Bank5 Connect Ups Nationally Available 36-Month CD Rate

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Deal Summary: 36-month CD, 0.85% APY, $500 minimum deposit.

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

It’s been close to a year since any Bank5 Connect CD has been listed in the bi-weekly CD Rates Summary. That changed this week, after 30 bps were added to the 36-month CD (0.85% APY). This is the first rate increase for the 36-month CD in three years, following a steady rate decline from 2.90% APY (August 2019) to 0.55% APY (November 2020). The minimum opening deposit is $500, with no stated balance cap, although the online application states, “At this time, we limit total relationships to $1 million in deposits.”

APYMINMAXINSTITUTIONPRODUCTDETAILS
0.85%$500-Bank5 Connect36 Month CD
Rates as of September 16, 2021.

As stated in the Fee Schedule the Early Withdrawal Penalty (EWP) 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.

The Account Disclosures page provides more details on early withdrawals including this potential limitation:

You may make withdrawals of principal from your account before
maturity only if we agree at the time you request the withdrawal.

Funding can be done by ACH, up to a maximum $500k. Although the first page of the online application states, "You may also fund your account with a check, or a credit/debit card," the maximum credit card funding is $100. CSR stated that credit card funding is offered as a convenience and is "generally used for checking or savings account funding."

While the online application asks, “Would you like to add a beneficiary?,” the FAQs state,

To name a beneficiary on a Bank5 Connect account, please call us at (855) 552-2655. We will need to send you a form – either by email or U.S. Mail – and you will need to fill it out, have it notarized, and return it to Bank5 Connect.

According to the 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 36-month CD renews. Should you opt to not renew, the maturing funds will be transferred to an interest-bearing Bank5 Connect liquid account.

24-Month Investment CD

Bank5 Connect’s 24-month Investment CD is part of the new “Nationally Available Add-On CDs” category in this week’s CD Summary. Currently earning 0.50% APY, the 24-month Investment CD 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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
0.50%$500-Bank5 Connect24 Month Investment CD
Rates as of September 16, 2021.

I’ve written about the 24-month Investment CD five times between late 2017 and early 2020. In an eight-month time frame, the Investment CD APY lost 160 bps, finally settling at 0.50% in early November 2020. While the rate is not impressive, 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.

But according to the FAQs, depositing funds is a bit more involved.

How do I deposit additional funds into my 24-Month Investment CD?

    One way to deposit funds into your 24-Month Investment CD is to open a Bank5 Connect Checking account. Through our Online Banking platform, you can transfer money into your Bank5 Connect Checking account from other banks, and you can transfer money from your Bank5 Connect Checking account to your Investment CD via Online Banking or Mobile Banking. Another option is to initiate the transfer at another bank.

Depositors’ Insurance Fund

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

  • 100% Deposit Insurance – The DIF insures all deposits above the FDIC limit for Massachusetts savings banks. Based in Massachusetts, Bank5 Connect is a DIF member bank, and all our deposit accounts are covered by DIF insurance.
  • No Residency Requirements – No matter where you live, your Bank5 Connect accounts are covered by DIF.
  • All Deposits, No Limits – Whether you have a Bank5 Connect certificate of deposit, savings account or checking account, your deposits are insured 100% regardless of your balance.
  • It's Automatic and Free – There are no forms or applications required. You automatically receive DIF coverage at no cost upon opening a Bank5 Connect account and making a deposit.
  • Protection You Can Trust – No depositor has ever lost a penny in a DIF member bank, going back more than 80 years.

Availability

Massachusetts-based BankFive launched its internet division, Bank5 Connect, about eight years ago. Through its online application, Bank5 Connect offers its product line to all U.S. citizens/resident aliens (18 years or older) who have a valid Social Security number, 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.

Unfortunately, we are not able to offer Bank5 Connect services to residents of Massachusetts or Rhode Island. But we’d love to have you as a customer of BankFive, our community bank based in Massachusetts that’s been serving customers since 1855.

BankFive offers some of the same products, but the rates are lower, e.g., BankFive’s 36-month CD currently earns 0.75% APY.

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 DepositAccounts.com, with a Texas Ratio of 2.06% (excellent), based on March 31, 2021 data. In the past year, the Bank has increased its total non-brokered deposits by $228.27 million, an excellent annual growth rate of 25.06%. 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 39th largest bank headquartered in Massachusetts, with deposits in excess of $1.3 billion and more than 80,000 customer accounts.

How the CD Compares

When compared to the similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, Bank5 Connect’s 36-month CD APY currently ranks fifth.

Interest RateCD Length of TermCredit Union/Bank
1.01% APY3-year Fixed CDLafayette Federal Credit Union
1.00% APY3-year CDQuontic Bank
0.95% APY3-year CDEvansville Teachers Federal Credit Union
0.90% APY36-month CDAffinity Plus Federal Credit Union
0.85% APY24-Month CDBank5 Connect

The above rates are accurate as of 8/25/2021.

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, Internet banks

Comments
MidAtlantic
  |     |   Comment #1
I have just had an add-on CD with Bank5Connect mature. I added on substantially over the last 18 months (2.95% APY). The service was excellent but, as Ken highlights, matured funds could only be received by check. The check came promptly by tracked mail, but it was still frustrating.
RickZ
  |     |   Comment #2
My Bank5 add-on CD also matured recently and I have a second add-on CD for 2.1% that matures in a few months. I found that the best way to get your funds after maturity is to open a free no minimum balance checking account with Bank5 and then move the funds into the checking account and pull the money out with another FI.
MidAtlantic
  |     |   Comment #3
Thanks. They never mentioned that as an option. I guess I should have thought of it!
mffarrell
  |     |   Comment #4
I wouldn’t recommend this institution, find another one. The main problem I had with them was adding beneficiaries. You have to go to a notary to prove your identity, not worth it.
Sylvia
  |     |   Comment #5
I had a CD that matured last year and I requested the money be returned to my funding account. They complied with an ACH back to the external account from which money was originally withdrawn electronically. I made arrangements in advance of maturity; money transferred promptly.

I regret not opening more of those add-ons before rates plummeted.
111
  |     |   Comment #6
I have a couple remaining “just-in-case” 2-year add-on CDs at Bank5 Connect at 1.26%, that mature in about 8 months. (For some earlier Bank5 add-on CDs, I've emptied them at maturity if their renewal rates were just too poor. I still have “slots” left in 3% add-ons at other FIs, so no need to add-on to the Bank5 CDs at poor rates.) Personally I've found Bank5 fairly easy to deal with. However, I've always initiated ACH funding moves (credit or debit) from another FI.

Probably somewhat like RickZ, when starting my Bank5 accounts a few years ago I also started a no-fee checking account (on my statement, it's called “Connect Checking Account”). The advantage is that at CD maturity, funds can simply be deposited to the Bank5 liquid account, and afterwards pulled into the “hub” FI.

Note that one advantage of Bank5 Connect is that they fall under the Mass. “DIF” rules (which Ken details above very well), therefore there is no $250K FDIC insurance limit - no matter where the depositor lives. Could be useful at times.
MidAtlantic
  |     |   Comment #7
That's exactly what I asked them to do and they said that it could not be done. It looks like they do not have a consistent answer to this question of how to receive matured funds.
Sylvia
  |     |   Comment #8
MidAtlantic (#7), did they say why it couldn't be done? My CD matured in spring 2020. Maybe they no longer maintain routing info from when they made transfer to fund your CD or they just decided to discontinue option of returning money to funding account. If answer is not either, speak with another rep. Good luck!
MidAtlantic
  |     |   Comment #9
They simply said it was not an option they offered. I got that answer on on-line chat and also, to double check, when I phoned. My discussion with them was about two months ago. My CD matured a couple of weeks ago and I received a check #1 above.
Sylvia
  |     |   Comment #10
Sorry to hear that. They must have discontinued option. The rates have to be really juicy for me to consider FI's that give no choice but check in the mail at CD closure.  I'd also rather not open another account just to be able to withdraw funds.
paulaj
  |     |   Comment #11
My Add-On Cds at Bank5 matured last month and matured funds were sent back to my original funding bank.
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.

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...

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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

When I wrote first wrote about...

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Bank5 Connect's High-Interest Savings APY Jumps
Availability: High-Interest Savings Account, 2.05% APY on balances of $100 and above, $10 minimum opening deposit.

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

Bank5 Connect has raised the rate on its High-Interest Savings Account to 2.05% APY. Yesterday’s addition of 115 bps gives the High-Interest Savings Account its highest APY since Bank5 Connect opened its virtual doors in 2013.

While a $100 minimum balance is required to earn the stated APY, the account can be opened with as little as $10. The High-Interest Savings...

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Bank5 Connect 12-Month CD Rate Leaps Up
Availability: 12-month Connect CD, 2.55% APY, $500 minimum deposit.

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

Happy 5th Anniversary, Bank5 Connect! While not promoted as a celebratory CD, the 12-month Connect CD’s new 2.55% APY is certainly an eye-catching rate. The 12-month Connect CD gained 155 bps this week, in the first rate change since it was introduced in 2013. Any of Bank5 Connect CDs can be opened with a $500 minimum opening deposit; there is also a $500k maximum opening deposit.

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Bank5 Connect 24-Month CD Has Unlimited Deposits
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.

Five months ago, I wrote about Bank5 Connect’s 24-month Investment CD, which had a new 2.10% APY. Bank5 Connect improved that rate yesterday by adding another 60 bps, boosting the APY to 2.70% APY. The Investment CD has a $500 minimum opening deposit, with a $500k maximum opening deposit.

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