Best CD Rates in Rhode Island January 2025

Best CD Rates in RI 2024

To curate our list of the best Rhode Island certificates of deposit, we looked at APY, minimum deposit, early withdrawal penalties and customer service ratings.

Shoreham Bank

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Vault Verified

APY

0.90% to 4.50%

Term Length

3 months to 5 years

Min. Deposit Requirement

$1,000

Early Withdrawal Penalty

3 months to 6 months interest

Why We Chose It

Headquartered in Warwick, RI, Shoreham Bank (previously known as Home Loan & Investment Association), features six CDs with competitive rates—most notably on its three-month and five-year CDs. While these are some of the best CD rates in the state, you need to call or step foot inside one of its locations to open an account.

Pros

• Competitive interest rate on short-term CD
• Relatively low minimum balance requirement
• Mobile app available to manage account

Cons

• Cannot open a CD online
• Comparatively small selection of term lengths available
• Hefty early withdrawal penalty on most CD terms

Santander Bank

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Vault Verified

APY

4.00% to 4.50%

Term Length

6 months and 12 months

Min. Deposit Requirement

$500

Early Withdrawal Penalty

3 months’ interest on the amount withdrawn

Why We Chose It

With several locations in Rhode Island, Santander Bank features an attractive 4.50% APY on its six-month CD and 4.00% APY on its 12-month CD—but these are the only options outside of business CDs. Combined with a low minimum deposit of $500, it’s one of the best CDs to open in the Ocean State. One caveat: You must visit a branch to open an account.

Pros

• Interest is compounded daily and credited monthly
• Can add more than one signer to the account
• Low minimum deposit

Cons

• Only two CD terms available
• Need to visit a branch to open a CD
• No bump-up or no-penalty CDs available

Centreville Bank

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APY

0.49% to 4.00% (0.49% to 4.25% with Premium APY)

Term Length

3 months to 5 years

Min. Deposit Requirement

$1,000 ($200 for 5 Year Burial Certificate)

Early Withdrawal Penalty

Depends on the funds and the amount left until the maturity date

Why We Chose It

Centreville Bank is a longstanding bank that has been around for about 200 years. It serves Rhode Island and Eastern Connecticut communities. Currently, it’s offering a promotional rate of 4.00% on its 7-month CD (up to 4.25% if you open a Personal Premium Checking or Personal Premium Money Market account). The minimum deposit is fairly low, and you can apply and open an account online.

Pros

• Wide range of CD terms
• Higher Premium APYs when you open select deposit accounts
• Interest is compounded daily

Cons

• Long-term CDs have low rates
• Early withdrawal penalties are a bit confusing

Vault’s Viewpoint: Overview of the Best Rhode Island CDs

Some of the best Rhode Island CDs can be found at regional and community banks. For example, our top three CDs offer APYs over 4.00%, which is significantly higher than the current national average of 0.45% APY for savings accounts.

To get approved for a CD, you’ll need to open an account either online or by visiting a branch. Some banks and credit unions require that you have an existing deposit account. If you need to meet with a bank rep in person, it’s a good idea to do a quick search and see if there’s a branch near where you live.

Generally speaking, you can usually find more attractive rates, low account minimums and no or low monthly account fees from the best online banks. That’s due in part to the fact that online-only banks have lower operating costs. No brick-and-mortar locations means fewer costs. In turn, they can offer more competitive rates. Spend time researching to see which financial institutions offer the most competitive rates, low minimum deposits, solid customer support and a simple and streamlined application process.

Short-Term CD Rates in Rhode Island

Short-term CDs typically have maturity dates of one year or less. While you’ll have less time to grow your money, you don’t have to worry about locking in your funds for a longer period of time, which means potentially missing out on higher rates. Because they’re shorter in length, you’ll have less time to grow your money. Currently, the highest rates for CDs in Rhode Island tend to be on short-term CDs.

Long-Term CD Rates in Rhode Island

Long-term CDs are typically those with maturity dates of over one year. While you can rake in more in interest, you’ll also be committed to keeping your funds in the CD for a longer stretch of time. Should you need to pull out your funds early, you’ll get hit with an early withdrawal penalty—so it’s important to make sure you can keep your money until the CD matures.

Jumbo CD Rates in Rhode Island

Jumbo CDs, which are CDs that usually require a minimum deposit of $100,000 or more, can be a low-risk way to maximize your savings. To make the most of a jumbo CD, you’ll want to combine the sizable pile of cash with a high interest rate and a longer term length.

How Much Can You Earn With the Best CD Rates in Rhode Island?

Maximizing the earnings on your CD typically requires parking a large amount of money into an account with a competitive interest rate and—ideally—a longer term length. Beyond that, it’s important to feel secure that you can stash your money in a CD for the amount of time it requires to mature. Otherwise, you’ll get dinged with an early withdrawal penalty, which can offset your earnings.

When shopping around for the best Rhode Island certificate of deposit, check to see which CDs have the best rates and terms for your needs and preferences. If you’re not entirely set on parking your funds in a single CD, you might want to try the CD ladder method. By dividing your funds into equal parts and staggering them in CDs with varying terms, you can get the best of both worlds—high interest rates and greater flexibility.

Here, we’ll walk you through how much you would roughly earn with a $25,000 deposit. These are based on the current CD rates and terms of our top picks for the best CD rates in Rhode Island.

How To Open a CD in Rhode Island

Opening a CD in Rhode Island is fairly straightforward, but there are some things to keep in mind. Let’s take a look at how to open a CD account in the Ocean State.

1. Look at different CD options. The first step in opening a CD in Rhode Island is exploring what options exist. It is important to pay particularly close attention to the terms, rates, early withdrawal penalties and required opening balances on the CDs you are considering. Some local and regional banks require you to step foot inside a brick-and-mortar location, so be mindful of where these branches are located.
2. Pick your CD. Once you’ve looked over the different CDs, narrow it down to a few choices. Before choosing a CD, look for details such as whether the CD will renew automatically when the CD matures and if there’s a grace period. It’s also a good idea to look at other CDs the bank offers. That way, you’ll have an idea of whether you might want to renew your existing CD, roll it over to a new CD with a different term and rate or withdraw the money upon maturity.
3. Apply to open a CD. To open a CD account, you usually will need to submit an application. On the application, you’ll be asked to provide basic personal information such as your name, address, date of birth, email and phone number and Social Security number. Banks and credit unions also require that you provide a form of government-issued ID—like a military ID, passport, state-issued ID or driver’s license.
4. Move money into your account. Once your CD has been approved and is opened, you’ll need to fund it. Depending on the bank or credit union, you can move money into your account by depositing cash at a branch, moving it from a linked account (either at the same bank or an external bank) or by writing a check.
5. Decide on what to do once your CD matures. When the CD matures, you can renew the CD or move the funds into another type of savings account. You can also use the funds to open another CD or withdraw the money as cash. If the CD auto-renews after the maturity date, you usually have a grace period of roughly seven to 10 days—allowing you to withdraw funds without getting hit with a penalty.

Alternatives to a CD in Rhode Island

Besides a CD, there are other low-risk options for earning higher-than-average interest rates on your money. Let’s take a look at several alternatives that can also help you make the most of your savings.

High-Yield Savings Accounts

Like a CD, a high-yield savings account (HYSA) is offered by banks and credit unions and features higher-than-average interest rates. However, the main benefit of an HYSA is that the money you keep in it can be accessed at any time. Plus, like a standard savings account, you can put money into a high-yield savings account at any time. With a CD, on the other hand, your funds are locked in until the CD matures.

While you might see comparable interest rates on a high-yield savings account versus a CD, the interest rate on a high-yield savings account is variable and can increase or decrease. It’s important to understand that the advertised rates you receive when opening a high-yield savings account might change over time.

Money Market Accounts

Money market accounts (MMA) are another type of deposit account that feature competitive interest rates and check-writing capabilities. Similar to a CD, you can find these at most financial institutions. However, money market accounts tend to require higher minimum balances to open—plus, you’ll typically need to maintain a higher balance to keep it open.

Another thing to keep in mind with a money market account is that they often charge monthly maintenance fees or fees to get paper statements sent in the mail. This depends on the financial institution, so inquire about these fees before opening an account.