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Radius Bank CDs review
Earn higher interest with a low minimum deposit.
finder.com’s rating: 2.1 / 5.0
★★★★★
If you’re looking to increase your interest earnings, but don’t have a lot to invest, Radius Bank lets you buy into a CD term for a year or more with as little as $500. But while 0.5% APY for a 12-month CD is higher than what you’d get from most traditional banks, other online banks often offer better rates.
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0.5%
1-year APY
0.5%
3-year APY
0.5%
5-year APY
Details
| Minimum deposit to open | $500 |
|---|---|
| Interest compounding | Varies |
| 1-year APY | 0.5% |
| 18-month APY | 0.5% |
| 2-year APY | 0.5% |
| 3-year APY | 0.5% |
| 4-year APY | 0.5% |
| 5-year APY | 0.5% |
| Early withdrawal penalty | 60 days interest for terms of 3 to 6 months 180 days interest for terms of 7 to 9 months 365 days interest for terms of 10 + months |
Review by
Heather Petty
heather.petty@finder.comHeather Petty is a personal finance writer at Finder specializing in home loans, banking and insurance. After falling victim to a disreputable mortgage broker when buying her first home, she’s on a mission to help readers avoid similar experiences when managing their own finances. A self-proclaimed word nerd, her writing has been featured on MSN, Credit.com and MediaFeed.org, among others. Heather previously worked as a technical writer and editor for the casino systems industry and is an internationally published young adult mystery author. She holds a bachelor’s degree in English with a minor in journalism from the University of Nevada, Reno.
Expert review
Radius Bank is best for anyone looking to invest without a lot of money. Taking advantage of the term-based interest rate, an investor can get the highest interest rate with as little as $500 invested.
But if you’re comfortable using a digital bank like Radius for your investments, other online-only banks have more competitive rates.
How do I open a Radius Bank CDs account?
You can only apply online for a 1-year, 18-month, or 3-year CD.
- Click Apply now.
- From the Radius Bank home page, roll over to the Personal tab and select Apply for an account from the Getting Started section.
- Click the Certificates of Deposit tab and select a CD option. Click Apply Now.
- Enter your name, email and mobile phone number. Click Continue.
- Enter your street address and click Continue.
- Enter your birth date, Social Security number and any special promotional code. Create a security phrase and confirm you’re a US citizen or resident. Click Continue.
- Select your current bank and then sign in so that you can transfer at least $500 into your new Radius CD. Optionally, you can choose to use your debit card to transfer funds.
- Submit your information to open the account.
For all other CD terms, fill in the Personal Account Application form and mail it in or call customer service.
Eligibility
You must meet the following requirements to apply for a CD:
- US citizen or resident
- Valid Social Security number
- Valid bank account
- At least 18 years old
Required information
When you’re ready to apply, have the following information on hand:
- Full name
- Phone number
- Residential and mailing addresses
- Date of birth
- Social Security number
- Bank information or debit card to fund the account
- $500 minimum deposit
Funding options
When you’re ready to fund your CD, you have the following options:
- Transfer funds from an existing bank account or use a debit card
- By mail using a certified check or money order
- Transfer funds from your Radius account
Benefits of a Radius Bank CD
In addition to automatic renewals, a Radius CD offers the following benefits:
- Low investment minimums. With only a $500 deposit, you can invest in a CD with a 12-month or longer term. All CD terms under a year require a $1,000 deposit.
- Term-based interest rate. Unlike some banks that offer higher rates for larger deposits, Radius Bank CDs give you their highest interest rate with just a $500 deposit, as long as you invest the money for five or more years.
- Online bank rates. As an online bank, you’ll see higher rates than traditional banks. But Radius Bank’s 0.5% APY on a 36-month term is less competitive than other online bank rates.
What to watch out for
In addition to early withdrawal penalty fees, you’ll want to keep the following in mind before you apply for a CD with Radius Bank.
- Limited branches. Radius only lets you apply for three CD terms online. With only one branch office in Boston, you’ll have to apply for any other term by mail or through customer service.
If you want an account offering higher rates, you’ll want to keep looking. As always, compare your options when considering a CD.
Compare with other CDs
How do I cash in a CD?
When your Radius Bank CD matures, you have a seven-day grace period to withdraw or transfer funds and change the term without paying a fee. If at the end of the grace period you don’t make changes, the money is rolled over into a new CD with the same term.
What other savings products does Radius offer?
The only other savings product at Radius is the High-Yield savings account, which offers up to 0.25% APY on high balances, and still allows you to earn interest on as little as $10 in your account.
Frequently asked questions
CDs ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
We rate CDs and share certificates on a scale ranging from one to five stars based on what matters most to you. We consider two factors equally when rating CDs: minimum deposits and annual percentage yields (APYs) relative to term length. If a bank requires a different minimum opening deposit depending on the chosen term, we rate the CD based on the average minimum deposit across all terms. And although some institutions offer CDs with terms ranging from one week to 20 years, we only consider term lengths the FDIC uses in its monthly updates on national rates.
Read the full methodology of how we rate CDs.
