Credit One Bank 24-Month Jumbo CD APY Is Near Rate Leader
Last week, Credit One Bank added 45 bps to its 24-month Jumbo CD. The new 1.65% APY is the highest rate currently offered on nationally available 2-year CDs that require a minimum deposit of $100k or less. The 24-month Jumbo CD can be opened with a $100k minimum deposit, with no stated balance cap.
This is the fourth blog post in as many months that I’ve written about Credit One Bank’s Jumbo CD product line. The focus of the previous three blog posts was the competitive 12-month Jumbo CD, which leap-frogged its rate from 0.75% APY to a rate-leading 1.20% APY in a matter of weeks. Since my March 19th blog post, a handful of nationally available 1-year CDs are offering rates higher than the 12-month Jumbo CD 1.20% APY.
Credit One Bank is best known as a bank and financial services company that specializes in credit cards. For about the past eight months, Credit One Bank has been offering a limited Jumbo CD product line, which have become quite competitive following recent rate increases. The full listing of the Jumbo CD rates is available in the CD section of DA's Credit One Bank's profile page.
With a mild early withdrawal penalty of only 180 days, a Credit One Bank 60-month Jumbo CD that is closed early actually compares favorably to shorter-term CDs held to maturity. This can be seen using DA's CD Early Withdrawal Penalty Calculator.
The following is excerpted from Credit One Bank’s FAQs page.
How do I fund a Jumbo Certificate?
A Jumbo Certificate of Deposit can only be funded through an ACH transfer of funds from a linked external bank account.
What if interest rates go up after I open my Jumbo Certificate of Deposit?
If our rates for your selected Jumbo Certificate of Deposit's term Increase within 10 calendar days of your account opening date (account opening date plus 9 calendar days), you will automatically receive the higher rate thanks to our 10-Day Rate Guarantee.
What is the penalty for early withdrawal* from my Jumbo Certificate of Deposit?
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
What are my options when my Jumbo Certificate of Deposit reaches maturity?
Your account defaults to auto-renewal at maturity, but you have the option of logging into your account online and selecting your maturity preferences in advance of your Jumbo Certificate of Deposit (CD) maturing. We also provide a 10-day grace period starting at your CD maturity date in which you may renew your CD, move your funds into a new CD with a different term, add funds, or close and withdraw your funds.
If your CD does not have an auto-renewal option selected, the account will close on maturity.
*There is no language on Credit One Bank's website that gives the bank the right to deny an early withdrawal or early closure.
While the FAQs are fairly comprehensive, the scope could be wider. Many FAQs and TIS documents seem to focus on how to fund CDs, but rarely mention how to access maturing funds. The following information was obtained in a conversation with a CSR.
- Withdrawing maturing funds can be distributed through an ACH to the external linked account which was used to fund the CD. Credit One Bank’s online banking platform allows you to notify the bank of any preferences before the Jumbo CD matures.
- Joint accounts are allowed, but due to limitations of the online application, naming a joint owner can only be done after the application has been submitted.
- Unlimited beneficiaries can be named, but once again, only after the application has been submitted. Percentages can be assigned and Social Security numbers are required for all beneficiaries.
- CDs cannot be opened in the name of a trust, but a trust may be designated as beneficiary.
- The application process does not trigger a hard pull; only a soft pull will occur.
Availability
Headquartered in Las Vegas, Credit One Bank is 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 CD product line was introduced in mid-2021.
Opening any of Credit One Bank’s Jumbo CDs can only be done online.
Bank Overview
Credit One Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.72% (excellent), based on December 31, 2021 data. In the past year, Credit One Bank has increased its total non-brokered deposits by $33.47 million, an excellent annual growth rate of 10.41%. 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 seventh largest bank headquartered in Nevada, with assets in excess of $865 million and more than 42,000 customer accounts. In a July 2021 press release, Credit One Bank announced,
a multiyear naming rights sponsorship with Charleston Tennis, LLC, which includes title partner rights at the newly named Credit One Stadium located at the LTP Daniel Island tennis center in Charleston, South Carolina. As part of the new sponsorship, Credit One Bank will be the title sponsor of the annual WTA 500 tennis tournament, to be held April 2-10, 2022 at Credit One Stadium.
How the 24-Month Jumbo CD Compares
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, only one credit union has a higher rate than currently offered on the Credit One Bank 24-month Jumbo CD, regardless of minimum deposit. The following table compares the 24-month Jumbo 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 4/18/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
