Less than two months ago, BankPurely, an online division of Flushing Bank, unveiled its 24-month PurelyCD, with an initial 2.10% APY. That rate was raised yesterday to 2.35% APY. The minimum deposit is $1k, with no stated balance cap. According to the fine print on BankPurely’s home page, PurelyCDs are available for “new accounts and new money only.”
As stated in the FAQs, the Early Withdrawal Penalty reads as follows:
If your PurelyCD account has an original maturity between one year and less than three years: The fee we may impose will equal six months simple interest on the amount withdrawn subject to penalty.
Launched in May, BankPurely is Flushing Bank’s second internet bank. (While DA readers may not be that familiar with Flushing Bank, its first internet bank, iGObanking, is well known.) According to the Bank’s website, BankPurely was,
Specifically crafted for ethical consumers with greater
awareness about environmental and social issues.
In the past, there didn’t seem to be a clear correlation between BankPurely’s and iGObanking’s CD rates. This has changed slightly, with both banks currently offering the same rates on their 24-month CDs (2.35% APY) and 12-month CDs (1.85% APY). The greatest disparity occurs with the 36-month CDs: 2.00% APY at BankPurely and 0.35% APY at iGObanking.
Speaking of iGObanking, I’d be remiss if I didn’t mention iGObanking’s tendency toward wide fluctuations on its CD rates. The risk is that when the CD matures, the new rate will be very low, and if you mistakenly let the CD automatically renew, you could be stuck in a low-rate CD. With only a six-month history of CD rates, it’s difficult to say whether BankPurely will mimic iGObanking’s rate model or not, but it is a possible scenario.
Accessing Maturing Funds
Closing a maturing internet bank CD and receiving the funds is sometimes a more problematic process than opening a CD. According to the FAQs,
To close your PurelyCD account during the grace period either complete and return via postal mail the CD maturity instructions form (provided as part of your CD maturity notice) or send your request by emailing email@example.com (email address submitted must be the email Address of Record).
CSR emphasized that the grace period is short seven calendar days, which could be a factor when trying to avoid being locked into a low rate.
I asked how the funds from a maturing CD would be distributed, hoping an ACH transfer was a possibility. Unfortunately, the only two options are a check mailed to the address on file, or a deposit into an already existing SavingPurely (1.30% APY) or CheckingPurely (0.75% APY) account. Both of these accounts have “zero monthly fees and maintenance charges.” Accrued interest can either be reinvested into the CD each month or paid out through a check.
CSR also stated that the online application allows for up to two payable-on-death beneficiaries. Once the account is opened, it is possible to send a request to add additional beneficiaries. While accounts cannot be opened in the name of a trust, trusts can be named as a beneficiary.
As an internet-only institution, BankPurely offers it services and product line nationwide. U.S. citizens and resident aliens, 18 years or older, can open an account online.
BankPurely’s online application is “powered by iGObanking.com.” In addition to the usual personal information required, you’ll need the account number, routing number, and name of the financial institution if you choose electronic funding. Joint and beneficiary accounts require name, date of birth, and Social Security Number; joint accounts also require government issued identification for all owners.
BankPurely is the newest online division of Flushing Bank. BankPurely, along with iGObanking, is insured through Flushing Bank’s FDIC Certificate and shares Flushing Bank’s financial history. These are not three separately FDIC-insured banks. An individual's deposits held at Flushing Bank, iGObanking and BankPurely are combined for the purpose of FDIC insurance coverage.
Flushing Bank/BankPurely has an overall health grade of “A” at DepositAccounts.com, with a Texas Ratio of 2.73% (excellent), based on September 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $230.34 million, an excellent annual growth rate of 7.64%. Please refer to our financial overview of Flushing Bank/BankPurely (FDIC Certificate # 58564) for more details.
How the CD Compares
When compared to the 198 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and nationally available, BankPurely’s 24-month PurelyCD APY shares the top spot with iGObanking’s 24-month iGOCD and Live Oak Bank’s 2-year CD.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.35% APY||24-Month PurelyCD||BankPurely|
|2.32% APY||24-Month CD||MutualOne Bank|
|2.30% APY||24-Month CD||Sallie Mae Bank|
The above rates are accurate as of 2/2/2018.
To look for the best CD rates, both nationwide in state specific, please refer to our CD Rates Table page.