Best CD Rates In Iowa For June 2024

Schwab CD OneSource is a marketplace for brokered CDs run by brokerage firm Charles Schwab. A brokered CD differs from a bank CD in that early withdrawals are not permitted. Instead, these certificates can be sold prior to maturity on the secondary market. And rather than compounding, interest on a brokered CD is paid out regularly to a brokerage account.

Customers in any state can shop for and compare Charles Schwab CDs before making a purchase. All CDs sold through Schwab CD OneSource are issued through FDIC-insured banks and covered up to $250,000 per depositor, per bank. Investors can trade or sell brokered CDs before maturity without penalty, but sales are not guaranteed, and you may not earn what you paid.

Charles Schwab CD rates are often some of the best available, with rates as high as 5.10%. You must be a Charles Schwab customer to open a CD, and these accounts require a $1,000 minimum deposit. If you are, this might be an attractive option—especially if you might need to cash out early.

Read our full Charles Schwab Review.

Interest on Schwab OneSource CDs doesn’t compound. Instead, it’s paid out in intervals throughout the CD’s term. Customers can sell CDs on the secondary market without penalty before maturity, though it’s possible they can lose value. And like bank CDs, you can withdraw your full principal balance at maturity.

Chase Bank CD rates are competitive if you qualify for relationship rates, and even better if you have a lot of cash to deposit. Though the bank’s standard CD rates are rock-bottom poor, its relationship rates are much higher. To qualify for these rates, you just need a linked Chase checking account. Depending on the minimum deposit amount and relationship pricing, you can get a 6-month CD between 0.01% to 3.00% APY.

With these CDs, you can opt to leave interest in the account to compound or receive regular payments. Except for non-promotional terms of 11 months or less, Chase CDs earn far more than the national average with relationship rates. Consider this option if you already bank with Chase.

Chase is a major national bank with over 4,700 branches in the U.S., including a few offices in Iowa. There are Chase branches and ATMs in Des Moines, West Des Moines, Iowa City and Council Bluffs. You do not need to visit a branch to open a Chase CD.

Read our full Chase Bank Review.

APYs may vary by ZIP code. The quoted rate is valid for the New York ZIP code of 10001. Chase CDs compound interest daily, and you get to choose how your interest is paid out: monthly, quarterly, semiannually, annually or at maturity. You can withdraw your interest at any time without penalty, which is a nice perk not offered by most options on this list. However, you’ll pay an early withdrawal penalty equal to 365 days’ worth of interest if you access your deposit before maturity.

Bank of America is another brick-and-mortar bank with branches in Iowa, but you don’t have to live near one to open a CD. You also don’t need a jumbo-sized deposit to qualify for the best rates.

Bank of America CD rates are as high as 4.75% APYs for its seven- and 13-month Featured CDs, which require a minimum deposit of $1,000. The bank also offers a 3.00% APY on some terms, but it pays as low as 0.05% on others. CDs automatically renew at maturity, and you’ll receive a notification about this that may include other changes to your account. If your CD renews, the APY may change.

There is also the  Bank of America Fixed Term Certificates of Deposit and Bank of America Flexible Certificate of Deposit that can be opened with a deposit of $1,000. Fixed Term CDs are available for between 28 days and 10 years and are identical to Featured CDs aside from offering slightly lower APYs. Flexible CDs are only available in 12-month terms that earn 3.51% APY, and these let you withdraw funds after the first six days penalty-free.

Read our full Bank Of America Review.

Bank of America’s Featured CDs are offering highly competitive APYs of for 7- and 13-month terms. Early withdrawal penalties apply and are equal to between seven days’ and 365 days’ worth of interest, depending on the term. Interest is compounded and credited monthly. You may choose to allow interest to compound in your account or receive disbursements to a Bank of America checking or savings account or by check.

Heritage Bank is an employee-owned bank with branches in Iowa, Minnesota and South Dakota. Though smaller in size Heritage Bank stands out for its Triple Option CD. This CD offers from  1.05% to 5.06% APY, depending on deposit amount but requires a minimum of $2,000 to open.

Triple Option CDs provide unique benefits, including rate bumps, penalty-free withdrawals and additional deposits. If Heritage Bank starts offering better rates after you’ve opened your CD, you can bump up your rate any time to earn the higher posted rate (which resets your account). You can also withdraw $1,000 or more to pay for medical expenses with no early withdrawal penalty fees. Finally, you can add money to your CD after opening, something most CDs don’t allow. These extra benefits give you flexibility and value, making this a solid option for Iowa savers who qualify for the best rates.

Read our full Heritage Bank Review.

CDs automatically renew at maturity. Customers must withdraw at least $1,000 each time for medical expenses and deposit $1,000 or more in additional deposits. Early withdrawal penalties apply for non-medical expenses and are equal to between three months and six months of interest, depending on the term, with a minimum penalty of $40. Interest is compounded monthly.

Synchrony Bank is an FDIC-insured online bank that offers a handful of savings products, including three types of CDs. Because Synchrony is fully digital, you can open an account online in any state. This bank is able to pay competitive APYs without requiring a high minimum deposit. In fact, there is no minimum balance requirement for any type of CD.

In addition to standard CDs, the bank has bump-up CDs and no-penalty CDs for those who might need more flexibility, all with no deposit requirements. Two-year bump-up CDs let you increase your rate one time during your term, and 11-month no-penalty CDs let you withdraw early without paying penalty fees. Right now, Synchrony is offering a promotional APY of N/A on 14-month standard CDs. The lowest CD rate Synchrony pays is 0.25% APY, which is much higher than the average.

Consider Synchrony CDs if you like banking online and are looking for the best rates possible.

Read our full Synchrony Bank Review.

Synchrony lets you withdraw interest before maturity without penalty. The penalties for early withdrawal of the principal seem pretty standard. Synchrony’s no-penalty CD pays a much lower rate than others, so you can really see the cost of early redemption.

—Jill Fopiano, CEO at O’Brien Wealth Partners

Term	APY
3 Months	0.25%
6 Months	4.80%
9 Months	4.90%
12 Months	4.80%
18 Months	4.50%
24 Months	4.20%
36 Months	4.15%
48 Months	4.00%
60 Months	4.00%

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Interest is compounded daily and credited to the CD monthly. CDs automatically renew upon maturity following a 10-day grace period. During the grace period, account holders can add or withdraw funds, change CD terms or close the account.