Sallie Mae CDs through Raisin
- 4.00% APY for 14 months
- $1 minimum deposit
- Two no-penalty CD options
Two types of accounts prevent you from accessing your money: savings accounts and CDs. A savings account doesn’t lock your money, but it restricts how often you withdraw each month.
A CD, on the other hand, locks you out of accessing your funds for a set period and, in exchange, offers high rates, which are also locked in at the time of opening. This makes CDs a particularly attractive option since they retain value even if federal interest rates drop.
Among the many types of deposit and investment accounts, there are a handful that “lock” your funds away. With most locked accounts, withdrawing funds can mean penalties, or the account has monthly withdrawal restrictions.
Account type | Funds locked? | Helpful guides |
---|---|---|
Certificates of deposit | Yes, interest-related penalties for early withdrawals. | Best CD rates |
Savings accounts | Sort of, often restricted to six withdrawals per month. | Best high-yield savings |
Club accounts | Yes, interest-related penalties for early withdrawals. | Club accounts: Are they worth it? |
Money market account | Sort of, often restricted to six withdrawals per month. | Best MMA rates |
Savings bonds | Yes, interest-related penalties for early withdrawals. | What are bonds? |
IRAs | Yes, additional tax penalty if withdrawals before age 59½. | Best IRAs |
With a certificate of deposit (CD) your money is stuck for a set time of your choosing — usually anywhere from one month to five years — while it earns a fixed interest rate. It’s more restricting than a traditional savings account because you can’t access your money until the term is finished. If you need to make a withdrawal, you’ll need to give 31 days’ notice and pay a penalty.
Sallie Mae CDs through Raisin
Western Alliance Bank 12 months CDs through Raisin
Alliant Credit Union CDs
A few key things to keep in mind before opening a CD:
Consider the following features when comparing the pros and cons of a CD account:
Unlike a CD, your money isn’t stuck for a set time with a savings or money market account. A savings account offers the benefit of compound interest while charging minimal or no fees. It also limits you from withdrawing your money to a certain number of times per month.
Uphold
SoFi Checking and Savings
Axos ONE
The Federal Reserve imposes a limit of six withdrawals per month on savings accounts through Regulation D. This means that if you withdraw money more than six times a month, your bank can prevent the withdrawal, charge you a fee — or even close your account. But not all savings accounts offer this limitation anymore after the suspension of Regulation D.
Compare savings accounts that limit you from withdrawing your money so that you can focus on growing your savings. To take it a step further, look for one that also doesn’t come with an ATM card.
Not all savings accounts are created equal. There are a few things to watch out for when signing up for a new account:
If you’re saving up for your retirement, an individual retirement account (IRA) might be your best option.
Any money you put into a traditional IRA account typically cannot be withdrawn without a penalty until you reach retirement age, and contributions are tax-deductible at both the federal and state level.
TD Ameritrade offers IRAs with both money market accounts and CD options.
Accounts that restrict or limit you from accessing your savings are best for those who want to grow their money and remove the temptation to spend it all.
Before opening a CD, make sure you have money set aside in an easy-to-access account, like a savings or money market account, in case you need it for emergencies.
Here are a few quick tips to help you put away money and resist the temptation to withdraw it.
While having money vaulted away is a great idea, it’s not always easy to do. Of those with an emergency fund, one-third (31%) said they had to dip into the account to take care of home repairs, while car repairs were a reality for a little over a quarter (26%).
Both certificates of deposit and savings accounts help toward savings goals. If you might need access to your funds soon or want to add money each month, a savings account is a better option. But if you can commit to keeping your hands off your savings for a specified period, a CD helps you lock in your rate and money away from temptation.
Many savers use both options — when your savings account starts to get comfortably high, you can pull money out and put it into a CD. If you choose one with a high interest rate, you can sit back and watch your savings grow.
Both CDs and High-yield savings accounts are good options for saving. Compare the two here.
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