Banesco USA CD Rates for October 2024
Written by
Karen Doyle
Edited by
Elizabeth Constantineau
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A certificate of deposit pays a guaranteed rate of interest for a specified period of time, and your money is typically insured by the FDIC. The key to helping your savings grow with CDs is finding the best possible rate. As rates change all the time, there can be quite a bit of variation from bank to bank, and from month to month. Here’s what you need to know about Banesco CD rates.
What Are the CD Rates at Banesco USA?
Banesco USA has competitive rates on its CDs, which range in term length from three months to 24 months. Here’s a look at Banesco CD rates.
| Term | APY |
|---|---|
| 3 months | |
| 6 months | |
| 9 months | |
| 12 months | |
| 18 months | |
| 24 months |
Banesco USA also offers a 13-month CD that pays APY and a five-month CD that pays APY, both of which are available in Puerto Rico only.
The minimum opening balance for a Banesco CD is $1,000 if you open one online. You must deposit new funds, meaning funds that come from another bank, rather than from a different account at Banesco USA.
About Banesco USA
Banesco USA has offices in Aventura, Brickell, Coral Gables, Doral and Hialeah, Florida, and an office in Puerto Rico.
Banesco offers checking and money market accounts and home loans for consumers. For businesses, Banesco offers checking, savings, loans, merchant services and treasury management solutions. Online banking and a mobile app are also available.
Advantages of CDs
A CD offers a guaranteed interest rate, so you know exactly how much your money will earn. The rate remains the same for the term of the CD.
CDs are available in different terms, often from three months to five years. Again, the interest rate remains the same for the duration of the term, so rates will vary depending on the term. In some cases, a longer-term CD will pay less than a shorter-term one, which seems counterintuitive. But the rate reflects what the bank expects to happen to interest rates over the term. If the bank expects rates to rise in the short term, but then fall, it may offer a lower rate for a longer term than it does for a shorter one.
Thanks!
CDs are offered by banks, which are usually FDIC insured. This means that your money is protected in the event the bank goes out of business. Credit unions also offer certificates, sometimes called share certificates, which work the same way as CDs, and are insured by the NCUA.
Disadvantages of CDs
CDs are subject to interest rate risk since the rate is fixed for the duration of the term. Here’s an example of interest rate risk. Suppose you purchase an 18-month CD at 4.50% APY. Two months later, the rate on that same CD has risen to 4.70% APY. You still have 16 more months of earning 4.50% APY before you can withdraw that money without a penalty and reinvest it at the higher interest rate.
Because CDs have a fixed term, and the interest rate is based on that term, most CDs impose a penalty if you withdraw your funds before the end of the term. The penalty is usually calculated as a certain number of months’ worth of interest. So, if you withdraw your money early from a 12-month CD, you may pay a penalty equal to three months’ worth of interest. A three-year CD might have a penalty equal to six months’ worth of interest.
Depending on when you make the early withdrawal and what the penalty is for your particular CD, you could end up with less money than you deposited in the first place.
Final Take
Banesco CD rates are competitive and offer a great way to passively grow your money. Before you invest in a CD, be sure to compare rates, and select a term that you can live with. You don’t want to lose some of your hard-earned money because you have to withdraw funds from a CD before the end of the term.
FAQ
- Is Banesco USA a good bank?
- Banesco USA has a solid offering of accounts for individuals and businesses. Its CD rates are competitive, and it is FDIC insured. It also offers a mobile app if you prefer online banking or if you are not close to a branch.
- Who has the highest-paying CD right now?
- While CD rates will vary based on term, some of the highest paying one-year CDs can be found at Bask Bank and First Internet Bank.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Oct. 8, 2024.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
