Editor's Note: APYs listed in this article are up-to-date as of the time of publication. CNBC will update as changes are made public.
With a CD, or certificate of deposit, you earn a fixed rate of interest no matter what happens with the markets. And if you have trouble saving, locking your funds away until maturity can help prevent you from spending your deposit on impulse.
Michigan-based First National Bank of America (FNBA) offers an unusually wide range of 14 CD terms, from three months all the way up to 120 months, or 10 years.
Here's what you need to know about FNBA CDs, including available terms, deposit requirements, penalties and specialty options.
First National Bank of America CD
Annual Percentage Yield (APY)
Online deposit rates from 3.85% to 4.65%* APY
Terms
From 3 months to 120 months
Minimum deposit
$1,000**
Monthly fee
None
Early withdrawal penalty fee
The penalty is based on the term and may result in a reduction of your principal balance. FNBA does allow partial withdrawals.
Terms apply.
Pros
- Higher-than-average APY
- Wide term variety, including a 10-year CD
Cons
- $1,000 minimum deposit requirement is higher than that of many competitors
- Does not offer a bump-up or no-penalty CD
- Few physical branches
*Annual Percentage Yields (APY) are subject to change without notice. Fees could reduce earnings on the account. A withdrawal will reduce earnings.
**$1,000 minimum balance to obtain the APY. The APY on all certificates assumes that principal and interest will remain on deposit until maturity. A penalty may be imposed for early withdrawal.
First National Bank of America CD review
About First National Bank of America
First National Bank of America (FNBA) opened in 1955 as First National Bank of East Lansing, focusing on the financial needs of the local Michigan community. In 1978, it became the First National Bank of Michigan before renaming to First National Bank of America in 1998.
Today it offers a variety of financial products, including checking and savings accounts, HYSAs, CDs, mortgages, IRAs, Health Savings Accounts and business banking.
While it provides financial products nationwide, it only operates physical branches in East Lansing, Grand Rapids and Traverse City.
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CD terms
FNBA offers CDs with terms ranging from 3 months up to 120 months (12 years). Currently, its most competitive APY is for a 48-month (four-year) CD.
- 3 Months
- 6 Months
- 12 Months
- 18 Months
- 24 Months
- 36 Months
- 48 Months
- 60 Months
- 72 Months
- 84 Months
- 96 Months
- 108 Months
- 120 Months
When a First National Bank of America CD matures, it will automatically roll over for another comparable term at the rate currently offered, unless the user withdraws some or all of their funds. There is a 10-day grace period at maturity when account holders can add or withdraw funds.
Speciality CDs
FNBA does not offer no-penalty, bump-up, add-on or step-up CDs, However, it offers IRA CDs, which are available as traditional IRAs, Roth IRAs and Health Savings Accounts (HSAs). They must be opened in person at one of its three Michigan branches, with a minimum term of 12 months.
An IRA CD is a retirement savings vehicle that holds one or more certificates of deposit. Because of its low risk, it's preferred by savers in or near retirement looking for predictable returns without market volatility.
Deposit requirements
The minimum deposit for an FNBA CD is $1,000. There is no set cap, but if you intend to deposit more than $1 million, FNBA requires you to call them directly to negotiate custom large-deposit interest rates.
Interest compounds quarterly and is added to the principal.
Early withdrawal penalties
If you withdraw money from your CD before maturity, FNBA will charge an early withdrawal penalty based on the length of your chosen term.
- Three to 11 months: 90 days of interest
- 12 to 23 months:: 180 days of interest
- 24 to 47 months: 360 days of interest
- 60 to 84 months: 540 days of interest
- 96 to 120 months: 720 days of interest
First National Bank of America CD pros and cons
As with any financial product, FNBA CDs have benefits and drawbacks.
Pros
- Highly competitive CD rates
- Terms of up to 10 years available.
- Offers IRA CDs
Cons
- Early withdrawal penalty can be as much as18 months of interest
- Does not offer no-penalty or bump-up CDs
- Only operates three physical branches, all in Michigan
FAQs
What is the minimum deposit required to open an FNBA CD?
The minimum deposit to open a First National Bank of America CD is $1,000.
Can you lose money on a CD?
Because most CDs are FDIC-insured, your money is guaranteed up to $250,000 per account holder. However, you can lose interest if you withdraw funds before your CD matures. In addition, the value of a brokered CD can drop below the purchase price if it's sold on the secondary market before maturity.
Can I take money out early of a First National Bank of America CD?
You can withdraw funds before maturity, but there is a penalty based on the length of your assigned term. For example, for CDs with terms of 11 months or less, the penalty is 90 days of interest. If your total earnings are less than the required amount, the bank may subtract the difference from your starting deposit.
Can you open an FNBA CD online?
Yes, you can open an FNBA CD online. However, if you are depositing $1 million or more, you must call the bank to discuss custom large-deposit interest rates.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice to help them make informed financial decisions. Every CD review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking and savings products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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