The certificate of deposit (CD) account term lengths from Regions Bank span from less than one month to six years. That wide range of options is appealing to customers with both short-term and long-term savings goals. Unfortunately, interest rates do not compare very favorably with the best CD rates on the market. The exception is promotional CDs, which have more competitive rates. At the same time, promotional CDs require a $10,000 minimum deposit. Standard CDs mostly have a $500 minimum. Rates do vary by location, so your closest branch may have different rates, but the variation probably won’t be very high.
With all that being said, don’t discount Regions Bank yet. Read on for the important information you should consider if you’re looking at a Regions Banks CD.
|CD Length||Minimum Deposit||APY|
|Less than 1 Month||$2,500||0.01%|
|1 to 2 Month||$2,500||0.01%|
|3 to 5 Month||$500||0.01%|
|6 to 11 Month||$500||0.03%|
|12 to 17 Month||$500||0.03%|
|18 to 23 Month||$500||0.03%|
|24 to 35 Month||$500||0.05%|
|36 to 47 Month||$500||0.05%|
|48 to 59 Month||$500||0.05%|
|60 to 72 Month||$500||0.05%|
|CD Length||Minimum Deposit||APY|
Overview of Regions Bank CDs
Regions Bank is headquartered in Alabama and serves 15 states across the Southern and Midwestern U.S. To open a CD, you need to visit a local branch. CD rates will also vary by location, so you should speak with your local branch to get the most up-to-date rates and available terms. Customers with a Regions Bank checking account may also qualify for Relationship Pricing Rates, which are higher than standard rates.
Term lengths from Regions Bank range from seven days to 72 months (six years). The minimum deposit you need will depend on the length of the CD. Terms between seven and 89 days have a minimum deposit of $2,500. It is common for banks to have relatively high minimums on CDs shorter than three months. CDs longer than 90 days have a minimum of only $500.
Interest compounds daily, but Regions Bank will only pay you the interest according to the terms of your specific CD. Shorter-term CDs likely pay interest only at maturity. Terms of one year or longer pay interest quarterly. Some CDs may also pay interest monthly. The standard option is for Regions Bank to credit interest to your CD account. You can also elect to have interest transferred directly to another account with the bank. That could include a checking, savings or money market account (MMA).
In addition to its regular options, Regions Bank also has promotional CDs. They come with higher rates than standard CDs, but rates vary by location and over time. Promotional CDs work in the same way as regular CDs but come with a minimum deposit of $10,000.
If you want to make any changes or withdrawals to your account, you need to wait until your CD has reached maturity. Any withdrawals that you make before the end of your term will result in a penalty. For CD terms of 31 days or fewer, the early withdrawal penalty is worth the total amount of interest that your CD would have earned over its term. If the term is between 32 and 181 days, you will pay a penalty of 31 day’ worth of interest on the amount that you withdraw. CDs between 182 and 364 days receive a penalty of 90 days’ interest on the amount you withdraw. If the term of your CD is over 365 days, you will pay an early withdrawal penalty of 182 days’ interest on the amount that you withdraw.
You can avoid the penalty by waiting until the grace period after your CD term ends. The grace period is a time when Regions Bank allows you to make all changes to your account. CDs with a term length between seven and 31 days have a grace period of one day. Longer CD terms come with a 10-day grace period. If you do not remove your funds from your account, Regions Bank will automatically renew your CD at the end of the grace period. The new CD will have the same term length as the previous CD. Its interest rates will depend on the currently available interest rates.
Compare Regions Bank to Other Competitive Offers
How Much You Earn With Regions Bank Over Time
Because standard CDs from Regions Bank have low interest rates, you won’t earn much if you only contribute the minimum. In fact, you will earn more in interest from some high-interest savings accounts. You can earn significantly more interest by opening a promotional CD, especially since those require high minimum deposits.
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|
How Regions Bank’s CD Rates Compare to Other Banks’
When you compare CD rates from other banks, you’ll find that interest rates at Regions Bank are quite low. Rates do compare favorably to other regional banks like Fifth Third Bank, but that doesn’t change the fact that they are low. You can get the most competitive rates from Regions Bank by opening a promotional CD, but the $10,000 minimum is prohibitive for many.
A bank like Capital One has no minimum deposit for its CDs and has higher interest rates than Regions Bank. Capital One has physical locations, which means you can still visit a local branch if you have any questions or issues. One important note is that Capital One only offers CDs ranging from six months to five years in term length.
Marcus by Goldman Sachs is another bank with high rates and an account minimum of just $500. Marcus also has a six-year CD offering. This is not as long as Regions Bank’s longest CD, but the interest rate is about four times higher.
|CD Account||Regions Bank||Capital One||Marcus|
Should You Get a Regions Bank CD Account?
The standard CD rates from Regions Bank are low. You can maximize your interest rate by opening one of the promotional CDs, but those come with high minimum deposits. You will be able to find higher CDs rates elsewhere. In fact, you will find some savings accounts with rates similar to the promotional CD rates. The range of term options could help if your goal is to ladder your CDs, but other banks also offer a wide range of terms.
Regions Bank may still be worth it for you if you already have a relationship and if you prefer to work with banks in person. That of course assumes that you live in one of the 15 states that the bank serves. Otherwise, consider an account somewhere else.