CD Bank Offers 24-Month CD Nationwide
It’s here – the first nationally available 2-year CD earning 3.00% APY.
Texas-based CD Bank has just raised the rates on several of its CDs, with the 24-month CD (3.00% APY) the headliner. The minimum deposit is $10k, with no stated balance cap.
In the past 14 months since CD Bank made its debut, the 24-month CD has nearly doubled its rate, going from 1.65% APY to 3.00% APY in six rate increases. Since early May, the 24-month CD has gain 75 bps.
The other shorter-term CDs with new and improved rates are listed below.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 2.70% | $10k | - | CD Bank | 18 Month CD | |
| 2.60% | $10k | - | CD Bank | 12 Month CD | |
| 2.45% | $10k | - | CD Bank | 9 Month CD |
The Bank’s longer-term CD APYs have remained static for more than nine months, while shorter-term CD rates have continued to increase. In fact, the 36-, 48- and 60-month CDs have APYs substantially lower (110, 100, 90 bps, respectively) than the 12-month CD. To review all the Bank’s CDs, please refer to our CD Bank rate table.
As stated in the Truth in Savings document, the Early Withdrawal Penalty reads as follows:
The withdrawal penalty on certificates with a maturity of less than one (1) year will be an amount equal to three (3) months interest on the amount withdrawn subject to penalty.
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of one (1) year but less than two (2) years will be an amount equal to twelve (12) months interest on the amount withdrawn subject to penalty.
The withdrawal penalty on certificates with a maturity of two (2) years but less than three (3) years will be an amount equal to eighteen (18) months interest on the amount withdrawn subject to penalty.
CD Bank lists several details about its CDs in the FAQ section and in the Truth in Savings Disclosure including,
How do I fund my CD Bank CD?
The easiest way to fund your account is to transfer funds electronically from another bank account. We also offer options for check or wire transfers. Our online account opening processes will walk your through those steps.
Not surprisingly, there is no information on CD Bank’s website about accessing maturing funds, with the exception of,
Final Maturity – If your account is not renewed,
the funds in the account will be paid directly to you.
CSR confirmed there are still only two options for receiving “final maturity” funds:
- Cashier’s check
- Wire transfer out ($15 fee)
Outgoing ACHs are not available. CSR did mention that the limit on incoming ACHs is $450k, which is nice, but I'd rather have an outgoing ACH option.
Availability
Headquartered in Dallas, CD Bank (an internet division of Dallas-based TBK Bank, SSB) offers its services and product line to all U.S. citizens and resident aliens, 18 years or older, with a valid Social Security number.
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.
Note: The first page of the online application states that, besides needing the usual personal identification to complete the application, you will also need,
A printer. At the end of this application we will ask
that you print documents to sign and return to us.
Bank Overview
As an internet division of TBK Bank, SSB, CD Bank operates under TBK Bank’s FDIC Certificate and shares its financial history.
CD Bank/TBK Bank has an overall health grade of "A" at DepositAccounts.com, with Texas Ratio of 9.57% (excellent) based on March 31, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $431.37 million, an excellent annual growth rate of 21.92%. Please refer to our financial overview of CD Bank/TBK Bank (FDIC Certificate #23498) 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 acquisitions in 2016 (Colorado East Bank & Trust) and 2017 (Valley Bank & Trust, Colorado, TBK Bank has become the 18th largest bank headquartered in Texas, with assets in excess of $3.3 billion and more than $2.8 billion in deposits.
How the CDs Compare
When compared to the 212 similar length-of-term CDs tracked by DepositAccounts.com, which are nationally available and require a minimum deposit of $10k or less, CD Bank’s 24-month CD APY currently ranks first.
When compared to the 217 similar length-of-term CDs tracked by DepositAccounts.com, which are nationally available and require a minimum deposit of $10k or less, CD Bank’s 12-month CD APY currently ranks first.
When compared to the 169 similar length-of-term CDs tracked by DepositAccounts.com, which are nationally available and require a minimum deposit of $10k or less, CD Bank’s 18-month CD APY currently ranks second.
When compared to the similar length-of-term CDs tracked by DepositAccounts.com, which are nationally available and require a minimum deposit of $10k or less, CD Bank’s 9-month CD APY currently ranks second.
The above rates are accurate as of 7/24/2018.
To find the most competitive CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
I’m sure there will be other banks within a month offering 3% 24 month CD’s.
I read the reviews here: https://www.depositaccounts.com/banks/cd-bank.html
In late June, two people reported they could not open a CD online. I was curious, so I decided to see what the current. situation is
Nothing seems to have changed. If anyone can figure out how to open an online CD with this internet bank, please post.
Thanks again.
What's with the all caps? Are you trying to emulate the Donald?
And, Congress has a habit of increasing that line of credit as needed.
Do they really have any choice?
Cover the FDIC/NCUA - or, have runs on the banks/credit unions.
Treasury bonds are backed by the full faith and credit of the US government.
Of course, that doesn't mean as much as it used to due to the Republicans.
Remember when they held the government hostage because of the debt?
Remember when these so-called patriots ruined the credit rating of their country?
The same debt they increased dramatically last year to give tax breaks to the rich!
The Notes are not a money market fund, which is typically a diversified fund consisting of short-term debt securities of many companies.
"Only GM Financial is obligated to pay the principal of and interest on the Notes, and only its assets are available for this purpose. If GM Financial’s assets are insufficient to pay the principal of and interest on the Notes, you could lose some or all of your investment
The Committee chooses the interest rate in its sole discretion, and the
interest rate chosen by the Committee does not necessarily bear any relation to the risks associated with or changes in our creditworthiness, credit rating or financial condition and may not compensate you for any increase
in credit risk of investment in the Notes. Moreover, the Committee may establish different interest rates applicable to different Notes in its sole discretion at any time.
Deplorbale has earned on average 15% foor the past 20 years, and I think we could ALL learn from him!
Term APY*
3 Months 1.90%
6 Months 2.10%
9 Months 2.45%
12 Months 2.60%
18 Months 2.70%
24 Months 3.00%
36 Months 1.90%
48 Months 2.00%
60 Months 2.10%
Also, I think we're somewhat jaded by the present - after years of nothing, 3% looked a lot better in 2016 than it does today.
I opened a 7 year CD with Andrews in Nov. 2016 and, much like @111, have not regretted it one bit. I am always amazed at the people who comment on this site on how people who took advantage of that Andrews CD offer must be regretting their decision now!! What is there to regret? If significantly higher rates become available in the near future, I will pay the EWP and move my money and in doing so, I will still make more money than if I had not opened that Andrews CD back in 2016.
3.01% is still a decent rate almost two years later!
It is interesting. I want to think it means they are discouraging people from locking in their money long term because they believe rates will rise quickly and they want to avoid a flood of early withdrawals. Mind you, very harsh EWP for 24 months.
For me, I might open a 12 month for 3%, an 18 month for 3.25% or a 2 year for 3.50%.
I think we might get one of them in 2-4 months.
Otherwise, I am probably going to sit on my 2.26% rate.
(already have a large 9 month at 2.75%)
I'd like to see, quite soon, another 3%, 2-year CD, but without such a nasty EWP and lousy ACH connectivity as this one. Failing that, I'll keep my powder dry. My sweet spot is fungible - I want to see what happens with the economy in the next few months.