Credit One Bank Ups 12-Month Jumbo CD Rate By 35 bps

Following a 35-bps rate increase this week, the Credit One Bank 12-month Jumbo CD now earns 5.60% APY, placing it within striking distance of the top nationally available 1-year CDs. Credit One Bank Jumbo CDs can be opened with a $100k minimum deposit, with no stated balance cap.

Credit One Bank offers a 10-day rate guarantee:

After you open a CD account with us, if we increase the interest rate and Annual Percentage Yield (APY) we offer for the same CD product and term you selected within 10 calendar days of your account opening date (account opening date plus 9 calendar days), we will automatically give you the increased rate and APY. The higher rate will apply from the day you opened your CD.

In addition, you may,

Receive a .05% Loyalty Rate increase when you renew your CD account with us. The Loyalty Rate increase is subject to change and may be discontinued at any time.

As stated on the Credit One Bank FAQs page, the Early Withdrawal Penalty reads as follows:

The penalty for early withdrawal from a Jumbo Certificate of Deposit (CD) varies by term length:

• CD Term 1-12 months = Early Withdrawal Penalty of 90 days simple interest
• CD Term 13-60 months = Early Withdrawal Penalty of 180 days simple interest
• CD Term 61+ months = Early Withdrawal Penalty of 365 days simple interest

There is no language on Credit One Bank's website that gives the bank the right to deny an early withdrawal or early closure.

Availability and Account Opening

Headquartered in Las Vegas, Credit One Bank is relatively new to the CD market place, as it has been a “limited purpose” bank since 1996, offering only partially and fully secured credit cards. According to CSR, the nationally available Jumbo CD product line was introduced in mid-2021.

As an internet bank, Credit One Bank has no brick-and-mortar branch locations. Opening a Credit One Bank 12-month Jumbo CD can only be done online.

Funding and Other Details

The following information is from the Credit One Bank website and a conversation with CSR.

• Funding – ACH from a linked external bank account.
• Ownership – Individual or joint (after application is submitted).
• Interest – Compounded daily/credited monthly; can be transferred to a linked external bank account.
• Maturing Funds – ACH to the original funding external linked bank account.
• Beneficiaries – Unlimited (after application is submitted) with percentages assigned; Social Security numbers are required; while CD cannot be opened in the name of a trust, a trust may be a beneficiary.
• Grace Period – 10 calendar days.
• Credit Check – Soft pull, ChexSystems.

Bank Overview

Credit One Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 5.13% (excellent), based on September 30, 2023 data. In the past year, Credit One Bank has increased its total non-brokered deposits by $223.16 million, an excellent annual growth rate of 53.35%. Please refer to our financial overview of Credit One Bank (FDIC Certificate # 25620) for more details.

Established in 1984 as a full-service bank known as the First National Bank of Marin, Credit One Bank is currently the sixth largest bank headquartered in Nevada, with assets in excess of $1.4 billion and more than 47,000 customer accounts. If the Credit One Bank logo reminds you of something, think Capital One. A December 2017 Bloomberg Businessweek article is a fascinating read about Credit One Bank, including some history about the logo.

It changed its name to Credit One Bank and adopted a new logo, placing the company’s signature swoosh above its name, arcing leftward from the letter O.

If that looks familiar, there’s a good reason. In 2008, credit-card titan Capital One Financial Corp. unveiled an almost identical insignia, adding a swoosh that arced leftward from the letter O.

And so began the improbable story of how one of the top U.S. card lenders—admired in the industry for its innovative marketing—gave an accidental advertising boost to a then-obscure rival. That company would soon take off, reshaping the competitive landscape for subprime lending to U.S. consumers.

To outsiders, it looked like a classic branding trick: an underdog trying to mimic the look of an established company, hoping new customers wouldn’t notice. Except Credit One had adopted the logo first.

How the 12-Month Jumbo CD Compares

When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, two banks and one credit union have higher rates than currently offered on the Credit One Bank 12-month Jumbo CD, regardless of minimum deposit requirements. The following table compares the 12-month Jumbo CD to the four highest-rate similar length-of-term CDs from other banks/credit unions with nationwide market areas.

The above information and rates are accurate as of 1/19/2024.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.