Dedicated to Deposits: Deals, Data, and Discussion

Early Withdrawal Now Allowed for CNB Bank Direct CDs


CNB Bank Direct

CNB Bank Direct just made a nice change to their CD policy. As I reported in this late April post, CNB Bank Direct offers three very competitive CDs. However, they had one major issue: no early withdrawal allowed. I just receive an email which states they have changed this policy. Here's an excerpt:

Early withdrawal now permitted should you need to access your funds before the maturity date. Penalty fees apply. [...] An exception will be made in the event of death or determination of legal incompetence of the primary account owner. Early withdraw penalties apply as follows:
<= 12 months, 90 days of interest on amount withdrawn.
> 12 months, 180 days of interest on amount withdrawn.

Also, it's nice to see that their CD rates have remained unchanged since April which means they have become even more competitive as rates have trended lower in the last two months. These rates as of 6/17/2010 include (to see rates click on the "online banking login" link at

  • 1.65% APY 12-month CD
  • 1.85% APY 18-month CD
  • 2.15% APY 24-month CD

Unfortunately, they still require a $25,000 minimum deposit. Another downside is that before you can open this online CD, you must first have the online savings account. For more details about these CDs, please refer to my April CNB Bank Direct CD review.

I first reviewed CNB Bank Direct and its online savings account in August 2008. In September of 2008 they launched a special 4% promotion with the 4% guaranteed for 6 months. The account stayed competitive after the promotion. The current rate is now 1.25% APY.

CNB Bank Direct Overview

CNB Bank Direct is a division of Citizens National Bank, based in Bluffton, OH. Citizens National Bank is a small bank with $420 million in deposits. When I reported on the bank in 2008, it had only $350 million in deposits so the internet savings account seems to have helped raise their deposits.

The bank's ratings for safety and soundness continue to be above average: 4 stars (excellent) at BauerFinancial (based on 3/31/10 data) and 4 stars (sound) at (based on 12/31/09 data). Our health rating at DepositAccounts for the bank is not quite as high partly due to a significant increase in the Texas ratio from March 2009 to March 2010. Thus, the composite score is 3 out of 5. The bank has been a FDIC member since 1934 (FDIC Certificate # 6531).

Related Pages: CNB Bank Direct, CD rates

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