CFG Bank 12-Month CD Rate Soars Upward
“DA déjà vu” – the feeling you’ve read this blog post before, but the rates are higher than you remember.
It’s been about ten days since Maryland-based CFG Bank (CFG) quickly raised its CD rates after the Fed’s latest rate hike. Just days ago, CFG added another 30 bps to its 12-month CD, resulting in a new rate leading 3.05% APY. The minimum opening deposit is $500, with a stated maximum deposit of $250k.
The CFG Deposit Rates page states,
No additional deposits after initial deposit
While that sentence seems to state the obvious, CFG has offered a variety of “special” conditions on its CDs in the past, including a bump-up option, a penalty-free partial withdrawal, and an additional deposit.
According to CSR, the Early Withdrawal Penalty for any of the CDs is 180 days, with partial withdrawals allowed.
Funding a CD that is opened online must be done by ACH. Maturing funds (or funds from a partial withdrawal) can be transferred into a CFG Bank savings account, transferred to another financial institution via ACH, or distributed by cashier’s check to the address on file.
High Yield Money Market
Following last week’s 20 bps increase, the CFG Bank High Yield Money Market (HYMM) not only continues to be the rate leader for nationally available MMAs, but is now offering a higher rate than available on any nationally available savings accounts. The HYMM current 2.30% APY applies to balances of $1k and above.
While the CFG Bank Deposit Rates page reads, "new funds only," CSR explained that the new money requirement is for new accounts only and the stated APY applies to all HYMM accounts. Several DA readers have confirmed that the APY on their existing HYMM accounts has increased every time the APY has been raised in the past few months.
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.
*In a comment from the May 16, 2022 CFG Bank blog post, midas89 stated,
Regarding external bank ACH transfers: I have now confirmed with 2 different CFG reps that as of this writing, CFG still imposes no limitations to the amount of money you can either push in or pull out when initiated from your external bank.
Availability
Headquartered in Baltimore, Maryland, CFG Bank expanded its online banking platform about two years ago, with a limited number of products available nationwide through online application.
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 High Yield Money Market and/or a CD can be done online or at either of two Maryland branches located in Baltimore and Lutherville.
Questions about opening an account can also be answered by calling 410.823.0500, or submitting a Contact Me form.
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Bank Overview
CFG Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.04% (excellent) based on March 31, 2022 data. In the past year, CFG has increased its total non-brokered deposits by $562.66 million, an excellent annual growth rate of 34.97%. 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 $2.7 billion and nearly 11,000 customer accounts. 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.
According to a a recent press release,
CFG Bank is proud to announce the company was recognized as a Top Loan Producer, ranked third in the commercial lender with assets totaling over $1 billion category, by Independent Banker, an award-winning magazine from the Independent Community Bankers of America. CFG Bank’s recognition, which rose from its 16th place ranking last year, is based on the strength of its competitive banking services and operational efficiencies throughout 2021.
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 two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
How the High Yield Money Market Compares
When compared to nationally available Money Market Accounts and Savings Accounts tracked by DepositAccounts.com, that do not require large balances or direct deposit, and do not have small balance caps, the CFG Bank High Yield Money Market APY currently ranks first.
To look for the best rates on liquid bank accounts, both nationwide and state specific, please refer to our Money Market Accounts Table and Savings Accounts Table.
The above information and rates are accurate as of 8/8/2022.
This is the one time we DON'T want a bank to compound.
On a positive note: My brother's girlfriend's sister-in-law's mother's boss heard that CFG is attempting to bring in temporary staff to help alleviate the backlog. So, OldTimerMike advising people to wait until at least August 18 might prove to be inaccurate advice. We'll see.
At CFG, if you can walk and chew gum at the same time, YOU ARE HIRED!
Ha.
The mechanic's barber reported he just went on a third date with a woman. During the date, the woman asked him: "Do you snore?" The mechanic's barber replied: "Only when I drive." The woman is now ghosting the mechanic's barber. But, on the bright side, the woman, the mechanic, and the mechanic's barber are now enjoying Capital Funding Group's 2.55% APY High Yield Money Market account.
You didn't hear? Vinnie the barber was arrested for selling Fentanyl. I was flabbergasted when I heard this news, as I've been his customer for 20 years and I never knew he was a barber.
"Baltimore-based Capital Funding Group (CFG), a provider of financing in the health care and multifamily industries, Tuesday announced the company has financed more than $1.8 billion in the first half of this year.
"This financing included 55 bridge loans and 13 HUD loans for CFG’s long-term care, assisted living facility and multifamily clients nationwide."
If CFG doesn't improve their ability to answer the phones or open new accounts faster, they'll have to change CFG to mean Cannot Fund Group.
Glad I went with NFCU’s 33 month special CD offer. Opened and funded that in one shot.
They keep raising their MM rate to be #1 but it doesn't look like they are making progress with their backlog. They definitely need to invest in either technology or additional staff. Really disappointing.
My dog also wouldn't verify his trail deposits while I was out with him on a long walk. (I really need to feed him a diet that doesn't negatively affect him, digestively speaking.)
Seriously, though, the massive delays people are experiencing with CFG is the first time ever so many people have suffered through, at least that we have ever seen posted here at Deposit Accounts. The only possible way CFG could make up for the embarrassing and shameful delays is by offering bonus reward money to all those who had to wait an unusually long time to get their accounts. Could even be just a $200 gift. I know they won't, but maybe if someone high up at CFG sees this, at least they'll see my suggestion.
CFG's High Yield Money Market rate is not guaranteed. CFG has the right to raise or lower the rate at any time. Obviously, if CFG lowers the rate to substantially below what people can get elsewhere, they'll experience a mass exodus.
If history holds, CFG won't lower the rate until the Federal Reserve drops rates. But of course, if the Fed lowers rates, all banks will lower their interest rates they pay people.
This email just says to check your funding account in 1-3 business days for the trial deposits. So CFG hasn't even initiated them yet. The email contains a link to a secure web page to enter the amounts of the trial deposits.
Then another 1-3 days after verification of the trial deposits, CFG will provide your account number via encrypted email.
Maddeningly slow.
Am getting worried about this Bank. How do we get through to them? Does anyone have personal phone numbers for CFG Bank executives or Office of President? Thanks.
Encouraging news. ACH transfers from external funding accounts withdrawn the evening of August 2nd. Heard nothing from CFG until I sent them an email this morning (August 9) inquiring about the status of my pending accounts. I expressed my concern about loss of interest as funds sat idle. Received a reply in under 5 minutes informing me I would receive my welcoming letters soon. Less than 5 minutes later I received secure email confirmation of my new accounts. HYMM and CD interest was credited beginning August 3rd. Up and running now, waiting for trial deposits to arrive so I can begin pushing funds into the HYMM account. Hope this bodes well for others.
Hopefully I will not need to contact them to get the encrypted email with my account number.