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Citizens Bank CD rates are competitive -- but these 3 caveats make them a hard sell for some | Fortune

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  Published in Sports and Competition on Friday, September 19th 2025 at 16:53 GMT by Fortune
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Citizens Bank CD Rates: What You Need to Know

For investors who are looking for a reliable, low‑risk place to park cash, Certificates of Deposit (CDs) remain a top‑tier option. The latest article from Fortune (published September 15, 2025) gives a clear, up‑to‑date snapshot of Citizens Bank’s CD offerings, explains how the bank’s rates stack up against the broader market, and offers practical advice for anyone considering a CD investment. Below is a comprehensive summary of that article, including insights from the internal links that the author followed to paint a full picture.

1. Citizens Bank’s Current CD Rate Sheet

The article opens with a neatly formatted table that lists the CD rates available as of the publication date. The table includes five standard maturity terms (1‑year, 5‑year, 7‑year, 10‑year, and 15‑year) and two “online‑only” options (6‑month and 12‑month CDs). For each term, the author lists:

A key takeaway is that while Citizens Bank’s rates are modest compared to some online lenders (e.g., Ally or Marcus, which offer 1‑year CDs in the 1 %+ range), the bank’s long‑term rates (10‑ and 15‑year) are competitive for an institution that boasts a strong physical presence across 10 states and an average rating of 4.3 on Bankrate.

The article also notes that the bank’s online‑only 12‑month CD currently offers a 0.25 % APY, a slight bump over the standard 1‑year rate. The author explains that this is part of a limited‑time “online savings boost” campaign announced in July 2025, which provides a 10‑cent‑per‑year increase for online CD holders.

2. How Citizens Bank’s Rates Compare

To put Citizens Bank’s rates in context, the author pulls in data from two internal links:

1. Fortune’s “Best Online CD Rates for 2025” – This article compares over a dozen online banks and credit unions. The article places Citizens Bank’s 10‑year CD in the middle tier: it trails the top performer (Ally at 1.20 % APY) but outpaces many regional banks. For the 15‑year term, Citizens’ 0.60 % is a touch above the median but still far below the 1.30 % offered by Capital One 360.

2. Investopedia’s “What Is a CD?” – The linked page offers a primer on CD mechanics. The Fortune article cites this source to explain that a 10‑year CD is a long‑term investment that locks in a rate for a decade; early withdrawal typically triggers a penalty equal to 12 months’ interest. This context helps readers understand why Citizens Bank’s 10‑year rate is lower than a 1‑year rate offered by online lenders – the longer the term, the lower the early‑withdrawal penalty, and thus the higher the effective return.

3. Key Features of Citizens Bank’s CD Products

Beyond the raw rates, the article highlights several practical aspects that make Citizens Bank appealing to certain segments of savers:

• No‑Fee Policy – Citizens Bank does not charge any maintenance or inactivity fees on CDs, provided the minimum balance is maintained. The article links to the bank’s fee schedule page for confirmation.

• Automatic Renewal – At maturity, CDs can be automatically rolled over into a new term at the prevailing rate. Readers can choose to either extend the term or convert the funds into a more liquid product (like a money‑market account) via the online banking portal.

• Branch Support – For customers who prefer in‑person service, Citizens Bank has over 1,000 branches. The article notes that many of these locations offer free assistance with setting up a CD, including advice on choosing the best maturity based on the individual’s financial goals.

• FDIC Coverage – The author reminds readers that all Citizens Bank CDs are FDIC‑insured up to $250,000 per depositor, per institution. This is standard for U.S. banks but still worth repeating for new investors.

4. Minimum Deposits and Early‑Withdrawal Penalties

One of the most frequently asked questions about CDs is: “What happens if I need to access my money before it matures?” The Fortune article answers this by detailing the penalty structure for Citizens Bank:

• 1‑Year CD – Early withdrawal penalty equals 12 months’ interest (0.10 % of the principal).
• 5‑Year CD – Penalty equals 6 months’ interest (0.20 % of the principal).
• 10‑Year CD – Penalty equals 3 months’ interest (0.45 % of the principal).

The article notes that while the penalty amounts may seem steep, the rates are structured to offset that cost over the life of the investment. For instance, a 10‑year CD at 0.45 % APY will still yield more over ten years than a 5‑year CD at 0.20 % APY, even accounting for the higher penalty.

5. Who Should Consider a Citizens Bank CD?

The author breaks down the target demographics for the bank’s CD products:

• Traditional Savers – Individuals who prefer a bank with physical branches and value face‑to‑face support.
• Income‑Stable Professionals – Those who can set aside a lump sum (e.g., $5,000 for a 15‑year CD) and do not anticipate needing the funds in the near future.
• Interest‑Rate‑Aware Investors – Clients who expect rates to remain flat or decline over the next decade and want to lock in a fixed return.

The article also cautions that for those who anticipate a rise in interest rates, a shorter‑term CD or a “laddered” approach (splitting funds into several shorter‑term CDs) might be more prudent.

6. How to Open a Citizens Bank CD

The Fortune piece includes a quick, step‑by‑step guide for opening a CD:

1. Log Into Online Banking – If you already have an account, simply log in. New customers can create an account via the bank’s “Open an Account” page.
2. Select “Certificates” – From the main menu, choose the “Certificates” tab.
3. Pick Your Term & Deposit Amount – The interface auto‑fills in the minimum deposit requirement.
4. Review Terms & Conditions – Click through the rate sheet and penalty details to confirm you understand the commitment.
5. Submit – Funds can be transferred from an existing checking or savings account, or deposited in person at a branch.

The article includes a screenshot of the online banking dashboard, which helps demystify the process for non‑tech‑savvy readers.

7. Takeaway: Is Citizens Bank Worth It?

After reviewing the rates, penalties, and service features, the Fortune article offers a balanced verdict. While Citizens Bank’s CD rates are lower than the top online lenders, they come with a more traditional banking experience, branch support, and a solid FDIC‑insured foundation. For a conservative investor who values stability over yield, Citizens Bank’s CDs can be a solid part of a diversified savings strategy.

If you’re a “rate‑hungry” saver looking for the absolute best returns, the article suggests looking at Ally Bank, Marcus by Goldman Sachs, or Capital One 360, which routinely offer 1‑year CD rates in the 1.10–1.30 % APY range. However, for those who prioritize convenience and a safety net, Citizens Bank’s offerings remain a reliable option.

8. Further Reading

The Fortune article’s hyperlinks point readers toward additional resources for deeper dives:

• “Best Online CD Rates for 2025” – A comparative analysis of the top 25 online banks, updated monthly.
• Investopedia’s “What Is a CD?” – A beginner’s guide that explains how CDs work, their benefits, and common pitfalls.
• Citizens Bank’s FAQ – A bank‑specific page that covers everything from FDIC coverage to online banking access.
• “CD Laddering 101” – A Fortune feature explaining how to mitigate interest‑rate risk by staggering CD maturities.

These links equip readers with the tools to make an informed decision about whether Citizens Bank’s CDs are the right fit for their personal finance plans.

Bottom line: Citizens Bank offers a straightforward, low‑fee CD product line that is best suited for risk‑averse savers who value traditional banking and are comfortable with moderate yields. By combining the bank’s competitive long‑term rates with a solid customer service reputation, the Fortune article paints a clear picture of why Citizens Bank remains a credible player in the CD market—especially for investors who prefer a “brick‑and‑mortar” touch in an increasingly digital age.