Are you looking for a safe way to grow your savings? A CD with its outstanding benefits may be an ideal choice. Each bank has a different set of CD rate rules, so you must research carefully.
Fifth Third Bank is a reputable name when it comes to CD rates. The bank offers you various options to bring out the best of your financial status.
This article will give you a complete guide to Fifth Third Bank CD rates. Let’s scroll down to determine if it’s a good destination for your money!
What Is A Certificate Of Deposit (CD)?
CD (Certificate of Deposit) is a type of savings product that accrues interest on a specific sum of money for a particular amount of time.
Unlike savings accounts, CDs require that the money stay untouched over the fixed term to avoid penalties and lost interest. Their interest rates are often higher than savings accounts as compensation for liquidity loss.
Most financial institutions provide CDs. Yet, each bank has its own rules regarding the following:
- The terms
- How much higher is the interest rate when compared to the bank’s money products and savings
- The penalties it offers for early withdrawal.
Overview of Fifth Third Bank CDs
Fifth Third Bank offers CD terms ranging widely from seven days up to seven years. The bank is a fantastic choice for individuals with short-term and long-term savings objectives since it covers a larger range than many other banks.
Additionally, the $500 minimum deposit is affordable enough for many people to consider CDs a viable solution.
Moreover, you may use these popular CDs in a 529 savings account or an IRD (Individual Retirement Account), which is extremely appealing to people saving for the long term.
Fifth Third Bank CD Rates 2023 Review
Fifth Third Bank has a long set of rules for its CD rates. We will list the most important features in this category. Let’s check to learn how to work with Fifth Third Bank CD rates.
Minimum deposit requirement
Fifth Third Bank offers two primary CD rates: Standard and promotional. They are different in multiple factors.
Promotional CDs of Fifth Third Bank have higher rates than the standard CDs in return for higher minimum deposit requirements.
You must have at least $5,000 available to send to the account if you want to open promotional CDs. If you choose the standard one, you just need $500.
If you can transfer the required $5,000, you can get a rate that matches or exceeds that of online banks. Of course, not everybody can afford it.
Early withdrawal penalties
Like savings accounts, CDs are a strategic place to save your extra cash if you don’t intend to use them immediately. They offer interest on deposits much like savings accounts do, but there is a critical difference to be aware of.
A commitment to Fifth Third bank is necessary to open a CD. You must agree to wait a specified amount of time before making any withdrawals from your CD.
Only give in to this attraction if you can really stick to the entire term. You will get a penalty if you withdraw your money before the term has run out.
The bank calculates the penalty based on your CD’s original term:
| CD Term | Penalty |
| 7 days – 364 days | 1% of Principal Withdrawn |
| 365 days – 36 months | 2% of Principal Withdrawn |
| Longer than 36 months | 3% of Principal Withdrawn |
The penalty won’t exceed the interest earned, except if you withdraw your money during the first six days, where the bank applies a minimum seven-day interest penalty and deducts it from the principal.
Fifth Third Bank only waives the entire penalty in these cases:
- Death
- Court ordered withdrawals
- Incompetency of owners declared by the court.
529 CDs
A 529 plan is a specific kind of tax-advantaged investment to save for college costs. If you choose it, you will receive tax benefits. But since the tax benefits of these programs differ from place to place, they may get confusing.
The money you invest in a 529 plan is not tax deductible at the federal level. When you send money, you will pay taxes as usual. And you benefit once you withdraw it.
So if you use the money for qualified educational purposes, you won’t pay any interest. It means that your money in the 529 plan can grow tax-free.
Maturity
A CD has matured once its term is over. You have until that time to withdraw your cash or adjust your CD without facing early withdrawal penalties.
Fifth Third Bank gives a grace period from the maturity day of your CD. If the CD term is shorter than 32 days, that period will be one day. And if the term is longer, you have a ten-day grace period.
During that period, you can make any changes without paying extra fees. But if you fail to change, the bank will roll your balance into a new CD without changing the term.
After the grace period, the bank will charge you an early withdrawal charge if you wish to modify or withdraw.
Loan collateral
What should you do when you want to borrow money but the high-interest rate and poor credit don’t allow it? You need secured loans to handle this case.
Since the bank bears less risk, secured loans will be easier to qualify for and have lower rates. Applying for this type of loan means you are offering collateral for your loan. In addition, the rates of Fifth Third Bank auto loans and Fifth Third Bank mortgage loans always have many deals for customers of bank.
You can choose a Fifth Third Bank CD rate as collateral if you need to borrow money from the bank. While receiving the loan you want, you may profit from the interest you will receive.
What’s great about CDs?
- Compared to many other savings options, CDs often have higher interest rates.
- Interest earned now generates interest tomorrow due to continuous compounding.
- The CD or a Fifth Third checking or savings account may get interest credits.
- When your CD is seven days old or more into the term, Fifth Third will refund your initial deposit, less any withdrawals.
- The terms for CDs are flexible, and you don’t have to pay any fee to open one.
- You can use the Fifth Third Bank CD as collateral for your loan.
- The FDIC provides insurance up to the legal limit.
Types Of CDs Rates In Fifth Third Bank
Now, let’s have a look at your options when opening a CD at Fifth Third Bank:
| Types Of CD | Benefits | Minimum Deposit |
| Promotional | Different terms and appealing rates | $5,000 |
| Standard (7 to 89 Days) | Good for short-term saving goals | $5,000 |
| Standard (3 to 84 Months) | Low minimum investment | $500 |
| 529 | Tax-free savings on educational expenses | $500 |
How Much You Earn With Fifth Third Bank CDs Over?
Standard CD interest rates are pretty low. If you’re only making the required minimum commitment to a short-term CD, you can only earn a few extra cents.
As a result, you should make large investments and pick a long-term plan to optimize your gains with a standard CD rate.
This table illustrates your estimated balance based on the initial deposit and the term.
| Initial Deposit | 6 Months | 12 Months | 36 Months |
| $500 | $500.03 | $500.05 | $500.15 |
| $1,000 | $1,000.05 | $1,000.10 | $1,000.30 |
| $2,500 | $2,500.13 | $2,500.25 | $2,500.75 |
Fifth Third Bank’s CD Rates Compared To Other Banks
The regular CD interest rates offered by Fifth Third Bank are lower than those offered by competing institutions. Only promotional CDs will provide attractive interest rates if you intend to establish an account.
Capital One and Marcus are famous for CD rates too. Here is a comparison between the two banks and Fifth Third Bank.
| CD Account | Fifth Third | Capital One | Marcus |
| 6 Month | 0.01% | 0.20% | 0.15% |
| 1 Year | 0.01% | 0.20% | 0.55% |
| 3 Year | 0.01% | 0.30% | 0.55% |
Should You Choose The Fifth Third Bank CD Account?
Promotional CDs from Fifth Third Bank can offer you the highest interest rates if you consider creating one. The problem is that they need a $5,000 minimum deposit.
The standard alternatives of Fifth Third Bank come with low-interest rates. Hence, you should invest a lot over a lengthy period to make a lot of money.
Who Is A Fifth Third Bank CD Right For?
If you have one of the bank accounts with relationship advantages, Fifth Third CDs are fantastic for current clients who prefer to keep all of their savings with one institution.
Additionally, Fifth Third provides flexible CD terms, such as short- and long-term choices that are not often available at other banks.
CD rates Fifth Third Bank come with many short and long options. You should choose the promotional CDs to get an impressive rate.
Hopefully, you will find this article helpful. If you need more information before deciding, our inbox is always open to assist you.
Thank you for reading!
