The good news is that Quontic Bank’s certificates of deposit (CDs) offer competitive yields, which are among the highest on the market, while requiring just $500 to open an account. The bad news is that there are just five terms available, none of which are shorter than six months, and you’ll owe a steep penalty should you make an early withdrawal.
Therefore, consider Quotnic’s CDs only if you are convinced you won’t need the funds early and if the term lengths line-up with your long-term savings needs.
Account details and annual percentage yields (APYs) are accurate as of October 9, 2023.
About Quontic Bank CDs
Quontic bank keeps it simple and only offers traditional CDs. You won’t find rate-bump, no-penalty or add-on CD options here. You also won’t find a whole lot of term options: Just five terms within the range of maturity dates most commonly offered by financial institutions.
Each requires a minimum balance of $500 to open, which is affordable.
If you need your money before the CD matures, you might be out of luck. Quontic Bank doesn’t allow you to make an early withdrawal without its permission — and, if you get consent, you’ll have to pay a steep penalty.
For CDs with terms of up to 12 months, the penalty is equal to the interest for the full length of the stated term and, if the CD hasn’t earned enough interest to cover the penalty, the difference can come from the principal.
For instance, if you opt to open a six-month, 5.05% APY CD with $10,000, you’d have earned $249.39 in interest over the whole term. But if you need to withdraw the money after five months, you owe the bank the entire $249.39 — you’ll lose all of the interest accrued during those five months, plus $41.99, which will be deducted from the principal.
If you have a CD that matures between 12 months to under 24 months, the penalty is one year of interest. For CDs with terms of 24 months or longer, the penalty equals two years’ interest.
You can use our CD calculator to see how much you stand to earn.
How to get a Quontic Bank CD
Be sure to compare the best CD rates before you pick one, but opening a CD can take only a few minutes.
- Login or create a Quontic Bank account. If you’re a new customer, you’ll need to fill in some personal information, including name, date of birth, Social Security Number (SSN), email address and phone number.
- Choose your term. Quontic Bank offers CDs with terms ranging from six to 60 months. Consider your financial goals — because even though you could make an early withdrawal, the penalties for doing so are steep.
- Fund the account. To finish opening the CD, put money in it — the minimum for all Quontic CDs is $500, but you can put more if you wish. You can’t add money later to a traditional CD.
When the CD matures, you’ll have ten days to make any changes — such as altering how much is deposited, or withdrawing all of your funds and closing the CD. If you do nothing, the CD will automatically renew for the same term at whatever yield is being offered at the time.
How Quontic Bank CD rates compare
Quontic Bank’s CDs are highly competitive, even compared to what other digital financial institutions offer.
Other products Quontic Bank offers
Quontic Bank offers most of the banking services you might need for your day-to-day finances, your savings goals and your home. However, It doesn’t offer any business or retirement accounts nor provide personal loans, student loans or credit cards.
You can find two types of checking accounts — an interest-bearing option and a cash rewards option — plus a money market account (MMA) and a high-yield savings account. You could also obtain a mortgage for a home, including conventional, refinance, VA and FHA.
The bank also offers a wearable ring that acts like a debit card. The Quontic Pay Ring links to your Quontic Checking Account and allows you to make purchases by tapping it on debit card readers. Note that you can only make payments with the ring, not receive deposits.
Quontic Bank review
The online-only bank was founded in 2009 and focuses on offering checking and savings accounts, CDs and mortgages in all 50 states.
It’s insured by the Federal Deposit Insurance Corp. (FDIC), which guarantees deposits up to $250,000 per depositor, per account, per account ownership type (such as a joint versus an individual account).
However, the tech-forward bank has gotten in some hot water for not maintaining capital. In October 2023, the Federal Reserve Bank of Philadelphia and Quontic Bank came to an agreement about how Quontic is to meet financial requirements. It’s faced such enforcement actions from regulators before for the same thing, including an issue in 2018 from the Comptroller of the Currency.
Frequently asked questions (FAQs)
Quontic Bank’s six-month CD term is its second highest yielding option, offering an APY of 5.05%.
Quontic Bank is an online-only bank, so you can access it anywhere from a web browser or its phone app.
Quontic Bank is FDIC insured, meaning that up to $250,000 of your funds garner protection.
