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.
- 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.
- 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.
- 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.
- 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.
- 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
- 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.
- 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
- 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
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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:
- 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.
- Local banks and credit unions also offer competitive rates to attract members within the community. Don’t overlook these smaller institutions.
- 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.
- 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.
FAQs
Midwest Heritage Bank, FSB offers the best CD rates in Iowa at 5.29% for a 3-month term.
PenFed Credit Union has the best CD rates among credit unions in Iowa, offering 4.50% for an 18-month term.