Best CD Rates In North Carolina Of May 2024

Navy Federal Credit Union’s EasyStart Certificates offer a competitive APY—up to 4.75%—for terms ranging from six to 24 months. With a low minimum opening deposit of $50, these certificates are perfect for building your savings from scratch. While most CDs only allow a single deposit, you can add money to your EasyStart Certificate at any time. You can even set up recurring automatic deposits.

There’s also the Navy Federal Credit Union Special EasyStart Certificate that earns 5.30% APY, although it has a maximum deposit cap of $3,000 and requires a checking account with direct deposit. Standard certificates have no maximum deposit cap, and the 12, 18 and 24-month certificates earn competitive rates.

You must become a Navy Federal Credit Union member to open an account. To be eligible, you must be a member of the armed forces, a veteran, a family member of a current or retired service member or a Department of Defense employee.

Read our full Navy Federal Credit Union Review.

Interest compounds daily and is credited monthly. When your CD matures, you have a 21-day grace period, during which you can make changes to your account. Otherwise, it will renew automatically. Withdrawals of your principal deposit before the maturity date are subject to a penalty, which varies by term.

PenFed Credit Union’s money market certificates offer competitive dividend rates across terms ranging from six months to seven years. Customers have the ability to change their maturity option at any time prior to maturity, adding some flexibility to this account.

Dividends on certificates are compounded daily for terms greater than six months, while those with terms less than six months earn dividends on a simple interest basis. A “certificate” is essentially a CD offered by a credit union. Because this account is offered by a credit union, you must be a member in order to open an account. Luckily, PenFed membership is open to anyone.

PenFed Credit Union is highly rated by Trustpilot, earning an average rating of 4.5 out of 5 stars.

Compounding schedule

The yields earned on credit union accounts are referred to as dividends rather than interest. Dividends on six-month certificates are earned on a simple (not compound) interest basis and are paid when the certificate matures. Dividends on all other CDs are compounded daily and credited monthly.

Early withdrawal penalties

Early withdrawal penalties vary by term.

Maturity options

With PenFed, you choose your maturity option when you open your certificate and can change it anytime prior to maturity. This gives you some flexibility, and extra time, to decide what you’d like to do with the funds in your account when it matures. You can transfer the funds into another PenFed account, roll it into a new certificate, get a mailed check or transfer it via ACH.

PenFed certificates have significantly lower rates across the maturity spectrum than others. In addition, their early withdrawal penalties are pretty onerous compared to what is standard. They’re about the most severe I have heard.

—Jill Fopiano, CEO at O’Brien Wealth Partners

Schwab CD OneSource isn’t a specific CD account—instead, it’s a CD marketplace offered by the brokerage firm Charles Schwab. That means any CD purchased through Schwab OneSource is a brokered CD. Customers can shop for and compare various brokered CDs through the online marketplace before making a purchase.

Rather than compounding, interest on a brokered CD is paid out to customers regularly through the CD’s term. Deposits still receive FDIC insurance as long as the CDs are issued to the broker from an FDIC-insured bank. Investors can also trade or sell brokered CDs before maturity on the secondary market without incurring a penalty.

A benefit of brokered CDs like those offered through Schwab OneSource is competitive interest rates. APYs available from Schwab OneSource are currently as high as 5.46%.

You must be a Charles Schwab customer to open a CD, and these accounts require a $1,000 minimum deposit.

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.

Fifth Third Bank stands out for its promotional CD rates, which are generally high but vary by ZIP code. Currently, the rates in the Raleigh ZIP Code 27511 range from 4.00% to 4.80% for a four-month, six-month, 12-month or 24-month CD. Interest compounds continuously on Fifth Third CDs, so it accrues even faster than CDs with daily compounding.

However, Fifth Third’s promotional CDs require a minimum deposit of $5,000, which is much higher than other options on this list. In addition to its PromoCDs, there are the Fifth Third Bank Certificates of Deposit that have terms ranging from seven days to seven years that only require a $500 opening deposit. Unfortunately, the interest rates are nearly nonexistent—just 0.01%.

You can also withdraw interest early without penalty by having it deposited in your Fifth Third checking or savings account.

Interest is compounded continuously and can be credited monthly to your CD or Fifth Third checking or savings account. All Fifth Third CDs must be opened at a branch location. Early withdrawal penalties equal 1% to 3% of the principal amount withdrawn, depending on your term length. For CDs with terms less than 32 days, there’s a one-day grace period to close or change your CD before it renews. For CDs with terms of 32 days or longer, there’s a 10-day grace period.