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What's the minimum deposit needed to open a CD?
Opening a new certificate of deposit (CD) can be a great way to accelerate your savings. These accounts typically pay higher interest rates than traditional savings accounts. CDs can also help you avoid spending your savings on impulse buys because you’ll have to pay a penalty if you take money out of a CD before it matures.
However, most CDs require you to deposit a certain amount in order to open an account. Here's what you should know about CD minimum deposit requirements.
Understanding CD minimum deposit requirements
Financial institutions set their own minimum deposit requirements for CDs. Often, you’ll need at least $500 to $1,000 to open an account, while some may require more — especially to earn the highest rates available. It’s possible to find CDs with no minimum balance requirement, but it’s not as common.
Some banks and credit unions also offer jumbo CDs, which have higher minimum deposit requirements — typically $100,000 or more. In exchange for the larger deposit, you may be able to earn a higher interest rate than what's offered on traditional CDs.
Using certain savings strategies can be challenging because of high CD minimum deposit requirements. For example, if you’re using a CD ladder approach, you’ll need to split up your total deposit into several chunks. You might open five CDs that mature at different times, so your money becomes available more frequently while you still earn the highest interest rate possible.
If you need at least $1,000 for each CD minimum deposit, for example, you need at least $5,000 to get started building a CD ladder.
Can you add money to a CD?
Generally, no, you can't add money to a CD once the account has been opened and funded. CDs are time-deposit accounts, which means you must keep your money on deposit for a certain length of time to avoid penalties.
Some banks and credit unions offer add-on CDs, which allow you to make additional deposits. The specifics vary for each bank and credit union; some allow unlimited deposits, while others let you make a one to two additional deposits before the CD matures. Keep in mind that interest rates on add-on CDs are generally lower than traditional CDs.
See our picks for the best CD rates and accounts available today>>
What if I don’t can't meet CD minimum deposit requirements?
If you think you may not have enough money to open a CD, consider the following:
Look into a high-yield savings account: The rates on many high-yield savings accounts rival those offered on even the best CDs out there. Plus, you have the added advantage of accessing your funds whenever you want.
Shop around: If you explore other banks and credit unions, you may find a lower minimum balance requirement or a higher CD rate.
Open an add-on CD: These often have lower CD minimum deposit requirements to begin with, making it easier for you to get started.
Check out club savings accounts: If you like the idea of timed deposits, one idea is a club account. These are more common at credit unions and often used for specific savings goals, such as holiday shopping or vacations.