How Does a Kansas City CD Work?
A Kansas City CD (certificate of deposit) can be obtained from a local bank or credit union. CDs are FDIC-insured accounts that require a fixed deposit term (from 3 months to 5 years) and earn interest on the balance.
The CD must be untouched until maturity in order to cash in on the accrued interest. CDs typically require a minimum deposit and usually offer higher interest rates for larger deposits and/or lengthier terms.
Avoid Kansas City CD Penalties
Kansas City banks will charge a penalty if you withdraw money from a CD before it matures. Early withdrawals for an emergency need or another investment opportunity will usually mean substantial fees. For example, a 5-year CD would lose approximately six months worth of interest for early withdrawal.
Consider Your Savings Style
Perhaps you don’t want to commit to a long term with interest rates on the rise, or perhaps you would rather be safe than sorry and be guaranteed a modest return. Before you commit to a term, consider your savings goals and style, how long you can do without access to those funds and find out how often interest is compounded to generate the highest interest.
Browse the best Kansas City CD rates below:
6-Month Kansas City CD Rates
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2-Year Kansas City CD Rates
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5-Year Kansas City CD Rates
- Ally Bank: 2.07%
- UMB Bank: 1.65%
- Bank of America: 1.09%
The above rates are accurate as of 9/19/11, but may change at any time in the future. Please contact individual financial institutions directly to verify rates and learn about any additional requirements.