New York residents should consider a certificate of deposit (CD) account with Ridgewood Savings Bank if they live near a local branch. The interest rates compare well with some of the best CD rates on the market and you also have the advantage of working with a local bank.
The account minimum of $500 is competitive and terms range from 90 days up to seven years. The longest CD term for most banks is only five years. That makes Ridgewood Savings Bank appealing, though you may find higher rates elsewhere for the longest CD terms. There are also some special CDs that could give you flexibility with how you manage your money.
Continue reading to learn the important information about how traditional and special CDs work with Ridgewood Savings Bank.
Penalty Free CD
|CD Term||Minimum Deposit||APY|
|15 Month||$500||2.25%||Compare CD Rates|
|CD Term||Minimum Deposit||APY|
|90 Day||$500||1.25%||Compare CD Rates|
|6 Month||$500||1.60%||Compare CD Rates|
|9 Month||$500||1.80%||Compare CD Rates|
|12 Month||$500||2.15%||Compare CD Rates|
|18 Month||$500||2.40%||Compare CD Rates|
|24 Month||$500||2.50%||Compare CD Rates|
|36 Month||$500||2.60%||Compare CD Rates|
|48 Month||$500||2.70%||Compare CD Rates|
|60 Month||$500||2.85%||Compare CD Rates|
|72 Month||$500||3.00%||Compare CD Rates|
|84 Month||$500||3.00%||Compare CD Rates|
90-Day CD Interest Rate Comparison
Overview of Ridgewood Savings Bank CDs
Ridgewood Savings Bank, which dates back to 1921, serves New York residents in the communities of the Bronx, Kings County, Manhattan, Queens County, Nassau County, Staten Island, Suffolk County and Westchester County. All told, the bank has about 35 branches across New York City's five boroughs, Long Island and Westchester. You can only open an account if you live in one of those areas. It is possible to open CD accounts online.
The bank offers about a dozen CDs and usually has a couple of special CD offers. All CDs require a minimum deposit of $500. Interest compounds daily and credits monthly to your account. You can transfer the interest you earn into another account you have with Ridgewood Savings Bank. You will need to provide written notification to the bank, at least five days prior to the end of the month, that you wish to transfer your interest. If your monthly interest payment is at least $25, you also have the option to receive it via a check in the mail.
While you can transfer interest out of your account, you cannot withdraw any of your principal deposit until the end of your term. Ridgewood Savings Bank will send you a notice at least 30 days before your CD reaches maturity. After the maturity date, you receive a 10-day grace period. You can make any changes to your account, withdrawals or deposits in that time. Unless you notify the bank that you wish to close your account, your CD will automatically renew at the end of the grace period for another CD of the same term length.
If you need to withdraw money before the maturity date, it’s possible but you will have to pay an early withdrawal penalty. The penalty amount depends on the length of your CD term. If you have a traditional CD with a term length of at least 90 days but less than 180 days, the penalty is 90 days’ interest on the amount you withdraw. Terms of at least 180 days but less than one year have a penalty of 180 days’ interest. The penalty is equal to 270 days’ interest for terms of at least one year but less than two years. A term of at least two years but less than four years has an early withdrawal penalty of 540 days’ interest. Any term of four years or longer has a penalty of 730 days’ interest.
There are also a few special CD accounts to mention. A bump-up CD allows you to increase your interest rate once during your term. You can only change to a rate that is currently available from Ridgewood Savings Bank. Penalty-free CDs allow you to withdraw your account balance early without paying a penalty. You must withdraw the entire balance. No partial withdrawals are permitted. A variable CD has an interest rate that varies throughout its term. The exact interest rate depends on the one-year Treasury rate, which is an index the Federal Reserve Board publishes. Contact to a local branch to learn more about current terms and rates for variable CDs.
Compare Ridgewood Savings Bank to Other Competitive Offers
How Much You Earn With Ridgewood Savings Bank CDs Over Time
Ridgewood Savings Bank has relatively high interest rates. That means you can earn a fair amount of interest with its CD accounts. Even if you only contribute the minimum amount ($500) to a six-month CD, you could earn a few dollars’ worth of interest. Interest rates increase with longer CDs, so you can always earn more by choosing a longer term length. Keep in mind that if you withdraw any of your interest during your CD term, you won’t earn as much as you can by leaving your earnings in the account.
The table below shows what your approximate total balance will be based on different initial deposits and term lengths.
|Initial Deposit||6-Month CD||12-Month CD||36-Month CD||60-Month CD|
How Ridgewood Savings Bank CD Rates Compare to Other Banks’
Ridgewood Savings Bank has competitive interest rates. In particular, rates for terms of less than one year are higher than most other banks. However, it is certainly possible to find better rates, especially for long-term CDs. You should certainly compare CD rates from at least a few banks.
An online bank like Ally offers comparable rates on terms of less than one year and rates over a year are slightly higher. Longer-term CDs have comparable rates. Ally requires no minimum deposit, though. You will also earn higher rates by making an initial deposit of at least $5,000.
If you are particularly interested in long-term CDs, the five-year terms from Capital One are very competitive. Like Ally, Capital One does not require a minimum deposit. At the same time, the longest term with Capital One is five years. For longer terms, consider opening an account with a broker like Edward Jones. Edward Jones has a $1,000 minimum deposit but its rates are significantly higher than Ridgewood Savings Bank’s. Terms range up to 10 years in length and there are many options to help you save for retirement.
|CD Account||Ridgewood Savings Bank||AllyBank||Capital One|
Should You Get a Ridgewood Savings Bank CD Account?
The interest rates from Ridgewood Savings Bank are competitive. This is especially true for terms that are less than one year long. You can find higher rates if you’re looking for a long-term CD, but you can feel confident that you’re getting a good rate when you open an account with Ridgewood Savings Bank.
The big thing to keep in mind is that Ridgewood Savings Bank is a small, local bank. If you want to make any changes to your account, you may need to contact a local branch via writing. This may not be a deal breaker for you, but it is something to keep in mind.