TIAA Bank offers strong certificate of deposit (CD) rates when compared to its competitors. These rates compound on a daily basis.
One of the bank's popular accounts is its Basic CD, which still has higher rates than many of TIAA Bank's competitors. The Bump Rate CD also starts at a high rate, even giving you a one-time option to boost your rate during the account’s term if interest rates increase. Finally, while the CDARS® Service accounts main offering is higher FDIC protection, each term offers rates around 0.20%.
In June 2017, TIAA Bank officially acquired EverBank. As of June 2018, EverBank has rebranded as TIAA Bank.
TIAA's Basic CD account is similar to its higher-yield counterparts. You have term options from three months to five years, which means you can use these CDs to create a CD ladder if you’d like.
The Basic CDs' APYs are somewhere between 0.20% and 0.65%, depending on the term length you select. Plus, you only need a minimum of $1,000 to open these Basic CD accounts.
|Basic CD||Minimum Deposit||APY|
3.5-Year Bump Rate CD
The 3.5-Year Bump Rate CD offers exactly what its name suggests. The term lasts for three-and-a-half years and offers a one-time rate bump. This means that if the offered interest rate goes up at any time in those three-and-a-half years, you can request an increase in your rate. Just keep in mind that you can only do this once and you can open only one account at a time. These CDs require at least $1,500 to open.
|3.5-Year Bump Rate CD||Minimum Deposit||APY|
|3.5 Year (42 months)||$1,500||0.55%|
If you’re looking for a way to insure large sums of money with the FDIC, you can look into opening a CDARS® Service account with TIAA Bank. The FDIC only insures up to $250,000 per customer at any single bank. However, TIAA Bank gets around this by pairing with Certificate of Deposit Account Registry Service® (CDARS®) to distribute funds into CDs at other banks in the CDARS network, without exceeding the $250,000 limit at any one bank.
You can open accounts of three months, six months, one year, two years and three years. The first two options carry a funding limit of $10 million, the one- year account's limit is $12.5 million, the two-year account’s limit is $1.5 million and the three-year CD limits your funds to $0.5 million. To participate in this service, you’ll have to provide TIAA Bank with a list of the banks where you currently hold deposits and a signed CDARS® Deposit Placement Agreement. The minimum deposit is $10,000, but clients typically use this service to insure and invest millions of assets.
|CDARS® Service||Minimum Deposit||Funding Limit||APY|
Compare TIAA Bank to Other Competitive Offers
Overview of TIAA Bank CDs
TIAA Bank has the most extensive certificate of deposit offerings out of the dozens of banks SmartAsset has reviewed. You can choose from Bump Rate CDs, a CD that benefits from CDARS® Service and Basic CDs. You also have a range of term lengths to choose from, ranging from three months and five years. These multiple options allow you to open the CD that best fits with your savings goals. Plus, none of these accounts charge a monthly fee.
TIAA Bank CDs rollover automatically, except CDARS® Service accounts. For those accounts, you’ll need to contact TIAA Bank to request a rollover. You’ll receive an alert 15 days before your CDARS® Service account’s maturity date and a 20-day alert. That way, if you want to withdraw or transfer any funds, or make changes to the account, you’ll know when you can do so. This is especially helpful for accounts longer than a few months.
As always with a CD, you’ll want to be careful about making early withdrawals. These are withdrawals of any part of the account’s principal balance before the account’s maturity date. If you do this, you’ll face a penalty of a certain amount of interest earned, depending on the type of TIAA Bank CD you own and your term length. This often makes early withdrawals almost useless since you’re losing the money you earned with the account.
How Much You Earn With TIAA Bank Certificate of Deposits Over Time
Since TIAA Bank offers so many CD accounts, how much you earn will depend on the account you choose and your initial deposit size. For example, you can only open a Basic CD if you have $1,000 to deposit, with longer terms offering higher rates. The 3.5-Year Bump Rate CD gives you a unique opportunity to raise your rate at some point within those three and a half years. So the estimates below won’t reflect your actual earnings if you choose to raise your rate.
The amounts below reflect what your final balances would look like with each given account and initial deposit.
|Initial Deposit||6-Month Basic CD||60-Month Basic CD||3.5-Year Bump Rate CD|
How TIAA Bank CDs Rates Compare to Other Banks'
TIAA Bank outperforms other banks and their CD offerings simply by having so many CD options to choose from. You can open a Basic CD with $1,000, or if you have multi-million dollar deposits, you can take advantage of the bank’s participation in the CDARS® network. TIAA Bank also has options for people who want more variable rates with its Bump Rate and LIBOR Index CDs.
In terms of rates, TIAA Bank's Basic CD rates come pretty close to its competitors, even outperforming many Capital One rates.
|CD Account||TIAA Bank (Basic CDs)||Barclays||Capital One||Marcus by Goldman Sachs|
Should You Get a TIAA Bank CD Account?
While TIAA Bank offers a wide range of CDs, it’s important to know that each account requires a high minimum deposit. Basic CDs require the lowest amount, at $1,000. So if you don’t have at least $1,000 to deposit upfront, TIAA Bank won’t be the right choice for you.
If you can meet the required minimum amounts, you can take your pick of which TIAA Bank CD works best for you. For those with millions to deposit, the CDARS® Service accounts are the best for you. With 10 different terms, you can also easily ladder these accounts, opening multiple accounts at a time with varying maturity dates.
If you’re looking for a more flexible rate, the Bump Rate CD would be your best bet. These accounts are longer term, at three-and-a-half years and three years, respectively, so you’ll need to be prepared to wait a while to benefit from the account’s earnings.