CD Bank Boosts Nationally Available 12-Month CD Rate
About six months ago, Dallas-based TBK Bank launched CD Bank, its new internet division that only offers CDs. CD Bank is currently promoting two CDs: 12-months (1.75% APY) and 24-months (1.85% APY). Of the two, the 12-months CD is clearly the more competitive. CD Bank’s 18-months CD (1.80% APY) isn’t part of this promotion, even though its APY is quite competitive. The minimum deposit for a CD Bank CD is $10k, with no stated balance cap.
Since both the 12-and 18-months CDs were introduced in May, each have had two rate increases, adding a total of 30 bps per CD. While the Bank’s shorter-term CDs have competitive APYs, its longer-term CDs are not faring as well: the yield curve is rather compressed, with only 35 bps separating the 12-months and 60-months CDs.
As stated in the Truth in Savings document, the Early Withdrawal Penalty reads (in part) as follows:
The withdrawal penalty on certificates with a maturity of one (1) year but less than two (2) years will be an amount equal to twelve (12) months interest on the amount withdrawn subject to penalty.
My May blog post about CD Bank included a great deal of information about the CDs and CD Bank’s practices and requirements that are not covered in the FAQ section.
Availability
Headquartered in Dallas, CD Bank (an internet division of TBK Bank, SSB) offers its services and product line to all U.S. Citizens and Resident Aliens, 18 years or older.
The “Open Your Account” button (located on all of the pages of CD Bank’s website) leads to the online application. Funding a new CD can be done through electronic transfer from another bank account, by wire transfer, or by check.
Bank Overview
CD Bank is a division of TBK Bank, SSB and operates under TBK Bank’s FDIC Certificate (#23498) and shares its financial history.
CD Bank/TBK Bank has an overall health grade of "A" at DepositAccounts.com, with Texas Ratio of 9.90% (excellent) based on June 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $772.86 million, an excellent annual growth rate of 62.1%. Please refer to our financial overview of CD Bank/TBK Bank for more details.
Established in 1981 as Franklin National Bank, the Bank rebranded in 2004 (Equity Bank, SSB) and 2010 (Triumph Savings Bank, SSB) before becoming TBK Bank, SSB in 2015. Following the 2016 acquisition of Colorado East Bank & Trust, TBK Bank has become the 20th largest bank headquartered in Texas, with assets in excess of $2.08 billion and more than $2.01 billion in deposits.
How the CDs Compare
When compared to the 214 similar length-of-term CDs tracked by DepositAccounts.com, which require a minimum deposit of $10k or less and are available nationally, CD Bank’s 12-months CD APY currently shares the top spot with INOVA Federal Credit Union’s 14-month CD and Banesco USA’s 12-month CD.
When compared to the 152 similar length-of-term CDs tracked by DepositAccounts.com, which require a minimum deposit of $10k or less and are available nationally, CD Bank’s 18-months CD APY currently ranks second.
The above rates are accurate as of 11/3/2017.
To find the most competitive CD rates, both nationwide and state specific, please refer to our CD rates table or our new Rates Map page.
