Internet Bank BrixDirect 1- and 2-Year CDs Are Rate Leaders
New Jersey-based BrixDirect made its debut last week with two very competitive CDs: 1-year (2.28% APY) and 2-year (2.10% APY). (A 3-year CD completes the product line, but it only earns 1.40% APY). The minimum opening deposit is $50k, with no stated balance cap. When BrixDirect first launched, the minimum deposit was only $100. The large increase to $50k is perhaps a sign of strong demand for these CDs.
Another sign of strong demand is the change of the FAQs at BrixDirect’s website. There were only a few FAQs when BrixDirect first launched. Now the FAQs section is fairly extensive, with the answers to 30 questions provided, including,
How do I fund my account?
As part of account opening, you can fund your account through linking an existing bank account by signing into that bank’s online banking (this is included as one of the steps when opening your CD) or you can enter the routing number and account number of the account you would like to fund from manually (again this is an option when opening your CD). The only method to fund your CD is via ACH.
Is the CD a fixed or variable rate?
The CD is a fixed rate and only guaranteed when the account is fully opened. Rates and minimums can be changed at any time. However, once you open your CD the rate you receive is locked in for the term you chose.
What is the penalty for withdrawing early?
For CDs with terms of 3, 6, 9 months or 1-year the fee you may incur will equal 91 days interest on the amount withdrawn subject to penalty. For CDs with terms of greater than 1 year, the fee you may incur will equal 182 days interest on the amount withdrawn subject to penalty.
How does a customer receive the funds once the CD matures?
The CD will automatically renew. A maturity notice will be mailed approximately 30 days prior to your maturity date. You need to contact [email protected] prior to maturity if you would like to close out the CD at maturity and have the funds sent to you via ACH or check, even if you have interest being sent to you via ACH.
Who can be a beneficiary?
Up to 4 beneficiaries (individuals, trusts, charities, and/or businesses) can be assigned, these can be changed at any time.
How can I add a beneficiary?
Once the accounts are open, you will receive two welcome packages via email. You will receive the first package approximately 1 business day after your application is approved. The following business day you will receive a second email. This will contain your Certificate, instructions on how to enroll in online banking (your account number is on the top of the certificate and also highlighted in red on the Setting Up Online Banking Access page), an ACH authorization form to be completed if you would like your monthly interest sent to you via ACH rather than having it deposited into the CD account, and a Beneficiary Designation form.
Headquartered in Fort Lee, New Jersey, BrixDirect is the new online division of Cross River Bank. In fact, it’s a very new online division, having opened its virtual doors only ten days ago. While Cross River Bank has a CD market area that consists of Connecticut, New Jersey, and New York, the BrixDirect CDs are available on a nationwide basis to all U.S. citizen/residents aliens with a valid Social Security number.
At this time, the only products offered by BrixDirect are three CDs. Opening any of the three must be done using the online application.
There is a three-minute video on the “Why BrixDirect” page that previews the online application process, which supposedly can be completed in three minutes.
As the online division of Cross River Bank, BrixDirect operates under the Bank’s FDIC Certificate and shares its financial history. According to the FAQs, “Your aggregate FDIC deposit insurance is $250,000 per depositor inclusive of both BrixDirect and Cross River Bank accounts.”
BrixDirect/Cross River Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.51% (excellent) based on December 31, 2019 data. In the past year, the Bank has increased its total non-brokered deposits by $246.94 million, an excellent annual growth rate of 21.57%. Please refer to our financial overview of BrixDirect/Cross River Bank (FDIC Certificate # 58410) for more details.
Established in 2008 by French-born entrepreneur and finance industry veteran Gilles Gade, Cross River Bank is currently New Jersey’s 14th largest bank, with assets in excess of $2 billion.
Born in the aftermath of the 2008 financial crisis, Cross River was built with the goal of providing access to credit to consumers in need. Since then, it has evolved into a national technology leader, providing innovative fintech solutions across the country. Cross River has received outstanding recognition for its leading technology, community commitment, innovations in financial services and unmatched workplace culture.
How the CDs Compare
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, BrixDirect’s 1-year CD APY currently ranks first.*
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, BrixDirect’s 2-year CD APY currently ranks first.*
The above rates are accurate as of 4/24/2020.
To search for the best CD rates, either nationally available or state-specific, please refer to our CD Rates Table page.
*We are continually working to keep our rates up-to-date, but there have been just too many rate cuts for us to process quickly. For the time being, please be aware that the rates listed at DepositAccounts.com may not reflect the latest rates published by the banks and credit unions.
I got in on the $100 minimum then the jump to $50k minimum without notice.
I've had FIs send me documents with confidential information on them through insecure regular email. As a matter of fact, that just happened recently. You really have to be careful when dealing with FIs that don't have the facilities to handle, or allow, exchange of paperwork through secure document exchange. Technology counts when evaluating deals.
I did mine this AM and posted my findings. This has been one of the quickest and easiest CD openings posted my experience.
I like to fund by wire. I've rarely seen an FI change its rate on the same day. So when I wire funds, I am as close to guaranteeing I will get the agreed rate as you can get.
As a matter of fact it's one red flag in the minus column when an FI doesn't allow that because it's non-standard. Makes me wonder what other wonky policies they have including potentially draconian restrictions getting my money out at the end of the term. Or, maybe because it's a new operation, they are not up to speed in any number of ways. All potential problems.
This place only lets you fund by ACH.
Suppose between the time you open the account and the time they receive the funds via ACH the rate changes.
Only the most unscrupulous FIs wouldn't honor the rate. But you know what? Some of them are pretty unscrupulous.
I know nothing about this FI, and haven't done any due diligence. But whenever they have policies that aren't standard, it makes me dig deeper before acting. Just some food for thought if your brain's on a diet...
Your ptimary account holder has to have an opened account to add a joint owner. I added my joint owner,
The FDIC Orders require restitution to harmed consumers. Although the exact amount of restitution has not yet been finally determined, $20 million has been placed in a segregated account for the purpose of providing restitution to harmed consumers. Additionally, the FDIC Orders assess civil money penalties of $641,750 against the bank.
Hopefully it's equally as easy to get it back.
I have a 50k max. that way. Appreciate any input.
Probably, a third party that facilitates ach transfers. A little common sense goes a long way in life.
This is a common way of instantly verifying the ACH link to your other account. The alternative is to make trial deposits that you must verify, and that can take several days.
If it's implemented properly, and of course you can never know if any banking you do online is implemented properly, the only entity that will have access to the password you enter for the other FI will be the other FI.
You have to take a certain leap of faith when you do banking online that the FI you are dealing with has properly implemented their security technology. Most of the time it's a reasonable risk. But of course it's always still a risk.
Still overall I think online banking is the most secure way to do your banking. In person or through the mail is much more risky.
1) Let's say the new FI (bank or CU) goes the tried-and-true "1 or 2 trial deposits" route. As stated (and as most of us know), it takes a few days. When completed, the new FI now has your ABA routing no. and your account no. at the old FI. Therefore, it now in theory has the information to either credit OR debit to that one account, at that one old FI. It has NO access to any other of your accounts at that FI - for that to happen, it would have to have those other account numbers, which you have wisely not provided.
2) Alternatively, because you're in such a hurry you do it the "faster way". By doing so you give the new FI "all the credentials" (by which I mean both the logon, AND the password) to your account(S). Note the uppercase "S". Meaning, ALL your accounts at the old FI are now in theory accessible by the old FI, since your logon and password to the old FI normally leads to access to ALL accounts there. So, the new FI has the complete "keys to the kingdom”, as it were.
In the last couple of years, I've only consented to do the “faster way” when there was a great deal, deposit-wise, that might have gotten away had I delayed a day or two. Anybody think that this is still the case?
That's a good practice I do the same thing.
You should change your all your financially related passwords periodically and anytime there is an elevated chance of breach.
I think what's missing from your analysis is that you assume that the first FI has access to the password information you supply. If the technology is implemented correctly, they do not. The encrypted information is to delivered directly to the other bank's server and there is no more risk entering it through the first bank then there is entering it normally through the second bank.
So you say, what if the technology is not implemented correctly. Of course that's a concern, but it's a concern no matter where you enter that password information whether at the first bank or the second bank. Incorrectly implemented technology is a concern no matter what you do online.
I was on a grand jury in the Southern District in NY It was for 30 days and we heard several cases a day to determine if defendants should be indicted for crimes. Many were bank tellers who committed crimes against individuals in various ways.
Also, people will steal mail from your mailbox and look for checks. They "wash" the checks to erase ink on the checks and then cash them.
Also' people have master keys for the blue boxes and steal mail. Another trick is to put a sticky substance on the pull door on the box and then come get letters that are stuck on the door. I found this at my local post office where I found several letters stuck on the door. I've heard of people using sticky mouse traps but I don't now how they can get buy the pull door. In my area all the pull doors on the blue boxes are now just slots.
here's their response
"Thank you for your inquiry, our rate is changing tomorrow, so any applications submitted today will be given the rate available today which is an APR of 2.25% and an APY of 2.28%."