Banesco USA 12-Month BaneSmart CD Rate Pops Up Once Again

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Deal Summary: 12-month BaneSmart CD, 4.30% APY, $1.5k minimum deposit online, new money required.

Availability: Nationwide through online application.

Florida-based Banesco USA (Banesco) added 35 bps to its 12-month BaneSmart CD, following this week’s Fed rate hike. For the moment, the new 4.30% APY is the highest APY offered on nationally available 1-year CDs. (FYI - the 18-month BaneSmart CD also earns 4.30% APY, but isn’t as competitive as the 12-month BaneSmart CD.) Opening a BaneSmart CD online requires a $1.5k minimum deposit, but can be opened in-branch with a $1k minimum deposit; new money is required. While Banesco’s online application shows two deposit tiers (under $250k and over $250k), the APYs are currently the same for both tiers.

As stated in the Miscellaneous Service Fees page, the Early Withdrawal Penalty (EWP) reads as follows:

For a term of greater than 31 days to less than or
equal to 365 days, the penalty is 90 days of interest.

Funding and Other Particulars

  • Funding – ACH transfer from a checking or savings account at another financial institution. Funding must be done at the time of account application.
  • Maturing Funds – ACH transfer to the originating account or transferred into an existing Banesco checking or savings account.
  • Dividends – compound and are credited monthly, quarterly, semi-annually, or at maturity (owner’s choice). Earned interest can be withdrawn once it is credited without penalty.
  • Grace Period – 10 calendar days before automatic renewal.
  • Beneficiaries – unlimited, percentages, Social Security numbers required.

Savings and Money Market Accounts

While the Banesco short-term CD rates have been rising lately and producing competitive APYs, the same cannot be said for the BanesGrow Savings Account and the BanesFlex Money Market Account. Currently earning 1.35% APY, both account rates have been lagging behind the majority of nationally available liquid accounts.

Availability

Headquartered in Coral Gables, Florida, Banesco USA offers its product line to all U.S. citizens and resident aliens, 18 years or older, who have a valid Social Security number, a physical U.S. address, and a U.S. mailing address.

Opening a BaneSmart CD with can be done online, or any of four full-service Florida branches, located in Aventura, Coral Gables, Hialeah, and Miami. (A second Miami branch is scheduled to open soon.) Banesco USA also has a branch in San Juan, Puerto Rico.

Bank Overview

Banesco USA has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 1.97% (excellent) based on June 30, 2022 data. In the past year, Banesco USA has increased its total non-brokered deposits by $195.01 million, an excellent annual growth rate of 13.19%. Please refer to our financial overview of Banesco USA (FDIC Certificate # 57815) for more details.

Banesco USA is currently Florida’s 16th largest bank with assets in excess of $2.5 billion and more than 14,500 customer accounts. As I stated in the July Banesco blog post, it’s important to once again mention the possible confusion between Banesco USA and Banesco, a Venezuelan bank.

Banesco USA was founded and granted an FDIC Certificate in 2006 and originally operated as BBU Bank. According to a PR Newswire article, the Bank was re-branded as Banesco USA in 2011,

after BBU Bank acquired and merged with Banesco International Bank of San Juan, Puerto Rico. The merger last September represented a $16 million capital infusion for BBU Bank for its operations in the United States and the new branch in Hato Rey, Puerto Rico.

According to Wikipedia,

Banesco is one of the first Venezuelan banks holding only Venezuelan capital. It was founded in 1977 as the Banco Agroindustrial Venezolano (Venezuelan Agroindustrial Bank), until it changed its name to Banco Financiero (Financial Bank) in 1987. In 1992, after changing their name to Bancentro, the bank was acquired by the Banesco Financial Organization, the banking division came to dominate the company and was combined with the other divisions to form a banco universal (universal bank).

The “About Us” page on Banesco USA's website states,

Banesco USA is a Florida state-chartered bank regulated by the Office of Financial Regulation (OFR) and completely independent of Banesco in other countries.

Bottom line, Banesco USA and Banesco (Velezuelan) are not the same financial institution.

How the 12-month BaneSmart CD Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available nationally and have minimum deposit requirements of $10k or less, no bank or credit union has a higher rate than currently offered on the Banesco USA 12-month BaneSmart CD. The following table compares the 12-month BaneSmart CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.

APYCD Term (Early Withdrawal Penalty)Credit Union/Bank
4.30%12-month BaneSmart CD (EWP=90 days)Banesco USA
4.29%13-Month CD Special (EWP=180 days)NASB
4.20%1-year Term CD (EWP=90 days)Rising Bank
4.15%12-Month Special Certificate (EWP=90 days)Justice Federal Credit Union
4.13%12-month Share Certificate (EWP=90 days)GTE Financial

The above information and rates are accurate as of 11/5/2022.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.

Related Pages: Miami CD rates, 1-year CD rates, nationwide deals

Comments
hampshire
  |     |   Comment #1
Brokered cd's have much better rates.....they have a few drawbacks but if you plan to hold it to maturity they really are not much different and pretty easy to buy especially the new issues ones.
jofr4646
  |     |   Comment #2
Good info, anyone know when 5yrs. C D. Will start to move to 5%+.
P_D
  |     |   Comment #3
I'd say November 10th at 1:16 pm. I could be off a bit. Could be 1:17.

(just having some fun)

:)
jofr4646
  |     |   Comment #4
Good info, thanks, they all think we will move into 15mos @ 4.60%. That’s when they think rates will drop.
hampshire
  |     |   Comment #5
Get a brokerage account.......brokered cd's are already well over 5% even at 3 years.....and some are not even callable.
rockies
  |     |   Comment #6
And, for those with taxable accounts in states with state income tax, do the math. Your after-tax yield on 1- and 2-year Treasury bills is already probably higher than a 5% brokered CD since no state tax on Treasurys.  And, your broker probably does not charge commissions on new issue brokered CD's or new issue Treasurys.
sharon907
  |     |   Comment #7
# 45

I have seen a single 5% non-callable new issue CD, last week, Capital One. Before that, 4.8%, 4.9%.  Not 5% new issues.

And several - as in very few - secondary CDs, above 5%.

Where do you - regularly - find 3-year above 5%? Which broker? Which issuer?

Another benefit of Treasurys #6 is liquidity. Many brokered CDs simply do not trade on the secondary market.

A second benefit, is $0 commissions, on both new and secondary Treasurys.
hampshire
  |     |   Comment #8
Sharon907-On Etrade......both Ally and Bmo Harris have 3 yr at 5% or better......Fidelity had even more but I can't log in right now to see for some reason.
Mals
  |     |   Comment #9
The Ally & BMO are both Callable. But Discover offers a non-callable at 4.95 for 3 years. I see these on Schwab.
hampshire
  |     |   Comment #10
I just was able to log in to my Fidelity account......They have three 3 yr cd's that are not callable at 5% or higher.......Farmers,Bmo and Ally......But 3 years is too long for me........who knows where rates will go in that time.
sharon907
  |     |   Comment #11
#10

Thanks. But, the "No" after the rate, means the CD is not call-protected. The BMO at least can be called. So can the Ally 5.10%.  Don't see Farmers, on Fidelity.


ALLY BANK 5.100 No

BMO HARRIS BANK NA    5.000 No
Mals
  |     |   Comment #12
On Schwab I see the same rates, for the same two institutions, but they are both clearly labeled as Callable?? Very odd. I don't have an account at Fidelity so I can't view there.
Kirkland
  |     |   Comment #13
FDIC insured, there was a new issue, last week, Capital One, 5%, 5 years non-callable, and there was this morning new issue, Discover Bank, 5%, 5 years non-callable. All of the ones above 5% are callable. From TD Ameritrade offerings.
There were no 3 year, 5%, new issues,non-callable. There is a 4.95%, 3 year and 4 year non-callable new issue today available Discover Bank.
Kirkland
  |     |   Comment #15
I have one for you better, on TD Ameritrade, it is a 3 year, new issue, non-callable, 4.95%, but payable monthly!!! UBS Bank (UT) Go get it :) much better than sem-annual payments
hampshire
  |     |   Comment #17
Isn't there 1 year at 4.50%? Not much less and you're not locked in so long.......3 years is just too much of a gamble for just .45%.......at least for me
sharon907
  |     |   Comment #20
#17

One year Treasurys pay more than 4.5%.
hampshire
  |     |   Comment #16
My mistake......I thought it was the opposite. When is the first call date? Might be ok if it is a ways in the distance.....But I still would go with shorter term......I can't believe how fast rates have gone up and who knows where it ends??
Kirkland
  |     |   Comment #18
no one knows when the rates rising will end, you can get 4.70% for 1 year noncallable
hampshire
  |     |   Comment #19
Think that would be better for me.......but part of me wants to even hold off on that and see where they go. But then again they could fall and you could miss out on locking in........Ugh......Risk either way I guess.
P_D
  |     |   Comment #21
Be careful. Mistakes in the listings are not unknown (I found one recently and reported it). Would not be surprised if there have been listings that showed non-callable when they were actually callable.  I think someone here reported that that happened to them recently and they didn't find out until after they bought it.
Banesco USA 12-Month BaneSmart CD Is New Rate Leader
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Availability: Nationwide through online application

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Availability: Nationwide

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BanesGrow Savings Account

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