CD Bank Offers Top-Rate 24-Month CD, 3.20% APY
The lead-in for the CD Bank July 2018 blog post was,
It’s here – the first nationally available 2-year CD earning 3.00% APY.
Nine months later, Texas-based CD Bank is leading with another top rate: 3.20% APY on its 24-month CD. The minimum deposit is $10k, with no stated balance cap.
CD Bank opened its virtual doors in May 2017. Since then, the 24-month CD has nearly doubled its initial rate, going from 1.65% APY to 3.20% APY in seven rate increases. In the past year, the 24-month CD has added 135 bps.
In addition to the 24-month CD, three of the Bank’s short-term CDs have new rates, with increases ranging between 10-40 bps.
The Bank’s longer-term CD APYs were increased in early December to competitive levels, but fell dramatically this week when CD Bank raised its shorter-term CD rates. The 36-, 48-, and 60-month CDs now have substantially lower APYs (110, 100, 90 bps, respectively) than the 12-month CD.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 0.50% | $100k | - | CD Bank | 60 Month CD | |
| 0.45% | $100k | - | CD Bank | 48 Month CD | |
| 0.40% | $100k | - | CD Bank | 36 Month CD |
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with a maturity of less than one (1) year will be an amount equal to three (3) months interest on the amount withdrawn subject to penalty.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of one (1) year but less than two (2) years will be an amount equal to twelve (12) months interest on the amount withdrawn subject to penalty.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of two (2) years but less than three (3) years will be an amount equal to eighteen (18) months interest on the amount withdrawn subject to penalty.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.
CSR stated the limit on incoming ACHs is a generous $450k.
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.
When I last wrote about CD Bank in July, there were two options for receiving those “Final Maturity” funds. This morning I confirmed those are still the only two options.
- Cashier’s check
- Wire transfer ($15 fee)
Outgoing ACHs are not available. The $450k limit on incoming ACHs is quite nice, but I'd much 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 4.17% (excellent) based on December 31, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $652.94 million, an excellent annual growth rate of 26.38%. Please refer to our financial overview of CD Bank/TBK Bank (FDIC Certificate #23498) for more details.
According to the Frequently Ask Questions page,
TBK Bank, SSB and CD Bank, a division of TBK Bank, SSB are the same FDIC-insured institution. Deposits held under each name are not separately insured, but are combined to determine whether a depositor has exceeded the $250,000 federal deposit insurance limit, per depositor for each account ownership category. For purposes of calculating aggregate deposits held in CD Bank, you should include deposits held in TBK Bank, SSB and Triumph Community Bank, a division of TBK Bank, SSB.
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 16th largest bank headquartered in Texas, with assets in excess of $4.5 billion and more than $3.4 billion in deposits.
How the CDs Compare
When compared to 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 167 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 211 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 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 6-months CD APY currently ranks third.
The above rates are accurate as of 4/24/2019.
To find the most competitive CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
The roach motel aspect is not great but maybe if they continue to have top rates it won't be a big deal?
While I do not want a 9 month term its interesting that it has a lower rate than a 6 month.
6 Months 2.75%
9 Months 2.45%
12 Months 3.00%
18 Months 3.10%
24 Months 3.20%
I am interested in a 12 month and a 24 month. I have money at multiple places right now which kind of complicates things and I am unable to park it in a savings account at CD Bank while aggregating funds. Which means I open multiple small CDs with varying maturity dates and then wait for a snail mail checks when they mature or I do a bunch of transfers in advance potentially losing interest in the process.
Or I could wait for a deal with a FI that has fewer limitations but a similar rate. (I am unable to join NAVY federal)
That will pay for the $15 wire out fee if they do not have competitive rates at that time.
And from all indications, they might.
I emailed to ask about the POD but I can't imagine they would not allow those.
12m $10,0003.18%3.20%
18m $10,0003.27%3.30%
24m $10,0003.37%3.40%
I have accounts there at the 1 located off 635/Coit an will say it is a strange bank it struck me more like a boiler-room or clearing house than a traditional bank there aren't tellers per say or even a drive-thru
I emailed CD bank about combining 3 different transfers into one larger CD but their system is not set up for it. I have money at a handful of places, so I may have to open 4-5 total, the last 3-4 in small amounts each.
For those, I will have to wait on snail mail checks for sure unless I reinvest.
It is who started cdbank.com
Usually its the other way around.
12m $10,0003.18%3.20%
18m $10,0003.27%3.30%
24m $10,0003.37%3.40%
--------------
You tell me which rates are higher. Sure seems like the in person division pays more unless this guys math is wrong.
Most cannot drive up locally so we need nationwide deals.
Did the process go smoothly?
If they are going to have no branches to deal with, and then make it hard to get your money back without spending too much, and delays and/or costs getting your money in -- you're taking a loss at every turn, they are not.
Do they credit your account the day the ACH for deposit is initiated, or do they wait until the money arrives? Most wait, but some credit the account on the day of initiation, and you don't lose any interest for those days. This place, though, even wants to charge you $10 to give them your money via wire, and you still have to pay the outgoing wire charge too!
But my home is they continue to offer top rates in 24 months or whatever.
The EWP is not going to stop me from opening this account.
I had planned to use Northern to pull money to combine it but just found out they have ridiculously low transfer limits. $5000 each.
So I guess I will have to use my broker. I should probably go ahead & open one CD now and send a check with the paperwork and then pull some money at various places to target a mid May 2nd round CD. Of course, by then they will probably lower their rates.
Far too much work. But at least there was no chexsystems inquiry. SMH
Added 2 beneficiaries and POD. It allowed more. It was a scroll type thing.
They want the checks payable to TBK bank.
The forms don't mention the banks name anywhere or the CD I chose. Under account description it was blank, I wrote in 24 month 3.20% for me.
Could not set up an online log in without an account number.
confirmation email: Thank you for choosing us for your financial needs.
We have received your application.
Your Application Number is: xxxxx
Please keep an eye on your inbox. Within the next business day we will review your application and notify you of next steps.
We look forward to assisting you.
Thank you,
Online Support
They didn’t reply to any of my emails for the last five days. Phone calls ended up in a general voice message queue. That part is not Ok.
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By the way, Andrews also has poor customer service. So its pretty much everywhere.
Im guessing they are not allotting many man hours to the CD Bank division. When I opened my account Sunday night they said to expect an email within a business day. i have not heard back from them yet. And I emailed late yesterday afternoon asking if everything was ok.
But, Ally has long waits for phone calls and even longer waits for emails.
And a 2 year at 3.20% is a top rate.
But by all means do not open an account if your life will be ruined over what I presume will be a slow account opening.
I sent my checks monday so they should get them today. I hope I hear back from them.
There are no other nationwide 3.20% 2 year rates by the way.
I simply cannot get a 3.20% 24 month rate anywhere else. Or 12 month at 3% or 18 month at 3.10% for that matter. Because of that, I'm willing to deal with slow customer service or a slight delay. I am not losing much in the way of interest because I funded with checks so I am earning something until it clears.
The EWP is not a concern for me because its hard to envision myself needing the money before the term ends or rates skyrocketing.
If you are aware of other 2 year 3.20% banks where everything is perfect, great. I'm unaware of any open to anyone.
Still have not heard back from them by email.
I did not call yesterday.
They have not responded at all. i had planned to open a 2nd one today but they don't seem to know whats going on.
If I don't hear anything in the next few hours, maybe I call their parent bank?
Easy to say 'avoid" but I'm trying to open a 3.2% 2 year CD and nobody else offers them to me.
So I have to send them a copy of my drivers license and I finally did that. Hopefully that will get things moving? She said they had a lot of interest and thats why they have not returned calls & emails. Maybe without that mistake everything would have processed already? I did not get an immediate response so I will probably call again this afternoon. I intend to open another CD as soon as I can.
I don't recall them asking for my ID to be sent originally.
Welcome to CD Bank
Thank you for choosing us for your savings needs. We are thankful you chose us and look forward to the opportunity to serve you! We have received and began to process your application. As a reminder to finalize your account please:
Mail the signed account documentation along with a copy of identification for each account owner on your new account. We accept the following types of identification:
a. State issued Driver's License
b. State issued Identification Card
c. Passport
Fund your account. If you chose to fund your account by:
a. Mailing a check: please make the check payable to CDBank.com and mail it along with your account documentation and a copy of your identification to the mailing address below.
b. ACH Transfer: Within 2 business days we will send you an email titled: "Account Funding Validation." This email will provide the steps for validating your ACH transfer request.
c. Wire Transfer: Provide your current bank with the following Wire Instructions, please note, your bank may access a fee for the transfer.
Wire Funds To:
CDBank.com, a division of TBK Bank, SSB
ABA (Routing) # - 111909579
Credit To:
Your Name
Your Address
Account Number: Provide the bank with your application ID number
ATTN: Online Accounts
Our mailing address is:
TBK Bank, SSB
ATTN: CDBank.com Online Accounts
12700 Park Central Drive, Suite 1700
Dallas, TX 75251
What to Expect Next:
• Once we receive your deposit and all requested documentation we will mail your Certificate of Deposit certificate within 7 - 10 business days.
• Your account will begin ! accruing interest the day we receive and deposit your initial deposit.
• Once your account is funded you will be eligible to enroll in Online Banking. You may enroll by visiting www.cdbank.com
If you have any questions please feel free to contact us at 1-888-201-8185 or email us at [email protected]
Thank you
My checks still have not cleared. SMH
And I am still pondering another either 18 or 24 month with money I did not have 10 days ago.
Its not like competition is beating down my door with better deals.
If I was dealing with $5000, I probably would not bother.
I am still considering trying again for a 2nd CD with money I did not have when I opened the first one.
One thing is for sure, there is no line of FIs offering 3.20% 2 year CDs.
Even assuming similar Faux Pas at the end of the term, their deal is better than my alternatives.
And maybe in 2 years they will have their act together and/or have top rate CDs at that time?
I sent my application & checks on Monday 4/29 and the account started earning interest on 5/3.
And my checks did not clear until 5/10. So their inefficiency actually made me money.
Their website has no mention of CDBank, its TBK and its extremely bare bones.
And it appears each new CD will have a separate application, filling all all the duplicate information and snail mailing new paperwork for each one.
I'm unclear if their website will aggregate multiple CDs on the same log in or not. It might but we will have to see.
Plenty of room for efficiency improvements with their processes thats for sure. Why must I snail mail another 7-8 pages worth of documents?
I wrote the terms on the paperwork I mailed in with my check.
My checks were payable to TBK. Again, nothing anywhere mentions CDBank except their website & email address. Not on any official paperwork.
Mint, meanwhile, updates fine with the same password.
I tried to call TWO phone numbers this afternoon around 4:40. CD Banks and TBKs and neither were answered. They are supposed to be open until 5pm.
No evidence that they have gotten my 2nd check and paperwork which was sent monday.
The only reason I tried to log in last night was to see if my new CD would be shown on that sign in or not. I don't need to log in regularly as long as mint shows them.
Neither check cleared this time either but last time it took a full 10 days for them to clear. But they dated them on the 3rd. Unsure if they really got them on the 3rd or they back dated it a week because it took them so long?
Wish I could count on email response but I can't so I'm not even going to try.
Im not upset. And someone posted on the review topic they were told they are planning to get ACH out. So that would be nice for 2 years from now. Of course, if they still have a top rate then, I will roll it over. But, I will not go over 3 years without a premium to the 1-2 year terms. And never over 5 again. (I have a 10 year penfed that matures 1/21. 5%) But, won't do that again even for 5%. Reasonable chance I won't be breathing in 10 years.
Still not sure why mint works but I can't log in on my own anymore with the same password.
One of my checks cleared. The other one will probably later tonight. Still unable to log in myself. But mint still works inexplicably. Same username & password for both. No way to manually reset your password. I probably won't bother emailing but I would like to know the maturity date of the 2nd one as it does not show at mint.
Glad I opened them despite the customer service issues.
Here are the new rates:
3 Months 1.90%
6 Months 2.50%
9 Months 2.45%
12 Months 2.85%
18 Months 2.90%
24 Months 2.95%
36 Months 1.90%
48 Months 2.00%
60 Months 2.10%
On 2nd thought, maybe they have time to answer emails now that the rates went down?
1) True....phone calls and emails are not returned. The phone numbers listed on emails and on-line seem to go to different locations which end up in voice mail. When I called, the system asked me "please enter the extension of the party you are trying to reach".....what ???
2) It seems the on-online application systems has quirks when using different browsers. When I tried to enter the amount deposited by CD Bank for authentication, the application process stalled and I was dead in the water.
3) To open an account via ACH which is verified and then not redeem at maturity into the same account via ACH is appalling. This is a simple process which would benefit the customer and the bank.
4) Once your account is open and funds are deposited expect no more correspondence until you get documentation in the mail which took me 14 days. In the meantime, I had no way of knowing if the process was complete and had no verification or a simple account number.
5) The head of this department clearly lacks organizational skills to implement this project and thus all the hiccups hurt the reputation of TBK Bank. I doubt that senior management knows what's going on here.
On the positive side, an email of mine (mentioning the State Bank Commissioner) did get the attention of presumably the person in charge which authenticated my account so that my account could be completed.
While I now have an account open, I don't feel comfortable with this bank to increase my deposits or recommend this bank to others. The hassle and anxiety when opening an account is not worth the few pennies of incremental interest. I remain very concerned about my CD's maturity. I expect that to be a difficult process also costing me lost interest.