In July, I had written about ConnectOne Bank and its special 15-month CD. At that time, this CD was available online to residents of New York and New Jersey. I’m happy to report that ConnectOne Bank is now offering their CDs nationwide. Rates have remained competitive, and now the bank’s 24-month CD has become very competitive. The rate increased today to 2.12% APY. The minimum opening deposit is $500. The online application limits the maximum deposit to $1 million.
To view other CD rates, please refer to our CD rate table for ConnectOne Bank.
As stated in the Truth In Savings document, the Early Withdrawal Penalty for CDs with terms of 24 months and over 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 360 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 documentation for the online application doesn’t provide many details. So I called ConnectOne’s customer service today (1-844-266-2548). Below is what I was told by the CSR:
- People in any state can now apply online for CDs. Currently, the CD is the only product available nationwide via the online application.
- Maximum deposit that can be done in the online application is $1 million.
- Funding of the CD is done by ACH. You’ll be required to specify the routing and account number of your account used to fund the CD.
- When the CD is closed, ACH cannot be used to receive the funds. They will mail you a check.
- Beneficiaries cannot be designated. CDs can only be opened as an individual or joint account.
The CSR said that they are working to add more products to be available online. A checking or money market account can make the process of closing CDs quicker and easier. Typically, the bank will allow you to close the CD and move the funds from the CD into the liquid account. Once it’s in your liquid account, you can then use the ACH service of another bank to move the money. Or if it’s a checking or money market account, you can write a check. Many savers prefer this method over waiting for the check in the mail.
Headquartered in Englewood Cliffs, New Jersey, ConnectOne Bank’s market area is primarily northern New Jersey, but about a year ago, the Bank expanded into New York, opening a branch in Midtown Manhattan.
ConnectOne just recently began allowing people in any state to apply for its CDs online. Earlier this year, this capability had been limited to New Jersey and New York residents. Currently, CDs are the only accounts that are available nationwide via the online application.
According to the online application instructions, CDs are only available to U.S. Citizens and U.S. Residents.
ConnectOne Bank has 20 full-service New Jersey branches and one in New York City (Madison Avenue), in addition to its Private Client Center in Princeton, New Jersey.
ConnectOne Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 11.08% (excellent) based on June 30, 2017 data. In the past year, ConnectOne Bank has increased its total non-brokered deposits by $163.6 million, an excellent annual growth rate of 6.32%. Please refer to our financial overview of ConnectOne Bank (FDIC Certificate # 57919) for more details.
In its twelfth year of operation, ConnectOne Bank was originally established in 2005 as the North Jersey Community Bank. The Bank’s name was changed in 2013, following the acquisition of Citizens Community Bank. Three years ago, ConnectOne Bank acquired Union Center National Bank and is currently the eighth largest bank headquartered in New Jersey, with assets in excess of $4.68 billion and more than 62,600 customer accounts.
How the 24-Month Personal CD Compares
When compared to the 206 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and nationally available, ConnectOne Bank’s 24-month Personal CD APY currently ranks second. When compared only to banks, ConnectOne’s 24-month CD ranks first with the second place CD far behind.
The above rates are accurate as of 10/20/2017.