Following a 25 bps increase this week, ableBanking’s 1-year CD (2.20% APY) currently has the highest rate of any CD in the Bank’s product line. Any ableBanking CD can be opened with a $1k minimum deposit, with a $240k balance cap.
This is the first rate increase for the 1-year CD in over a year. In the first 11 months of 2019, the 1-year CD lost 95 bps in five rate decreases. With this week’s 25 bps increase, the 1-year CD now has the highest APY offered by an internet bank on a similar length-of-term CD.
In a Live Chat, CSR stated that the Early Withdrawal Penalty for the 1-year CD is 90 days simple interest. Partial withdrawals are not allowed, only early closures.
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 named 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 done by,
a 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.
In a conversation with CSR, I learned that,
- When a CD is opened, an online banking account is automatically opened, allowing the CD owner to manage maturing funds.
- There is a ten-day grace period, before the CD automatically renews.
- If you wish to redeem the maturing funds, ableBanking will distribute the funds through ACH to the original funding account. Monthly dividends can also be deposited in that fashion.
- Another option for maturing funds is an internal transfer to a Money Market Savings (MMS) account. CSR pointed out that having an MMS account can be quite helpful in laddering CDs: funding through an internal account is instantaneous. Every time you fund through an external account, micro test deposits have to be done, which can delay funding by a couple of days.
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.” Accounts can be titled as Individual Owner or Joint Owner.
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 "B" at DepositAccounts.com, with a Texas Ratio of 9.53% (excellent) based on September 30, 2019 data. The Bank has an excellent capitalization level (14.55%), the result of holding $1.12 billion in assets with $163.39 million in equity. The overall health grade is hurt by a reduction in deposits in the last year. The competitive rates at ableBanking are likely intended to improve the Bank's deposit levels. 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 ninth largest bank in Maine, with deposits in excess of $922 million and nearly 24,000 customer accounts.
ableBanking was launched in 2012 and from the beginning has differentiated itself from other internet banks through its charitable contribution program.
We take the money we save and give you better rates with no fees. At the same time, we let you give away our money to your little league, church, neighborhood food pantry or any charity you want to support. We think that together we're able to make savings better.
Each new customer receives $25 to donate to a 501(c)3 charity of his/her choice. An additional $25 will be donated every time you refer a friend who opens a new account.
How the CD Compare
When compared to 211 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, ableBanking’s 1-year CD APY currently ranks second.
The above rates are accurate as of 2/6/2020.
To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table.