Montgomery Bank is a family-owned bank that has been serving the greater Southeastern Missouri and St. Louis area since opening its doors in 1957. Montgomery Bank offers a wide range of personal checking account options as well as an impressive array of different CD term lengths to choose from. In order to open a CD account with Montgomery, you as a customer must maintain an account minimum of $1,000, which doubles as the minimum opening deposit. While it’s known for its small-town values and stellar customer service reputation, Montgomery Bank does not have the most robust CD rates.
Across the board, the annual percentage yields (APYs) attached to its various CD accounts leave much to be desired, especially when compared to the CD rates of other similar banks. Montgomery Bank only operates ten storefronts, along with ATM-only locations, so the need to devote resources to brick-and-mortar branches cannot alone explain the meager rates.
You can open a CD account at Montgomery Bank from anywhere as short as 28 days to as long as five years. The bank permits its customers to select a standard term from the list reproduced below or to customize their own term to meet a specific maturity date. Unlike most banks, the APY rates attached to Montgomery Bank’s CD accounts don’t follow a linear fashion of increasing for longer terms. CD rates are provided in the table below. We recommend speaking to a representative of Montgomery Bank at one of its locations or on the phone in order to understand which account would work best for you.
To calculate how much interest you could earn with a CD, try using SmartAsset's CD calculator.
| CD Term | Minimum Deposit | APY |
| 3-Month | $1,000 | 3.01% |
| 5-Month | $1,000 | 5.01% |
| 7-Month | $1,000 | 4.00% |
| 10-Month | $1,000 | 3.01% |
| 13-Month | $1,000 | 0.40% |
| 15-Month | $1,000 | 0.40% |
| 25-Month | $1,000 | 0.50% |
| 35-Month | $1,000 | 0.50% |
| 5-Year | $1,000 | 0.50% |
10-Month CD Interest Rate Comparison
Overview of Montgomery Bank CDs
Montgomery Bank's CD rates are not as impressive as one might hope, given the bank’s small size and deep commitment to customer satisfaction. They do not compare to the best CD rates in the country, but a perk to banking with Montgomery is that it offers a wide range of term length options, as well as a selection of prime benefits for its customers on preferred plans. Because it only serves a small local population, Montgomery Bank recommends an in-person consultation with one of its bankers so as to pair you with a CD plan that best fits your financial goals.
Unfortunately, if you try to withdraw any amount of money before your CD reaches maturity, you will have to pay an early withdrawal penalty. These figures can greatly vary, ranging from 3 months’ interest to 18 months’ interest, depending on the original issue term. Your best shot at getting a clear estimate is by meeting with a Montgomery Bank teller at one of its physical branches.
How Much You Earn With Montgomery Bank CDs Over Time
As you may have figured, the more you put into the CD, the more you will eventually earn. However, because Montgomery Bank only compounds interest quarterly, this rate is quite slow. Here’s the breakdown of some of Montgomery’s most common starting deposits and most-used CD terms, listed by initial deposit:
| Initial Deposit | 3-Month CD | 15-Month CD | 5-Year CD |
| $1,000 | $1,007.44 | $1,005 | $1,025.25 |
| $5,000 | $5,037.21 | $5,025.01 | $5,126.26 |
| $10,000 | $10,074.42 | $10,050.02 | $10,252.51 |
How Montgomery Bank CD Rates Compare to Other Banks’
For such a small chain, Montgomery Bank’s CD rates stack up decent against its competitors such as Ally Bank and Marcus by Goldman Sachs. However, it’s best to take into account that Montgomery Bank only operates in one state, and as such, its client count and total assets are far lower than at those nationwide competitors. Plus, Montgomery does have Chase beat by no small margin.
There aren’t any Montgomery Bank branches beyond eastern Missouri, so its entire business operation is defined by its small and exceedingly local presence. All that said, here’s how Montgomery Bank measures up to Ally and Marcus by Goldman Sachs, two online banks, and Chase, a national bank with particularly low rates:
| CD Term | Montgomery Bank | Ally Bank | Marcus by Goldman Sachs | Chase |
| 3-Month | 3.01% | 3.00% | - | 0.01% |
| 1-Year | 0.40% (13-Month) | 4.65% | 5.25% | 0.01% |
| 3-Year | 0.50% (35-Month) | 4.00% | 4.30% | 0.01% |
| 5-Year | 0.50% | 3.90% | 4.10% | 0.01% |
Compare Montgomery Bank to Other Competitive Offers
Should You get a Montgomery Bank CD Account?
In the Southeastern Missouri area, Montgomery Bank could be a convenient place to bank. It has had strong family values and a small enough clientele such that personally catered customer service is among its strongest attributes. Indeed, if you have at least $1,000 to put away, opening a Montgomery Bank CD account can be a good choice, assuming you, too, are in no rush for your investment to mature. After all, lower interest rates mean a longer wait for your money to grow significantly. If making money gradually over time is something high on your list, it would be in your best interest to keep looking for more robust APYs. There is no shortage of excellent Midwestern banks with all of Montgomery’s customer care, but with much better APYs.
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