NexBank 12-Month Promo Online CD Continues To Be Competitive

As the nationally available 1-year CD rates landscape continues to evolve, CDs that previously were not that competitive are now near rate-leaders. Texas-based NexBank added 5 bps to its 12-month Promotional Online CD in October and the 5.65% APY is still in effect. The minimum opening deposit is $25k, with a balance cap of $5m. New money is required and as stated on the Promotional Online CDs landing page, “deposits cannot be made from an existing NexBank account.”

While the landing page lists both CDs ($25k minimum) and Jumbo CD ($100k minimum), the 12-month term offers the same 5.65% APY for both deposit tiers.

Early Withdrawal Penalty

NexBank’s website does not include a Truth-in-Savings Disclosure. CSR stated that the Early Withdrawal Penalty for the 12-month Promotional Online CD is 6 months of interest on the amount being withdrawn, with partial withdrawals allowed. Should a withdrawal result in a balance of less than $25k, the 12-month Promotional Online CD will be closed.

Availability and Account Opening

Headquartered in Dallas, NexBank has been offering a portion of its product line to all U.S. citizens and permanent U.S. residents (18 years or older, with a current U.S. address) through an online application for the last few years. Promotional Online CDs are only available to individual consumers: business and commercial accounts are not allowed.

Opening and funding a Promotional Online CD can only be done online.

Funding and Other Details

The following information is from a conversation with CSR.

• Funding – ACH. According to CSR, funding instructions are part of the online application.
• Ownership – Individual or joint.
• Interest – Compounded daily/credited quarterly and can be withdrawn penalty-free.
• Maturing Funds – Cashier’s check to address on file or transferred to a NexBank checking or savings account.
• Grace Period – 10 calendar days before automatic renewal.
• Beneficiaries – Unlimited with equal shares. Social Security numbers are required for beneficiaries.
• Credit check – Soft pull and ChexSystems.

Bank Overview

NexBank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 4.76% (excellent), based on September 30, 2023 data. In the past year, NexBank has increased its total non-brokered deposits by $196.01 million, an above average annual growth rate of 2.26%. Please refer to our financial overview of NexBank (FDIC Certificate # 29209) for more details.

Originally established in 1934 as the Terrell Federal Savings and Loan Association, NexBank has grown to become the ninth largest bank headquartered in Texas (and the largest privately held bank in Texas), with assets of nearly $16 billion and more than 31,000 customer accounts. The NexBank rebrand occurred in 2004, when a group of Dallas investors purchased the bank in hopes of developing a “sophisticated and capable force in commercial real estate and specialty financing (local) and [a] leader in deposit and savings rates.”

According to a January 2023 press release,

NexBank Capital, Inc. (the "Company"), the financial services and parent company of NexBank, today announced it has raised an aggregate of $390 million through certain private placements of its equity securities, including $280 million raised in preferred stock from September 2021 to September 2022, $90 million in voting common stock from September 2021 to September 2022, and $20 million in non-voting common stock in December 2022.

The most recent transaction was a $20 million private placement of a new class of non-voting common stock of the Company that closed on December 29, 2022. The Company intends to use the net proceeds from this transaction as growth capital and for other general corporate purposes.

How the 12-Month Promotional Online CD Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are nationally available and have minimum deposit requirements of $25k or less, one bank and one credit union have higher rates than currently offered on the NexBank 12-month Promotional Online CD. The following table compares the 12-month Promotional Online CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.

The above information and rates are accurate as of 12/28/2023.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.