Business loan

November 2021 – Forbes Advisor


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Editor’s Note: In December 2019, BB&T and SunTrust completed a merger of equals to become Truist Bank, headquartered in Charlotte, North Carolina. As described below in About BB&T, Now Truist, BB&T already operates under the Truist brand.

BB&T (Branch Banking and Trust Company), now operating as Truist Bank, offers personal CDs (certificate of deposit) at a fixed rate ranging from seven days to 60 months. Only four of these CD terms are currently detailed on the Truist website.

Here is an overview of the prices for Truist personal CDs. In particular, Truist CD prices may vary by location. For this article, we used North Carolina, the state in which Truist is headquartered, to get location-specific product information. Rates and Annual Percentage Return (APY) are correct as of November 11, 2021.

Introducing Truist CDs

In addition to personal CDs, Truist offers six additional CD types: Add On, Treasury, Can’t Lose, Stepped Rate, Home Saver, and College Saver. Contact Truist directly to learn more about these six types of CDs.

For personal bank CDs, the minimum opening deposit is $ 1,000 for terms of 32 days to 60 months and $ 2,500 for CD terms of less than 32 days. Interest rates are fixed throughout the term. Bank CD rates tend to be relatively low compared to CD rates offered by online banks.

Interest earned is based on the following four balance levels:

  • Level 1 – $ 0.01 to $ 9,999.99
  • Level 2 – $ 10,000 to $ 49,999.99
  • Level 3 – $ 50,000 to $ 99,999.99
  • Level 4 – $ 100,000 +

Currently, all four levels pay the same APY.

When a CD matures, it will automatically renew, unless you tell Truist otherwise, for the same period as the original CD term and at the Truist interest rate in effect for the account balance level at the time. time of renewal.

Under the Truist Banking Services Agreement, you can withdraw any interest accrued before maturity on your CD without penalty as long as your CD balance remains greater than or equal to the original principal amount of the CD (interest on Home Saver CDs and College Saver may not be withdrawn until maturity). The bank may allow the principal to be withdrawn before maturity, provided that the account principal balance meets the bank’s minimum deposit requirement for the CD. Early withdrawal penalties apply, and early withdrawal penalties are high.

For CDs with a term of less than three months, the penalty is all interest that would have been earned or $ 25, whichever is greater. CDs with a term of three months to 12 months carry an early withdrawal penalty of three months of simple interest on the principal withdrawn or $ 25, whichever is greater. For terms of 13 months to 23 months, the penalty is six months of simple interest or $ 25, whichever is greater. And for CDs with a term of 24 months or more, the penalty is 12 months of simple interest or $ 25, whichever is greater.

Keep in mind that since CD rates at Truist are so low, you may lose 100% of the interest earned on most CDs due to the $ 25 fee for an early withdrawal. You could even lose money, depending on how quickly the early withdrawal occurs.

How much can you earn with Truist CD pricing?

Because Truist’s CD rates are low, it’s hard to earn much. The CD rates offered by this bank should make investors eagerly looking for higher yields, which you can find at many online banks and credit unions.

Here is what you can earn with certain personal CDs from Truist with an investment of $ 10,000, assuming the earnings are compounded daily:

How Truist CDs stack up

Personal CDs from Truist do not compare well to the best CD rates. They are also lower than the national average CD rates, according to FDIC data. With substantial early withdrawal penalties, investors will likely want to look elsewhere if they are considering a CD for their investment strategy.

The lower rates offered by this bank are a good reminder that you should compare the rates and terms of several different credit unions and banks before investing in a CD. A little time to do your research could mean dramatically increasing your returns.

About BB&T, Now Truist

On December 9, 2019, BB&T (Branch Banking and Trust Company), based in Winston-Salem, North Carolina, and SunTrust, based in Atlanta, completed a merger of equals to become Truist Bank, the sixth largest bank in the United States in terms of ‘assets, according to the FDIC. The data. Truist is headquartered in Charlotte, North Carolina.

Since the announcement of the merger, BB&T and SunTrust have operated under their separate names. Between the end of 2021 and the beginning of 2022, the two banks will switch to the single Truist brand.

As of this writing in November 2021, BB&T is already doing business under the name Truist. The website automatically redirects to Truist consumer products are now available online and at BB&T branches. Products from current BB&T customers are also moving to Truist.

According to Truist’s online merger guide, SunTrust’s transition to a business under the Truist name is scheduled for early 2022. Due to this timing difference, still operates under its own name, identified like “SunTrust Now Truist”. Also in early 2022, SunTrust debit cards will become Truist debit cards and all bank signage will move from BB&T and SunTrust to Truist at branches and ATMs.

Frequently Asked Questions (FAQ)

Should I open a CD or a savings account?

Are you wondering whether to open a CD or a savings account? Consider your cash flow needs. If you want easy access to your funds without risking early withdrawal penalties, a savings account will probably be a better solution. Savings accounts generally offer more liquidity than CDs

Are there CDs without early withdrawal penalties?

Yes, there are CDs with no early withdrawal penalty. Some banks offer penalty-free CDs that help investors avoid early withdrawal penalties if they need to access their capital before the CD’s maturity date.

CD rates are influenced by an index like the federal funds rate. When the Federal Reserve increases the federal funds rate, CD interest rates tend to rise. If the Fed cuts the federal funds rate, CD interest rates tend to go down.

Is BB&T, now Truist, FDIC insured?

Yes. Truist Bank is a member of the FDIC (FDIC # 9846). Its CDs are FDIC insured up to $ 250,000 per depositor, for each category of account holder, in the event of bank failure.