NexBank continues to offer its Triple Advantage CD that offers both bump-up and add-on features. The rate has fallen a bit since my March post, but it remains competitive. The rate is now 1.95% APY for a 2-year term as of 5/02/2010. Additional deposits of $10,000 or more are allowed anytime. There's also a bump feature that allows customers to bump-up the rate once per a 12-month period to the rate of NexBank's current 24-month CD offering. Minimum initial deposit is $10,000.
The rate is not the best for a 2-year term. But the add-on feature is nice to hedge against the risk that rates will stay low or go lower in the next year. When your CDs mature, you can always rely on the add-on CD. The bump-up feature could be useful if rates rise. The only downside to the bump-up feature is that it depends on the bank to keep rates competitive. This CD is comparable to Ally Bank's Raise Your Rate CD except that it also allows additional deposits.
The bank used to have an online application, but I no longer see the application link. The application used to allow anyone from Texas to apply. If you're interested in this CD, you should call the bank's toll-free number (1-800-827-4818). 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. 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.
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