VirtualBank's 3-Month CD up to 5.50%

VirtualBank increased the yield on its 3-month certificate of deposit to 5.50% APY. All other CD rates remain the same. The 3-month yield had been 5.44%. In the last couple of weeks, VirtualBank has made several increases to the rates of its short term CDs.

Some details about VirtualBank CDs from my experience and from info from the VirtualBank 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
• Can request 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 the official info on VirtualBank's CDs, please refer to VirtualBank's website. I have more info on VirtualBank's CDs in this post. For more info on the eMoney Market account and the sign-up referral bonus, please see this post.

VirtualBank is currently doing business as Lydian Private Bank. You can check their FDIC status and confirm their web address here. Lydian Private Bank has a 4 out of 5 safe-and-sound star rating (sound) at Bankrate.com.

Thanks to Scott who mentioned this rate update in the finding deals post.