I first wrote about CFG Bank’s13-month Penalty Free CD more than five years ago. At that time, the Penalty Free CD was only available in eastern Maryland, had tiered APYs (1.25% and 1.00%), and a checking relationship was required to earn the higher APY. A lot has changed since 2015: the 13-month Penalty Free CD is now available nationwide, offering a single APY (1.55%), with no checking account required.
CFG Bank’s website doesn’t provide much information about the ins-and-outs of the Penalty Free CD, but I learned the following in a conversation with a very knowledgeable CSR:
- One partial (or complete) withdrawal is allowed any time after the first six days of the CD being funded. Should a withdrawal take place within the first six days, there is a penalty of seven day’s simple interest on the amount withdrawn.
- There is an Early Withdrawal Penalty of six month dividends on any subsequent withdrawal(s).
- A partial withdrawal/closure includes all the principal and accrued interest.
- Funds from a partial withdrawal/closure can be transferred immediately into a CFG Bank savings account.
- Funds from a partial withdrawal/closure can be transferred to another bank via ACH, with no need for funds to be distributed by check.
- A partial withdrawal/closure can be done completely online, although CFG Bank would like written notification if you intend to close the Penalty Free CD early.
Headquartered in Baltimore, Maryland, CFG Bank expanded its online banking platform several months ago, with a limited number of products now available online. All U.S. citizens and resident aliens (18 years or older) with a valid Social Security number and a physical address in the U.S. are eligible to open an account.
Opening a Penalty Free 13-month CD can be opened online.
CFG Bank has temporarily closed the lobbies of its two Maryland branches to walk-in transactions, including scheduled appointments.
Due to the recent events surrounding the Corona Virus, starting Tuesday, March 17, 2020, our Fells Point Branch will be closed until further notice. Our Lutherville branch will be operating drive-thru only.
Questions about opening a Penalty Free CD can also be answered by calling 410.823.0500, or submitting a Contact Me form.
CFG Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 4.59% (excellent) based on December 31, 2019 data. In the past year, CFG has increased its total non-brokered deposits by $384.52 million, an excellent annual growth rate of 58.3%. Please refer to our financial overview of CFG Bank (FDIC Certificate # 34294) for more details.
While its current FDIC Certificate was issued in 1997, 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. After adding a limited number of nationally available products, the Bank rebranded as CFG Bank, removing “Community” from its name. CFG is currently the ninth largest bank headquartered in Maryland, with assets in excess of $1.2 billion.
How the Penalty Free CD Compares
As I have mentioned in every no-penalty CD blog post, no-penalty CDs are not that common, and the longer the term, the more competitive the CD. When compared to other nationally available no-penalty CDs tracked by DepositAccounts.com, CFG Bank’s 13-month Penalty Free CD APY currently ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|1.55% APY||13-Month Penalty Free CD ($500 min)||CFG Bank|
|1.55% APY||No-Penalty 7-Month CD ($500 min)||Marcus by Goldman Sachs|
|1.50% APY||11-Month No-Penalty CD ($25k min)||Ally Bank|
|1.45% APY||No-Penalty 11-Month CD ($500 min)||Marcus by Goldman Sachs|
The above rates are accurate as of 5/8/2020.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.