NexBank continues to offer its Triple Advantage CD that offers both bump-up and add-on features. The rate has fallen quite bit since my last post on this in 2010, but it remains competitive. The rate is now 1.30% APY for a 2-year term as of 10/03/2011. This rate is the same as the 2-year CD rate listed at the bank's rates page. I called the bank this morning to confirm that this rate is still available on the Triple Advantage CD. The rate is subject to change at anytime so make sure to call for the latest rates.
The Triple Advantage CD allows additional deposits of $10,000 or more are anytime up to a maximum $240,000. There's also a bump feature that allows customers to bump-up the rate once to the rate of NexBank's current 2-year CD offering. Minimum initial deposit is $10,000.
The rate is not the best for a 2-year term, but it's currently a tad more than Ally Bank's 2-year Raise Your Rate CD rate. Unlike Ally's CD, this NexBank's CD allows add-on deposits. 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.
According to the bank's CSR, anyone in Texas can apply. You'll need to mail in the application with a copy of your driver's license. NexBank branches are located in Dallas and Plano.
The bank has an overall health score at DepositAccounts.com of 3 stars (out of 5) with a Texas Ratio of 47.35% (below average) based on June 2011 data. Please refer to our financial overview of NexBank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 29209).
How This CD Rate Compares
For a regular 2-year CD, the best nationally available rate is 1.70% APY at Alliant Credit Union ($25K minimum). That's far above what you can get at banks. The best 2-year bank CD is only 1.37% APY ($100K minimum) and 1.35% APY ($1K minimum) at Aurora Bank.
For 2-year CDs with special features, there are not many options. As I mentioned above, Ally Bank has its 2-year Raise Your Rate CD with a 1.29% APY, but this doesn't include the add-on feature.
For 2-year add-on CDs, the only institution that I know of that is still offering these is Northwest Federal Credit Union. However, the rate is low at 1.00%.
The above rates are accurate as of 10/03/2011.
Searching for the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.