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There are many reasons why you might want to deposit money for the long term. You may be working toward a long-term savings goal, such as a down payment for a house or your children’s education. Or maybe you just don’t have the risk tolerance to withstand stock market volatility.
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There are many different reasons for hiding money, but the goal is the same. We need a bank that encourages long-term deposits. In practice, most banks encourage long-term deposits. However, some banks prefer to make the transaction a little sweeter for their customers than others.
Those banks will be our focus. They tend to offer higher interest rates on deposits, especially long-term savings products like Certificates of Deposits (CDs). Here are the 5 best banks for long term deposits.
Citic Bank
CIT Bank is a division of First Citizens BancShares, Inc. As an online-only bank, CIT is known for some of the highest rates in the industry. Currently, its 18-month CD interest rate is 4.75%. This is an excellent rate for a CD, especially one that is only 18 months old.
It may sound like a long time, but CDs typically last up to 60 months. If you want a shorter term, the APY for a 13-month CD is slightly lower at 4.65%.
Or, if you’re looking for very short-term savings, CIT has an APY 4.05% High Yield Savings Account. However, a minimum deposit of $100 is required to open a high yield savings account with CIT.
BMO
BMO Harris Bank, NA, simply known as BMO, primarily serves the Midwest. However, they also have branches in Arizona, California, and Florida. BMO is a good choice for long-term deposits thanks to the excellent rates on CDs. Currently, opening a 59-month CD offers 4.50% APY. The current APY for that 13-month CD is 4.00%. BMO also has a high yield savings account with the same 4.00% APY.
However, an important caveat to BMO’s excellent rates is that it is only available in states where banks do not have physical branches. Across the street he has a BMO branch, the rates are not impressive. 0.25% for 60 month CDs and 1.00% for high yield savings.
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Sally May
Sallie Mae was founded in the 1970s as a student loan servicer, but can still be considered a student loan company. However, Sallie Mae has significantly expanded her portfolio since the 1970s to include a variety of products such as savings accounts, CDs and money market accounts. All three of Sallie Mae’s products now feature competitive interest rates.
Similar to other banks on this list, the highest APY from Sallie Mae is on CD, with an APY of 4.40% over the 24-month and 36-month periods. The APYs for 6 and 12 month CDs are also not bad at 3.50% and 4.25% respectively. On the other hand, high yield savings accounts have an APY of 3.20% and money market accounts have an APY of 3.40%.
capital one
Capital One is a well-known bank that offers a variety of products such as checking accounts, credit cards, savings accounts and CDs. The best rates on savings products are often limited to lesser-known banks, but Capital One is one exception. In fact, their CD and savings account rates are among the best anywhere.
Currently, CDs in Capital One have an APY of up to 4.40%, but you need a fixed 60-month term to claim that rate. But even Capital One’s 12-month CD has an APY of 4.15%. For 6-month and 9-month CDs, APY is 3.30%. That 3.30% rate matches the APY you get with Capital One’s High Yield Savings account.
bus bank
Bask Bank is a relatively new name in the banking industry as it was founded in January 2020 as a division of Texas Capital Bank. Bask is not a household name at this point, but this bank is a member of his FDIC, so your money is safe.
We currently do not offer checking accounts, but we do have high-yield savings accounts and CDs. We also have a savings account that allows you to earn two American Airlines AAdvantage miles for every $1 you spend in the account annually.
Bask is a great place to store your money long term due to its high CD rate. We offer 4.45% 12 month CD and 4.30% 6 month CD. This is the bank’s highest CD rate. If you want to keep your money in a high-yield savings account, Basque’s current APY is 4.15%.
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This article originally appeared on GOBankingRates.com: 5 Best Banks for Long-Term Savings
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