CFG Bank 12-Month CD and Money Market Rates Continue to Rise

As DA readers, midas and vlad, noted in their recent Forum posts, CFG Bank slightly increased the rates on its 12-month CD and High Yield Money Market. About two weeks ago, CFG Bank added 3 bps to the 12-month CD, with another 4 bps added a few days ago. Currently earning 5.32% 5.42% APY, the 12-month CD requires a $500 minimum opening deposit, with a stated maximum deposit of $500k.

The 12-month has been the most active CD in the CFG Bank product line since the beginning of the year (eight nine increases and two decreases) and consistently the most competitive CD. The latest rate increase has only widened the significantly inverted Yield Curve for CFG Bank CDs. The current 12-month APY is 82 92 bps higher than current 60-month CD APY and 72 82 bps higher than the 36-month CD APY.

High Yield Money Market

The CFG Bank High Yield Money Market (HYMM) currently earns 5.12% APY, following another modest 5 bps increase. In the past five months, the HYMM added a total of 97 bps. 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 more than 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) 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 new 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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CD Funding and Other Details

The following information was obtained from CSR.

• Funding – Online opening requires an ACH.
• Maturing Funds – ACH, cashier’s check to address on file, or internal transfer to a CFG Bank savings account.
• 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.
• Early Withdrawal Penalty – 180 days interest; partial withdrawals allowed.
• Grace Period – 10 calendar days before automatic renewal.
• Beneficiaries – Unlimited, equal shares, Social Security numbers required.

Bank Overview

CFG Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 11.28% (excellent) based on March 31, 2023 data. In the past year, CFG has increased its total non-brokered deposits by $1.14 billion, an excellent annual growth rate of 52.58%. Please refer to our financial overview of CFG Bank (FDIC Certificate # 34294) for more details.

CFG is currently the fourth largest bank headquartered in Maryland, with assets in excess of $4.4 billion and more than 23,000 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.

According to a recent press release,

CFG Bank (CFGB) today announced its was recognized on S&P Global Market Intelligence’s annual rankings for 2022’s best-performing community banks with assets between $3 billion and $10 billion. CFG Bank ranked No. 2 in the list of large community banks. Last year, CFG Bank was No. 11 in the 2021 rankings for small community banks.

[…]

S&P Global Market Intelligence launched the rankings in 2011 to assess the performance of community banks and credit unions. The division ranks institutions based on returns, growth and efficiency but places a premium on the strength and risk profile of balance sheets.

How the 12-month CD Compares (Updated 6/14/2023)

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, one bank 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 the 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 second.

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 6/13/2023.