The Best CD Rates In Rhode Island June 2024 (2024)

Best CDs In RI 2024

We analyzed the data to select the best Rhode Island certificates of deposit. We looked at criteria such as the APY, minimum deposit, early withdrawal penalties and customer service ratings. Here, we’ve rounded up our top three picks for Rhode Island.

Shoreham Bank

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Vault Verified

APY

5.50%

Term Length

3 months, 9 months

Min. Deposit Requirement

$1,000

Early Withdrawal Penalty

3-month CD: 3 months interest; 9-month CD: 6 months interest

Why We Chose It

Headquartered in Warwick, RI, Shoreham Bank (previously known as Home Loan & Investment Association), features two CDs with a very competitive interest rate: the 3-month and 9-month CDs. While these are some of the best CD rates in the state, you need to call or step foot inside one of its locations to open an account.

Pros

• Competitive interest rate on short-term CDs
• Fairly low minimum balance requirement
• Mobile app available to manage account

Cons

• Can’t open a CD online
• Comparatively small selection of term lengths available
• Hefty early withdrawal penalty on 9-month CD

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Santander Bank

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Vault Verified

APY

5.00%

Term Length

10 months

Min. Deposit Requirement

$500

Early Withdrawal Penalty

3 months interest on the amount withdrawn

Why We Chose It

With several locations in Rhode Island, Santander Bank features an attractive 5.00% APY on its 10-month CD. Combined with a low minimum deposit of $500, it’s one of the best CDs to open in the Ocean State. One caveat: You’ll need to visit a branch to open an account.

Pros

• Interest is compounded daily and credited monthly
• Can add more than one signer to the account
• Low minimum deposit

See Also

Best Savings Account Interest Rates In Massachusetts: June 2024

Cons

• Need to visit a branch to open a CD
• Fairly stiff early withdrawal penalties
• No bump-up, step-up or no-penalty CDs available

Centreville Bank

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Vault Verified

APY

5.25%

Term Length

7 months

Min. Deposit Requirement

$1,000

Early Withdrawal Penalty

Depends on the funds and the amount left until the maturity date

Why We Chose It

A longstanding bank that’s been around for about 200 years, Centreville Bank serves Rhode Island and eastern Connecticut communities. Currently, it’s offering a promotional rate of 5.25% on its 7-month CD. The minimum deposit is fairly low and you can apply and open an account online.

Pros

• Promotional rates are very competitive
• Wide range of CD terms from 3 months to 5 years
• Interest is compounded daily

Cons

• Long-term CDs have low rates
• Standard APYs aren’t as competitive as promotional rates
• Early withdrawal penalties are a bit confusing

Vault’s Viewpoint: Overview of the Best Rhode Island CDs

Some of the best Rhode Island CDs can be found at regional and community banks. For example, our top three CDs offer APYs higher than 5.00%, which is significantly higher than the current national average of 0.45% APY for savings accounts.

To get approved for a CD, you’ll need to open an account either online or by visiting a branch. Some banks and credit unions require that you have an existing deposit account. If you need to meet with a bank rep in person, it’s a good idea to do a quick search and see if there’s a branch in the proximity of where you live.

Generally speaking, you can usually find more attractive rates, low account minimums and no or low monthly account fees through online-only banks. That’s due in part to the fact that online-only banks have lower operating costs. No brick-and-mortar locations means fewer costs. In turn, they can offer more competitive rates.

Spend time poking around to see which financial institutions offer the most competitive rates, low minimum deposits, solid customer support and a simple and streamlined application process.

Short-Term CD Rates in Rhode Island

Short-term CDs typically have maturity dates of one year or less. While you’ll have less time to grow your money, you don’t have to worry about locking in your funds for a longer period of time, which means potentially missing out on higher rates. Because they’re shorter in length, you’ll have less time to grow your money. Currently, the highest rates for CDs in Rhode Island tend to be on short-term CDs.

Long-Term CD Rates in Rhode Island

Long-term CDs are typically those with maturity dates of over one year. While you can rake in more in interest, you’ll also be committed to keeping your funds in the CD for a longer stretch of time. Should you need to pull out your funds early, you’ll get hit with an early withdrawal penalty—so it’s important to make sure you can keep your money until the CD matures.

Jumbo CD Rates in Rhode Island

Jumbo CDs, which are CDs that usually require a minimum deposit of $100,000 or more, can be a low-risk way to maximize your savings. To make the most of a jumbo CD, you’ll want to combine the sizable pile of cash with a high interest rate and a longer term length.

How Much Can You Earn With the Best CD Rates in Rhode Island?

Maximizing the earnings on your CD typically requires parking a large amount of money into an account with a competitive interest rate and—ideally—a longer term length. Beyond that, it’s important to feel secure that you can stash your money in a CD for the amount of time it requires to mature. Otherwise, you’ll get dinged with an early withdrawal penalty, which can offset your earnings.

When shopping around for the best Rhode Island certificate of deposit, check to see which CDs have the best rates and terms for your needs and preferences. If you’re not entirely set on parking your funds in a single CD, you might want to try the CD ladder method. By dividing your funds into equal parts and staggering them in CDs with varying terms, you can get the best of both worlds—high interest rates and greater flexibility.

Here, we’ll walk you through how much you would roughly earn with a $25,000 deposit. These are based on the current rates and terms of our top picks for the best CD rates in Rhode Island.

How To Open a CD in Rhode Island

Opening a CD in Rhode Island is fairly straightforward, but there are some things to keep in mind. Let’s take a look at how to open a CD account in the Ocean State.

1. Look at different CD options. The first step in opening a CD in Rhode Island is exploring what options exist. It is important to pay particularly close attention to the terms, rates, early withdrawal penalties and required opening balances on the CDs you are considering. Some local and regional banks require you to step foot inside a brick-and-mortar location, so be mindful of where these branches are located.
2. Pick your CD. Once you’ve looked over the different CDs, narrow it down to a few choices. Before choosing a CD, look for details such as whether the CD will renew automatically when the CD matures and if there’s a grace period. It’s also a good idea to look at other CDs the bank offers. That way, you’ll have an idea of whether you might want to renew your existing CD, roll it over to a new CD with a different term and rate or withdraw the money upon maturity.
3. Apply to open a CD. To open a CD account, you usually will need to submit an application. On the application, you’ll be asked to provide basic personal information such as your name, address, date of birth, email and phone number and Social Security number. Bank and credit unions also require that you provide a form of government-issued ID—like a military ID, passport, state-issued ID or driver’s license.
4. Move money into your account. Once your CD has been approved and is opened, you’ll need to fund it. Depending on the bank or credit union, you can move money into your account by stepping foot into a branch and depositing cash, moving it from a linked account (either at the same bank or an external bank) or by writing a check.
5. Decide on what to do once your CD matures. Once the CD matures, you can renew the CD or move the funds into another type of account. You can also use the funds to open another CD or withdraw the money as cash. If the CD auto renews after the maturity date, you usually have a grace period of roughly 7 to 10 days—allowing you to withdraw funds without getting hit with a penalty.

Alternatives to a CD in Rhode Island

Besides a CD, there are other low-risk options for earning higher-than-average interest rates. Let’s take a look at several alternatives that can also help you make the most of your savings.

High-Yield Savings Accounts

Like a CD, a high-yield savings account (HYSA) is offered by banks and credit unions and features higher-than-average interest rates. However, the main benefit of an HYSA is that the money you keep in it can be accessed at any time. Plus, like a standard savings account you can put money into an HYSA at any time. With a CD, on the other hand, your funds are locked in until the CD matures.

While you might see comparable interest rates on an HYSA to a CD, the interest rate on an HYSA is variable and can go up and down. So, it is important to understand that the advertised rates you receive when opening an HYSA might change over time.

Money Market Accounts

Money market accounts (MMA) are also a type of deposit account that can feature competitive interest rates and check-writing capabilities. Similar to a CD, you can find these at most financial institutions. However, MMAs tend to require higher minimum balances to open—plus, you’ll typically need to maintain a higher balance to keep it open. Another thing to keep in mind with an MMA is that they often charge monthly maintenance fees or fees to get paper statements sent in the mail. This depends on the financial institution, so inquire about these fees before opening an account.