THE BEST CD RATES IN NEW JERSEY JUNE 2024
Best CD Rates in New Jersey of 2024
We’ve compared CDs from national, regional and online banks and credit unions to find the highest rates accessible to savers in New Jersey. Below, find three banks and credit unions with the best New Jersey CD rates for short-term and long-term CDs.
Alliant Credit Union Certificates
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Why We Chose It
Alliant Credit Union offers a solid mix of certificate term lengths and competitive rates, including jumbo CD options for those with at least $75,000 to commit. Anyone in the country can join this online credit union with no ongoing membership fees or requirements to worry about.
Pros
- Wide variety of CD terms ranging from three months to five years
- Leading 5.15% APY on a 12-month certificate (or 5.20% for the jumbo version)
- Easy-to-join digital credit union with no membership fees
Cons
- Interest rates are below 5% for all Alliant certificates other than the six-month and 12-month options
- Early withdrawal penalty can be steep depending on your CD term
- No physical branches
Charles Schwab Brokered CDs
Vault Verified
Why We Chose It
Charles Schwab offers brokered CDs, which are managed differently than traditional CDs. Essentially, Schwab CD OneSource aggregates various CD offers from third-party banks and institutions, and you can buy and sell those CDs through your brokerage account just like stocks or bonds. You can even buy brokered CDs through a tax-advantaged account like an IRA or 401(k). If you don’t sell them, you can hold them until they mature for the full value. Depending on the specific CD you buy, interest will be paid directly to your brokerage account either monthly, semiannually or at maturity.
Pros
- Access to hundreds of CDs with some of the highest rates in the current market
- Ability to buy and sell multiple CDs from different banks right from your brokerage account, including in accounts like IRAs
- No early withdrawal penalty (but if you sell before maturity, you may lose profits)
Cons
- Must be a Charles Schwab customer to view all CD options and rates
- If you need your funds early, you’ll have to sell the CD on the open market and may receive lower offers than you’d like
- Interest is deposited in your brokerage account rather than reinvested in the CDs, which limits earnings
Santander Bank CDs
Vault Verified
Why We Chose It
Santander Bank is one of the options on the list with many locations across New Jersey. If you’re a saver who values in-person access along with top CD rates, it’s worth considering one of their short-term certificates. However, the bank currently only offers two CDs: a six-month term and a 10-month term. Plus, you must visit a branch to open them in person, as the same rates are not available for online customers.
Pros
- Competitive rates on short-term CDs
- Dozens of brick-and-mortar locations across New Jersey
- Low minimum deposit requirement
Cons
- Limited number of CD offerings and no long-term options
- Not the highest APY on the list
- Must open CDs in person at a branch
Vault’s Viewpoint: Overview of the Best New Jersey CD Rates
CD Rates can vary widely, and term length is typically the biggest differentiating factor. You’ll likely find the best CD rates on short-term options since most banks don’t want to commit to paying steep interest for too long into the future. But if you expect interest rates to drop over the coming decade, you can still find competitive rates on CDs with terms as long as five years or even ten years. We’ll focus on traditional CDs in this list, but if you have a large sum of money to deposit, jumbo CDs often reward you with higher interest rates as well.
Ironically, you’ll have access to the best CD rates in New Jersey if you don’t limit yourself to banks that have an actual physical presence in the state. Online banks tend to feature more compelling offers than traditional brick-and-mortar institutions. However, if you prefer to bank in person, there are New Jersey-based options on the list for you as well. All CDs on this list are FDIC-insured up to standard limits.
Here’s our comparison of the best New Jersey certificate of deposit rates from shortest to longest term.
Short-Term CD Rates in New Jersey
A short-term CD has a rate of one year or less. Three months, six months, nine months or one year are the most common terms in this category, but you can also find options in between those ranges.
The best New Jersey CD rates for short-term savers right now are in the neighborhood of 5% APY or above. Since you’re sacrificing convenient access to your money for the duration of the certificate, make sure you also compare rates on more flexible options like high-yield savings accounts—some of which offer similar rates to the best CDs.
Long-Term CD Rates in New Jersey
There’s a lot of variance in long-term CD options because the terms can be anywhere from 18 months to 10 years. Most of them are somewhere in between—two, three or five-year terms are all common. Before you open one of these deposit products, review your budget and financial goals to make sure you won’t need the money before the maturity date.
In New Jersey and nationwide, this month’s best long-term CD rates fall in the 4% to low 5% range. Even though rates are usually lower when the term is longer, choosing long-term CDs can be a good way to hedge against future federal interest rate cuts.
Jumbo CD Rates in New Jersey
For savers with larger sums to deposit, jumbo CDs come with higher minimum balance requirements. Many banks use $100,000 as their floor for jumbo CD deposits, but you can find them for as low as $50,000 or as high as $250,000.
In exchange for your larger deposit, you’ll also be rewarded with a higher interest rate than most traditional CDs offer. Right now, a good jumbo CD rate for New Jersey savers will be above 5%.
How Much Can You Earn With the Best CD Rates in New Jersey?
Since CD rates are expressed as an annual percentage yield but CDs don’t all have annual terms, it’s worth crunching the numbers to see how much you’ll earn from a CD over its lifetime. Your estimated earnings can help you decide if it’s worth the work of moving money into one of these savings products.
With the best New Jersey certificate of deposit rates, you should be able to earn hundreds or thousands of dollars in interest during the term, depending on how much you deposit. The table below shows how much you’ll earn from each CD on our list based on a $25,000 deposit and annual compounding.
How To Open a CD in New Jersey
- Decide what kind of term will work for you. Are you comfortable locking up your money for a matter of months or years? If that’s a difficult choice, you can also open a mix of short-term and long-term CDs to build something called a CD ladder, where maturity dates are staggered to give you more accessibility to your funds.
- Find the bank with the best rate for that term. Research the best CD rates in New Jersey. The highest rates might be from an online bank or one with branches in New Jersey. Pay attention to minimum funding requirements and make sure you can live without that amount of money as well.
- Review the CD’s opening requirements. Some can only be opened online and some require customers to come into a branch. In other cases, you might have a choice.
- Provide your personal information. As you open your CD, you’ll need to submit details like your name, address, contact information, Social Security number and more.
- Fund the CD. If you’re opening it online, you can transfer the money from an existing bank account. If you’re opening the account in person, plan to bring cash or a check. Most certificates of deposit won’t allow you to add more money once the CD is open, so have the full amount ready to go in one transfer.
Alternatives to a CD in New Jersey
High-Yield Savings Accounts
For savers who want to maintain flexible access to their money, the best savings account rates in New Jersey are comparable to the best New Jersey CD rates right now. The main downside is that rates on savings accounts are subject to change at any time, so you won’t have the future earnings guarantees that a CD gives you.
Treasury Bonds
Savings bonds from the U.S. Department of the Treasury have some key similarities to CDs. They’re both savings products with fixed maturity dates and differing penalties for early withdrawals. Currently, you can choose between two types of Treasury bonds, which can both be purchased online through TreasuryDirect. Series EE bonds pay a fixed amount of interest that guarantees they’ll double in value in 20 years, while Series I bonds have an interest rate that changes every six months. Both types limit purchases to $10,000 per person per year.
ETF Investing
If you’re interested in long-term CDs as a method to build wealth, investing in exchange-traded funds (ETFs) may be an appealing alternative. ETFs are essentially collections of stocks, bonds and other assets that are pooled into a single fund to be traded on the open market. The best ETFs are lower-risk investment options due to their built-in diversification and may be able to beat the rate of return you’d get from a CD. However, they aren’t free of risk, since the stock market is subject to ups and downs. With a CD, you receive a predictable return that isn’t possible with ETF investing.
Frequently Asked Questions
Which Bank Has the Best New Jersey Certificates of Deposit?
If you look at the APY alone (regardless of term length) MutualOne Bank leads the list with their 5.40% three-month online CD. For a wider range of term options that still fall at or above 5% APY, explore Alliant Credit Union’s certificates and Charles Schwab’s brokered CDs.
What Bank in New Jersey Has the Highest Interest Rate?
For customers looking to get the best near-term returns, it’s worth comparing current CD rates to high-yield savings account interest rates available in New Jersey. Currently, you can get 5.30% APY on an online savings account with Forbright Bank. However, this rate could change at any time, while CD rates are locked in for the relevant term.
Are There Any CDs That Give 8% in New Jersey Right Now?
Unfortunately, no—even the best New Jersey certificates of deposit don’t don’t reach 8%. CD rates haven’t reached 8% since the 1990s, according to Federal Reserve data. The best CD rates in New Jersey (and nationwide) currently fall in the 5% to 6% range.
The post The Best CD Rates in New Jersey June 2024 first appeared on Newsweek Vault.
2024-06-21T18:30:39Z dg43tfdfdgfd
