Valley National Bank offers about two dozen CD options, but you need to live in New Jersey, New York or Florida to open an account. Terms range from 91 days to 60 months and the account minimum is just $500. Customers who can afford to deposit at least $100,000 also have access to options that are shorter than 3 months.
The interest rates on short-term CDs compare well with some of the best CD rates available. However, long-term options aren’t always as competitive. You should also make sure to ask about special options, like step-up and new money CDs, because they might offer better rates. Below we go over those options and the other details you need to know if you’re considering an account with Valley National Bank.
Multiple Maturity & Passbook CDs
|CD Length||Minimum Deposit||APY|
|18 Month Floating||$500||0.35%|
|CD Length||Minimum Deposit||APY|
|66 Month Step-Up||$100,000||1.77%|
Valley National Bank 91-Day CD Rates Interest Rate Comparison
Overview of Valley National Bank CDs
Valley National Bank has branch locations in New Jersey (where it is headquartered), New York City and Florida. You need to live in one of those areas in order to open a CD account. You can open some accounts online, but you will need to verify your address.
The standard CDs have a minimum deposit of $500 with term lengths ranging from 3 months to 60 months (five years). Interest compounds according to your specific CD agreement. Accounts could compound monthly, quarterly or at maturity. The bank will pay out interest as you earn it. Interest that you earn must stay in your CD account. You do not have the option to transfer it to another account.
If you open an account with at least a $100,000 deposit, you have access to Valley National Bank’s jumbo CDs. Jumbo CDs operate the same way as regular CDs except that they have a higher minimum.
Step-Up CDs allow you to start your CD term with one interest rate and then increase your rate once during the term of your CD. So if you open an account with a rate of 1.00% and then partway through your term the available rate goes up to 1.10%, you can elect to change your CD to the higher rate. Though if the rate goes up again, you cannot change again.
You may also receive higher rates with a CD that requires new money. This is money that is not already on deposit at Valley National Bank.
If you need to withdraw money from your CD account, you need to wait until the end of your term. Valley National Bank will send you a notice prior to your CDs maturity date so that you can decide on your next moves. Once a CD reaches maturity, Valley National Bank will give you a grace period of 10 days. You can make any changes, additions and withdrawals to your account during that time without paying fees or penalties. Any funds that remain in your account at the end of the grace period will automatically renew into a new CD. It will have the same term length as the previous CD with the current available interest rate.
If you need to withdraw funds early, Valley National Bank may allow you to do so. However, you will pay an early withdrawal penalty. The penalty is equal to 180 days’ interest on the amount of the principal that you withdraw. That means an account with a higher interest rate will have a higher penalty.
The penalty applies first to the interest that your account has earned. If you haven’t earned enough interest to cover the penalty, it will come out of the remaining balance of your CD. In the event that isn’t sufficient either, it will come out of the amount you withdrew.
If you foresee the need to use the money before the end of the term, you should consider opening a high-interest savings account instead of a CD. It will give you flexibility with your money and you may earn higher rates than some of Valley National Bank’s CDs.
Compare Valley National Bank to Other Competitive Offers
How Much You Earn With Valley National Bank CDs Over Time
The amount of interest that you earn will depend on a few factors. Your interest rate and CD term are important but so is the frequency that your interest compounds. Not all CDs compound interest at the same frequency. This matters because a CD that compounds interest monthly will earn more than a CD compounding quarterly over the same term length.
In general, CDs from Valley National Bank have competitive rates that will earn you decent interest. Longer CDs often have higher interest rates, but sometimes the offers on shorter CDs are better.
The table below shows what your approximate total balance will depend on your initial deposit and your term length. For this table, we assumed interest that compounds monthly.
|Initial Deposit||12-Month CD||36-Month CD||60-Month CD|
How Valley National Bank’s CD Rates Compare to Other Banks’
The interest rates from Valley National Bank are generally competitive. This is particularly true for CD terms that are about 13 months or shorter in length. There are some banks, such as Ally Bank, that offer higher rates for short-term CDs. However, the rates are still comparable. It’s also good to note that Ally is an online bank. That means you cannot visit a branch in person, but it also means you can open an account from anywhere in the country.
|CD Account||Valley National Bank||Ally Bank||Capital One|
Should You Get a Valley National Bank CD Account?
First of all, you should only consider an account with Valley National Bank if you live in New Jersey, New York City or Florida. You cannot open an account otherwise. After that, whether you should open a CD account depends on your specific goals. The short-term rates from Valley National Bank are competitive. So if you want a CD that is 13 months or shorter, you are likely to get a good interest rate. You can find higher rates (so always make sure to compare CD rate offers), but it may not be worth the trouble for you if you live near a branch of Valley National Bank. If your primary interest is a longer CD, you should consider an account elsewhere. There are banks offering higher rates and more flexibility with how you handle the interest you earn.