TIAA Bank offers certificate of deposit (CD) accounts as one of its savings products. TIAA CDs are a type of savings account where you deposit a fixed amount of money for a set period of time, ranging between 3 months – 5 years .
TIAA Bank CDs
APY Range
Minimum Deposit
Terms
Our Rating
TIAA Bank CDs
APY Range
Minimum Deposit
Terms
Our Rating
TIAA Bank CD Rates
TIAA Bank offers competitive interest rates on its CDs, which are generally higher than the rates offered on traditional savings accounts. The interest rate you earn will depend on the term of the CD and the amount you deposit.
What's good with TIAA CDs is the variety of terms; each of them offers a competitive rate. For example, if you're looking for the 9-month CD, TIAA offers 5.25% APY, which is among the top CD rates for this term.
It's a good idea to compare TIAA Bank's CD rates and terms with those offered by other banks and credit unions.
CD Term | APY |
|---|---|
3 Months | 4.00% |
6 Months | 4.00%
|
9 Months | 5.25%
|
12 Months | 5.00%
|
18 Months | 4.60% |
24 Months | 4.40% |
30 Months | 4.10% |
36 Months | 4.10%
|
48 Months | 4.05%
|
60 Months | 3.95%
|
How Much Can You Earn If You Deposit $100,000 Today?
The interest rate provided by the financial institution, the CD's term, and the frequency of interest payments are just a few variables that will affect how much you can make from investing $100,000 in a TIAA certificate of deposit (CD).
For instance, if you invest $100,000 in a TIAA Bank CD and assume that interest increases daily and there are no early withdrawal penalties, the predicted earnings (before taxes) are as follows:
CD Term | Interest Earned |
|---|---|
3 Months | $742
|
6 Months | $1,641
|
9 Months | $2,927
|
12 Months | $4,435
|
18 Months | $6,647
|
24 Months | $8,852
|
30 Months | $10,365
|
36 Months | $11,900
|
48 Months | $15,488
|
60 Months | $18,546
|
Naturally, the earnings are higher for the longer terms. Therefore, if you choose to put your money in 5-year CDs, you'll get the highest earnings (but not the highest APY).
How TIAA Bank CDs Work
TIAA CDs can be a good option for individuals who are looking for a low-risk way to save and grow their money, as long as they are willing to lock their funds into the CD for the entire term.
TIAA Bank requires a minimum deposit of $1,000 to open a CD account. Like all deposits at FDIC-insured banks, TIAA Bank CDs are insured up to $250,000 per depositor, per bank, for each account ownership category.
If you withdraw funds from a CD before its maturity date, you will be subject to an early withdrawal penalty of one-fourth of the total interest earned. This penalty can reduce the amount of interest you earn on your CD and may also reduce the principal amount of your deposit. If you may need to withdraw your money, you may want to take a look on savings accounts or no-penalty CDs.
Given the significant rate difference between CDs with durations less than a year and CDs with terms of a year or longer, 12-month CDs at TIAA Bank appear to be a sweet spot, providing you with good returns with a relatively short lock-in period.
TIAA Bank Certificates Rates vs Savings Rates
The value proposition behind CDs is that you receive a higher interest rate in exchange for limiting your access to your money. Savings accounts normally have a little bit lower rates, but they also allow withdrawals immediately rather than making you wait for the account to mature.
Savings accounts from TIAA pay 5.15% interest, which is higher rate as the bank's certificates of deposit for maturities less than 6 months.
There is little need for TIAA customers to open a 6- or 3-month CD unless they are concerned about interest rates decreasing. Additionally, there are no monthly fees and low balance requirements for the savings account.
CDs | Savings | |
|---|---|---|
APY | 3.95% – 5.50% | 5.15% |
Minimum Deposit | $1,000
| $25
|
Fees | $0 | $0 |
About TIAA Bank
TIAA Bank is a U.S. based bank that provides banking and lending services to individuals and institutional clients. TIAA Bank is headquartered in Jacksonville, Florida, and is a division of TIAA, a financial services organization focused on serving the needs of people in the academic, research, medical, and cultural fields.
TIAA is a good online bank, that offers a range of products and services, including checking and savings accounts, mortgages, personal loans, and investment products. They also provide a range of digital banking services, such as online and mobile banking, bill pay, and account management.
