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!”
But with a Bank5 Connect Investment CD, you can transfer funds into your CD
anytime you like from an outside checking account or by simply mailing a check.
In a Live Chat, I confirmed that there are no limits on either the number of additional deposits allowed, or the amount of the additional deposit.
As stated on the Investment CD promotion page,
There's an early withdrawal penalty on an Investment CD of 6 months of interest.
Last month, I wrote about Bank5 Connect’s 18-month Special Rate Connect CD (1.75% APY), which is still available. This limited-time offer requires a $500 minimum deposit, with no stated balance cap.
As stated in the CD FAQs, the Early Withdrawal Penalty reads as follows.
There is an early withdrawal penalty on a Connect CD of 3 months of interest for
terms less than one year and 6 months of interest for terms of one year or greater.
Bank5 Connect is an internet division of BankFive, a Massachusetts-based bank. Bank5 Connect offers its product line online to all U.S. citizens and resident aliens, 18 years or older, with the exception of those who live in Massachusetts or Rhode Island.
Opening an Investment CD must be done using the Bank5 Connect’s online application.
When I first wrote about Bank5 Connect in 2013, beneficiaries could not be designated on the online application. Unfortunately, that has not changed. 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), by credit card, or by mailing a check.
As I mentioned in my October blog post about Bank5 Connect, some DA readers have posted unfavorable reviews Bank5 Connect. Many of those reviews are related to the account opening process, specifically problem in verifying identities and incorrect information based on bad Equifax data. Caveat emptor.
As an online division of BankFive, Bank5 Connect operates under BankFive’s FDIC Certificate and shares BankFive's financial history.
Bank5 Connect/BankFive has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.84% (excellent), based on June 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $28.58 million, excellent annual growth rate of 4.07%. 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 45th largest bank in Massachusetts, with assets in excess of $856 million.
Bank5 Connect made its debut in July 2013 and was “named one of the Best Online Banks of 2017 and Editor's Pick for Top Customer Service byGOBankingRates.com.
How the Investment CD Compares
When compared to the 197 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, Bank5 Connect’s 24-month Investment CD APY currently ranks second. The unlimited additional deposits throughout the term of the CD only enhances its value.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.12% APY||24-Month Personal CD||ConnectOne Bank|
|2.10% APY||24-Month Investment CD||Bank5 Connect|
|2.02% APY||24-Month CD||USALLIANCE Financial|
The above rates are accurate as of 11/16/2017.