If you are a Washington State resident, you may be considering a certificate of deposit (CD) account with Peoples Bank. There are plenty of reasons to open one. For starters, terms span from three to 60 months. That range is appealing to both short- and long-term savers. There is also a relatively low minimum deposit of $500.
On the other hand, interest rates are not the most competitive with the best CD rates on the market. You can earn a higher rate if you make a higher initial deposit, but that may not be a viable option for many people. Keep reading for a rundown of the information you need about opening a CD account with Peoples Bank.
To calculate how much interest you could earn with a CD, try using SmartAsset's CD calculator.
Personal CDs
| CD Length | APY: Minimum Deposit $500 | APY: Minimum Deposit $10,000 | APY: Minimum Deposit $25,000 | APY: Minimum Deposit $50,000 | APY: Minimum Deposit $100,000 | |
| 6 Month | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% | Compare |
| 12 Month | 1.05% | 1.05% | 1.05% | 1.05% | 1.05% | Compare |
| 18 Month | 1.10% | 1.10% | 1.10% | 1.10% | 1.10% | Compare |
| 24 Month | 1.15% | 1.15% | 1.15% | 1.15% | 1.15% | Compare |
| 36 Month | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | Compare |
| 60 Month | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% | Compare |
Great Beginnings CD - Peoples Add-On Certificate
In addition to the standard CD options, Peoples Bank also offers one add-on CD. This CD carries a lower minimum deposit of $100 and allows you to contribute more throughout your CD term. Note that you are not required to contribute more money during your CD term. If you automatically transfer money into the CD from a Peoples Bank checking or savings account, the minimum addition you can make is $25. Otherwise the minimum addition is $50.
| CD Length | APY: Minimum Deposit $100 | APY: Minimum Deposit $10,000 | APY: Minimum Deposit $25,000 | APY: Minimum Deposit $50,000 | APY: Minimum Deposit $100,000 | |
| 12 Month | 0.55% | 0.55% | 0.55% | 0.55% | 0.55% | Compare |
6-Month CD Interest Rate Comparison
Overview of Peoples Bank CDs
Peoples Bank has branches in Washington State, predominantly in the Seattle area. While you can open accounts online, it isn’t very practical if you live outside of Washington.
There are nine standard CD options from Peoples Bank. They range in term length from three months to five years. The minimum deposit to open an account is $500 and unlike other accounts from Peoples Bank, there is no monthly service charge for CDs.
Interest rates depend on how much you contribute to your account. There are five tiers with higher rates for customers who contribute more. The highest rates are for those higher than $100,000. Rates vary by location, so you should contact your local branch for the current offerings.
Regardless of how much you contribute to your account, interest compounds daily. Peoples Bank gives you the option to receive a credit for your interest payments either monthly, quarterly or annually. You also have the option to transfer the interest you earn into another account you have with Peoples Bank.
If you withdraw any of your principal before the CD’s maturity date, you will pay an early withdrawal penalty. The penalty is equal to three months’ interest on the amount you withdraw if your CD term is one year or less. Terms over one year have a penalty equal to six months’ interest on the amount withdrawn.
You can avoid penalties by waiting until your CD reaches maturity to make any changes. Peoples Bank provides a grace period of 10 days after the end of your CD term. You won’t pay any penalties on changes, contributions or withdrawals that you make during this period. Your CD will automatically renew at the end of the grace period if you do not withdraw your money. It will renew for a CD of the same term length as the original. The interest rate on the new CD will depend on the current available rates.
Compare Peoples Bank to Other Competitive Offers
How Much You Earn With Peoples Bank CDs Over Time
The interest rates with Peoples Bank are not very high. That means you will not earn significant interest. Your best bet for maximizing earnings is to contribute as much as you can and to choose the longest term possible. If you cannot afford to deposit much at the time you open a CD, consider choosing the add-on option. This will allow you to contribute more funds and increase your earning potential.
The table below shows what your approximate total balance will be depending on your initial deposit and your term length.
| Initial Deposit | 6-Month CD | 12-Month CD | 36-Month CD | 60-Month CD |
| $500 | $502.24 | $505.25 | $518.22 | $538.64 |
| $1,000 | $1,004.49 | $1,010.50 | $1,036.43 | $1,077.28 |
| $2,500 | $2,511.22 | $2,526.25 | $2,591.08 | $2,693.21 |
| $5,000 | $5,022.45 | $5,052.50 | $5,182.17 | $5,386.42 |
How Peoples Bank CD Rates Compare to Other Banks
When you compare CD rates, you’ll find that many banks offer higher interest rates than Peoples Bank. Which bank you work with should depend on your specific savings goals. If you’re looking to maximize short-term savings, consider an online bank like Ally. Ally offers highly competitive rates on CD terms of less than one year. Capital One offers higher rates on its five-year CDs. Both Ally and Capital One also have no minimum deposit, which makes them a good option for people who cannot afford to tie up a lot of money in a CD.
| CD Account | People Bank | Ally Bank | Capital One |
| 1 Year | 1.05% | 4.80% | 4.80% APY (as of 4/11/24) |
| 3 Year | 1.20% | 4.00% | 4.00% APY (as of 4/11/24) |
| 5 Year | 1.50% | 3.90% | 3.90% APY (as of 4/11/24) |
Should You Get a Peoples Bank CD Account?
A CD with Peoples Bank could be just what you want if you’re already a Peoples Bank customer and your goal is simply to earn more interest than you would through a Peoples Bank savings account. Getting a CD of at least six months should allow you to do that. Make sure to check with your local branch as rates may differ slightly.
At the same time, Peoples Bank does not offer the most competitive rates. If your goal is to maximize interest earnings, look at other banks in your area and consider online banks. Some banks will also be better for short- or long-term savers. If you’re unsure what your savings goals are or if you aren’t sure exactly how a CD can fit into your goals, it’s useful to talk with a financial advisor. An expert will be able to answer your questions and create a comprehensive financial plan.
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