Dedicated to Deposits: Deals, Data, and Discussion

VirtualBank's 3-Month CD Now 5.56%


VirtualBank raised the rate on its 3-month CD from 5.15% to 5.56% APY. The minimum is $10,000. All other CD rates remain the same.

This has been a strange month for CD rates at Virtual Bank. In early October, its 6-month CD rate fell from 5.15% to 4.86% APY and its 12-month CD rate fell from 5.15% to 4.60% APY. But the 9-month CD rate increased from 5.15% to 5.39% APY. These rates remain the same today. The rate for all terms over 12 months is 5.15% APY.

For much of this year VirtualBank's 6-month CD rates had been near the top. The peak was in August when the 6-month to 12-month CD rates were at 5.60% APY and the 5-year CD rate was 5.70% APY.

Some rate drops over the last few months are understandable considering the market environment. But a 4.60% APY 12-month CD and a 4.86% APY 6-month CD seems unusually low for an online bank. Heck, even ING Direct's CDs are at least 5%. Perhaps they're trying to get back their image as a CD rate leader with this new high yield 3-month CD.

I wonder how many people have let their 1-year CD automatically roll over into this 4.60% CD. You can never assume that a bank will keep its CD rates high. Always check the new rates when a CD matures. If the rate is low compared to the competition, it never hurts to ask for a special rate. For online banks like VirtualBank, I'm not sure how well this works. I've had luck with brick-and-mortar banks like World Savings, and I've read about several people having good luck with their local banks.

VirtualBank Certificate of Deposit Details

Some details about VirtualBank CDs from my experience and from info from the customer service representatives include:
  • Early Withdrawal Penalties: 1 month of interest for terms under 6 months, 3 months of interest for terms 6 months to under 1 year, 6 months of interest for terms over 1-year (applies whether interest has been earned or not)
  • Grace period (time allowed to close without penalty after CD matures) equals 14 business days
  • Closure request can be done via VirtualBank's secure email
  • Able to fund a CD from your eMoney Market account
  • Can request to deposit a matured CD into your eMoney Market account

If you're interested in a VirtualBank CD, the eMoney Market can make the process easier. You can use its ACH transfer capability to move money into and out of VirtualBank. So the money can go from external bank to eMoney Market account and then be used to fund a CD. At maturity, you can request money to be deposited into the eMoney Market account where you can transfer it out if you choose. The eMoney Market account doesn't have a great rate at 4.60% APY (higer rates available for larger balances), but it doesn't have any minimum balance requirements. Plus there's a nice $20 refer-a-friend bonus (see post).

For more info on VirtualBank's CDs, please refer to this post. For more info on the eMoney Market account and the sign-up referral bonus, please see this post.

Comment #1 by Anonymous posted on
The interest rates offered by any bank or CU are influenced by overall credit market levels and conditions, as you suggest. But they also are a function of loan demand local to each individual institution. That's the great opportunity of nationwide rate shopping beneath the FDIC or NCUA insurance umbrellas. It enables us small fry to take advantage of special interest rate situations and offerings throughout the USA. These often are contrary to overall interest rate trends.

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Good point. Seems like this sinking loan and mortgage demand may have been a reason for EmigrantDirect to drop back on its savings account and CD rates.

Comment #4 by Jeff (anonymous) posted on
I recently signed up with Virtual Bank and got my $20 dollar referral. So if anyone else who is wanting to earn quick money send me a email as well and ill pass on this great opportunity. The only downside is the application part does take some time to fill out. Email me at jefflmercer at gmail dot com if your in need of a

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