How To Open A CD - Tax Debt Advisors

No, you typically cannot add to the balance of a traditional Certificate of Deposit (CD) once it has been opened. CDs are designed as fixed-term, fixed-deposit savings products, meaning:

🔒 Key Characteristics of Standard CDs:

Feature	Description
Initial Deposit	Fixed at the time of opening
Additional Deposits	❌ Not allowed during the term
Interest Rate	Locked in for the term
Term Lengths	Usually 3 months to 5 years
Early Withdrawal	Allowed but comes with a penalty (loss of interest or fees)

✅ Options If You Want to Add Money Regularly

If you’re looking to build savings gradually while still earning better-than-savings-account rates, consider:

1. Add-On CDs

Allow additional deposits during the term
Offered by select banks and credit unions (e.g., Ally, BECU, or local AZ credit unions)
Often have minimum add-on amounts and maximum contribution limits

2. CD Ladder Strategy

Open multiple CDs at different terms (e.g., 6 mo, 12 mo, 24 mo)
As each CD matures, you reinvest plus add more money
Provides liquidity and flexibility over time

3. High-Yield Savings Account (HYSA)

Interest rates competitive with short-term CDs
Flexible and allows unlimited deposits and withdrawals (ideal for growing funds to move into a CD later)

📍 Arizona Tip:

Credit unions like Desert Financial or Arizona Federal occasionally offer special add-on CDs, especially for seniors or members with checking accounts.

Would you like help finding:

The best add-on CD rates available now?
A CD ladder template to manage long-term savings?

The Best Add-On CD Rates Available Now

Here are the best add-on CD rates available now (June 2025), along with top regular CDs for comparison:

✅ Top Add-On CD Offer

Bank5 Connect 24‑Month Investment Add‑On CD
- 4.25% APY
- Allows additional deposits anytime during the 2-year term wsj.com+15 bank5connect.com+ 15fool.com+15
- Full FDIC insurance; flexible deposit options via electronic transfer or check

👉 Ideal for savers who want to continue adding funds while earning a solid fixed rate.

💼 Best Standard CD Rates (No Add‑On Feature)

Term	Institution	APY	Min. Deposit
9 months	Newtek Bank	4.60%	— bank5connect.com+1bankrate.com+1
6 months	First Internet Bank of Indiana	4.49%	$1,000
3 months	PonceBankDirect (via Investopedia)	4.50%	—
1 year	First Internet Bank of Indiana	4.40%	$1,000
Variable	Higher yields (up to 4.65%) available at smaller banks/credit unions

Some smaller or community institutions have offered yields up to 4.65% APY wsj.com+1 5fool.com+ 15fool.com+15.
No-penalty CDs (e.g., from Sallie Mae, 7–14 months) are also hovering over 4% APY fool.com+3 kiplinger.com+3 fool.com+3.

🔎 How to Choose

💡 Need flexibility?
→ Go with an add-on CD, like Bank5 Connect’s 4.25% add-on CD. You can grow your balance while it’s locked in.
💸 Want the highest rate?
→ Consider short-term standard CDs (like 6 or 9 months) with top-tier rates (4.49–4.60% APY).
🔐 Prefer liquidity?
→ Check out no-penalty CDs offering ~4.0–4.3% APY, allowing early withdrawal without fees.

🧭 Next Steps

Decide if flexibility (add-on feature) or maximum yield is more important.
Compare actual availability and enrollment requirements—especially at smaller banks and credit unions.
Watch for upcoming rate cuts—locking in top rates now may protect your returns later in the year investopedia.com+15 fool.com+15 bankrate.com+15 kiplinger.com+1moneyrates.com+1.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.