The 7 Best 9-Month CD Rates of 2019
Maximize the interest returns on your savings
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Do you have a short-term savings goal and a small amount of money already saved? Maybe you're unhappy with the low interest rates on your traditional savings account and looking to grow your money a little faster. While investing in the stock market can certainly be lucrative, it also comes with a lot of risks. A CD, or certificate of deposit, is a different type of investment that has more modest returns but is virtually risk-free. If you have short-term needs, a nine-month CD is a great way to collect some interest on your savings.
CDs are one of the safest investments you can make. You can think of it as a savings account that has a fixed interest rate (one that's usually quite a bit higher than traditional savings accounts) and a fixed date of withdrawal, known as the maturity date. If you take money out of the account before the maturity date, you'll usually be required to pay a penalty. Like checking and savings accounts, CDs are insured by the FDIC and offer a guaranteed interest rate.
If you are looking for the expertise and security of a Fortune 500 company combined with the customer service of a small one, Synchrony Bank is a great investment option. Synchrony is the largest provider of private label credit cards in the United States, but they also have a consumer bank that delivers fantastic customer service and quality investments. They have a nine-month CD available with an APY of 1.25% that requires a minimum deposit of $2,000. Synchrony Bank has a Bankrate Safe & Sound 5-Star Rating and has won a NerdWallet “Best-Of” Award for one or more savings products every year since 2016. Their website is clean and easy to use, and it is easy to compare other products as well once you are there. Penalties for early withdraw include 90 days of simple interest at the current rate for CDs less than 12 months.
Interested in learning more? Check out our full review of Synchrony Bank.
You will get a much better return on your investment if you invest for a more extended period, but the peace of mind that comes with banking with an industry leader is hard to beat. Barclays Bank has an APR of 0.70%, and you do not have to worry about coming up with a big chunk of change as there is no minimum deposit required (a rarity when it comes to CDs). Barclays is an internet-only operation, so it does not have branch locations. They make setting up a CD online easy.
You can also read through our full review of Barclays Bank.
TAB works with both individuals and corporations, and they are a trusted name in banking. They are relatively young, founded in just 1998, but they offer many great financial products and a ton of business expertise. TAB Bank has a nine-month CD available with an APY of 2.28% and requires a minimum deposit of $1,000. If you have a hard time not spending money in your savings account, investing in a CD can be a great way to eliminate the temptation. Remember that withdrawing your investment before the scheduled date usually results in a penalty that can quickly eliminate any financial benefits you may have had in the first place. TAB Bank is located in Ogden, UT and boasts savings rates that are four times the national average.
Ally Bank is an online-online financial institution with 24/7 customer service. At Ally, you will be able to earn 1.25% on a nine-month CD. That isn't an exceptionally high rate, but it is much higher than the return on investment for most savings accounts and comes with no minimum deposit. The CD can also be used as an IRA if you’d like to get ahead on your retirement savings (or are getting close to that age and need to catch up). If you have more money or more time to invest, you’ll be able to earn much higher rates, so you can start with a nine-month commitment and up the ante afterward. The penalty amount for early withdraw is calculated at the interest rate in effect for the CD and is equal to the interest accrued during the period specified in the penalty schedule. If the accrued interest is less than the penalty amount, the difference will be deducted from the CD's balance.
If you are looking for a financial institution that deals exclusively with CDs, this is it. CD Bank offers a 2.45% APY and a minimum deposit of $10,000. They are technically the online division of TBK Bank, but they handle every sort of CD investment vehicle, including nine-month CDs. While they require a pretty hefty upfront investment, they offer some of the best nine-month CD rates in the country. The bank is fully FDIC-insured and based in Dallas. The application process is handled entirely online, making it a convenient and easy option. Their website also happens to be friendly, inviting, and easy to use. The withdrawal penalty on certificates with a maturity of less than one year will be an amount equal to three months interest on the amount withdrawn subject to penalty.
VirtualBank, as the name implies, is run entirely online, which allows them to have 24/7 customer service and keep the rates they offer you well above average. VirtualBank offers an APY of 2.18% with a minimum deposit of $10,000. They offer CD terms from 1 to 60 months, with a high rate on nine-month CDs — well above what you could get from most savings accounts.
Because Andrews Federal is a credit union, you will need to join to be eligible for this great investment. All veterans and active duty military personnel and their families are eligible, as are Washington DC residents and employees of over 200 different Employer Groups. But even if you do not fit into one of those categories, you can become a member by joining the American Consumer Council, a non-profit organization that supports financial literacy. Lifetime membership is just $15. Andrews Federal was founded in the 1940s and currently serves more than 100,000 members. Once you are a member, you will also have access to many of their other financial products and services. Now, they are offering an APY of 2.75% on nine-month CDs. If you are looking to invest at a credit union rather than with a bank, you will be investing in a “share certificate,” but the terms and rates are generally the same as you would find in a CD.