How Much Longer Will They Last?

Short-term

KeyBank’s short-term CD is for individuals who want a safe place to stash their money, but don’t want to commit to a long term. This CD has terms ranging from 7 to 179 days, so it’s best for those who need to use the money (or find a new home for it) within six months. 

The APY on the short-term CD is quite low. And unlike KeyBank’s other CD options, the short-term CD doesn’t offer any promotional rates. 

Even though the short-term CD matures in under six months, it’s still a good idea to pay attention to early withdrawal rules. KeyBank’s early withdrawal penalties can be steep; depending on the term, you could forfeit up to three months’ simple interest if you take out money before your maturity date.

KeyBank gives existing customers a relationship rewards bonus for certain accounts. Those who have a qualifying KeyBank checking account can get higher rates on their CDs. However, the short-term CD doesn’t have a relationship reward, so the same low APY applies to all customers.

Tiered CDs

With KeyBank’s tiered CDs, you can choose a term between six months and 10 years in length, and you can open an account with $2,500. 

The APY on most tiered CD terms is relatively low, but you can earn a substantially higher rate by taking advantage of one of the bank’s promotional offers on specific terms.

Be aware that the tiered CD has steep penalties for early withdrawals; depending on the term, the penalty can be as much as 12 months’ simple interest. 

If you have a qualifying KeyBank checking account, you may be eligible for KeyBank’s relationship rewards tiered CD. This option allows you to earn much more interest on the money you deposit, with an APY that is several times higher than the national average on select terms. 

The tiered CD has a $2,500 minimum deposit and terms ranging from six months to 10 years. As is the case with the non-rewards version, this CD has early withdrawal penalties ranging from seven days’ to 12 months’ simple interest. 

Jumbo

If you have a substantial amount of cash and you want a safe way to earn a guaranteed rate of interest, a jumbo CD could be a good option. With KeyBank, you can open a jumbo CD with $100,000 and choose a term between seven days and 120 months. 

The APYs on most of KeyBank’s jumbo CD terms are quite low—lower than the national average—but the promotional rates available on select terms are much higher. 

Depending on the term you choose, the early withdrawal penalty can be seven days’ to 12 months’ simple interest. 

The KeyBank jumbo CD with relationship rewards gives those with an eligible KeyBank checking account a higher APY on select terms. Although the normal APY is low, the promotional offer with the relationship reward bonus gives customers a higher-than-usual APY. 

Pros and Cons of Key Bank CDs

Pros Explained

• Promotional rates: With KeyBank’s promotional CDs, you can find more competitive rates for a greater return of up to 4.00%.
• Variety of CDs: KeyBank offers a variety of CD types, which can provide flexibility.

Cons Explained

• Lower-than-average APYs: KeyBank’s CD rates are not very competitive. You can likely find higher rates by shopping around.
• Branches in 15 states: If you prefer in-person banking, you will have to live in one of the 15 states in which KeyBank operates.

About KeyBank

KeyBank operates about 1,000 branches in 15 states: Alaska, Colorado, Connecticut, Florida, Idaho, Indiana, Maine, Massachusetts, Michigan, New York, Ohio, Oregon, Pennsylvania, Utah, Vermont, and Washington.

It offers a broad range of financial services, including checking and savings accounts, CDs, home loans, personal loans, auto loans, student loan refinancing, investment products, and insurance policies. 

KeyBank’s CDs generally have lower-than-average APYs, but the bank does offer promotions on select terms with significantly higher rates. Interest on KeyBank CDs is compounded daily, but the rate at which interest is credited to your account depends on the CD’s term.

The accrued interest is left in the account unless you give the bank other instructions. And though you cannot withdraw the CD’s principal before the maturity date without penalties, you can withdraw the interest once it’s been credited to your account without paying added fees. 

All of KeyBank’s CDs have 10-day grace periods after they reach their maturity date, giving you time to withdraw money or renew the CD. 

Alternatives to Key Bank CDs

• High-yield savings accounts: If you’re willing to open an online savings account elsewhere, you may be able to earn higher rates. See the best high-yield savings account rates to compare how much you could earn.
• High-yield checking accounts: You may find relatively high rates with some checking accounts. Be aware of their requirements and limits. The best high-interest checking accounts give you easy access to your money.
• Certificates of deposit (CDs): You can also choose from a range of CDs from other financial institutions.
• Money market account: Money market account can also provide a return on your savings. Check the best money market account rates to see how it compares.
• Treasury securities: These government-backed bills, notes, and bonds sometimes offer even higher rates than CDs and may be more liquid.

Frequently Asked Questions (FAQs)

Your Guide to CDs