Key Takeaways
- Banks typically require $1,000 for CDs, but amounts range from $0 to $2,500.
- Banks like Citibank and U.S. Bank start CDs at $500, TD Bank at $250 and Capital One offers no-minimum CDs. Online banks like Marcus by Goldman Sachs require $500.
- Consider high-yield savings accounts for flexibility and competitive rates, or fixed annuities for guaranteed, tax-deferred returns, especially for retirement savings.
Current CD Minimums
As of June 2024, these are the current minimum deposits for a 1-year CD at the nation’s most popular banks.
Minimum Deposits for 1-Year CDs
| Bank | Minimum Deposit for 1-Year CD |
| Chase Bank | $1,000 |
| Bank of America | $1,000 |
| Wells Fargo | $2,500 |
| Citibank | $500 |
| U.S. Bank | $500 |
| PNC Bank | $1,000 |
| Truist Bank | $1,000 |
| Goldman Sachs | $500 |
| Capital One | $0 |
| TD Bank | $250 |
If you are struggling with the decision whether to lock your money up in a CD, consider a more flexible option. Put half your cash reserve in competitive high-yield savings account and half in the highest-yielding CD you can find. This will ensure you have a high degree of liquidity and sustainable yield for the near-term.
Thomas J. Brock, CFA®, CPAInvestment, Corporate Finance and Accounting Professional
Thomas Brock, CFA®, CPA, is a financial professional with over 20 years of experience in investments, corporate finance and accounting. He currently oversees the investment operation for a $4 billion super-regional insurance carrier.
CD Accounts You Can Open for $500 or Less
Multiple banks offer CDs with low or no minimum deposit requirements to open. The largest banks with low minimum deposits for CDs are Citibank and U.S. Bank, the fourth and fifth largest banks in the country. Both banks only require a $500 deposit to open a CD account.
Another large banking institution, TD Bank, has a minimum deposit of just $250. Capital One, the country’s ninth largest bank, is probably the most accessible bank where you can open a CD with no minimum deposit.
You’re likely to find higher rates and more lenient requirements, such as low or no deposit requirements, at online-only banks like Marcus by Goldman Sachs or Ally Bank. Opening a CD at Marcus requires just a $500 minimum deposit. Ally is a smaller and newer player in the banking world, but it does offer a CD with no minimum deposit.
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What Are Some Alternatives to CDs?
If you’re looking for a risk-free way to earn interest on your savings, CDs can be a useful tool. However, some savers prefer more flexibility or higher returns than CDs can offer. Depending on your personal financial situation, you might consider some alternatives to CDs. Each of these products carries unique benefits and risks.
People looking to save continuously and have flexibility in withdrawals may find a high-yield savings account better suited to their goals. These accounts can offer very competitive interest rates, some even on par with those offered by CDs, and you’ll have unlimited access to your money.
Keep in mind that, unlike with CDs, your interest rate is not locked in and may go down after you open the account. Money market accounts offer similar benefits, but may not offer the interest rates available with a high-yield savings account.
People who are saving money for retirement — and thus are looking for a long-term solution — might prefer a fixed annuity to a CD. Like CDs, fixed annuities offer guaranteed returns on your deposit after a period of time, plus interest. However, these products typically beat the interest rates offered by CDs.
In exchange, fixed annuities differ from CDs in that they have much longer maturity terms. The interest on a fixed annuity is also tax-deferred, unlike the interest earned from CDs. This means you won’t pay taxes on your annuity’s interest until you withdraw it, which is usually during retirement.
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Last Modified: July 30, 2024
