CFG Bank High Yield Money Market Is New Rate Leader
As DA reader, midas89, noted in a Forum post last week, CFG Bank’s (CFG) nationally available High Yield Money Market (HYMM) had a rate increase of 20 bps. It currently earns 1.02% APY on balances of $1k and above. The minimum opening deposit is $1k and new money is required.
A Little History
The HYMM debuted in October 2019 with an extremely competitive 2.50% APY ($25k) and 2.40% ($1k), which unfortunately lasted less than two weeks. With a total of five rate drops in 14 weeks, the APY lost 35 bps, with the 2.15% APY/2.05% APY in effect until April 2020. The APY began to fall again in May 2020 and bottomed out at 0.59% APY/0.49% APY in June 2021, where it remained for nine months. In addition to the first rate increase since HYMM was added to the product line, CFG also restructured the rate tiers in February 2022, eliminating the $25k balance tier.
According to the Deposit Rates page and the FAQs page,
CFG High Yield Money Market Details
- There is no checking writing.
- 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.)
- 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.
Update 5/16/22: As reported by DA reader, midas89: "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."
13-Month Penalty Free CD
Including last week’s increase of 20 bps, CFG Bank has raised the rate on the 13-month Penalty Free CD by 45 bps in the past three months. With a new 1.07% APY, the 13-month Penalty Free CD once again has the highest no-penalty CD rate offered by a bank. The minimum opening deposit is $500, with a $250k maximum deposit.
The 13-month Penalty Free CD had maintained a 0.62% APY between December 2020 and February 2022, and was also the rate leader for no-penalty CDs for most of that time. When the rate was increased to 0.70% APY in early February, the 13-month Penalty Free CD re-established itself as a rate leader, a position that it continues to maintain.
Penalty Free CD Account Details
Finding detailed information about the Penalty Free CD isn’t easy: the Truth-In-Savings disclosure is attached to the online application and is only available at the end of the application process, and only very general info about the Penalty Free CD is available on the bank’s website. The following information was obtained in an earlier conversation with CSR and is still accurate:
- 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 days’ 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 also 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.
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 Penalty Free 13-month CD or a High Yield Money Market 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 2.82% (excellent) based on December 31, 2021 data. In the past year, CFG has increased its total non-brokered deposits by $360.54 million, an excellent annual growth rate of 24.12%. 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 fifth largest bank headquartered in Maryland, with assets in excess of $2.6 billion.
How the High Yield Money Market Compares
When compared to the Money Market Accounts tracked by DepositAccounts.com that are available nationwide and do not require a large balance or have a small balance cap, CFG Bank’s High Yield Money Market APY currently ranks first, regardless of minimum or maximum deposit.
| Interest Rate | Account Name | Credit Union/Bank |
|---|---|---|
| 1.02% APY | High Yield Money Market ($1k min/no max) | CFG Bank |
| 1.00% APY | MAX-Yield Money Market Account ($5k min/no max) | Sun East Federal Credit Union |
| 0.85% APY | Money Market Account ($1 min/no max) | mph.bank |
To look for the best Money Market Account rates, both nationwide and state specific, please refer to our Money Market Account Rates Table page.
How the Penalty Free CD Compares
As I mention in every no-penalty CD blog post, no-penalty CDs are a somewhat of a rare occurrence, with the longer the term, the more competitive the CD. When compared to the nationally available no-penalty CDs tracked by DepositAccounts.com, CFG Bank’s 13-month Penalty Free CD APY currently ranks third.
| Interest Rate | CD Length of Term | Credit Union/Bank |
|---|---|---|
| 1.25% APY | 11-Month No-Penalty CD ($500 min) | USALLIANCE Financial |
| 1.15% APY | Smart Move 36-month CD ($2.5k min) (partial penalty-free early withdrawal only) | Bellco Credit Union |
| 1.07% APY | 13-Month Penalty Free CD ($500 min) | CFG Bank |
| 1.00% APY | 11-Month No-Penalty CD ($5k min) | CFSB |
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
The above information and rates are accurate as of 5/16/2022.
