Webster Bank offers two types of certificate of deposit accounts. Notably, its 3-Year Bump-Up CD starts off earning at a high rate and offers the opportunity to boost it even higher. If you’re looking for a more fixed-rate, check out the five Traditional CDs. You will only see longer-term CD accounts with Webster Bank.
While these accounts have some of the highest CD rates, Webster Bank offers a pretty limited range of rates. This makes choosing your CD term a matter of how long you want to wait to have access to your funds.
Webster Bank’s Traditional CD accounts offer longer-term savings options. With the shortest term at 11 months, you’ll have to wait at least that long to be able to benefit from the full growth of the account. Webster Bank also provides some of the best CD rates here.
Interestingly, there isn’t much variety in the bank’s Traditional CD rates. Two out of the four term options carry the same rate. This doesn’t make for much better growth from 3-year account to a 5-year account, for example. The only difference would be that you have to wait five years for the latter account to mature.
You can secure higher rates if you also have a Premier or WebsterOne® checking account.
|Traditional CD||Minimum Deposit||APY|
|11 Month||$1,000||0.75%||Compare CD Rates|
|2 Year||$1,000||0.90%||Compare CD Rates|
|3 Year||$1,000||1.00%||Compare CD Rates|
|5 Year||$1,000||1.00%||Compare CD Rates|
3-Year Bump-Up CD
To combat the commitment of a long-term CD account, Webster Bank also offers the 3-Year Bump-Up CD which allows you to boost your rate before the account matures. So if interest rates increase at some point within the three years of the term, you can bump up your CD’s rate as well to take advantage of that higher rate. You can only use this boost once per term, however.
It’s important to note that you need a Premier or WebsterOne® checking to open a 3-Year Bump-Up CD.
|Bump-Up CD||Minimum Deposit||APY|
|3 Year||$1,000||1.00%||Compare CD Rates|
3-Year Traditional CD Interest Rate Comparison
Overview of Webster Bank CDs
All Webster Bank CDs offer high-earning rates at relatively long terms. Many banks offer CDs as short as three months, allowing for pretty short-term savings. Webster operates differently, with the shortest term at 11 months. This means you’ll have to wait 11 months to fully take advantage of the account’s growth.
Certificates of deposit are meant to be held to maturity so the bank can use the funds for other services in the meantime. Once your account matures, you can withdraw the funds from your account. Trying to withdraw any amount of the principal balance before maturity, however, will incur a penalty. The penalty for early withdrawals on accounts of one year or less equals 1% of the amount withdrawn plus $25. Early withdrawals from accounts longer than one year assess a penalty of 3% of the amount withdrawn plus $25.
Compare Webster Bank to Other Competitive Offers
How Much You Earn With Webster Bank Certificate of Deposits Over Time
With some of the best rates out there, Webster Bank offers solid returns with its CD accounts. It also helps that Webster Bank offers long-term accounts, which gives your money more time to grow undisturbed. You’ll also earn more with a higher deposit. Still, you’ll earn a solid amount with each account even if you only deposit the $1,000 minimum.
Webster Bank compounds interest monthly. This means that your deposit will earn interest over the first month, then that new amount will earn more interest the following month and so on. This grows your money pretty well, but not quite as efficiently as daily compounding.
The amounts below reflect what your final balance would look like according to your initial deposit and account length. Your earnings could look different based on your actual deposit and the interest rate of the account at the time of opening.
|Initial Deposit||10-Month CD||2-Year CD||5-Year CD|
How Webster Bank CDs Rates Compare to Other Banks
With its high rates, Webster Bank directly competes with big online bank names like Ally Bank and Marcus by Goldman Sachs. These two banks are able to offer some of the best rates across the board since they don’t have to keep up with the costs of brick-and-mortar locations.
Ally stands out not only for its high rates, but for its variety of CD options. It offers three different accounts so you can choose which works best for your savings goals. Its standard High Yield CDs also earn according to balance tiers so higher balances could net you even higher rates. The Ally rates below reflect the lowest tier. Plus, Ally doesn’t require a minimum deposit so you could start saving with them no matter how much you have to stash away.
Marcus takes a more basic approach to CDs with nine set CD terms available starting at three months. Each account offers a great rate and requires a smaller minimum deposit of $500.
|CD Account||Webster Bank||Ally||Marcus by Goldman Sachs|
|1 Year||(11 Month) 0.75%||1.50%||1.85%|
Should You Get a Webster Bank CD Account?
If you’re looking for great CD rates to save toward longer-term goals, Webster Bank CDs offer a great choice. It’s the high rates that make a Webster Bank CD worthwhile. Otherwise, the bank is pretty limited in the variety of terms it offers with terms only ranging from 11 months to five years.