New Jersey-based ConnectOne Bank (ConnectOne) has brought back its 10-month Time Deposit. (FYI – ConnectOne no longer uses “CD”: the new term is Time Deposit – TD for short. To minimize any confusion, I’m using CD.)
ConnectOne first added the 10-month CD to the product line in March 2018, but by mid-May, it had been removed. The current 4.65% APY is a vast improvement over the original 2.17% APY. The 10-month CD can be opened with a $500 minimum deposit; the maximum amount that can be funded online is capped at $1 million.
As stated in the Fixed Rate Time Deposit disclosure, the Early Withdrawal Penalty for terms greater than 6 months and less than 24 months 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.
The TIS disclosure also states that earned interest can be withdrawn without penalty and can be “credited to another account or paid to you by check.”
ConnectOne has a fairly good 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 Time Deposit matures?
If you choose to close the Time Deposit you will receive the amount in your account upon maturity in one of the following methods:
- A check can be mailed to you.
- Funds can be transferred into your other existing ConnectOne Band checking, savings, or Money Market checking account.
- Upon request, we can transfer the funds back to your original funding financial Institution.
Can I designate “Pay On Death” (POD) beneficiaries on my account?
PODs are not available to be added while opening an account online. However, a POD may be added once your account is open. Please contact us for assistance.
Please note, an account cannot have more than four PODs
Headquartered in Englewood Cliffs, New Jersey, ConnectOne Bank expanded its market area about five years ago, when it began offering CDs on a nationwide basis. According to the online application, CDs may be opened online by “U.S. Citizens and U.S. Residents.”
The first page of the online application contains 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 an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 5.80% (excellent) based on June 30, 2022 data. In the past year, ConnectOne Bank has increased its total non-brokered deposits by $475.27 million, an excellent annual growth rate of 8.72%. Please refer to our financial overview of ConnectOne Bank (FDIC Certificate # 57919) for more details.
ConnectOne Bank was originally established in 2005 as the North Jersey Community Bank. Following the acquisition of Citizens Community Bank, the ConnectOne re-brand occurred in 2013. Three more New Jersey banks were acquired in the past eight years: Union Center National Bank (2014), Greater Hudson Bank (2019), and Bank of New Jersey (2020). ConnectOne Bank is currently the sixth largest bank headquartered in New Jersey, with assets in excess of $8.8 billion and more than 93,000 customer accounts.
How the 10-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available nationwide and have minimum deposit requirements of $10k or less, one bank and one credit union have higher rates than currently offered on the ConnectOne Bank 19-month CD. The following table compares the 10-month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
The above information and rates are accurate as of 12/6/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.