Best CD Rates in Iowa

Iowa stands out not just for its lush landscapes and rich agricultural heritage but also as a beacon for investors who are looking to grow their finances.

Securing the best CD rates in Iowa has become a golden opportunity for residents, so that they can ensure their hard-earned money works even harder for them. Navigating the landscape of CD rates in Iowa could be your first step towards financial empowerment.

Let’s dive into the realm of CDs, and discover how investors of Iowa can unlock the potential of their savings with the most competitive rates available.

Overall Best CD rates in Iowa

No.	Name of the Bank	APY %	Term Length	Address
1	Midwest Heritage Bank, FSB	5.29%	3-month	221 NE Gateway Drive Grimes, IA 50111
2	Pinnacle Bank	5.23%	3-month	2206 S Center St Marshalltown, IA 50158
3	Green Belt Bank & Trust	5.09%	3-month	502 Butler St Ackley, IA 50601
4	Fairfax State Savings Bank	5.02%	3-month	409 Vanderbilt St Fairfax, IA 52228
5	Hardin County Savings Bank	5.00%	3-month	1202 Edgington Ave Eldora, IA 50627
6	First Citizens Bank	5.00%	11-month	2601 4th St SW, Mason City, IA 50401
7	First State Bank	4.91%	3-month	414 Main St PO Box 195 Mapleton, IA 51034
8	Northwest Bank	4.85%	10-month	120 E Main St Belmond, IA 50421
9	Central Bank	4.76%	18-month	4201 S Lakeport St Sioux City, IA 51106
10	Wells Fargo Bank, National Association	4.50%	3-month	115 7th St Des Moines, IA 50309
11	PenFed Credit Union	4.50%	18-month	Online
12	State Bank of Alcester	4.50%	18-month	190 Iowa St PO Box 168 Alcester, SD 57001
13	Citizens Savings Bank	4.45%	24-month	101 S 4th St, Hawarden, IA 51023
14	West Bank	4.28%	6-month	1601 22nd St, West Des Moines, IA 50266
15	Luana Savings Bank	4.25%	3-month	16390 Holcomb Ct Clive, IA 50325
16	Iowa State Bank	4.25%	6-month	627 E Locust St, Des Moines, IA 50309
17	Central Bank	4.18%	3-month	401 W Main St, Anamosa, IA 52205
18	Citizens State Bank	4.16%	12-month	117 W 1st St, Monticello, IA 52310
19	Iowa State Savings Bank	4.16%	3-month	210 W 4th St, Colfax, IA 50054
20	First Community Bank	4.10%	18-month	109 John St PO Box 369 Homer, NE 68030
21	Cedar Rapids Bank and Trust	4.05%	12-month	500 1st Ave NE, Cedar Rapids, IA 52401
22	Maquoketa State Bank	4.01%	12-month	203 N Main St, Maquoketa, IA 52060
23	First Iowa State Bank	4.00%	3-month	4800 George Mills Civic Pkwy, West Des Moines, IA 50265
24	North Star Community Credit Union	4.00%	3-month	106 Main St Sanborn, IA 51248
25	Liberty National Bank	4.00%	3-month	502 8th St S, Dakota City, NE 68731
26	American Trust & Savings Bank	4.00%	3-month	895 Main St, Dubuque, IA 52001
27	Bank of America, National Association	3.93%	3-month	2650 University Ave Des Moines, IA 50311
28	Luana Savings Bank	3.93%	6-month	100 Harvest Dr, Luana, IA 52156
29	The Farmers & Merchants State Bank	3.93%	13-month	100 E Main St, Dike, IA 50624
30	Collins Community Credit Union	3.86%	6-month	1005 Blairs Ferry Rd NE, Cedar Rapids, IA 52402
31	Ohnward Bank & Trust	3.86%	17-month	1410 10th St, Maquoketa, IA 52060
32	Premier Bank	3.80%	3-month	1855 1st Ave SE, Cedar Rapids, IA 52402
33	Bridge Community Bank	3.75%	3-month	302 Highway 1 South, Mount Vernon, IA 52314
34	Exchange State Bank	3.50%	3-month	104 N Main St, Adair, IA 50002
35	Farmers State Bank	3.50%	3-month	1240 8th Ave, Marion, IA 52302
36	Bank of Dixon County	3.35%	18-month	218 E Elk St Jackson, NE 68743
37	Kingsley State Bank	3.05%	18-month	705 First St Sergeant Bluff, IA 51054
38	Security State Bank	3%	6-month	231 First Street East, Independence, IA 50644
39	First Security Bank and Trust	3.00%	3-month	809 Clark St, Charles City, IA 50616
40	Community State Bank	3.00%	3-month	817 N Ankeny Blvd, Ankeny, IA 50023
41	Cornerstone Community Credit Union	3.00%	3-month	414 61st St, Des Moines, IA 50312
42	Grinnell State Bank	3.00%	24-month	814 4th Ave, Grinnell, IA 50112
43	Midwest Federal Employees Credit Union	2.90%	3-month	300 Sycamore St PO Box 1167 Waterloo, IA 50703
44	Warren Credit Union	2.90%	3-month	2209 Falls Ave Waterloo, IA 50701
45	Waterloo Police Credit Union	2.90%	3-month	1311 Orchard Dr Cedar Falls, IA 50613
46	Pinnacle Bank Sioux City	2.85%	18-month	1901 Morningside Ave Sioux City, IA 51106
47	The Shelby County State Bank	2.75%	6-month	508 Court St, Harlan, IA 51537
48	Keystone Savings Bank	2.75%	3-month	330 Western Ave, Marengo, IA 52301
49	1st Financial Bank USA	2.65%	18-month	331 Dakota Dunes Blvd Dakota Dunes, SD 57049
50	First Dakota National Bank	2.50%	18-month	117 W Main St PO Box 220 Elk Point, SD 57025
51	Heritage Bank, National Association	2.50%	18-month	115 E Main St PO Box G Anthon, IA 51004
52	United Bank of Iowa	2.50%	18-month	201 Main St Pierson, IA 51048
53	Peoples Bank	2.50%	6-month	400 E Iowa Ave, Indianola, IA 50125
54	State Savings Bank	2.50%	24-month	4800 George Mills Civic Pkwy, West Des Moines, IA 50265
55	Iowa Savings Bank	2.25%	3-month	510 Highway 30 West, Carroll, IA 51401
56	Hardin County Savings Bank	2.23%	3-month	1202 Edgington Ave, Eldora, IA 50627
57	Earlham Savings Bank	2.06%	6-month	Online
58	Cent Credit Union	1.35%	3-month	3124 4Th St Sw Mason City, IA 50401
59	CENT Credit Union	1.35%	3-month	1411 Industrial Rd SW PO Box 1030 Le Mars, IA 51031
60	The First National Bank in Creston	1.02%	12-month	101 W Adams St, Creston, IA 50801
61	Community Savings Bank	1.00%	24-month	216 Main St, Edgewood, IA 52042
62	Lincoln Savings Bank	–	36-month	242 Main St, Cedar Falls, IA 50613

Current CD Rates of Iowa

The current CD rates in Iowa offer a snapshot of the evolving financial landscape. It is a crucial tool for investors that aim to secure their financial future.

With the potential for higher interest rates compared to regular savings accounts, CDs in Iowa present an appealing option for those seeking a low-risk investment avenue.

Best 6 Month CD Rates

In the short-term savings game, 6-month CD rates offer a perfect balance between flexibility and yield.

1. Capital One

Minimum Amount: $0

APY / Rate: 5.00%

Pros:

• No minimum balance required
• Interest is paid end of the term, monthly,, or annually
• 5-minutes easy account opening process
• FDIC insured investment options

Rules:

• A CD account can be opened online by accessing the website if you are already a member of Capital One bank.
• Interest is accrued daily but paid and compounded monthly.
• Premature withdrawal from the CD is subject to a penalty.

2. My Banking Direct

Minimum Amount: $2500.00

APY / Rate: 4.50% APY

Pros:

• The high yield rate of interest
• A decent minimum amount required
• FDIC insured banking option
• Strong customer support system
• $0 Monthly maintenance fee

Rules:

• To open a CD an investor can approach the bank online or in-branch.
• Less than six months: 30 days’ simple interest on the principal amount withdrawn
• 6 months up to and including 11 months: 90 days’ simple interest on the principal amount withdrawn
• 12 months up to and including 35 months: 180 days’ daily compound interest on the principal amount withdrawn
• The interest on the CD is compounded monthly.

3. CommunityWide FCU

Minimum Amount: $1000.00

APY / Rate: 3.50% APY

Pros:

• NCUA insured to at least $250,000
• Dividends can be compounded in certificates / deposited to another share/ transferred to another institution
•  Option to renew on the maturity

Rules:

• Any withdrawal before maturity is charged with a penalty
• Penalty= amount of the withdrawal x  the remaining term (days) of the certificate at the rate of 2x the current APR (divided by 365)
• Dividends are paid at the end of the month

Best 1 Year CD Rates

1-year CD rates emerge as a prime choice. These rates enhance their returns without locking away their funds for an extended period.

1. CIT Bank

Minimum Amount: $1000.00

APY / Rate: 4.15% APY

Pros:

• The high yield rate of interest
• A decent minimum amount required
• FDIC insured banking option
• No monthly fees
• Best savings APY

Rules:

• To open a CD an investor can approach the bank online or in-branch.
• You’ll need to provide your address, phone, email and social security number (or other taxpayer ID).
• Minimum of $1,000 to open your account. You can transfer funds with electronic transfer, mail in check, or wire.
• CIT Bank is a division of First-Citizens Bank & Trust Company, a member of the Federal Deposit Insurance Corporation (FDIC), which means your deposit accounts are insured up to $250,000 per depositor, for each account ownership category.

2. Sallie Mae Bank

Minimum Amount: $2500

APY Rate: 3.75

Pros:

• Guaranteed returns
• FDIC insured
• Auto renewal option available
• High APY
• No monthly fee

Rules:

• Interest is calculated only when the minimum balance is maintained
• A penalty will be charged on early withdrawal
• Interest is compounded on a monthly basis

3.  PenFed Credit Union

Minimum Amount: $1000.00

APY / Rate: 4.25 % APY

Pros:

• High-yield checking account with easy-to-waive monthly fees
• Opening checking and savings accounts require a low minimum deposit.
• Online savings account with a competitive dividend rate

Rules:

• On early withdrawal, account earnings will be reduced.
• Require a written notice of up to 60 days of the intention to withdraw funds

Best 2 Year CD Rates

Stepping into the realm of mid-term investments, 2-year CD rates in Iowa present an attractive proposition.

1. America’s First Credit Union

Minimum Amount: $500.00

APY / Rate: 4.75% APY

Pros:

• Low minimum deposits and high yields
• Automatic renewals
• NCUA insured up to $250,000
• Terms from three months to five years

Rules:

• To open a CD with AFCU, you must deposit a minimum amount of money, which varies depending on the term length of the CD. For example, as of February 2023, the minimum deposit for a 6-month CD is $500, while the minimum deposit for a 60-month CD is $1,000.
• AFCU offers CDs with terms ranging from 6 months to 60 months. The longer the term, the higher the interest rate you’ll earn on your deposit.
• AFCU offers competitive interest rates on its CDs, with rates varying depending on the term length and the amount of the deposit. Interest is compounded and paid monthly, and the rate is fixed for the term of the CD.
• If you withdraw money from your CD before the maturity date, you’ll be subject to an early withdrawal penalty, which varies depending on the term length of the CD. For example, as of February 2023, the penalty for withdrawing money from a 60-month CD before maturity is 365 days of interest.
• Unless you specify otherwise, your CD will automatically renew at maturity for another term of the same length. You’ll have a 10-day grace period after maturity to withdraw the funds without penalty.
• FDIC insurance: AFCU is a federally insured credit union, which means that your deposits are insured

2. Synchrony Bank

Minimum Amount: $0

APY / Rate: 4.30%

Pros:

• No minimum balance required
• Higher interest rates
• Accurate saving solution with a CD ladder
• CD calculator available on the bank website

Rules:

• Withdrawing principal prior to the maturity date earns a penalty
  1. Term less than one year- 90 days of simple interest
  2. The term more than one year and less than 48 months- 180 days of simple interest
  3. The term more than 48 months: 365 days of simple interest
• Interest can be withdrawn anytime during the CD term without any penalty
• Interest can be transferred to Synchrony bank account or other bank saving accounts

3. Pentagon Federal Credit Union

Minimum Amount: $1000.00

APY / Rate: 4.35 % APY

Pros:

• Easy online and mobile access.
• Checking account dividends are compounded daily and paid monthly
• 85,000 free ATM network access nationwide.
• Competitive APY rates.

Rules:

• NCUA insured.
• Rates are the same and are subject to change.
• Penalties applied for early withdrawal.
• The penalty will be 30% of the gross amount of dividends after 365 days of the open date.

Best 3 Year CD Rates

3-year CD rates are appealing for the investors to moderately extend their investment horizon. It ensures a higher return while maintaining a relatively accessible timeframe.

1.  Global Credit Union

Minimum Amount: $500

APY / Rate: 4.55% APY

Pros:

• The high yield rate of interest
• A decent minimum amount required
• FDIC insured banking option
• Strong customer support system

Rules:

• To open a CD an investor can approach the bank online or in-branch.
• The minimum deposit allowed in a CD is $500 and the maximum limit is set at $250,000.
• The interest on the CD is compounded monthly.
• Premature withdrawal from the CD is subject to a penalty.

2.  First Internet Bank of Indiana

Minimum Amount: $1000.00

APY / Rate: 4.39% APY

Pros:

• Only $1,000 minimum balance to open
• Interest is compounded daily and credited monthly
• Rates are locked for the term chosen and cannot go down

Rules:

•  In order to open a CD, you’ll need to deposit a minimum amount of money, which may vary depending on the term and rate of the CD.
• The term of the CD is the amount of time that you agree to keep your money in the CD. At Greenwood Credit Union, CD terms range from 3 months to 60 months.
• The interest rate on the CD is the rate at which your money will earn interest. Generally, longer-term CDs will offer higher rates than shorter-term CDs. Greenwood Credit Union offers both fixed-rate and variable-rate CDs.
• If you need to withdraw money from your CD before the maturity date, you will typically be charged an early withdrawal penalty. The specific penalty amount will depend on the term and type of CD you have.
• You can open a CD as an individual or joint account holder. You may also be able to open a CD as an IRA account.

3. First National Bank of America

Minimum Amount: $1000.00

APY Rate: 4.40% APY

Pros:

• Competitive APY on online CDs and high-yield savings accounts
• Fee-free access to 55,000 all ATM networks.
• Digital banking access online and via an app

Rules:

• Interest rates and APYs are subject to change without notice.
• Early withdrawal will reduce earnings and impose the penalty
• APY on all services will remain deposited until maturity.

Best 5 Year CD Rates

For the long-term planner, 5-year CD rates are time-bound savings opportunities. These rates offer the highest returns in exchange for patience and a long-term view.

1. GTE Financial Credit Union

Minimum Amount: $500

APY / Rate: 4.54% APY

Pros:

• Open with as little as $500
• Some of the best rates in the nation
• Variety of term options
• Open online in minutes
• Federally Insured by NCUA

Rules:

• No early withdrawals may be made during the first 60 days from opening the Share Certificate.
• Early withdrawals will be penalized anywhere from 90 to 180 days of earned dividends. Please review your Certificate disclosure for more details.
• There are no penalties for monthly dividend withdrawals. Early withdrawal penalties will apply if the certificate is closed before the maturity date.
• You can withdraw up to 10% of the principal plus dividends one time per year (20% of the current balance if over 59 1/2 years old) with no early withdrawal penalty on IRA certificates.
• Any monthly withdrawals or transfers reduce earnings.

2. CFG Community Bank

Minimum Amount: $500.00

APY / Rate: 5.00% APY

Pros:

• The high yield rate of interest
• A decent minimum amount required
• FDIC insured banking option
• Strong customer support system

Rules:

• To open a CD an investor can approach the bank online or in-branch.
• The minimum deposit allowed in a CD is $500 and the maximum limit is set at $250,000.
• The interest on the CD is compounded monthly.
• Premature withdrawal from the CD is subject to a penalty.

3. PenFed Credit Union

Minimum Amount: $1000.00

APY / Rate: 3.90 % APY

Pros:

• High-yield checking account with easy-to-waive monthly fees
• Opening checking and savings accounts require a low minimum deposit.
• Online savings account with a competitive dividend rate

Rules:

• On early withdrawal, account earnings will be reduced.
• Require a written notice of up to 60 days of the intention to withdraw funds

Iowa Economic Statistics

Navigating the economic landscape of Iowa offers a compelling narrative for investors. It is particularly interesting in optimizing their CD investments.

With an average household income of approximately $61,691, Iowa stands as a testament to the resilience and steady growth of the Midwest’s economic backbone. The state’s average home value falls around $158,000. It reflects an accessible real estate market, enhancing its appeal to both residents and investors seeking stable growth opportunities.

Moreover, with a population of over 3.1 million, Iowa’s demographic dynamics underscore a diverse and robust economic environment ripe for financial strategies that include leveraging the best CD rates.

Statistic	Value	Implication for CD Investors/Savers
Average Income	$61,691	Indicates a solid economic foundation, suggesting a potentially strong market for savers to invest in CDs.
Average Home Value	$158,000	Reflects an accessible real estate market, highlighting stability and growth potential that could complement CD investments.
Population	Over 3.1 million	A substantial population suggests a dynamic economy, offering diverse opportunities for CD investments.

These statistics not only inform potential investment decisions but also highlight Iowa’s solid economic fundamentals. Ultimately, it provides a fertile ground for investors who are looking to maximize their returns through carefully chosen CD rates.

How to Get Best CD Rates in Iowa?

To secure the best CD rates in Iowa, follow these short and concise steps:

1. Start by researching various financial institutions in Iowa, including banks and credit unions. Use online comparison tools to compare their CD rates, terms, and conditions.
2. Local banks and credit unions also offer competitive rates to attract members within the community. Don’t overlook these smaller institutions.
3. If you are already a customer with a bank, try negotiating your rate. Some institutions may offer higher rates to retain or reward loyal customers.
4. Financial institutions occasionally offer promotional CD rates that are higher than their standard rates. Keep an eye out for these deals.

By following these strategies, you can enhance your chances of finding the best CD rates in Iowa. One can precisely optimize your investment and maximize your returns.

CD Rates Methodology

Our CD rates methodology involves a comprehensive review of CD rates from 90 banks, spanning a wide range of sizes and geographic locations within Iowa.

Out of these, 62 banks made our list, selected based on their competitive interest rates, term options, and overall customer service quality.

This selection process is designed to ensure that our recommendations reflect the best opportunities for investors, and provide a diverse array of options to suit different financial goals and preferences.

Conclusion

By employing a strategic approach that includes thorough research, comparison, and consideration of both local and online institutions, individuals can significantly enhance their potential for higher earnings.

With the right approach, securing the best CD rates in Iowa can be a straightforward and rewarding endeavor. It contributes to your financial wellbeing and future security.

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