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Can You Buy a CD with a Credit Card?
July 1, 2025
The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired.
Quick Answer
Usually not. Most banks and credit unions fund a certificate of deposit (CD) with a transfer from a bank account, a check, or a wire. A few institutions have accepted credit cards, often with low limits, but those policies are uncommon and change without much notice.
Even where it's allowed, your card issuer may treat the charge as a cash advance, which usually costs more than the CD will earn.
Should You Buy a CD With a Credit Card?
Possible Benefits
- Rewards: If the charge codes as a purchase, you could earn your card's rewards on the deposit.
- Minimum spending: A deposit could help you reach a new card's spending requirement, if the charge counts as a purchase.
Costs
- Cash advance treatment: Card issuers commonly treat cash-like transactions, such as wire transfers and money orders, as cash advances. Cash advances usually carry a fee, a higher APR, and no grace period, and they typically don't earn rewards.
- Limited acceptance: Most institutions don't take credit cards for CD funding at all.
- Interest math: Credit card interest rates are far higher than CD rates, so carrying the balance wipes out any gain.
How to Check Whether You Can Fund a CD With a Card
- Ask the bank or credit union. Confirm whether it accepts credit cards for opening deposits, the maximum amount, and any processing fee.
- Read your card agreement. Look at how your issuer defines cash advances and cash-like transactions, and what fee and APR apply.
- Test with a small amount. If both sides allow it, check how the charge posts on your card before funding a larger amount.
- Pay the card in full. Plan to pay the balance before interest starts, or the strategy loses money.
Impact on Your Credit Score
- Credit utilization: A large charge raises your card balance, which can lower your score until you pay it down.
- Payment history: Paying the card on time protects your score. A missed payment would hurt more than the deposit helps.
- New cards: Opening a new card to fund a CD adds a hard inquiry to your credit report.
Alternative Ways to Fund a CD
Transfer, Check, or Wire
Most banks let you fund a new CD by transferring money from another account, depositing or mailing a check, or sending a wire. Ally Bank, for example, lists all three options for its CDs.
Plan for Maturity
Once a CD is funded, you generally can't add money, and early withdrawals can trigger penalties. Decide ahead of time whether you want the CD to renew automatically or pay out to a linked account when it matures.
Choose the Right Card for Everyday Spending
Instead of forcing a CD onto a card, earn rewards on the spending your card is built for. The Kudos Explore tool lets you compare cards by rewards and fees, and our guide to credit card cash advances explains how those charges are priced.
Kudos is a free browser extension and app that recommends which of your cards to use at checkout. You can sign up for free.
Frequently Asked Questions
Do banks let you open a CD with a credit card?
Most don't. Standard funding methods are transfers, checks, and wires.
Will funding a CD with a credit card earn rewards?
Only if your issuer treats it as a purchase. If it's treated as a cash advance, it typically won't earn rewards and will cost a fee plus interest.
Can I use a 0% intro APR card to fund a CD?
Intro APR offers usually apply to purchases or balance transfers. A charge treated as a cash advance generally gets the card's cash advance APR instead.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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