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For CDs with terms of 3, 6, 9 months or 1-year the fee you may incur will equal 91 days interest on the amount withdrawn subject to penalty. For CDs with terms of greater than 1 year, the fee you may incur will equal 182 days interest on the amount withdrawn subject to penalty.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.