CFG Bank High Yield Money Market Is New Rate Leader

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Deal Summary: Online CFG High Yield Money Market, 1.02% APY ($1k+), new money. 13-month Penalty Free CD, 1.07% APY, $500 min/$250k max deposit, one penalty-free withdrawal.

Availability: Nationwide through online application

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.02%$1k-CFG BankCFG High Yield Money Market - New Money
Rates as of May 16, 2022.

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.07%$500$250kCFG Bank13 Month Penalty Free CD
Rates as of May 16, 2022.

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.

Need something in particular? Not sure where to start? Just want to chat? That’s what we’re here for. Simply enter your contact information and we’ll get back to you in no time.

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 RateAccount NameCredit Union/Bank
1.02% APYHigh Yield Money Market ($1k min/no max)CFG Bank
1.00% APYMAX-Yield Money Market Account ($5k min/no max)Sun East Federal Credit Union
0.85% APYMoney 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 RateCD Length of TermCredit Union/Bank
1.25% APY11-Month No-Penalty CD ($500 min)USALLIANCE Financial
1.15% APYSmart Move 36-month CD ($2.5k min) (partial penalty-free early withdrawal only)Bellco Credit Union
1.07% APY13-Month Penalty Free CD ($500 min)CFG Bank
1.00% APY11-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.

Related Pages: Baltimore money market accounts, money market accounts, 1-year CD rates, nationwide deals

Comments
midas89
  |     |   Comment #1
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. I have had this CFG account since Ken originally reported its great 2.5% money market rate back in the good old days, and there was also no ACH limit then on external ACH-initiated transfers.
Ken Tumin
  |     |   Comment #2
Thanks midas89 for confirming this! I've updated the post with this info.
CFG Bank Raises Rate On 13-Month Penalty Free CD Again
Deal Summary: 13-month Penalty Free CD, 0.85% APY, $500 min/$250k max deposit, one penalty-free withdrawal. 12-month CD, 1.02% APY, $500 min/$250k max deposit.

Availability: Nationwide through online application

For the second time in as many weeks, Maryland-based CFG Bank has raised the rates on its entire product line. With a new 0.85% APY, 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...

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CFG Bank 13-Month Penalty Free CD Is A Near Rate Leader
Deal Summary: 13-month Penalty Free CD, 0.80% APY, $500 min/$250k max deposit, one penalty-free withdrawal.

Availability: Nationwide through online application

Following a 10 bps increase this week, the CFG Bank 13-month Penalty Free CD once again has the highest rate (0.80% APY) offered on a no-penalty CD by a bank. The minimum opening deposit is $500, with a $250k maximum deposit.

A Little History

It’s been seven years since I first wrote about 13-month Penalty Free CD. At that time, the Penalty Free CD was only available...

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CFG Bank Increases No-Penalty CD Rate
Deal Summary: 13-month Penalty Free CD, 0.70% APY, $500 min/$250k max deposit, one penalty-free withdrawal.

Availability: Nationwide through online application

Barring any late-breaking rate changes, the CFG Bank 13-month Penalty Free CD will be the top no-penalty CD for banks in tomorrow’s CD Rates Summary. Following an 8 bps increase last week, the 13-month Penalty Free CD now earns 0.70% APY. The previous 0.62% APY had been in effect for more than a year and, until recently, had been rate leader for no-penalty CDs for quite some time.

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CFG Bank's 13-Month Penalty Free CD Is Top Rate No Penalty CD
Deal Summary: 13-month Penalty Free CD, 0.62% APY, $500 min/$250k max deposit, one penalty-free withdrawal.

Availability: Nationwide through online application

As of yesterday, the bi-weekly Liquid Summary has been reorganized, with the No-Penalty CDs having their own category. The 13-month Penalty Free CD (0.62% APY) offered by CFG Bank has been the rate leader for no-penalty CDs for quite some time.

It’s been more than six years since I first wrote about 13-month Penalty Free CD. At that time, the Penalty Free CD was only available in eastern Maryland,...

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CFG Bank's 13-Month Penalty Free CD Is Available Nationwide
Deal Summary: 13-month Penalty Free CD, 1.55% APY, $500 min/$250k max deposit, one penalty-free withdrawal.

Availability: Nationwide (online application)

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.

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