Best Certificates of Deposit (CDs) in Kansas for 2025
- Certificate of deposit accounts are time deposits that pay interest for a certain period.
- Kansas residents can open CDs at online banks, traditional banks, or credit unions.
- The best CD accounts in Kansas offer competitive rates with reasonable maturity terms.
- Before opening a CD in Kansas, compare account features to find one that best fits your needs.
Certificate of deposit (CD) accounts pay you interest for a set time. Once your CD matures, you can withdraw your savings or roll it over to a new CD account. CDs are a great way for Kansas residents to grow their money safely and securely, while earning a competitive rate. This guide covers the best CD accounts in Kansas to help you fund your short- and long-term savings goals.
Best CD Interest Rates In Kansas
Popular Banks and Credit Unions in Kansas
1. Union Bank & Trust: Locally owned, Union Bank & Trust is a full-service bank offering an extensive range of CD options. The bank’s CD rates are some of the best in the state.
2. First Federal Bank of Kansas City: Routinely ranked as one of the best banks in Kansas, First Federal Bank of Kansas City is committed to helping residents reach their financial goals. You’ll find a range of CD terms with no monthly service fees.
3. Legacy Bank: In business since 1886, Legacy Bank offers CDs with terms ranging from four weeks to five years. Rates are some of the highest you’ll find at any Kansas bank.
4. KS StateBank: Founded in 1969, KS StateBank has five branches across the state where you can visit to open a CD. You can also get started with CDs online, and the rates are impressive.
Online Banks Offering CDs
Online banks are a popular alternative to traditional bank CDs for savers who are comfortable with a digital account. Here are some of the best reasons to consider opening a CD account with an online bank.
Higher interest rates
Online banks tend to have lower overhead costs than traditional banks, which allows them to pay higher rates to savers. While it’s possible to find high-yield CDs at Kansas banks, it’s worth comparing what you could earn with an online bank.
Low minimum deposits
While you might need $1,000 or more to open traditional CDs, online banks can offer lower opening deposit requirements. That’s a plus if you’re just getting started with saving or you’re hoping to build a CD ladder with multiple accounts.
Low or no fees
Online banks are often more fee-friendly than traditional banks, with no or low monthly maintenance fees and early withdrawal penalties.
Quick account setup
It’s possible to open a CD account at an online bank in minutes. You can link an existing bank account to make your opening deposit.
FDIC insurance
FDIC insurance protects deposits in case a bank fails. Many traditional banks are FDIC-insured, but plenty of online banks are too, so you can be reassured that your money is safe.
Mobile app convenience
Managing an online CD is often as simple as logging in to your bank’s mobile app. You can check your interest earnings, review your maturity date, and open new CDs from your mobile device.
If you’re looking for an online CD account, here are four options you might consider.
1. Bread Savings: Bread lets you choose from CD terms ranging from three months to five years, with a minimum deposit of $1,500. CD rates are highest for the six-month term.
2. Ponce: Based in New York, Ponce offers a variety of savings options, including money market accounts and CDs. Currently, Ponce offers just one CD with a seven-month term and an outstanding APY.
3. Western Alliance Bank: Western Alliance Bank features competitive CD rates when you open an account online through Raisin. Terms range from three to 12 months, and you can open your account with just $1.
4. Ally Bank: Ally is a familiar name in online banking, and if you’re looking for CD variety, you’ll find it here. You can choose from High Yield CDs, Raise Your Rate CDs, and No Penalty CDs.
Is an online CD account right for you? It depends on your goals and how comfortable you are with foregoing branch banking access. The options listed here are designed to give you a starting point when shopping for CDs online.
Factors to Consider When Choosing a CD in Kansas
If you’re eyeing CD accounts in Kansas, pay attention to what makes them unique compared to CD accounts offered in other states or online. Here are some helpful factors to weigh.
Interest Rates
Of course, you’ll want to check out the interest rates you could earn. If you’re looking specifically at Kansas CDs, start with banks and credit unions in your local area to see how rates compare. Then, cast the net wider to see how CD rates may trend in other parts of the state.
Term Length
Shorter CD terms mean you don’t have to wait as long to access your money. A longer term, on the other hand, could help you snag a higher interest rate. When comparing Kansas CDs, look at how rates compare by term. Keep an eye out for special or promotional CDs that feature a higher rate.
Minimum Deposit
The amount of money you’ll need to open a CD in Kansas can vary widely from one bank to the next. For example, Bank A might expect you to have $500 for a new CD while Bank B prefers a minimum deposit of $2,500. You’ll need to choose the CD that fits with what you can afford to deposit.
Accessibility
If you’re opening a CD at a Kansas Bank, check out its proximity to you and the number of locations you can visit. You might be able to get a higher rate with a bank located on the other side of the state but you have to consider how convenient that is if you need to get in-person help with your account.
Pros and Cons of CDs
Before opening a CD, think about how well it fits in with your financial goals. Weighing the pros and cons can help you decide if a CD is the best option for you.
Pros
- CDs earn fixed interest rates, so you can easily predict how much your savings will grow.
- Banks typically offer a range of terms, and you can pick the one that suits you best
- Online CD accounts are easy to open without having to leave home
- FDIC coverage ensures that your money is protected
Cons
- CDs require you to commit to leaving your money in the account for a set period
- Withdrawing money from your CD before it matures could trigger a penalty fee
- You may earn a higher rate of return investing your money elsewhere
- If CD rates go up after you open your account, you could miss out on the chance for additional interest earnings
Maximize Your Savings With CDs
CDs can help you build a savings stash, without fear of losing money. Kansas residents have plenty of CD accounts to choose from at local banks and online. Ready to get started with funding your financial goals? Compare the best CD rates available now.
Frequently Asked Questions
Yes, Kansas treats interest earned on CDs and savings accounts as taxable income. Kansas has a graduated income tax rate ranging from 3.10% to 5.70%. You’ll need to report your interest earnings on your federal and state tax returns when you file.
You’ll need to check individual requirements, but generally, living in Kansas won’t bar you from opening a CD account with an online bank. As long as the bank offers CD accounts in your state, you should be able to apply and fund your new account online.
Kansas has several credit unions, where you can find share certificates for savers. These certificates are similar to CDs in terms of how they work; the biggest difference lies in the rates you can earn. You’ll also need to meet eligibility requirements to join a Kansas credit union and open a savings account.
