Link Bank CD Rates

Link Bank 6-Month CD

0.85% APY

Link Bank only has three branches, all located in Pennsylvania, but you can open a certificate of deposit (CD) account online if you live in another state. The interest rates are better than some other banks – especially for terms of less than one year – but the best CD rates on the market are still higher.

There is a minimum of just $500 to open all CD accounts and that includes CDs for individual retirement accounts (IRAs). So whether you are saving for the short-term or for your retirement, it may be worth considering an account.

Keep reading to learn more about how CD accounts work with Link Bank and how much you can expect to earn.

To calculate how much interest you could earn with a CD, try using SmartAsset's CD calculator.

Link Bank Interest Rate Comparison

Overview of Link Bank CDs

Established in 1999, Link Bank has one branch location in West Chester, Pennsylvania. This branch serves the Delaware Valley but you can also open an account online if you do not live in that area. All U.S. residents with a Social Security or tax identification number can open an account.

Link Bank offers CD terms between six and 60 months in length. All terms are also available as an IRA CD. Whether you choose a standard or IRA CD, the minimum deposit is $500. Interest credits monthly to your account. Once you earn interest, you can choose to leave it in your CD account, transfer it to a checking account you have with the bank or transfer it to a different account.

While you can transfer interest earnings out of your account, you cannot withdraw any of the principal before the end of your term. Doing so will result in an early withdrawal penalty. The penalty amount depends on the length of your CD term and how much you withdraw. If your term is less than 12 months long, you will pay a penalty equal to 90 days’ interest on the amount you withdraw. Terms of at least 12 months but less than 36 months have a penalty of 180 days’ interest. All terms of 36 months or more have an early withdrawal penalty equal to 365 days’ interest.

To avoid paying any penalties, you should wait until your CD reaches maturity. After the maturity date of your CD, you will have a 10-day grace period during which you can make any changes to your account. That includes making additional deposits, withdrawing money, changing your CD term or even closing your account.

If you do not withdraw your money before the end of the grace period, your account will automatically renew for a CD of the same term length. Link Bank will send you a CD renewal notice in the mail about 10 days before your CD’s maturity date. This notice will give you time to start thinking about what next steps you want to take with your account.

How Much You Earn With Link Bank CDs Over Time

The interest you earn will depend on your CD term. As with most banks, longer terms have progressively higher interest rates. You can also maximize your interest by making a larger initial deposit.

The table below shows what your approximate total balance will be based on different initial deposits and term lengths.

How Link Bank CD Rates Compare to Other Banks’

When you compare CD rates, you’ll find that the most competitive rates from Link Bank are the terms of less than one year. Those rates are higher than most big banks and also many local banks. However, the rates for longer CD terms are less competitive –, especially for the longest terms.

Customers who are interested in online banking have a few other banking options to consider. If you specifically want short-term CDs, look into an online bank like Ally. All of Ally’s rates are competitive but its short-term rates are its best. There is no minimum to open an account so you can open an account no matter how much money you have.

Another bank with online banking options is Capital One. The one-year CD from Capital One usually has a high rate and its long-term rates (three to five years) typically have competitive rates. Like Ally, Capital One does not have a minimum deposit requirement.

The IRA CDs at Link Bank have a low minimum deposit, but they also have lower rates than many other banks and brokers. You should consider a broker like Edward Jones if you are primarily interested in building retirement savings. There is a $1,000 minimum deposit at Edward Jones, but the interest rates are more double the rates from Link Bank. These higher rates are also available on short terms. Brokered CDs works slightly differently than those from a regular bank, but those differences likely aren’t enough to deter most people. (The biggest difference with a brokered CD is that you cannot withdraw your money early. It is possible to sell your CD though, to recoup your principal deposit.)

Should You Get a Link Bank CD Account?

If you live in the Delaware Valley and you’re looking for a local bank, Link Bank could be a good choice, assuming you live near its single location. If you are a resident of another state and you are interested in online banking, consider other banks. Link Bank does have a competitive rate for some short-term rates but you can still find better offers elsewhere. If you are trying to save for retirement, consider another bank. The longest terms (five years or more) from other banks and brokers usually have significantly higher rates.