Bask Bank CD Rates (September 2024) (original) (raw)
Bask Bank is a division of Texas Capital Bank that operates entirely online. As an online bank, Bask can typically offer higher savings and CD rates than brick-and-mortar banks. Its fixed-rate CDs can be useful financial tools for locking in high interest rates to grow your savings.
In this article, we at the MarketWatch Guides team explore Bask Bank’s CD options, including its term lengths, APYs, fees and account requirements. If Bask’s CDs fit your goals, it could be worthwhile to open an account.
Key Takeaways
- Bask Bank’s best certificate of deposit (CD) rate is 5.35% annual percentage yield (APY) for a 6 months.
- While some of Bask Bank’s CD rates beat other online banks’ rates, it only offers six CD terms.
- Bask CDs could be a good fit for someone who wants a short-term CD with a high rate and has at least $1,000 for the initial deposit.
Featured CDs
| Provider | CD Term | APY | Minimum Deposit | Visit Site |
|---|---|---|---|---|
Highest Rated  4.4 Next |
12 Month | 4.10% | $2,500 | Next |
| Highest Rated 4.4 Next |
9 Month | 4% | $2,500 | Next |
 4.3 Next |
12 Month | 3.75% | None | Next |
 3.8 Next |
12 Month | 4.90% | $1,500 | Next |
 4.0 Next |
12 Month | 4.60% | $1,000 | Next |
 3.9 Next |
13 Month | 3.50% | $1,000 | Next |
| Provider | CD Term | APY | Minimum Deposit | Visit Site |
|---|---|---|---|---|
| Highest Rated 4.4 Next |
12 Month | 4.10% | $2,500 | Next |
| Highest Rated 4.4 Next |
9 Month | 4% | $2,500 | Next |
| 4.3 Next |
12 Month | 3.75% | None | Next |
| 3.8 Next |
12 Month | 4.90% | $1,500 | Next |
| 4.0 Next |
12 Month | 4.60% | $1,000 | Next |
| 3.9 Next |
13 Month | 3.50% | $1,000 | Next |
Bask Bank CD Rates
Bask Bank’s CD rates vary depending on the CD’s term length. Use our CD calculator to find out how much interest you could earn with different deposit amounts.
| CD Term | APY* | Minimum Opening Deposit | Interest Earned on a $1,000 Deposit at CD Close |
|---|---|---|---|
| 3 months | 5.00% | 1,000∣1,000 | 1,000∣12.55 |
| 6 months | 4.80% | 1,000∣1,000 | 1,000∣24.24 |
| 9 months | 4.60% | $35.03 | |
| 1 year | 4.60% | 1,000∣1,000 | 1,000∣46.98 |
| 18 months | 4.20% | 1,000∣1,000 | 1,000∣64.91 |
| 2 years | 4.00% | 1,000∣1,000 | 1,000∣83.14 |
*APYs accurate as of September 26, 2024
The bank offers six CD terms ranging from three months to two years, which is a limited selection compared to other banks and credit unions. Many other banks offer CD terms of up to five years. Discover even offers a 10-year CD.
Bask Bank has fixed-rate CDs but not specialty CD types like other financial institutions. For example, Ally Bank and Marcus by Goldman Sachs offer fixed-rate high-yield CDs, no-penalty CDs and bump-up CDs.
Bask Bank CD Rate Stability
Bask Bank’s 3-month CD earns 5.00% APY, which is steady from the rate at the same time last week. Over the last quarter, Bask’s 3-month CD APY has changed 4 times.
Bask Bank’s 6-month CD earns 4.80% APY, which is steady from the rate at the same time last week. Over the last quarter, Bask’s 6-month CD APY has changed 5 times.
Bask Bank’s 9-month CD earns 4.60% APY, which is steady from the rate at the same time last week. Over the last quarter, Bask’s 9-month CD APY has changed 4 times.
Bask Bank’s 1-year CD earns 4.60% APY, which is steady from the rate at the same time last week. Over the last quarter, Bask’s 1-year CD APY has changed 5 times.
Bask Bank’s 18-month CD earns 4.20% APY, which is steady from the rate at the same time last week. Over the last quarter, Bask’s 18-month CD APY has changed 4 times.
Bask Bank’s 2-year CD earns 4.00% APY, which is steady from the rate at the same time last week. Over the last quarter, Bask’s 2-year CD APY has changed 3 times.
Bask Bank CD Rates vs. Other Top Banks
When compared to the financial institutions in the table below, Bask offers the highest APY for a one-year CD, providing a better return. For example, with a 2,500deposit,aBaskCDearns2,500 deposit, a Bask CD earns 2,500deposit,aBaskCDearns117.46 in interest after one year, while a Chase CD only earns $0.25 in interest with its standard rate.
Here’s how Bask Bank compares to several of its competitors:
| Bank | APY on 1-year CD* | Minimum Opening Deposit | Interest Earned on a $2,500 at CD Close |
|---|---|---|---|
| Bask Bank | 4.60% | $1,000 | $117.46 |
| Capital One | 4.20% | 0∣0 | 0∣107.05 |
| Chase | 0.01% (standard rate) | 1,000∣1,000 | 1,000∣0.25 (standard rate) |
| Citibank | 3.00% for balances below 100,000(fixed−rateCD)∣100,000 (fixed-rate CD) | 100,000(fixed−rateCD)∣500 | $76.13 (fixed-rate CD) |
| Discover | 4.10% | 2,500∣2,500 | 2,500∣104.62 |
| Synchrony Bank | 4.60% | 0∣0 | 0∣117.68 |
| Wells Fargo | 1.01% for balances below 100,000(standardfixed−rateCD)∣100,000 (standard fixed-rate CD) | 100,000(standardfixed−rateCD)∣2,500 | $25.38 (standard fixed-rate CD) |
*APYs accurate as of September 26, 2024. Rates may vary by location. Rates for Chase and Citibank are for New York, and rates for Wells Fargo are for San Francisco.
Who Are Bask Bank CDs Best For?
We highlighted the four types of customers who could benefit from a Bask CD.
Savers Looking for Quick Earnings
Bask Bank has two benefits to grow your savings quickly — high APYs and interest that’s compounded daily. Daily compounding yields slightly bigger returns than monthly compounding.
Those Looking for a Short-Term CD
Bask doesn’t offer many long-term CDs — its longest term is only two years. This means the bank can be a good choice for someone who’s looking for a short-term CD or who wants to build a short-term CD ladder by opening CDs with different term lengths.
People Ready To Lock Funds Away
Some banks offer no-penalty CDs, which let you tap into your funds before the CD term ends without paying an early withdrawal penalty. Bask’s CDs don’t have that option. You should only open a Bask CD if you’re ready to leave your money untouched for the entire term.
Customers Prepared To Deposit at Least $1,000
After opening your account, you’ll have a grace period of 10 business days to fund your CD with at least $1,000. If you miss that window, your CD will automatically be closed.
This is a moderate amount compared to some other banks’ minimum balance requirements. For example, Discover Bank and LendingClub require a $2,500 minimum initial deposit. But some banks, such as Synchrony Bank and Capital One, don’t have a minimum deposit requirement at all.
Bask Bank CDs: Additional Information
Below, we explain how a Bask Bank CD earns interest and what happens if you withdraw money before the CD matures. We also explain the insurance that protects the bank’s deposits.
Compounding Schedule
Bask Bank compounds interest daily. This applies a rate to the principal in your account each day.
Limits
Bask limits account owners to five individually owned and five jointly owned CD accounts per CD term length.
Early Withdrawal Penalty
Bask CDs have an early withdrawal penalty if you tap into your principal deposit before the term is over, but you won’t pay a penalty if you withdraw interest earned during the term.
An early withdrawal penalty reduces the amount of interest you keep. The penalty amount depends on your CD’s term.
- Less than 91 days: 30 days of interest based on the principal amount withdrawn
- 91 days to one year: 90 days of interest based on the principal amount withdrawn
- More than one year: 180 days of interest based on the principal amount withdrawn
If your CD hasn’t earned enough interest to cover the early withdrawal penalty, the difference will be taken from your principal deposit.
Federal Deposit Insurance Corp. (FDIC) Insurance
All Bask CDs have FDIC insurance through Texas Capital Bank, Bask’s parent company. FDIC insurance makes Bask CDs secure investments. In the rare case of a bank failure, your CD is protected up to $250,000 per depositor and account ownership category.
Other Ways To Save with Bask Bank
Bask Bank offers two savings accounts: One is a traditional savings account that earns interest, and one earns airline miles instead. Neither account has monthly account fees or a minimum opening deposit.
| Bank Bank Savings Account | APY* | Minimum Opening Deposit |
|---|---|---|
| Bask Interest Savings Account | 5.10% | $0 |
| Bask Mileage Savings Account | N/A, earns 2.5 American Airlines AAdvantage miles per 1savedannually∣1 saved annually | 1savedannually∣0 |
*APY accurate as of September 26, 2024.
Bask Interest Savings Account
Bask Bank’s high-yield savings account is intended for traditional savings goals. It earns significantly higher interest than the average savings rate of 0.49%.
Bask Mileage Savings Account
The mileage savings account is intended for travelers who fly with American Airlines. You’ll earn 2.5 AAdvantage miles for each dollar saved annually.
The Bottom Line: Is a Bask Bank CD Right for You?
A Bask CD could be a good fit if you have at least $1,000 to deposit and are looking to take advantage of competitive rates for a short CD term. Bask CDs are FDIC-insured, making them a secure option.
Because Bask is an online-only bank, you should be comfortable with using its mobile app and website. The bank doesn’t have any physical locations for you to visit. If you don’t have the minimum deposit amount or are looking for a longer-term CD, you could consider an alternative such as Synchrony Bank, which doesn’t require a minimum deposit and offers CD terms of up to five years.
FAQ: Bask Bank CD Rates
The banks paying the highest CD rates offer 5% APY or more, though rates fluctuate. Online banks tend to pay the best CD rates, resulting in the biggest earnings. In our 2023 MarketWatch Guides banking survey, about 55% of survey respondents said they’d consider switching to an online bank for a higher rate.
Yes, Bask Bank is available in all 50 U.S. states
No, Bask doesn’t have brick-and-mortar locations — it’s an online-only bank.
Yes, Bask Bank is FDIC-insured through its parent company, Texas Capital Bank. That means deposit accounts are protected up to $250,000 per depositor and per account ownership category in the rare case of a bank failure.
*Rates accurate as of September 26, 2024
**Data accurate at time of publication
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.
Sources:
- FDIC, National Rates and Rate Caps
- FDIC, Shopping for a Certificate of Deposit?
- Bask Bank, Account Agreement Terms and Disclosures
- Bask Bank, Bask Bank Deposit Rates
- Bask Bank, Certificates of Deposit
- Bask Bank, Bask Interest Savings Account
- Bask Bank, Bask Mileage Savings Account
- Bask Bank, Frequently Asked Questions
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com .