Two weeks ago, I wrote about Comenity Capital Bank’s new online division, Comenity Direct, and its High-Yield Savings Account (2.48% APY). There are also five CDs in the product line that offer good (but not great) rates, with the 1- and 3-year CDs having the most competitive rates. Any of the CDs can be opened with a minimum $1.5k deposit and are capped at $10m.
|2.50%||$1.5k||$10m||Comenity Direct||5-Year CD|
|2.45%||$1.5k||$10m||Comenity Direct||4-Year CD|
|2.40%||$1.5k||$10m||Comenity Direct||3-Year CD|
|2.35%||$1.5k||$10m||Comenity Direct||2-Year CD|
|2.30%||$1.5k||$10m||Comenity Direct||1-Year CD|
CD interest is credited on a monthly basis and can be withdrawn at any time throughout the term. Automatic monthly transfers to a linked external account or to another Comenity Direct account can be done by setting up a recurring transfer.
Comenity Direct does not allow partial withdrawals, only early closures, which are subject to the following Early Withdrawal Penalty:
For terms 12 months to 3 years, the penalty is 180 days simple interest.
For terms 4 years and up, the penalty is 365 days simple interest.
Funding and Accessing Maturing Funds
Funding a CD (minimum $1.5k) can be done by check, ACH or wire transfer, or transfer from another Comenity Direct account.
As stated in the Truth-in-Savings disclosure,
Account owners are subject to a maximum deposit balance across all Accounts (which includes, Online Savings and CD Accounts) of $10,000,000 per Account owner for individual Accounts and $5,000,000 per Account owner for joint Accounts, for a maximum deposit balance limit of $10,000,000 per Account owner.
There is a 10-day grace period before a CD will be automatically renewed. Maturing funds can be distributed by check, ACH or wire transfer, or transfer to a Comenity Direct Online Savings account.
The Deposit Account Terms document provides a great deal of useful information about the ins-and-outs of Comenity Direct transactions.
While a Comenity Direct account is fee-free (including free monthly maintenance, ACH transfer, online statements, and incoming wire transfers), there are three fees which can be charged:
- $5 per request for paper statements
- $15 per request for paper check withdrawal
- $25 per request for outgoing wires
Unlimited payable-on-death (POD) beneficiaries are allowed. Social Security numbers are NOT required for beneficiaries and percentages can be designated. Charities/non-profits cannot be named as a beneficiary, but trusts can be named.
Headquartered in Wilmington, Delaware, Comenity Direct offers accounts to U.S. citizens or resident aliens, 18 years or older, who have a valid Social Security number and a current street address in the U.S. (no PO Boxes allowed).
Only individuals may open a Comenity Direct sole or joint ownership account. Custodial accounts and trust accounts are not permitted, but as mentioned above, trusts can be named as a beneficiary.
As an internet division of Comenity Capital Bank, Comenity Direct has no brick-and-mortar branches. Opening a CD can only be done online.
As an online brand of Comenity Capital Bank, Comenity Direct operates under Comenity Capital Bank’s FDIC Certificate and shares its financial history.
Comenity Direct/Comenity Capital Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 12.91% (above average) based on December 31, 2018 data. In the past year, the Bank increased its total non-brokered deposits by $185.04 million, an excellent annual growth rate of 19.81%. Please refer to our financial overview of Comenity Direct/Comenity Capital Bank (FDIC Certificate # 57570) for more details.
Comenity Direct’s About Us page states,
The FDIC coverage limit is $250,000 per depositor, per ownership category. Deposits held in different ownership categories are separately insured, up to at least $250,000, even if held at the same bank.
While Comenity Direct is the newest member of the Comenity family, Comenity Bank and Comenity Capital Bank have 30 years of experience of providing financial services. Originally known as World Financial Capital Bank, Comenity Capital Bank is currently Utah’s tenth largest bank, with assets in excess of $9.1 billion and more than 706,000 customer accounts.
How the CDs Compare
When compared to 210 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and require a minimum deposit of $10k or less, Comenity Direct’s 1-year CD APY currently ranks third.
When compared to 199 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and require a minimum deposit of $10k or less, Comenity Direct’s 3-year CD APY currently ranks third.
The above rates are accurate as of 5/7/2019.
To search for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.