Certificates of Deposit (CDs) - Santander (2024)

FAQs

What is the current CD rate at Santander? ›

Santander charges an early-withdrawal penalty of up to one year's interest on the principal amount withdrawn if you need to access standard CD funds before the maturity date. Jumbo CDs feature early withdrawal penalties of up to three months' interest on the principal amount withdrawn.

Finding reliable 6% CD rates

You can find 6% CD rates at a few financial institutions, but chances are those rates are only available on CDs with maturities of 12 months or less. Financial institutions offer high rates to compete for business, but they don't want to pay customers ultra-high rates over many years.

Are Santander's CDs FDIC insured ? Yes. There is a maximum of $250,000 of deposit insurance from the FDIC for each category of account ownership.

As of May 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Banco Santander's likelihood of distress is under 9% at the present time. It has tiny risk of undergoing some form of financial distress in the near future. Probability of distress shows the probability of financial torment over the next two years of operations under current economic and market conditions.

Is Santander Bank a good bank? ›

The bottom line: Santander Bank could be a good fit if you want a brick-and-mortar bank with low monthly fees. For more competitive savings rates, though, consider one of the best high-yield savings accounts with an online bank. Annual Percentage Yield (APY)

Earning high interest means nothing if you have to forfeit it or your principal to access your money. A high-yield savings account or money market account would be better for your money. In sum, yes, you can lose money on a CD. But as long as you don't withdraw too early, you'll be left with at least your principal.

The amount of money you should put in a certificate of deposit (CD) depends on numerous factors, ranging from how much you have to invest to how much the bank requires. You must typically make a minimum opening deposit, usually between $500 and $2,500, although some accounts don't have this requirement.

Depending on the bank, a $5,000 CD deposit will make around $25 to $275 in interest after one year. Online banks and credit unions pay appealing CD rates, and you can earn more interest than at big brick-and-mortar banks. When choosing a CD, consider other factors beyond the interest rate of an account.

No, CD rates have started incrementally dropping in 2024. Both national average and high-yield CD rates saw a slowdown in increases last year.

The national deposit rate for 5-year CDs is 1.39%, up from less than 0.50% in June 2022. Yet many banks are offering rates well above that—some 5-year CDs have annual percentage yields (APYs) that exceed 4%, and some 1-year CDs are offering APYs well above 5%.

The Online Banking Advantage

The lack of significant infrastructure and overhead costs enables online-only banks to pay higher interest rates or annual percentage yields (APY) on CDs and other types of savings.