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 Bank5 Connect's website's 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.
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 Bank5 Connect's website's 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.
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.