CFG Bank 12-Month CD APY Bounces Back To Rate-Leading Level

It’s been about ten months since I wrote about the CFG Bank 12-month CD, which had been quite competitive in the first half of 2023. In the past five months, the 12-month CD APY lost 42 bps, with last fall’s short-lived 5.67% APY a distant memory. With two rate increases (15 bps) in the past two weeks ago, the 12-month CD is currently offering a very competitive 5.40% APY. (You'll find the CFG Bank 12-month CD near the top of the nationally available 1-year category in this week's CD Deals Summary.) The minimum opening deposit is $500, with a stated maximum deposit of $500k.

Early Withdrawal Penalty

According to CSR, the Early Withdrawal Penalty (EWP) for the 12-month CD is 180 days interest on the amount withdrawn. Partial withdrawals are allowed, but any withdrawal made with in 180 days of account opening will reduce the principal.

The limited disclosure section of the Personal Deposit Rates page includes the following statements:

No withdrawals may be made within the first 30 days.
After 30 days no withdrawal penalties will be waived.

I read that quote several times, not exactly sure what was meant by the second sentence. The implication is there might be a time when a withdrawal penalty would be waived. If so, when would that be? According to CSR, these are stand-alone statements, with no correlation between the two. The somewhat inartful second sentence simply means an EWP will always be applied when a permitted early withdrawal is made.

High Yield Money Market

The CFG Bank High Yield Money Market (HYMM) has been earning 5.25% APY since late September 2023. The HYMM requires a $1k minimum opening deposit and minimum balance.

According to the Deposit Rates page and the FAQs page,

• There is no checking writing or ATM card associated with the HYMM.
• Following initial funding, there is daily external outbound transfer limit of $5k and daily inbound transfer limit of $25k. The total external transfers (inbound and outbound) may not exceed $30k in a 30-day rolling period. These limitations refer to transfers that are initiated from CFG Bank.
• The transfer limit can be temporarily increased for five business days by calling 888.205.8388 during weekday business hours. As stated in the FAQs, “We will record verification of your identity and request prior to inputting the increase.”
• Additional deposits can be made through ACH transfers from another bank, wire transfer, mobile deposit, or by mailing a check.
• A minimum daily balance of $1k is required to avoid the $10 monthly service fee.
• Up to four beneficiaries can be added on the online application. Additional beneficiaries can be added over the phone.
• Trust accounts cannot be opened online.

Availability and Account Opening

Headquartered in Baltimore, Maryland, CFG Bank expanded its online banking platform almost three years ago, with a limited number of products available on a nationwide basis through online application.

All U.S. citizens and resident aliens (18 years or older) who have a valid Social Security number and a physical address in the U.S. are eligible to open a CFG Bank account.

Opening a CD and/or a High Yield Money Market can be done online or at either of two Maryland branches located in Baltimore and Lutherville. The branch location in Annapolis is listed on the CFG Bank locations page as a "commercial office."

Questions about opening an account can also be answered by calling 410.823.0500, or submitting a Contact Me form.

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Funding and Other Details

The following information is from a conversation with CSR.

• Funding – Online opening requires either ACH or Plaid funding.
• Ownership – Individual, joint, or trust (in-branch opening required for a trust).
• Interest – Compounded/credited monthly, can be withdrawn at any time by ACH, by scheduled monthly check, or scheduled monthly transfer to another CFG Bank account.
• Maturing Funds – ACH, cashier’s check to address on file, or internal transfer to a CFG Bank savings account.
• Beneficiaries – Unlimited, equal shares, Social Security numbers required for all beneficiaries.
• Grace Period – 10 calendar days before automatic renewal.

Bank Overview

CFG Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 14.18% (above average) based on December 31, 2023 data. In the past year, CFG has increased its total non-brokered deposits by $1.37 billion, an excellent annual growth rate of 48.68%. Please refer to our financial overview of CFG Bank (FDIC Certificate # 34294) for more details.

CFG is currently the fifth largest bank headquartered in Maryland, with assets in excess of $5 billion and more than 43,000 customer accounts. While its current FDIC Certificate was issued in 1997 (as AmericasBank), CFG Bank’s roots trace back to the La Corona Building and Loan Association, which was founded in 1927 for the benefit of East Baltimore residents. AmericasBank rebranded as CFG Community Bank in 2009, subsequently dropping “Community” after adding a limited number of nationally available products.

A January 2024 press release announced that Capital Funding Bancorp, the holding company for CFBBank, completed a $160 million capital raise.

The capital infusion comprises the previously announced $125 million equity investment from J.C. Flowers & Co. LLC on December 19, 2023, and a $35 million preferred equity investment through a private placement on December 29, 2023. The J.C. Flowers & Co. LLC investment can increase up to $165 million, which would bring the total capital contribution up to $200 million over the next five years. The combined transactions meet the Company’s growth capital target and complete its capital raise. At the end of 2023, CFG Bank’s total equity capital exceeded $500 million.

How the 12-month CD Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available nationally and have minimum deposit requirements of $10k or less, no bank or credit union has a higher rate than currently offered on the CFG Bank 12-month CD. The following table compares the 12-month CD to the four highest-rate similar length-of-term CDs from banks/credit unions.

The above information and rates are accurate as of 3/15/2024.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.