Dedicated to Deposits: Deals, Data, and Discussion
About Ken Tumin About Ken Tumin - Founder and Editor

Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

Featured 2-Year CD Rates

Popular Posts

Featured Accounts
DETAILSINSTITUTIONAPYMINMAXPRODUCT
Bank5 Connect1.20%$500-24 Month Investment Connect CD
Accounts mentioned in this post. Rates as of August 23, 2014

Bank5 Connect’s Special Rate on Its 2-Year Add-On CD

POSTED ON BY

Bank5 Connect

Bank5 Connect has just come out with a special rate on its 2-year add-on CD that it calls the 24-month Investment CD. The new special rate is 1.25% APY which is 10 basis points higher than the old standard rate. Minimum deposit is $500. It allows additional deposits of any amount at anytime during the term of the CD. You can also set up automatic deposits from your Bank5 Connect’s checking or savings account into this Investment CD.

This special rate is accurate as of 10/30/2013. It’s a limited time offer.

This special rate is very competitive for a standard 2-year CD. It becomes an exceptional deal when you factor in the add-on deposit feature. An add-on CD is useful as protection against an interest rate environment in which rates are falling or are flat. The small minimum deposit makes it even more useful. If you want to protect yourself against falling rates, just open the Investment CD with at least $500. If rates happen to go up, just don’t add to the CD. With a small initial deposit, you have very little interest to lose (compared to what you could have earned with higher rates). However, if rates do fall or even if they remain about the same, you’ll find the add-on CD to be very attractive.

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 Bank5 Connect's website's CD page and click on the button that says "Open an Account Today".

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).

How This CD Rate Compares

Other than Bank5 Connect, the highest 2-year CD rate at an internet bank is 1.20% APY at CIT Bank and GE Capital Retail Bank. CIT Bank’s 2-year Achiever CD also has an add-on deposit feature, but it allows only one additional deposit during the term. Another downside is its high minimum deposit of $25,000.

There are three all-access credit unions that are offering higher rates on 24-month CDs. First is a special 24-month CD with a 1.50% APY at First Flight FCU. Connexus Credit Union’s 24-month CD has a 1.30% APY, but this requires an active checking account. Finally, PenFed has a 24-month CD with a 1.26% APY. These rates are accurate as 10/30/2013.

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.


  Tags: Bank5 Connect, CD rates

Related Posts

Comments
5 Comments.
Comment #1 by NYCDoug (anonymous) posted on
NYCDoug
Just signed up; a very straightforward process, no hitches. And a smart idea . . . Hats off, with thanks again, to Ken, for the reasoned recommendation!

6
Comment #2 by NYCDoug (anonymous) posted on
NYCDoug
The only catch is that, at the end of your two years, i.e., upon maturity, they will be mailing you a check (from their headquarters in Massachusetts, I would guess). Wonder what interest rates will be by then! In the interim, a not unreasonable place to park other maturing CDs through fall 2015, should no better alternatives arise . . .

4
Comment #3 by RichReg posted on
RichReg
Easy solution....open up a checking account with them. You get free starter checks with that deal. Then at maturity ask them to transfer the proceeds there. Write a check for the balance and you're done.

 

7
Comment #4 by Anonymous posted on
Anonymous
The interest rate on their checking account (Connect Checking) inexplicably went to 0% on 11/25/13 and stayed there for a week to 10 days, as reflected on my November statement and when I logged into their site few days ago.  The rate is now back to advertized level, but I haven't heard anything about correcting the "error" caused during the "0%" interest days.  In my individual case it made a difference of only a few cents in interest, and hence I am not calling them to discuss it, but I am hesitant to move larger amounts to that account as it could repeat any time.  An explanation of what happened and what is being done to fix it from Bank5 Connect representative will be nice.

2
Comment #5 by Anonymous posted on
Anonymous
With respect to my comment above (#4), they have made an adjustment on Dec. 11 to correct the interest rate error by crediting additional interest on this date.

1