ConnectOne Bank 13-Month and 23-Month CDs Are New Rate Leaders
New Jersey-based ConnectOne Bank (ConnectOne) ended the week by raising the rates on its 13-month and 23-month Time Deposits. (ConnectOne no longer uses “CD”: the new term is Time Deposit – TD for short. To minimize any confusion, I’m using CD.)
Following increases of 20 bps and 30 bps, the 13-month CD now earns 3.30% APY, with the 23-month offering 3.60% APY. The minimum opening deposit for either CD is $500, with the maximum amount that can be funded online capped at $1 million.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 3.60% | $500 | - | ConnectOne Bank | 23 Month CD | |
| 3.60% | $500 | - | ConnectOne Bank | 23 Month IRA | |
| 3.50% | $500 | - | ConnectOne Bank | 13 Month CD | |
| 3.50% | $500 | - | ConnectOne Bank | 13 Month IRA |
Both CDs are also offered as IRA CDs (Traditional), earning the same stated APYs with the same funding requirements. IRA CDs are not available online; they can only be opened in-branch.
As stated in the Fixed Rate Time Deposit disclosure, the Early Withdrawal Penalty for the 13- and 23-month 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.
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
Availability
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.”
Opening a 13-month and/or 23-month CD can be done online. Make sure you click on the specific term-length you want to open, as the ConnectOne Bank online application is customized based on the term-length chosen.
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.
Opening a CD can also be done at any of the 14 New Jersey branches or ten New York branches (Manhattan, Queens, Long Island, Orange County, Rockland County, and Westchester County). ConnectOne Bank has recently expanded into Florida, with a branch on North Flagler Drive in West Palm Beach.
Bank Overview
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 13-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, no bank or credit union has a higher rate than currently offered on the ConnectOne Bank 13-month CD. The following table compares the 13-month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
How the 23-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, no bank or credit union has a higher rate than currently offered on the ConnectOne Bank 23-month CD. The following table compares the 23-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 9/17/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
This kind of non-standard "gotcha" policy is something that I find disturbing. For me this was not a very important transaction, but what if it was? I did not expect NFCU to have a trap like this. Coupled with their lackluster deals in this round of rate increases it looks like another former favorite of mine is slipping down the list.
Such is the nature of this industry. Today's darling is tomorrow's dog. Very few consistently remain on the honor roll over time. Have to stay on your toes (Which means it takes up more of your time and increases reliability risk when doing critical transactions. So you need to be compensated for it in higher returns than competing investments). Overall I am appalled at how inefficient the retail consumer banking system is. It is a century behind the times. And the government monetary system is even worse. No surprise that crypto is such a hot topic. It takes everything the government has to try to shut it down to squash the competition.
Of course, had P_D bothered to read Navy Federal's disclosures he would not have been taken by "surprise". And if P_D can't be bothered to read disclosure statements, he could have read any one of a number of Ken Tumin's articles on Navy Federal (as well as other material posted on this site) and avoided being "shocked".
As to P_D finding this "disturbing", I am saddened to learn that P_D is disturbed.
I thought they were for a clean environment.
And if it wasn't for double standards, they'd have no standards at all.
However, poor Tommy Tuberville, current Senator from Alabama, would certainly beg to differ. That poor gentleman is no doubt still shuddering from the repercussions of alan1's attack on him a while back, on this very blog!
Quit filling our Website with your BULL S++T
They make the conversation about P_D and then accuse P_D of making the conversation about himself.
Wish I could post an emoji but not even sure I could find one weird enough to describe that behavior.
"I can understand your frustration, but please try to adhere to the site's comment policies; please don't descend to his level."
Comment #2 can be addressed without getting into questions related to oxygen flow. Thank you.
Comment #2 can be addressed without getting into questions related to his mental state. Thank you.