Dedicated to Deposits: Deals, Data, and Discussion

5.25% 60-Month CD at ViewPoint Bank - Nationally Available

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ViewPoint Bank, National Association
ViewPoint Bank is offering a CD special with a very competitive 60-month CD. The yield is 5.25% APY (rate of 5.15%), and the minimum deposit is $1,000. The Jumbo 60-month CD has a yield of 5.35% APY (rate of 5.25%) for a minimum of $100,000. Interest is compounded and paid quarterly. The other CD special which is not quite as competitive is a 4.25% APY CD with terms of 12 to 17 months (4.35% APY for the Jumbo). These are also available as IRA CD's.

I just contacted the Bank's CSR via their online chat system. According to the CSR, people from any state can apply for the CDs online. Once the CD application is approved you would successfully lock that offer and obtain the CD special rate. For those who don't already have a ViewPoint account, it seems like mailing in a check with the account forms is the typical way to fund the account.

To close the CD at maturity, they do require written instructions by either mail, fax or a secure email sent within their online banking system. The grace period at maturity is 5 business days. Outgoing domestic wire transfers cost $25.

I wasn't able to get a straight answer regarding the early withdrawal penalty. I was told that the CD would normally be penalized 180 days of interest for terms over a year and 90 days of interest for terms less than that. However, the CD can be assessed a different penalty depending on the time during the term which it was withdrawn.

The bank continues to offer a reward checking account that is also available nationally. The current yield is only 4% APY, but it's good on balances up to $50K (see post).

The bank has some solid financial ratings for soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 6/30/08 data.

Branches are locatd in the Dallas, Texas metro area. It's a new bank that was just established in 2006. The bank has $1.86 billion in assets and $1.45 billion in deposits (FDIC Certificate # 58006).

  Tags: ViewPoint Bank, National Association, CD rates, IRA rates, Texas

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Comments
5 Comments.
Comment #1 by Anonymous posted on
Anonymous
I applied online for a savings account, followed by receipt by email of documents to be completed and returned by snail mail. The account # nessary for completing a bank wire would then be sent to me by snail mail. I backed out when I saw the paperwork. Any deposits here of any kind constitute "ownership". with voting by proxy and things that scare me. This bank appears to be owned by a holding company, and any deposit there entitles you to vote on matters that must be decided by the entire membershio body. View Point Bank comes under the oversight of Thrifts and Savings and Loans. I'm not savvy enough to understand my potential liabilities in such a corporate structure, and is the reason I backed off. If you are more knowledgeable than I and don't fear potential liability for debts incurred by this bank you would partly own, then this might be a wonderful place to invest. Their Chat Customer service online is excellent

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Comment #2 by Anonymous posted on
Anonymous
To anonymous (8:28 AM, November 08, 2008) - This just sounds like a typical "mutual bank", owned by its depositors instead of stockholders. There's no liability of any kind, and you have the option to safely ignore all the proxy-related stuff, etc. These banks often pay higher rates than others since there are no stockholders to pay dividends to.

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Comment #3 by Anonymous posted on
Anonymous
Has anyone nailed down the details of the early withdrawal penalty? For a 5 year term, and with interest rates so uncertain, I'd really like to know before committing to this.

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Comment #4 by Anonymous posted on
Anonymous
Applied on-line and received the follow-up docs a day later. They require notorization of your signature/ID to open up the accout. Did the on-line chat with a rep and he confirmed, ID docs need to be notorized to open the account - PASS - PITA to deal with.

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Comment #5 by Anonymous posted on
Anonymous
Early withdrawal penalty shown on account forms (which is NOT what was described by phone!): for CD terms 1 year or more, penalty is 180 days interest at greater of actual CD rate or bank's current rate for that term CD at time of withdrawal; and any withdrawal terminates CD and causes penalty to apply to entire balance. This is unacceptable!

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