Bank OZK offers varying CD rates, with a promotional seven-month CD currently paying 5.40% APY. They also offer a regular six-month CD at a significantly lower rate of 0.05% APY.
Understanding Bank OZK CD Rates
Bank OZK provides a range of Certificate of Deposit (CD) options, with rates that can be both highly competitive and comparatively low, depending on the specific term and product type. This means it's essential to check the exact offering for the term length you are interested in.
For instance, in some locations like Little Rock, Bank OZK has been noted to offer two CDs with relatively similar, short term lengths but vastly different Annual Percentage Yields (APYs):
- Regular Six-Month CD: This option provides a modest return.
- Promotional Seven-Month CD: This specific offering stands out with a much higher rate, designed to attract new deposits.
Here’s a quick overview of the rates mentioned for these short-term CDs:
| CD Term | CD Type | Current APY |
|---|---|---|
| Six-Month | Regular | 0.05% |
| Seven-Month | Promotional | 5.40% |
As evident, Bank OZK simultaneously presents rates that are both considerably lower-than-average for standard offerings and exceptionally higher-than-average for promotional ones within a similar timeframe.
Key Considerations for Bank OZK CDs
When considering a CD with Bank OZK or any financial institution, it's beneficial to keep the following in mind:
- Term Length: CD rates are typically tied to the length of the term. Longer terms can sometimes offer higher rates, but promotional rates for shorter terms can also be very competitive.
- Promotional vs. Standard Rates: Banks often use high promotional rates to attract new customers or specific funds. These rates may not be available for renewals or for all customers.
- APY vs. Interest Rate: Always compare Annual Percentage Yield (APY) as it reflects the total return on your deposit, including the effect of compounding interest.
- Early Withdrawal Penalties: CDs usually lock in your money for the duration of the term. Withdrawing funds before maturity often incurs a penalty, which can reduce your earnings.
- Market Conditions: CD rates fluctuate based on the broader economic environment and interest rate trends set by the Federal Reserve.
For the most up-to-date and comprehensive information on all available CD terms and rates, it is always recommended to visit the official Bank OZK website or contact them directly. You can find more details on Bank OZK CD offerings by exploring various financial reviews.
