NexBank is offering a very competitive 2-year CD that can be opened online. The 2-year CD has a 1.30% APY. There's also a 1-year CD with a 1.05% APY and an 18-month CD with a 1.15% APY. Minimum deposit is $10,000. These rates are listed in the bank's rates page as of 8/27/2012.
There's an online application for the CDs, and according to the CSR, people in any state can apply. After applying online, new customers will need to mail in a copy of their ID. The CD can be funded with an ACH transfer from your existing account. It can also be funded by mailing a check. I was told the CD rate will be locked at the time of the application as long as the CD is funded within a reasonable amount of time. To close the CD at maturity, they require a signed letter that must be mailed or faxed. The only option to receive the funds is a cashier's check. According to the CSR, the early withdrawal penalty is equal to 6 months of interest for terms of 1 year and above.
This is a small bank with two branches located in Dallas and Plano, Texas.
NexBank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 7.16% (excellent) based on March 2012 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
It may be hard to believe, but a 1.30% 2-year CD is a very competitive yield in today's awful interest rate environment. The next best 2-year CD rate that's nationally available from a bank is 1.25% APY at CIT Bank. This requires a $25,000 minimum deposit. This is CIT Bank's Achiever CD which allows a one-time add-on deposit and a one-time bump-up in the rate. This rate is accurate as of 8/27/2012.
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