Marcus CD Rates

A CD rate is the amount of money a bank pays you on a certificate of deposit, also called a CD. 

With a CD, you typically commit to foregoing access to your money for a specific amount of time. Because you’re making that kind of commitment, banks generally pay you interest at a higher rate than on savings accounts. 

There’s a bit more to know about how CD rates are determined and calculated.

CD rates are typically expressed as an Annual Percentage Yield (“APY”).

APY, which stands for annual percentage yield, is how much interest you earn on your CD, including all compounding interest, after one year. Interest usually compounds daily, monthly, quarterly or annually. With compound interest, you earn interest on your initial balance at first, then after the first compounding period, you earn interest on your balance plus the interest you’ve already earned. This continues through the entire term of your CD.

A CD's APY is determined by both the interest rate and how often interest is compounded. The higher your APY, the faster your balance could grow.

Many online banks offer higher CD rates than traditional banks because they don’t have to pay as much overhead to maintain physical branches. Higher rates mean you can make more money. 

APY is often confused with APR, annual percentage rate — but the two are different. APR is the amount you pay to borrow money, like with a credit card or personal loan. APY applies to savings accounts and CDs. 

Typically, the longer the term on a CD, the higher your interest rate. This is because, when you commit to leaving your money with a bank for an extended time, institutions know they can use those funds for other purposes, like making loans to other customers, without the worry of you removing your funds from the bank.

Since this works to their advantage, they’re typically willing to pay you more interest. So that’s why the rate on a 5-year CD is often higher than the rate on a 1-year CD. 

Both our High-Yield CD and our No-Penalty CD have a $500 minimum balance and come in a variety of terms. The differences are:

• Withdrawals. The full balance of a No-Penalty CD may be withdrawn anytime beginning seven days after funding (new account) or seven days after the 10-day grace period (rollover account). High-Yield CD has an early withdrawal penalty if the balance is withdrawn before the maturity date.
• Deposits. Once a No-Penalty CD is funded with $500 or more, additional funds may not be added. For a High-Yield CD, funds can be added during the first 30 days after opening.