Certificate of Deposit (CD)

A CD is a way to save money that is similar to a savings account. It's one of the lowest-risk ways to earn interest on cash. It pays interest based on how long the customer agrees to leave a lump-sum deposit in the account. USAA Federal Savings Bank offers traditional CD terms for as little as 30 days to as long as seven years. For a minimum of $1,000, you can open it on usaa.com or through our mobile app.

The interest rate is fixed until the maturity date — that is, until the deposit agreement period ends. Any early withdrawal from a CD will be assessed an early withdrawal penalty that will reduce its earnings. USAA Federal Savings Bank will send you notice of your account's upcoming maturity 30 days prior to that date. You'll have a 10-day grace period after the maturity date during which you can change the term, add or reduce funds, or close the account.

If you don't need the money for day-to-day expenses, putting it into a certificate of deposit can be a great way to save for a specific goal over an extended period. On a monthly basis, the interest will be deposited back into the CD or you can have interest deposited into another account. CDs offer a variety of terms and typically return higher interest than savings or money market accounts.

On the other hand, CDs are a longer-term commitment of your money. There may be an early withdrawal penalty if you take out money before its maturity date. You'll have a 10-day grace period after the maturity date during which you can change the term, add or reduce funds, or close your account. If it's important for you to have easy access to your money without an early withdrawal fee, consider applying for a USAA Federal Savings Bank savings account.

USAA Federal Savings Bank is FDIC insured which means funds in our CDs are insured up to the limits set by the Federal Deposit Insurance Corp. (FDIC)(Opens New Window).

Yes. You can own more than one CD at a time.

One strategy that requires multiple CDs with varying terms is called a CD ladder. It involves spreading funds over a number of CDs with staggered maturities to help ensure you get the highest rate offered every time your accounts mature. If interest rates go up, you'll have cash to open new CDs. If rates go down, you'll still have money growing in your higher interest rate accounts. The CD ladder method also allows you to have periodic access to some of your funds. This access can help you avoid early withdrawal penalties.

One feature of CDs you open with USAA Bank is that you can give each account a nickname. That can be especially helpful when you give an account a nickname that matches its related savings goal.

For a minimum initial deposit of $1,000, you can open a standard CD on usaa.com or through our mobile app. You can also open a Jumbo CD for a minimum of $95,000 or a Super Jumbo for a minimum of $175,000. There are no fees to open these accounts with USAA.

Your CD will have a maturity date based on the term you select during the application. The interest begins to accrue on the business day we receive and record your deposit in our records. No additional deposits will be allowed until the maturity date. We pay interest monthly. You can have us deposit your interest into the CD account or to a different bank account. If we deposit interest, we'll credit that interest to your balance. You'll then earn interest on the new balance, sometimes referred to as compounding interest.

There is a penalty for withdrawing funds from your CD before the maturity date. Early withdrawal fees are shown in the Service Fee Schedule (Opens in new window). In some cases, we may waive an early withdrawal penalty as permitted by law.

Your CD will automatically renew at the end of each term, called the maturity date. If you allow it to renew, it will renew into the same term with the rate available on the date of maturity. USAA Federal Savings Bank will send you a notice 30 days before the maturity date. You'll have a 10-day grace period after the maturity date during which you can change the term, add or reduce funds, or close your account. You must notify us within 10 calendar days after the maturity date if you don't want the account to renew. You can transfer funds from your closed CD to another USAA Federal Savings Bank deposit account or to a verified non-USAA account.