Bank5 Connect 24-Month Investment CD Allows Unlimited Add-On Deposits


Availability: 24-month Investment CD, 2.10% APY, $500 min, unlimited deposits throughout the term.

Availability: Nationwide, with the exception of Massachusetts and Rhode Island.

Bank5 Connect’s 24-month Investment CD (2.10% APY) is actually an add-on CD, which permits unlimited deposits anytime during the term. The Investment CD has a $500 minimum and a $500k maximum opening deposit.

0.50%$500-Bank5 Connect24 Month Investment CD
Rates as of April 19, 2021.

I’ve written about the 24-month Investment CD three times in the past 26 months. Interestingly enough, the current 2.10% APY is the same rate offered that was offered when the November 2017 blog post was published. Between November 2017 and now, there has been one rate increase (60 bps up) and four rate decreases (60 bps down).

The intrinsic value of Investment CD APY is increased with the add-on feature of “flexible deposits: anytime, any amount!” According to the Account Disclosure,

You may make an unlimited number of deposits into your account.

The 24-month Investment CD landing page states,

Adding money to your Bank5 Connect 24-Month Investment CD is easy – you can transfer funds electronically or you can simply mail us a check.

In a Live Chat yesterday, CSR pointed out that adding funds electronically requires a Bank5 Connect High-Interest Checking account,

as the [Investment] CD account alone will not give you access to our external transfer service. If you have a checking account with us, you may move money between your Bank5 Connect checking account and your external bank accounts.

This is a change from when I last wrote about the 24-month Investment CD in July 2019. I'm not completely confident in the CSR's statement that a checking account is required, since there is no mention of that limitation anywhere on the website.

As stated in the Fee Schedule the Early Withdrawal Penalty reads as follows:

There is an early withdrawal penalty equal to 3 months of interest for CDs with terms less than one year, and an early withdrawal penalty equal to 6 months of interest for CDs with terms of one year or greater.

As stated in the CD FAQs,

How do I receive my money when my CD matures?

    When your CD reaches maturity, simply contact us at (855) 552-2655, or log into Online Banking and send us a Secure Mail to let us know what you’d like to do with the funds. You can choose to roll the funds over into a new CD, or we can transfer the funds to another account for you, or mail you a check.

There is a 10-day calendar grace period before the Investment CD renews. Should you opt to not renew, the maturing funds will be transferred to an interest-bearing Bank5 Connect liquid account.

Depositors’ Insurance Fund

In addition to FDIC insurance, Bank5 Connect offers Depositors’ Insurance Fund to all its depositors. According to the Insurance and Your Finances page,

The Depositors’ Insurance Fund (DIF) was established by the Massachusetts legislature in 1934, and at the time the fund was created, it was as an alternative to the FDIC. In fact, Massachusetts savings banks, by state law, were not allowed to join the FDIC.

In 1956, the law was eventually changed to allow Massachusetts savings banks to join the FDIC. For those that did, the DIF became known as an excess deposit insurer, meaning they insured deposits in excess of the FDIC limit. By 1986, all DIF member banks had joined the FDIC, so since then, they've been solely an excess deposit insurer.

The DIF insures all deposits above the FDIC limit in Massachusetts savings banks, and there's no dollar limit to the DIF’s insurance coverage, so they cover everything above the FDIC limit of $250,000.

Add-On CDs - Benefits and Risks

The add-on feature can be very useful for savers as a hedge against falling interest rates. It can be a big win for savers when there’s a large drop in interest rates. This is especially the case when the Add-On CD’s initial minimum deposit is low and when there is no maximum balance. However, that big win for savers becomes a big loss for banks or credit unions. If the institution doesn’t take into account the worst case scenario, the institution may find itself in a difficult position when large add-on deposits are made after major declines in interest rates.

DA readers should be aware that there’s always the chance that an institution may change the terms of their existing Add-On CDs to limit add-on deposits. The October 2019 blog post about GTE Financial Credit Union’s proposed changes (and quick recantation) to the terms on their existing Add-On Certificates is a recent example of this possibility.


Launched in July 2013, Bank5 Connect is an internet division of Massachusetts-based BankFive. Through its online application, Bank5 Connect offers its product line to all U.S. citizens/resident aliens, 18 years or older, with the exception of Massachusetts and Rhode Island residents.

Bank5 Connect's online application re-directs residents of Massachusetts and Rhode Island to BankFive's online application. While BankFive offers some of the same products, the rates are substantially lower, e.g., BankFive’s 2-year Investment CD currently earns 0.65% APY.

Beneficiaries cannot be designated on the online application, but according to CSR,

You cannot name a beneficiary on the application, but you can request the
form once the account is opened. It would need to be notarized and returned to us.

Funding can be done by ACH (maximum $500k) or by mailing a check. Although the first page of the online application states, "You’ll need ... something to fund your new account (credit card, debit card, checking account, or savings account)," the maximum credit card funding is $100. CSR stated that credit card funding is a convenience, "generally used for checking or savings account funding." According to a Live Chat, Bank5 Connect has low ACH limits: “The per in process transaction limit is $6,000. The rolling 30 day limit is $15,000.”

The comments from DA readers on the previous Bank5 Connect blog posts have been mainly favorable, but there has been a continuing issue with the account application process. Specifically, there have been problems in verifying identities and incorrect information based on bad Equifax data. For example, DA reader, Steve, submitted a joint application and immediately received an email stating the application was under review. Steve wrote,

I did a follow-up call this morning with the CSR regarding my application, she stated we answered some security questions wrong & were denied. She stated I could fill out a new application from start & try again & email a copy of DL & utility bill to customer service. She stated they have been getting lots of calls from applicants about not passing the security questions.

Steve’s story ended well.

I quickly went ahead & resubmitted my app , then emailed a scan of our DL & utility bill to the customer service. 30 mins later I received an email from customer service stating, "Your account application has been approved. Once your funding is received you will receive an automated email with online banking login instructions."

If anyone on this site is going thru the process and get denied & want to continue, I would first just send an email with a scan of your DL & a utility bill with your confirmation # on your application to [email protected] & explain to them you were denied & state here is my ID info … this may help you without having to resubmit a new application. even tho I had to make 1 extra call to the CSR & another 10 minutes resubmitting, I feel it was well worth the time spent to get this 24-month addon cd.

I think many of us have run into verification issues because of questions based on something we did 20 years ago, or questions we simply can’t answer. One of my team recently went through a verbal verification process and was completely confounded by the following exchange.

    “What month is Eric’s birthday? March, June, or October?”

    “Eric who?”

    ”Eric who has the same last name as you.”

Having no relatives named Eric, she randomly picked an answer and, of course, guessed wrong.

Bank Overview

As an online division of BankFive, Bank5 Connect operates under BankFive’s FDIC Certificate and shares its financial history.

Bank5 Connect/BankFive has an overall health grade of "A" at, with a Texas Ratio of 2.52% (excellent), based on September 30, 2019 data. In the past year, the Bank has increased its total non-brokered deposits by $97.01 million, an excellent annual growth rate of 12.26%. Please refer to our financial overview of Bank5 Connect/BankFive (FDIC Certificate # 23286) for more details.

BankFive was founded in 1855 as the Fall River Five Cents Savings Bank, one of the first Five Cent Savings Banks in America. The “Five Cent” moniker was chosen because these banks required only a 5¢ deposit to open an account. BankFive is currently the 40th largest bank headquartered in Massachusetts, with deposits in excess of $1 billion and nearly 88,000 customer accounts.

How the Investment CD Compares

When compared to 202 similar length-of-term CDs tracked by, which require a similar minimum deposit and are available nationwide, Bank5 Connect’s 24-month Investment CD APY only ranks eleventh, 44 bps lower than the current rate leader, Keesler Federal Credit Union’s 21-month Sep CD. When compared only to other online banks, it’s only 10 bps lower than the current rate leader.

With a low minimum initial deposit and an unlimited number of deposits allowed throughout the term, the 24-month Investment CD’s APY is quite competitive.

The above rates are accurate as of 1/25/2020.

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

Related Pages: 5-year CD rates, nationwide deals

  |     |   Comment #1
Thanks, Ken and especially for the ‘Eric Who?’ !!!

As I posted elsewhere yesterday, my application for this CD last August was approved without issues. Might add some funds later this year.
  |     |   Comment #2
I’m sure you do not need the checking account to do any ACH transfers. You can do them via a savings account too. My experience over the years is that even the supposed “experts” at banks will tell you you need a checking account for an ACH transfer. It is a shame that experts so often don’t know what they are talking about. Any liquid account can do it, and I seriously doubt the bank is blocking it from a savings account. In fact, over the years, I have done ALL my ACH transfers via my savings account, not my checking account.

I haven’t checked, but I’ll bet the high interest checking account comes with a monthly fee.

I also certainly hope the CSR is wrong about needing a notarization on the form to add a beneficiary. I’ve never had to have my signature notarized for that. And it costs $10 per signature where I live, there is no free or lower priced notarization in this state.

I'll bet Eric is related to someone else with a similar name to the applicant, and the wrong credit information had been accessed.
  |     |   Comment #3
At this bank you need a checking account to do ACHs. I initially applied for a savings account because I was mistakenly told that it could be used for ACHs. I found out about the problem before the account opening was finalized and was able to change it to a checking account.

The checking account has no minimums or fees - you just need to keep $100 in it to earn interest which is currently .76%. You can fund the checking account with a credit card up to $100 and it posted as a purchase for me.
  |     |   Comment #4
Does anyone know why this bank is so discriminatory toward residents of MA and RI, and always says 'not available to residents of MA or RI?"

Due to their discriminatory policy, regardless of their products or rates, I'll be taking a pass on this one.  Disgusting!
  |     |   Comment #5
I wouldn't make that a criterion. They wouldn't do this arbitrarily. It's almost certainly because those states have certain regulations they can't or don't comply with. I don't know about RI, but MA has all kinds of funky regulations. It may not be worth it for them to do business there.
  |     |   Comment #6
Bank Five already does business in MA and RI. You can look at all the locations here:

Like many banks, they don't want the online division to compete with the brick & mortar locations
  |     |   Comment #9
Or for marketing reasons :)

Either way it's not because they don't like people in MA and RI.
  |     |   Comment #7
I can’t find this bank on the FDIC website. Not even as a DBA or related company. Weird. Just because they say they are part of Bank Five, how do we know that for sure?
  |     |   Comment #8
RockyC -- please read the comments on this issue in the bank promotions Forum by CDmanFL, alan1, and Bank5_Connect, all dated Jan. 24, 2020.
  |     |   Comment #10
Thanks alan1. One thing that puzzles me is this. They don’t even appear under “other names/websites” on the FDIC website for bank find. Look up any other bank that has an online-only subsidiary and you’ll see the subsidiary under “other names/websites”. Bank5Connect doesn’t appear under Bank Five or Fall River as far as I can tell. I’m an old man (77) half blind and half deaf and I’ve seen a lot in my life and one thing life has taught me is to verify everything. Maybe I’m overly vigilant but it’s in my DNA to be extra cautious with these things.
  |     |   Comment #11
RockyC, that is a wise policy. You can never be "too" careful.

Here is how you can find it on the the FDIC site.

Go to this link:

And put this in the box where it says "Bank URL"

Then click "Search"

You will see that their FDIC coverage is in fact active.
  |     |   Comment #13
Dear Predatory Depositor. and are two different URLs.
  |     |   Comment #12
I see what you are saying that Bank5 Connect is not listed as a Trade Name, You raise a good question.

But if you access your account through that URL (I'm guessing you do but I have not researched it), then it is associated with the FDIC listing so that should confirm it. To confirm it another way, you could call or email FDIC.
  |     |   Comment #14
Okay just read about it and I see you do not access your account through, but rather through

And the latter URL does not come up on the FDIC site.

So I think you are absolutely right to get confirmation before investing. If I planned on investing in this account I would contact FDIC.
  |     |   Comment #15
I’m happy that others see what I am saying. Maybe Ken can opine on this because something seems amiss. Maybe I’ll contact the FDIC tomorrow or maybe someone reading this thread can add much needed clarity. Thanks guys
  |     |   Comment #16
I am sure the FDIC coverage exists, and the problem is the bank's failure to note it with FDIC. But, as an oversight, it is a serious mistake.
  |     |   Comment #17
I just worry that if they ever go down, the FDIC could claim they are not registered in their system. After all, they are not listed in the system. We need to protect each other and ourselves as best as possible.
  |     |   Comment #18
I don't know what it means to be "registered in their system." It is not a warranty claim. You could check the FDIC call reports, to see which subsidiaries are listed. Check the annual reports of the main bank to see its list of subsidiaries.

If I were interested in the bank I would ask the bank to correct its data with the FDIC, so it appears with a search of the domain or subsidiary bank name.
Ken Tumin
  |     |   Comment #19
A few years ago, the FDIC started a database of bank URLs that included both primary and secondary URLs for banks. You can confirm a URL actually belonged to an FDIC-member bank by entering the URL into the FDIC's BankFind tool ( Unfortunately, not all banks provide the FDIC with their secondary URLs, and that includes BankFive.

For these cases, I suggest calling the help number listed at and confirming that the website under the URL is in fact owned by them.
  |     |   Comment #20
Thanks Ken. I called the FDIC. The first person I spoke to said she can’t determine whether they are FDIC insured. She referred me to a subject matter expert who said she also can’t determine and will bubble it up to the investigative department. They said they would call me back but it could take a few days. I’ll report back what they say if I hear from them.
Bank5 Connect   |     |   Comment #21
Hello. Bank5 Connect is simply an online division of BankFive. Think of it as an online-only BankFive branch. Both "BankFive" and "Bank5 Connect" are actually Fall River Five Cents Savings Bank ("BankFive" is a DBA name for Fall River Five Cents Savings Bank). Both "BankFive" and "Bank5 Connect" operate out of 79 N Main St, Fall River, MA 02720. If you enter that address into the FDIC's BankFind Tool, you will see that the bank is FDIC insured. Futhermore, the bank is DIF-insured, meaning all deposits that exceed FDIC coverage limits are insured by DIF (the Depositors Insurance Fund). We are aware of the concerns that potential applicants have brought up here regarding why "" does not currently show up as an "Additional Name or Website" for the Fall River Five Cents Savings Bank listing, so we are working to have that added. Please note however, that the information listed in the results of the FDIC's BankFind tool is simply information that is provided electronically by the banks to the FDIC. This older article (also written by Ken) may be helpful in understanding why some internet banks do not show up in the FDIC's "BankFind" tool, even though deposits at those banks are FDIC insured through the bank's parent company (in this case, Fall River Five Cents Savings Bank DBA BankFive):
  |     |   Comment #22
Decreased to 1.90% APY
  |     |   Comment #23
2018    24 month 2.70% add on CDs
Maturity Dates Beginning.
Bank5 Connect's 24-Month Investment CD (Add-On) Remains Competitive
Availability: 24-month Investment CD, 2.70% APY, $500 min/$500k max deposit, unlimited deposits through the term.

Availability: Nationwide, with the exception of Massachusetts and Rhode Island.

Bank5 Connect increased the rates on many of its CDs in April 2018. At the time, the newly raised rates were competitive, but lost their edge by remaining static, as many other nationally available CD rates soared upward. With rates currently trending downward, Bank5 Connect’s 24-month Investment CD and 36-month Connect CD are again good deals.

24-Month Investment CD

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Availability: Nationwide, with the exception of Massachusetts and Rhode Island.

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Availability: 24-month Investment CD (2.70% APY), unlimited deposits allowed throughout the term; 36-month CD (2.90% APY); $500 min/$500k max opening deposit for either CD.

Availability: Nationwide, with the exception of Massachusetts and Rhode Island.

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Bank5 Connect's 24-Month CD Has Unlimited Add-On Deposits
Availability: 24-month Investment CD (2.10% APY), $500 minimum opening deposit, unlimited deposits allowed throughout the term.

Availability: Nationwide, with the exception of Massachusetts and Rhode Island.

Bank5 Connect has just raised the rate on its 24-month Investment CD (2.10% APY) by 80 bps. This limited-time offer requires a minimum opening deposit of $500, with no stated balance cap. In addition to having a very competitive rate, the Investment CD features “flexible deposits: anytime, any amount!”

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