In the past year, ConnectOne Bank (ConnectOne) has offered a variety of nationally available, competitive CDs. The newest additions to the product line are the 23-month Online CD (3.00% APY) and 14-month Online CD (2.63% APY), with the 23-month having the more competitive APY. The minimum opening deposit for either CD is $500, with the maximum amount that can be funded online capped at $1 million.
Both Online CDs are also offered as IRAs (Traditional), earning the same stated APYs, with the same funding requirements.
As stated in the Fixed Rate CD disclosure, the Early Withdrawal Penalty for the 14- and 23-month Online CDs reads as follows:
We will impose a penalty if you withdraw any or all of the funds before the maturity date. The penalty imposed will equal 180 days of interest on your account. The early withdrawal penalty will be deducted from the interest earned. If you have not earned enough interest on your account or if the interest has already been paid to you, the penalty will be deducted from the principal.
As DA reader, alan1, commented on an earlier blog post, ConnectOne has added an FAQs page. Some of the questions addressed include,
How can I fund my account?
You can fund your new ConnectOne Bank through ACH transfer from your account at another bank. If you are already a ConnectOne Bank client, you can transfer funds from one of your other ConnectOne accounts.
What happens once my CD matures?
You will receive a maturity notice by mail prior to the maturity date of your CD. At this point, you can notify the bank, (by phone, in a branch, or by emailing [email protected]) if you decide to close the CD. If you choose to close the CD you will receive the amount in your account upon maturity by check. If you have other accounts with ConnectOne Bank, you may also have the funds transferred into one of those accounts.
According to CSR, CDs can only be opened as an individual or a joint account; beneficiaries cannot be designated.
Headquartered in Englewood Cliffs, New Jersey, ConnectOne Bank expanded its market area almost a year ago, when it began offering its Personal CDs on a nationwide basis through its online application. According to the online application, Personal CDs may be opened by “U.S. Citizens and U.S. Residents.”
While the vast majority of ConnectOne Bank’s CDs can be opened online or in-branch, the 14-month and 23-month Online CDs can only be opened using the online application.
The first page of the online application states this cautionary note,
Please note, pressing the "back" arrow / button will terminate your application and the data will be lost. For security purposes, we will not store data and the application should be completed in one online session.
ConnectOne Bank has 18 full-service New Jersey branches, one in New York City, and one on Long Island), in addition to its Private Client Center in Princeton, New Jersey.
ConnectOne Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 7.41% (excellent) based on June 30, 2018 data. In the past year, ConnectOne Bank has increased its total non-brokered deposits by $464.01 million, an excellent annual growth rate of 16.85%. Please refer to our financial overview of ConnectOne Bank (FDIC Certificate # 57919) for more details.
In its thirteenth year of operation, ConnectOne Bank was originally established in 2005 as the North Jersey Community Bank. Following the acquisition of Citizens Community Bank, Bank re-branded in 2013. A year later, ConnectOne Bank acquired Union Center National Bank (Union, NJ). ConnectOne Bank is currently the eighth largest bank headquartered in New Jersey, with assets in excess of $5.2 billion and more than 66,500 customer accounts.
How the Online CDs Compare
When compared to the 218 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, ConnectOneBank’s 23-month Online CD APY currently ranks first.
When compared to the 220 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, ConnectOneBank’s 14-month Online CD APY currently ranks third.
The above rates are accurate as of 9/26/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.