How Many CDs Can You Have Open?

You can open more than one Certificate of Deposit (CD) at a time. Most financial institutions generally allow multiple CDs, with no standard maximum limit making it easier to diversify savings, ladder maturities and take advantage of different interest rates.

A CD is a way to save money through your bank or credit union. By placing your money into a CD, you agree not to withdraw the funds for a fixed amount of time, usually anywhere from 1 month to 5 years. When the CD matures, you’ll receive your deposit back plus any interest it’s earned, often more than you’d make with a standard savings account.

Choosing the right number of CD accounts is a personal decision, and there are many factors to consider, whether you’re opening your first account or adding to your existing portfolio.

Can you have multiple CDs at the same bank?

Many banks welcome customers to open multiple CDs at once. They may offer accounts featuring different maturity timelines and interest rates. This allows customers to lock in interest rates or take advantage of limited-time promotional rates.

Is it better to have 1 CD or multiple CDs?

Having multiple CDs may allow you more flexibility when it comes to investing, especially if you use a laddering strategy. For example, you might have accounts that mature in 3 months, 6 months and a year, allowing you to withdraw or reinvest your funds throughout the year rather than just waiting for a single account to mature.

However, having a single CD is easier to manage, and may be a better option for customers just starting to build up their assets.

What to consider before opening multiple CDs

Since placing your money in a CD means that you’re obligated to keep it there for the length of the term, keep these considerations in mind before opening a new account.

Know the FDIC insurance limits

Money deposited into a CD at a Federal Deposit Insurance Corporation (FDIC) bank may qualify for FDIC insurance coverage. FDIC insurance covers $250,000 per depositor for each account ownership category per insured bank.

Avoid early withdrawal penalties

If you need the funds you’ve deposited in your CD before the term is over, you may incur an early withdrawal penalty. This fee varies across banks and is listed in the terms and conditions of your account. If you haven’t earned enough interest to pay the fee, it may be deducted from the principal you deposited when you opened the account, leaving you with less money than you started.

Understand how to juggle multiple accounts

It can be tough to juggle multiple CDs on top of your checking, savings and other investment accounts. If you forget about the end of an account’s term, you may be leaving money on the table that you could use or reinvest. Some banks will automatically roll your funds into a new CD if you don’t reach out, leaving you unable to access your money without a penalty for longer than you might want.

How to manage more than 1 CD

Managing multiple CD accounts is possible with the right planning and tools. Some simple ways to stay on top of your CDs include:

• Making a spreadsheet to compare and track all of your accounts, including the interest rate, maturity date and minimum deposit requirements. 
• Setting calendar alerts to remind you when your accounts are ready to mature. Set them to go off a few days before the maturity date, in case you need to talk to your bank to close or transfer the account. 
• Setting up CD accounts at multiple banks to stay under FDIC limits, or opening a joint account to extend your insurable funds. 
• Researching your CD options when you’re close to your maturity date to see if you can get a better rate, instead of just rolling your money over into the same terms.

Spread your savings across multiple CDs

Opening multiple CD accounts can help build your financial portfolio throughout the year. While it may require some extra management, having multiple CDs open helps to provide you with flexibility to reach your financial goals. Whether you’re saving in the short-term or funding a long-term goal, having more CDs may open a world of possibilities.

Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to completely describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.