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.
|1.75%||$10k||-||CD Bank||18 Month CD|
|1.70%||$10k||-||CD Bank||12 Month CD|
|1.65%||$10k||-||CD Bank||6 Month CD|
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.
|1.80%||$10k||-||CD Bank||36 Month CD|
|1.80%||$10k||-||CD Bank||48 Month CD|
|1.80%||$10k||-||CD Bank||60 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with a maturity of less than one (1) year will be an amount equal to three (3) months interest on the amount withdrawn subject to penalty.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of one (1) year but less than two (2) years will be an amount equal to twelve (12) months interest on the amount withdrawn subject to penalty.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of two (2) years but less than three (3) years will be an amount equal to eighteen (18) months interest on the amount withdrawn subject to penalty.
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.
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.
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.