Is a Quontic Bank CD right for you? Terms and features examined

Quontic Bank is an adaptive digital bank that offers FDIC-insured checking accounts, savings accounts, and certificates of deposit (CDs). As an online-only and FDIC-insured bank, Quontic ensures your deposits are protected up to federal limits, with all banking conducted digitally since it has no physical branch locations.

A certificate of deposit is a low-risk savings option where you deposit money for a fixed term and earn a guaranteed fixed interest rate until maturity. Quontic Bank CDs provide stability and predictability for your savings with competitive rates. You can open a Quontic Bank CD with a minimum deposit of just $500, choosing from six term lengths that cater to both short- and long-term savings goals.

Understanding Quontic Bank CDs: Features and benefits

Before you open a CD account, you likely want to know a little more about it. Here’s a clearer picture of what Quontic Bank CDs have to offer, in addition to above-average rates, including a competitive annual percentage yield (APY), a $500 minimum balance required to open a CD, and the ability to transfer money from an existing account or external bank to fund your CD.

Key features of Quontic Bank CDs

Quontic Bank CDs offer many of the features you’d expect in an online CD. When you open an enjoy, you can take advantage of:

• Fixed rates – Quontic Bank CD rates stay the same for the entire term; you don’t have to worry about your rate dropping after opening your account.
• FDIC insurance – The FDIC insures depositors in the rare event that a bank fails. Quontic Bank CDs are FDIC-insured up to $250,000, so you can feel reassured that your money is safe.
• Online access – Online banking makes it easy and convenient to manage your Quontic Bank CDs. You can log in to check maturity dates, see how much interest you’ve earned, or open a new CD in minutes.
• Flexibility – Quontic Bank offers CD terms from six to 60 months, with a low $500 opening deposit requirement. You can open one CD or choose one of each term to build a CD ladder.

There are no monthly service fees for Quontic Bank CDs. If you have a Quontic Bank checking or savings account, you can use either one to fund your new CD. You can also make your first deposit via ACH transfer or with Plaid.

Is Quontic Bank safe? Security and trust analysis

Security is always a concern when you’re banking online. You want to be sure that your accounts are protected and safe at all times. Quontic Bank takes a variety of steps to safeguard customer accounts.

Here are some of the most commonly asked questions about Quontic’s security.

• Is Quontic Bank FDIC-insured? Yes, Quontic Bank deposits are insured by the FDIC. There’s nothing you need to do to enroll in this coverage; you’re automatically protected when you open an account.
• Is Quontic Bank a legitimate, trustworthy bank? Quontic Bank is a legitimate financial institution that’s been innovating since 2009. As a federally chartered bank, Quontic aims to disrupt the traditional banking space by providing access to bank accounts and mortgages using a digital, customer-first approach.
• What security measures does Quontic use? Quontic securely stores customer information and doesn’t share your data with third-party companies. Multi-factor authentication is required to log in to your accounts, and you can also set up Touch ID to sign in with a fingerprint instead of a password. Eligible deposit accounts include Mastercard ID Theft Protection.
• Is Quontic Bank a good bank? Quontic has a 3.9-star rating on Trustpilot, with most customers expressing satisfaction with the range of products and services offered. Quontic Bank has an A+ rating with the Better Business Bureau (BBB), though it is not yet a BBB-accredited business.

How to choose the right Quontic CD term

Your CD term determines how long you’ll need to leave your savings in place before you can withdraw it without penalty. When choosing a CD, the term length and available options are crucial factors to consider, as terms typically range from a few months to several years. Generally, longer terms offer higher interest returns, but come with increased risk of penalties if you need to access your funds early.

Early withdrawal from a Quontic Bank CD is subject to penalties that can reduce your earnings. Fees may apply if you withdraw funds before the maturity date, potentially affecting both your accrued interest and principal balance. Understanding these penalties is essential to deciding which Quontic CD term best aligns with your financial goals and liquidity needs.

Short-term CDs (3-month and 6-month terms)

Generally, anything under 12 months is considered to be a short-term CD. Short-term CDs may be a good fit if you:

• Anticipate needing your savings within the next three to six months
• Expect CD rates to go up in the near future

The Quontic Bank 3-month CD earns the highest APY of any of its CD options. It has the same $500 minimum opening deposit. The Quontic Bank 6-month CD rate is only slightly lower.

Either CD offers liquidity, since the term is shorter. If you’re unsure about when you’ll need the money or you’re hoping CD rates will rise, you might try the 3-month CD. Once it matures, you can roll it over to a new term if you don’t need to withdraw the money just yet.

Medium-term CDs (1-year and 2-year terms)

Medium-term CDs may be appropriate if you want to save for bigger financial goals that take a little more time to reach. You might consider a 1-year or 2-year Quontic Bank CD if you’re saving for:

• A down payment on a car
• A vacation
• Home renovations or improvements
• Wedding expenses

Medium-term CDs can offer a solid balance of higher rates without feeling like you’re locked in for too long. However, you have to consider the timing. If CD rates are expected to rise, you may want to wait to open your account so you can get the best APY.

Long-term CDs (3-year and 5-year terms)

Long-term CDs are typically best suited for money that you know you won’t need any time soon. You might have a long-term CD to save for:

• A down payment on a home
• College expenses
• Retirement

Quontic Bank CD rates for 3-year and 5-year terms are competitive, and the more you deposit, the more interest you could earn through compounding over time.

Again, however, the interest rate environment matters. If CD rates rise after you open your account, you’ll still be locked in at the same APY you had initially.

Strategies for maximizing returns with Quontic CDs

If you’re opening a CD, you obviously want to earn the most interest possible and see how much your money could grow over time. With Quontic Bank CD rates, your savings have the potential to grow significantly compared to the national average, helping you maximize your returns.

Here are some ways to make the most of Quontic Bank CD rates. Interest is calculated daily on your balance and credited to your account monthly, allowing your savings to compound steadily. Both your principal balance and accrued interest contribute to your total earnings, and depending on account terms, interest and/or bonuses may be credited to further boost your returns.

CD laddering with Quontic Bank

A CD ladder consists of multiple CDs with varying terms and rates, each representing a “rung” on the ladder. As each CD matures, you have the option to withdraw your funds or reinvest them into a new CD term, allowing you to maximize returns while maintaining liquidity.

Here’s how to build a CD ladder with Quontic. Assume you have $5,000 to save. You could open one CD for each term:

• $1,000 to a 3-month CD
• $500 to a 6-month CD
• $500 to a 12-month CD
• $1,000 to a 24-month CD
• $1,000 to a 36-month CD
• $1,000 to a 60-month CD

With this approach, you open all the CDs at the same time. When the 3-month CD term ends, you can renew it if the APY is the same or higher. If the APY has dropped, you may choose another term with a higher rate. You do the same thing each time a “rung” of your CD ladder matures. Since there’s no 4-year CD option, you may decide to roll a shorter-term CD into a longer term at maturity to close the gap.

Laddering helps you avoid early withdrawal penalties, since a maturity date is always on the horizon. A CD ladder can also make it easier to capitalize on rising CD rates, since you’re not locking all of your savings into the same term.

Quontic CD account management

Quontic makes it as simple as possible to open a CD and start earning interest on your money. Here’s a comprehensive guide to getting started and managing your CD once it’s open. Interest may be credited based on the statement cycle, and certain restrictions may apply to account management. Please be aware that terms, conditions, fees, and exclusions may apply, including to specific transactions. It’s important to review these additional conditions, fees, and exclusions as they can impact how you manage your account.

Opening a Quontic CD account

You can open a Quontic CD online in minutes. To do that, you’ll need to:

• Navigate to the banking page and select ‘Certificates of Deposit’
• Choose a CD term and click ‘Get Started’
• Enter your name, email address, and phone number
• Enter the secure 6-digit passcode that Quontic Bank sends to your email address
• Complete the online account application and verify your identity
• Add your bank account number and routing number from an external bank to make your opening deposit
• Review the information you’ve entered and submit

If you already have a Quontic Bank account, you can log in to start a new CD application. For brand-new accounts, you’ll need to share your:

• First and last name
• Phone number
• Email address
• Physical address
• Social Security number
• Date of birth
• Banking information (for your initial deposit)

You’ll also need a valid, government-issued ID. The whole process takes under five minutes.

Early withdrawal penalties and considerations

Early withdrawal penalties are meant to discourage savers from taking money out of their CD accounts before maturity. Quontic Bank charges an early withdrawal penalty; the penalty amount and how the penalty equals a certain amount of interest or years of interest depend on the CD term. Withdrawals before the maturity date are subject to these penalties, which are based on the CD’s maturity date.

The penalty amount is calculated based on the accrued interest that would have been earned over the specified period. If the accrued interest exceeds the penalty, the excess is paid to the depositor. If the penalty is greater than the accrued interest, the difference is deducted from the principal balance. This means that early withdrawals before the maturity date can result in forfeiting accrued interest and, in some cases, a reduction of your original deposit.

Other banks charge similar penalties. Some banks, however, charge no early withdrawal fees at all, or they offer no-penalty CD options. A no-penalty CD allows for withdrawals during the term, with no fee. The only downside is that these CDs typically offer lower rates. So, you’ll have to decide if the added flexibility is worth less interest.

Also, look at your total savings picture before opening a CD. If you don’t have an emergency fund, for example, you might be forced to tap into your CD account in a cash crunch. Fully funding an emergency savings account before moving some of your money into CDs can reduce the likelihood of an early withdrawal.

CD maturity options and renewal process

Once your Quontic Bank CD matures, you can do one of the following:

• Roll it into a new CD with the same term
• Roll it into a new CD with a different term
• Withdraw your original deposit and roll the rest into a new CD with the same or a different term
• Withdraw your savings and close the account

When your maturity date is approaching, Quontic Bank will send you a maturity notice. You’ll have a 10-day grace period to decide what you want to do with the money. If you don’t make any changes, your CD will automatically renew for the same term. The rate is subject to change and may be higher or lower, based on current rates at the time of renewal.