Dedicated to Deposits: Deals, Data, and Discussion
DETAILSINSTITUTIONAPYMINMAXPRODUCT
Bank5 Connect0.85%$500-6 Month Connect CD
Accounts mentioned in this post. Rates as of April 21, 2014

Bank5 Connect Offers a 6-Month CD Special with a Top Rate

POSTED ON BY

Bank5 Connect

Update 10/16/13: The limited-time 6-month CD special has ended. The 6-month CD rate has fallen back to 0.90%.

Bank5 Connect has started to offer a 6-month CD special with a very competitive rate. The 6-month CD has a 1.10% APY. Minimum deposit is $500, and the maximum deposit for this promotional offer is $100,000 per customer. This promotional rate is accurate as of 10/10/2013. It’s a limited time offer. Visit this Bank5 Connect CD page to apply for this offer.

Bank5 Connect is a new internet bank that was launched last July by the Massachusetts-based BankFive. In addition to competitive CDs, they also offer competitive checking and savings accounts. Last month I interviewed one of the top managers at Bank5 Connect, and they appear committed to building a successful internet bank that will keep customers happy with competitive rates, banking features and customer service.

If you decide to open this 6-month CD, you may also want to consider Bank5 Connect’s 24-month Investment CD. This is an add-on CD that allows unlimited additional deposits of any amount. The minimum deposit is only $500. So when the 6-month CD matures and if rates have continued to fall, you can make an add-on deposit with your matured 6-month CD into your 24-month Investment CD. The 24-month CD has a 1.15% APY as of 10/10/2013.

Account Opening

The accounts are available nationwide with the exception of residents in Massachusetts and Rhode Island (BankFive’s market area).

To open the bank’s CD, visit this Bank5 Connect CD page and click on the button that says “Open a Connect CD Account”.

This will take you to an online application that’s powered by Andera, a company that powers the online applications of many banks and credit unions. The account funding can be done with an ACH transfer from your existing bank account. I was told that the maximum amount for ACH funding of a CD account is $500,000. You can also fund CD accounts by mailing the bank a check.

The online application currently doesn’t allow you to designate beneficiaries. However, they do have a process for adding a beneficiary for existing accounts. After the account is opened, you can call Bank5 Connect, and they can walk you through the process.

Regarding trust accounts, at this time Bank5 Connect accounts cannot be opened as a Trust, only individual or joint personal accounts.

Bank Overview

Bank5 Connect is an internet-only division of BankFive. It was launched in July 2013. BankFive is a community bank headquartered in Fall River, Massachusetts. It operates 12 branches in southeastern Massachusetts.

Bank5 Connect customers are insured by the FDIC to at least $250,000, and all deposits above the FDIC insurance amounts are insured by the DIF which is a private insurance fund that insures all deposits above FDIC limits at Massachusetts-chartered savings banks.

BankFive has an overall health grade at DepositAccounts.com of B+ with a Texas ratio of 9.07% (above average) based on June 2013 data. The bank has been a FDIC member since 1981 (FDIC Certificate # 23286).

Edit 10/11/13: Removed credit card funding option which can't be used to open CDs.

  Tags: Bank5 Connect, CD rates

Related Posts

Comments
12 comments.
Comment #1 by Anonymous posted on
Anonymous
This is a good rate for 6 months....hmmm.

3
Comment #2 by Anonymous posted on
Anonymous
check the redemption must notify in writing to change term or redeem

3
Comment #3 by Anonymous posted on
Anonymous
I just spoke with a CSR at Bank5 Connect and he advised that the maximum amount that you can fund with a credit card is $100. 

2
Comment #4 by Bank5Connect posted on
Bank5Connect
Hi Anonymous #2, yes we do require written notification to change a term or to close a CD. For convenience, Bank5 Connect customers may send us a secure email through our online banking platform with their instructions and handle this online.

As always, you can contact us by chat, phone, or email.

John Cooke, Bank5 Connect Online Marketing Manager 

5
Comment #5 by Anonymous posted on
Anonymous
Thank you#4  I like when companies answer in blogs

7
Comment #6 by primary posted on
primary
This rate is competitive, but is it worth it? 100k @ 1.1% = 1100 / 2 = $550. 100k @ 0.85% = 850 / 2 = $425. You're looking at a difference of $125 in 6 months compared to an online savings, plus the work of managing a CD.

6
Comment #7 by Anonymous posted on
Anonymous
So you cannot fund with a credit card then?  How/why would you fund by credit card?

 

If the minimum deposit required is $500 and the maximum funding allowed by credit card is $100...

2
Comment #8 by Anonymous posted on
Anonymous
Yeah #6 I was going to jump on this and then realized that my MM account is paying .8%, with better MM and Savings deals out there. Went thru the same thought process with some reward checking sign-on bonuses. Yeah you'll get a nice bonus up-front, but six months later you'd get about the same as a MM or Savings. Not too many good options out there.

4
Comment #9 by Bank5Connect posted on
Bank5Connect
Hi Anonymous #7, you are right, CDs cannot be funded by credit card. The credit card funding was setup as a convenient way to fund Connect Checking and Connect Savings accounts. CDs are funded normally via ACH or check. 

Thanks,

John

John Cooke, Bank5 Connect Online Marketing Manager 

5
Comment #10 by Anonymous posted on
Anonymous
I got an email that I was to be contacted about the 6 month CD I just appled for.  Still waiting for the call

4
Comment #11 by jimmyjoe posted on
jimmyjoe
Hope This HELPS Someone !! The Reason I did Not Leave A review is because I cant leave 0 STARS....Opened account online through ANDERA...Answered all questions ....EVEN RECEIVED a ACCOUNT NUMBER.!!!Never Received micro deposits....But Did Receive LETTER From Assistant Mgr. Stating UNABLE TO OPEN DUE TO INABILITY TO VERIFY ???...Called BANK ,After Jumping Through Hoops ,Spoke With Manager "BRIAN" who Informed me thay have there own rules which buy the way are not in there DISCLOSERS ,Pertaining to FRAUD ALERTS,,Instead of calling customers phone number to verify ,LIKE the 3 credit agencys tell them to do ....IT SEEMS THAY HAVE THRE OWN RULES ,JUST A LETTER of NON Acceptance....WE WILL SEE HOW LONG THIS BANK LASTS>>!!!!!! BE CAREFUL....

2
Comment #12 by Anonymous posted on
Anonymous
#11   I got the same letter today.  It stated that they did not open the CD for me because of a decision by Equifax.  I won't even bother calling,  They say they could not verify (We have a fraud alert) but they never called.  For a lousy 6 month CD not worth the bother.  Poor customer service.   

2
Comment #13 by RichReg posted on
RichReg
Forget about anymore online accounts @ 1.1%, guys...if you keep up with Ken's blog you'll see that just about ALL banks dropped their regular savings account rates recently. So for ONLY a lousy six months of tied up funds, 1.10% is pretty decent. My own online bank account was secretly giving me 1.1% (unadvertised) and just dropped it last week.

And what bank allows you to fund a CD by credit card?                                                                               With savings rates as low as they are, do you really think a bank will pay your credit card company a fee to get your CD? Let's be realistic here...maybe if you were buying a car from them...(LOL).

Finally, I'd add that funding the CD by external ACH is EXTREMELY efficient and (unlike the ACH service for the checking account) is handled inhouse by the bank. So no delays to start collecting on this deal. 

5