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, 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 has been available nationwide for more than a year, it has a single APY (0.62%), and no checking account is required.
CFG Bank’s website is still light concerning the ins-and-outs of the Penalty Free CD. The following information was obtained in a conversation with 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a withdrawal take place within the first six days, there is a penalty of seven days’ simple interest on the amount withdrawn.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.
Headquartered in Baltimore, Maryland, CFG Bank expanded its online banking platform more than a year 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 done online.
CFG Bank has reopened the lobbies of its two Maryland branches (Baltimore and Lutherville) for walk-in transactions and scheduled appointments.
Questions about opening a Penalty Free CD can also be answered by calling 410.823.0500, or submitting a Contact Me form.
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CFG Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 9.10% (excellent) based on March 31, 2021 data. In the past year, CFG has increased its total non-brokered deposits by $515.71 million, an excellent annual growth rate of 47.18%. 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 eighth largest bank headquartered in Maryland, with assets in excess of $1.8 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|
|0.62% APY||13-Month Penalty Free CD ($500 min)||CFG Bank|
|0.55% APY||11-Month No-Penalty CD Special ($500 min)||USALLIANCE Financial|
|0.50% APY||11-Month No-Penalty CD (no min)||Ally Bank|
|0.45% APY||No-Penalty 7-Month CD ($500 min)||Marcus by Goldman Sachs|
The above information and rates are accurate as of 7/21/2021.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.