway’s six-month term rates diverge, its five-year rates are fairly similar. Therefore, if you don’t mind online-only services, but want slightly higher rates without a minimum deposit, you should consider Barclays.
|CD Account||Parkway||Capital One||Barclays||Navy Federal Credit Union|
Should You Get a Parkway CD Account?
Parkway’s best features ultimately include competitive rates that generate good return. In addition, though the minimum deposit is high, you’ll be able to select a CD term that ranges from 91 days to 60 months. As with most financial institutions, longer CDs will generate greater return. Therefore, you should keep in mind that Parkway CDs under one year don’t compound interest, while CDs of at least one year do. However, if you’re looking for higher rates with a lower minimum deposit, you should also consider other banks with similarly competitive rates.