High-Yield Quontic Bank CDs: The Perfect Savings Opportunity for Inflation Fighters!
In a bid to tame inflation, the Federal Reserve has raised interest rates, bringing a moment of celebration for savers. Financial products like high-yield savings accounts, money market accounts, and certificates of deposit (CDs) now come with impressive APYs well above 4%—and in some cases, even higher. If you’re eager to make the most out of your money, you’ll be thrilled to hear that Quontic Bank is now offering one of the highest APYs available on their 1-year CDs.
Quontic Bank CD rates soar to an impressive 5.30% APY on their 1-year CDs!
Founded back in 2009, Quontic Bank operates primarily as a digital bank, with no physical branch locations. Despite its virtual presence, it provides a wide range of products, including various CDs and savings accounts—all of which are FDIC-insured. Additionally, Quontic Bank plays an essential role as a Community Development Financial Institution (CDFI), serving the financial needs of low-income communities.
At present, Quontic Bank boasts some of the most competitive CD rates in the market, particularly on their 1-year certificates. And no, this is not a mirage—their rate stands at a whopping 5.3% APY. To put that into perspective, it’s nearly three times higher than the national rate of 1.72% on a 12-month CD, according to data from the FDIC.
Key figures to consider before diving in:
- Minimum deposit: $500
- Term length: 1-year CD
- APY: 5.3%
- Compounding frequency: Daily interest compounding with monthly account crediting
- Early withdrawal penalty: Equivalent to one year’s worth of interest
To start your savings journey with a Quontic CD, you must open an account with the bank and deposit at least $500, a process easily done online. When you’re all set to invest, make sure you have your address, phone number, Social Security Number (SSN), and email address handy to expedite the application. Afterward, you can fund your CD by transferring the required funds from your regular bank account.
However, a word of caution: To take advantage of this exceptional rate, you must be prepared for a substantial early withdrawal penalty that amounts to a full year’s worth of interest. Therefore, it’s crucial to invest only the cash you won’t need for the next year.
Is a Quontic 1-year CD the right fit for you?
The Quontic 1-year CD undoubtedly comes with its perks—a remarkable APY above 5% and the safety of FDIC insurance, which holds great importance, especially during challenging times in the banking industry.
If you seek the security of a fixed rate for a set period, a traditional CD like Quontic’s could be ideal for a wide range of savings goals. For example, if you’re saving for a housing down payment, placing your money in a 1-year CD could yield additional funds to put toward closing costs.
However, if you require easy access to your savings, a high-yield savings account might be a more suitable choice. It offers a higher APY compared to traditional savings accounts, and you won’t be penalized for accessing your funds during emergencies.
The bottom line
As inflation gradually recedes and interest rates climb, savers are presented with an excellent opportunity. If you’re contemplating whether to invest your money in a CD now or wait, Quontic’s 1-year CD presents a compelling case for “now.”