It’s been about six months since I wrote about any of ableBanking’s CDs. In early December, the 1-year CD offered 1.75% APY, which at the time placed it at the top of the rate pile. Except for a short stay at 2.00% APY in January, the 1.75% APY has been in effect for the past seven months. As DA reader, IvoryMale, noted in a Forum post, ableBanking has raised the rates on its 1-year CD (2.50% APY) and 2-year CD (2.80% APY). Either CD can be opened with a $1k minimum deposit, and is capped at $240k.
|2.80%||$1k||$240k||ableBanking||2 Year CD|
|1.95%||$1k||$240k||ableBanking||1 Year CD|
While the 1-year CD has had a few glimmers of rate-greatness in the past six years, the 2-year CD APY has been rather forgettable during that time. Added to the product line in July 2012 at 1.20% APY, the rate has been 0.70% APY for the vast majority of the past five years. Last week’s addition of 210 bps rescued the 2-year CD from rate oblivion, pushing it to within 10 bps of the current 2-year CD category rate leader.
CSR stated in a Live Chat that “a certificate with a term of less than three years has an early withdrawal penalty of 90 days simple interest on the amount withdrawn.” CSR also mentioned that partial withdrawals are now allowed; in the past, if any of the principal was withdrawn early, the CD was closed.
According to CSR, two beneficiaries can be added on the initial application, and “a total of four can be added after the account is opened by written request.” Each beneficiary added requires a Social Security number, date of birth, address, and relationship to the account owner.
According to the Account Agreement document, funding a CD can be by,
check, ACH transfer or wire transfer from an account in a financial
institution that is chartered by the United States of America or a state thereof.
Thanks to DA reader, IvoryMale, for his Forum post about ableBanking's new CD rates.
Money Market Savings
In January, ableBanking’s Money Market Savings account became a rate leader, when its APY was increased to 1.70%. Since that time, the APY has remained unchanged, losing its top ranking as many other savings and money market accounts have overtaken it.
Headquartered in Lewiston, Maine, ableBanking is an online division of Northeast Bank and, according to the online application, offers its product line to “United States Residents,” 18 years or older. As ableBanking requires a Social Security number for everyone named on an account, it’s probably safe to assume that U.S. citizens and resident aliens are included in “United States Residents.”
ableBanking requires a copy of your driver’s license or valid government-issued ID (passport, military ID, etc.) to open an account.
We will not consider your account opened until we receive this information from you. Once
your account is opened, you will receive additional details on your account from us in the mail.
As an online division of Northeast Bank, ableBanking operates under Northeast Bank’s FDIC Certificate and shares Northeast Bank's financial history. Please note that “FDIC insurance limits of $250,000 apply to the combined deposit balances between ableBanking and Northeast Bank.”
Northeast Bank/ableBanking has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 9.33% (excellent) based on March 31, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $126.86 million, an excellent annual growth rate of 14.65%. Please refer to our financial overview of Northeast Bank/ableBanking (FDIC Certificate # 19690) for more details.
Northeast Bank was originally established in 1872 as the Bethel Savings Bank. (Located on the southern rim of the Mahoosuc Range in Maine, Bethel was known as a fashionable summer resort between the Civil War and World War I.) The Bank’s name remained the same for almost 125 years and was changed to Northeast Bank in 1996, following the acquisition of Brunswick Federal Savings. Northeast Bank is currently the eighth largest bank in Maine, with assets in excess of $1.1 billion.
How the CDs Compare
When compared to the 210 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, ableBanking’s 1-year CD APY currently shares the top spot with Connexus Credit Union’s 12-month Certificate APY.
When compared to the 204 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, ableBanking’s 2-year CD APY currently ranks second.
The above rates are accurate as of 6/18/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table.