Dollar Bank CD Rates

Dollar Bank 3-Month CD

0.10% APY

Dollar Bank has quite a few certificate of deposit (CD) account options. Regardless of your savings goals, you will have choices in how you save your money. The interest rates are competitive but not always as high as the best CD rates on the market. Dollar Bank also has a relatively high minimum deposit with most accounts requiring at least $2,500. If you can afford that minimum and if you live in one of the three states that Dollar Bank serves, you should certainly consider an account.

To calculate how much interest you could earn with a CD, try using SmartAsset's CD calculator.

Below is a rundown of all available term options so that you can decide if this bank will help you meet your goals.

Traditional CDs

Bump-up CDs

If the available interest rate for your CD term rises during your term, a bump-up CD allows you to increase your rate to that higher rate. You can increase your rate once.

Three-Month No-Penalty CD

After the first seven days of your term have passed, this CD option allows you to withdraw your money for no penalty. You can only withdraw your entire balance (no partial withdrawals).

Rising Rate CD

Every 90 days, you will have the option to withdraw your money. If you do not make a withdrawal, your CD will then have a higher interest rate for the next 90 days. The total length of a rising rate CD is 12 months.

3-Month CD Interest Rate Comparison

Overview of Dollar Bank CDs

Dollar Bank serves Pennsylvania, Ohio and Virginia. You will need to live in one of those states to open a CD account. You also have the option to open an account online.

Traditional CD terms range from three months up to 120 months (10 years). All accounts require a minimum deposit of $2,500. Some term options will also provide a higher interest rate if you contribute at least $25,000. It is possible to receive a higher relationship rate if you have an Everything Checking Account with Dollar Bank.

As with all other CDs from Dollar Bank, there are two types of traditional CD: growth certificates and income certificates. The difference between the two types is how your interest compounds. With a growth certificate, your interest will compound and credit annually. If your term is less than one year or if it includes a partial year, your interest will compound at maturity, or at the end of the partial year, in addition to annually. The idea behind a growth CD is that you allow interest to remain in your account to maximize your earnings.

An income certificate operates on the opposite idea: You have the ability to withdraw your interest earnings regularly so that you have a regular source of income. CDs of this type of compound and credit interest monthly. You then have the option with withdraw your interest earnings monthly, quarterly, semi-annually or annually without paying a penalty.

However, if you try to withdraw money from your CD account (interest or principal) outside of the accepted dates and before the maturity date of your CD, you will pay an early withdrawal penalty. The penalty depends on your remaining CD term length, your interest rate and how much you withdraw.

To calculate your penalty, multiply the years remaining until maturity (including partial years) by the principal you withdraw. Then multiply the result by the difference between your interest rate and the current interest rate for a CD of the same term length as yours. However, Dollar Bank will always charge a penalty equal to at least three months’ simple interest for CD terms of 12 months or less, or six months’ simple interest for terms longer than 12 months.

If you want to withdraw money from your CD, you should wait until it reaches maturity. After the maturity date, Dollar Bank will give you a seven-day grace period. During that period you can make any changes, additions or withdrawals from your account without paying a penalty. Unless you close your account, your CD will renew at the end of the grace period. The new CD will have the same term length as the original CD (or the closest available term length) and whatever the current available interest rate is for that CD term.

How Much You Earn With Dollar Bank CDs Over Time

The interest rates from Dollar Bank are competitive and that means you will earn a fair amount of interest. Because the minimum deposit is relatively high, you will also earn good interest even if you only choose the shortest CD term (six months). As with most banks, longer CD terms have higher interest rates and so you will earn more by choosing a longer-term.

Another thing to note is that some CD terms offer higher interest rates if you contribute at least $25,000. These special interest rates are significantly higher, so you should definitely ask about which terms have this offer if you can afford it.

The table below shows what your approximate total balance will be based on different initial deposits and term lengths. This table uses rates for traditional growth CDs, which compound interest annually.

How Dollar Bank CD Rates Compare to Other Banks

Dollar Bank offers good interest rates, but they are still relatively low in comparison to some other banks. You should certainly compare CD rates from different banks before opening any accounts.

As you compare rates, make sure to keep your individual goals in mind. For example, customers who want to open a short-term CD may want to consider online banks like Ally Bank. Ally’s most competitive rates come on CD terms of a few years or less. There is also no minimum deposit for opening an account but you can earn higher interest with a higher contribution. Because Ally is an online bank, it doesn’t have any local branches. 

People who prefer a bank with physical branches should consider Capital One. Capital One has no minimum deposit and offers competitive interest rates, especially on CD terms of a couple of years or more.

If you are interested strictly in the highest rates, you may want to work with a broker like Edward Jones. Brokered CDs don’t always work exactly the same as regular CDs, but they typically offer the highest rates available. Edward Jones requires a $1,000 minimum deposit and has CD terms ranging from three months to 10 years.

Should You Get a Dollar Bank CD Account?

If you live near a Dollar Bank branch, you should consider a CD account with the bank. There are many CD options and competitive interest rates. It’s possible to find higher rates elsewhere, especially on long-term CDs, but you can feel confident that you’re getting a fair rate with Dollar Bank. Because of all the term options, you should especially consider an account if you’re interested in creating a CD ladder.