Dedicated to Deposits: Deals, Data, and Discussion

NexBank Increases the Rate of its 24-Month CD Special - Texas Only

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NexBank

NexBank did something you don't see much of these days. They raised the rate of their 24-month add-on CD. It's now 2.40% APY. When I last reported on this CD in December, it was 2.25%. Minimum deposit is $10,000. The rate is listed at the bank's promotion page as of 2/10/2010. Additional deposits of $10,000 or more are allowed anytime. There's also a bump feature which is typically less useful. It allows customers to bump-up the rate once per a 12-month period to the rate of NexBank's current 24-month CD offering.

In addition to this add-on CD, the bank has some competitive rates on its standard CDs including a 2.00% APY 18-month CD and a 1.85% APY 12-month CD. Minimum deposit is $10,000. These rates are listed at the bank's rates page as of 2/10/2010.

There's an online application (link on the left side of CD page). However, the application form only allows the state of Texas to be specified. At the top of the application it states that "if you work in Texas and reside outside of Texas please contact us." So it appears to be limited to those who live or work in Texas.

Branches are located in Dallas and Plano, Texas.

NexBank's ratings for safety and soundness continue to be a little weak: 2 stars (problematic) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 9/30/09 financial data. The bank has been a FDIC member since 1934 (FDIC Certificate # 29209). Another thing to note about this bank is that it's operating under a FDIC Cease and Desist Order.

Other Competitive Certificate of Deposit Rates


  Tags: NexBank, CD rates, Texas

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