How long will it last?

Short term

KeyBank’s short-term CD is for individuals who want a safe place to store their money, but don’t want to make a long-term commitment. This CD has terms ranging from 7 to 179 days, so it’s best for those who need to use the money (or find a new home for it) within six months.

The APY on short-term CD is very low. Unlike KeyBank’s other CD options, short-term CDs don’t offer any promotional rates.

Although a short-term CD matures in less than six months, it is still a good idea to pay attention to the early withdrawal rules. KeyBank’s early withdrawal penalties can be severe; Depending on the term, you can lose up to three months of simple interest if you withdraw the money before the due date.

KeyBank gives existing customers a Relationship Rewards bonus for certain accounts. Those with a qualifying KeyBank checking account can get higher rates on their CDs. However, the Short Term CD does not have a relationship bonus, so the same low APY applies to all customers.

Gradient CDs

With KeyBank’s tiered CDs, you can choose a term between six months and 10 years, and you can open an account with $2,500.

The APY on most tiered CD terms is relatively low, but you can get a much higher rate by taking advantage of one of the bank’s promotions with specific terms.

Be aware that the Step CD has steep penalties for early withdrawals; Depending on the term, the penalty can be up to 12 months simple interest.

If you have an eligible KeyBank checking account, you may be eligible for a Tiered KeyBank Rewards CD. This option allows you to earn much more interest on the funds you deposit, with an APY several times higher than the national average with specific terms.

A tiered CD has a minimum deposit of $2,500 and terms ranging from six months to 10 years. As with the non-bonus version, this CD has early withdrawal penalties ranging from seven days to 12 months of simple interest.

Jumbo

If you have a large amount of cash and want a safe way to earn a guaranteed interest rate, a jumbo CD may be a good option. With KeyBank, you can open a $100,000 jumbo CD and choose a term between seven days and 120 months.

APY rates on most of KeyBank’s jumbo CD terms are very low — below the national average — but the promotional rates available on select terms are much higher.

Depending on the term you choose, the early withdrawal penalty can range from seven days to 12 months of simple interest.

The KeyBank Senior CD with Relationship Rewards gives those with an eligible KeyBank checking account a higher APY with specific terms. Although the regular APY is low, the promotion with the Relationship Bonus bonus gives customers a higher APY than usual.

Pros and Cons of Main Bank CDs

He explained the pros

• Promotional prices: With KeyBank’s promotional CDs, you can find more competitive rates for a greater return of up to 4.00%.
• A variety of CDsKeyBank offers a variety of CD types, which can provide flexibility.

Cons explained

• APYs are below average: KeyBank’s CD prices are not very competitive. You’ll likely find higher prices by shopping around.
• Branches in 15 states: If you prefer personal banking, you’ll have to live in one of the 15 states in which KeyBank operates.

About Key Bank

KeyBank operates approximately 1,000 branches in 15 states: Alaska, Colorado, Connecticut, Florida, Idaho, Indiana, Maine, Massachusetts, Michigan, New York, Ohio, Oregon, Pennsylvania, Utah, Vermont, and Washington.

It offers a wide range of financial services, including checking and savings accounts, CDs, home loans, personal loans, auto loans, student loan refinancing, investment products, and insurance policies.

KeyBank’s CDs generally have lower-than-average APYs, but the bank offers term-specific promotions at much higher rates. Interest on KeyBank CDs compounds daily, but the rate at which interest is added to your account depends on the term of the CD.

The accumulated interest is left in the account unless you give the bank further instructions. Although you cannot withdraw the principal of a CD before the maturity date without penalties, you can withdraw the interest once it is added to your account without paying additional fees.

All KeyBank CDs have 10-day grace periods after they reach maturity, giving you time to withdraw funds or renew the CD.

Alternatives to main bank CDs

• High-yield savings accounts: If you want to open an online savings account elsewhere, you may be able to get higher rates. Check out the best high-yield savings account rates to compare how much you could earn.
• High-yield current accounts: You may find relatively high rates with some checking accounts. Be aware of their requirements and limitations. The best high-interest checking accounts give you easy access to your money.
• Certificates of Deposit (CDs): You can also choose from a range of CDs from other financial institutions.
• Money market account: A money market account can also provide a return on your savings. Check out the best money market account rates to see how they compare.
• Treasury bills: These government-backed bills, securities, and bonds sometimes offer higher interest rates than CDs and may be more liquid.

Frequently Asked Questions (FAQ)

Your guide to CDs