CFG Community Bank (CFG) is offering a promotional Relationship Money Market (1.31% APY), with the promotional rate is guaranteed for six months following account opening. New money is required to earn the promotional APY, as is an active checking account, defined as “having an ACB $2,000 per month and direct deposit.”
To qualify for the introductory rate, opening deposit of new money may not exceed $250,000 per customer. The introductory rate will apply during the first 6 months after
the account is opened, unless the account balance exceeds $250,000, in which case
we reserve the right to apply the regular interest rate to the entire balance in the account.
13-Month Penalty-Free CD
More than two years ago, I wrote about CFG’s 13-month One-Time No Penalty Withdrawal CD. At that time, two APYs were offered - with a checking account relationship and without. This time there are three rates: 1.01% APY (no checking); 1.11% APY (new money); and 1.26% APY (new money and active checking). The minimum deposit is $500, with no stated balance cap.
The no penalty feature allows for a one-time withdrawal, either partial or closing, with no penalty, but the fine print reads:
If your account is a penalty free certificate: There is a federal penalty of seven
day’s simple interest on funds withdrawn within the first six days of deposit.
The checking account must remain open during the term of the CD, and like the Relationship Money Market, requires “having an ACB $2,000 per month and direct deposit.”
Headquartered in Lutherville, Maryland, CFG Community Bank serves “small and middle-market businesses, professionals, and executives in Maryland, Virginia, District of Columbus, and Pennsylvania.”
I quoted the website because, while CFG’s online banking capabilities are currently limited to account management and bill pay transactions, the branch locations are only in Maryland (Annapolis, Baltimore, Lutherville).
Opening any type of account requires an in-person visit, but once a relationship with CFG is established, transactions can be done through written correspondence (snail mail). CSR mentioned that the Bank is in the process of expanding the online banking platform with substantial funding earmarked for that purpose.
CFG Community Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 8.73% (excellent) based on December 31, 2016. In the past year, CFG has increased its total non-brokered deposits by $62.57 million, an excellent annual growth rate of 12.24%. Please refer to our financial overview of CFG Community Bank (FDIC Certificate # 34294) for more details.
While its current FDIC Certificate was issued in 1997, CFG Community 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. CFG is currently the 15th largest bank headquartered in Maryland, with assets in excess of $711 million. According to a March 14, 2017 article in The Daily Record,
Capital Funding Bancorp Inc., parent company of CFG Community Bank announced Tuesday that it has completed a private placement of $35 million in subordinated debt. The Notes are scheduled to mature on March 1, 2027. Approximately $30 million of the proceeds will be contributed to the Bank as Tier 1 capital.
How the Relationship Money Market Compares
When compared to the 244 Money Market Accounts tracked by DepositAccounts.com that are available within the Bank’s market area, CFG Community Bank's Relationship Money Market APY currently ranks first.
|Interest Rate||Account Name||Credit Union/Bank|
|1.31% APY||Relationship Money Market (no min/$250k max)||CFG Community Bank|
|1.25% APY||Mega Money Market (no min/$35k max)||McGraw Hill Federal Credit Union|
|1.24% APY||Money Market ($500 min/no max)||Self-Help Federal Credit Union|
The above rates are accurate as of 4/17/2017.