ableBanking (internet division of Northeast Bank) is the latest bank to become a player in the nationally available 1-year CD rate race, by adding 30 bps to its 1-year CD (1.70% APY). The minimum deposit is $1k, with a balance cap of $240k.
The 1-year CD was part of the product line when ableBanking opened its virtual doors in 2012. Four months after the 1-year CD debuted, the rate rose to 1.12% for about a month, which I noted was "especially competitive" in a November 2012 blog post. (Five years later, a 1.12% APY wouldn’t merit a second look.) For most of the next five years, the 1-year CD’s APY was at 1.00% or lower, not garnering much attention. In May, the rate rose from 0.65% APY to 1.40% APY, and this week’s bump to 1.70% APY finally put the 1-year CD back in good stead.
In a Live Chat, CSR stated 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with a term of less than three years has an early withdrawal penalty of 90 days simple interest on the amount withdrawn.” CSR also mentioned that partial withdrawals are now allowed; in the past, if any of the principal was withdrawn early, the CD was closed.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.
Funding a CD can only be done through ACH transfer from an existing bank account. ableBanking will send maturing funds back to the original funding account, or will issue a check that will be mailed to the address on file.
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 the account, I think it’s safe to assume 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.
Northeast Bank/ableBanking has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 8.67% (excellent) based on June 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $77.73 million, an excellent annual growth rate of 9.36%. 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. The bank’s name remained the same for almost 125 years, and was changed to Northeast Bank following the acquisition of Brunswick Federal Savings in 1996. Northeast Bank is currently the eighth largest bank in Maine, with assets in excess of $1 billion.
How the CD Compares
When compared to the 205 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 ranks second.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|1.75% APY||14-Month CD||INOVA Federal Credit Union|
|1.70% APY||1-Year CD||ableBanking|
|1.65% APY||12-Month CD||GS Bank|
The above rates are accurate as of 10/19/2017.