Are relationship CD rates worth it?

Do you need a checking account to get a bank's best CD rate?

A relationship rate is a CD quote that requires another account or condition at the same institution, such as a checking account, direct deposit or a minimum combined balance. We compare it with the best quote the same institution publishes without that condition, at the same ZIP, exact term and UTC verification day, using the tier applicable to $10,000.

Among 44 independent institutions with matched quotes, the relationship quote paid more at 38, the same at 2 and less at 4. The median relationship premium was 25 bp, or $25.00 over one year on $10,000 before tax. When the relationship quote is lower, the institution's best quote without the condition at that term, which can be a promotional CD, paid more.

Against the best fresh nationwide quote at the same exact term that needs no relationship, 40 of 42 selected relationship quotes were lower. Among 18 institutions whose relationship quote had no same-term comparison at the same institution, 13 were below that nationwide alternative.

Is the premium worth the required balance?

A relationship premium is worth less if the condition keeps money in a low-yield account. If you would otherwise hold that balance in a CD, the break-even checking balance is:

Break-even balance = CD deposit × premium / (alternative APY − checking APY)

Using the median premium of 25 bp on $10,000, the one-year index median of 3.55% as the alternative and an illustrative 0.01% checking APY, the premium is offset once about $706 sits in checking that would otherwise earn the alternative APY. A $5 monthly account fee alone costs $60 a year, which is 60 bp on a $10,000 CD.

Money you would keep in checking anyway carries no extra opportunity cost. We do not record each institution's qualifying conditions, balance requirements or fees; read the product disclosure before you rely on a relationship rate.

Calculate CD earnings · Compare CD rates by term · Promotional CD renewal gaps

How pairs are selected

Each regulator contributes one relationship quote. We prefer the exact one-year term, then the term closest to one year, then the shorter term and then product, ZIP and institution slug in alphabetical order; selection does not favor a larger premium. The comparison is the highest applicable non-relationship quote at the same institution, ZIP, exact term and UTC day, which can be a standard, promotional or special CD. Nationwide alternatives require metadata covering every state, no ZIP-specific price and no relationship condition; membership requirements can still apply.