Overall, the interest rates for Zions Bank’s certificates of deposit (CDs) are low. With the exception of a few individual terms, the rates do not stack up very well with the best available CD rates. The minimum deposit requirement of $1,000 is also a bit high, though it is in line with those at other large banks.
Low rates aside, Zions Bank has a wide range of CD term options. That could make it a good choice whether you’re saving for a short-term goal or a distant retirement. All of the CDs are also available as part of an individual retirement account (IRA).
Read on to learn more about Zions Bank and how its CD accounts could work for you.
|CD Term||APY: Minimum Balance $1,000 - $99,999||APY: Minimum Balance $100,000+|
|1 Month||0.01%||0.06%||Compare CD Rates|
|3 Month||0.15%||0.20%||Compare CD Rates|
|6 Month||0.25%||0.30%||Compare CD Rates|
|9 Month||0.35%||0.45%||Compare CD Rates|
|12 Month||0.75%||0.85%||Compare CD Rates|
|18 Month||0.75%||0.85%||Compare CD Rates|
|24 Month||0.85%||0.95%||Compare CD Rates|
|36 Month||0.85%||0.95%||Compare CD Rates|
|48 Month||0.90%||1.00%||Compare CD Rates|
|60 Month||0.95%||1.06%||Compare CD Rates|
1-Month CD Interest Rate Comparison
Overview of Zions Bank CDs
Zions Bank is headquartered in Salt Lake City, Utah. It is a division ZB, N.A. (which is a part of Zions Bancorporation). ZB, N.A. operates in the Western U.S. across 11 states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington and Wyoming.
Depending on where you live, the local division of ZB, N.A. may have a different name. Local trade names include Amegy Bank, California Bank & Trust, The Commerce Bank of Oregon, The Commerce Bank of Washington, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado and Zions Bank (also known as Zions First National Bank).
CD terms with Zions Bank range from 30 days (one month) up to 60 months (five years). All terms require a minimum deposit of $1,000. Those terms are also available as part of an IRA. Interest in CD accounts will compound daily. The frequency with which it credits to your account could be monthly, quarterly, annually or at maturity. You should ask about your specific term before opening an account. You may receive a higher interest rate by depositing at least $100,000.
Once interest credits to your account, you have the option to transfer it to another Zions Bank account. However, you cannot withdraw any of the principal until your CD reaches maturity. Withdrawing before full maturity will result in an early withdrawal penalty. The penalty amount depends on the length of your CD term and the amount that you withdraw.
You can avoid penalties by making changes to your account during the designated grace period. This is a period after your CD’s maturity date during which you can make deposits or withdrawals without having to pay penalties. You can also close your account or change term lengths during this time. The grace period for a CD term of 31 days or shorter is three days. Terms of more than 31 days have a grace period of 10 days.
At the end of your grace period, your account will automatically renew for a CD of the same term length. If you don’t want it to renew, you will need to notify the bank before the end of the grace period. Zions Bank will also send you a notice before the end of your CD term. This notification can help you plan the next steps for your account.
How Much You Earn With Zions Bank CDs Over Time
Because the interest rates from Zions Bank are relatively low, you will earn relatively little interest. You can generally maximize your earnings by choosing longer CD terms. The exception is that certain terms may have higher rates at certain times. For example, terms between 12 and 17 months currently offer higher rates than any other term.
You may also earn a higher interest rate by contributing more than $100,000. The rates aren’t always higher, but you should look into it if you can afford it.
The table below shows what your approximate total balance will be based on different initial deposits and term lengths. Note that the 12-month CDs currently have a significantly higher rate than all other term options.
|Initial Deposit||6-Month CD||12-Month CD||30-Month CD||60-Month CD|
How Zions Bank CD Rates Compare to Other Banks’
Overall, Zions Bank does not have competitive interest rates. While the rates are similar to other large banks, you should certainly shop around and compare CD rates before you open any accounts. The one notable exception is that the one rates for CD terms between 12 and 17 months compare very well with some of the best available rates.
If you are interested in saving for a short-term goal (less than three years), one bank to consider is Ally Bank. Ally offers high interest rates and its most competitive rates are for terms of a couple of years or less. Another advantage is that there is no minimum to open an account. That makes Ally accessible to all savers.
Another bank to consider is Capital One. Capital Ones’ one-year CD has a high rate and its longer-term CDs (three- and five-year terms) have competitive rates. As with Ally, Capital One does not have a minimum deposit requirement.
If you are interested specifically in IRAs, consider a broker like Edward Jones. Edward Jones requires the same minimum deposit as Zions Bank but has much higher interest rates. The reason for the higher rate is that it offers brokered CDs. Brokered CDs work slightly differently than regular CDs, but the differences won’t affect many bankers. One difference, for example, is that you can only get out of a CD early by selling your CD on the secondary market (commonly called the stock market).
|CD Account||Zions Bank||Ally Bank||Capital One|
Compare Zions Bank to Other Competitive Offers
Should You Get a Zions Bank CD Account?
Zions Bank does not require you to live near a local branch in order to open a CD account. That means it’s equally appealing to local and nonlocal residents. However, you should consider other banks because the interest rates from Zions Bank are relatively low. The big exception is that CD terms between 12 and 17 months currently offer a very competitive rate. CDs are available as retirement accounts, but if that’s what interests you, you can find longer terms and much better rates with other banks and brokers.