Finworth Offers Two Nationally Available CDs With Rate-Leading APYs

It’s been a busy month for Nashville-based Finworth, the online division of INSBANK. At the beginning of the month, Finworth introduced two new CDs with very good rates. Finworth is ending the month on a strong note by adding another two CDs, changing two CD term-lengths, and boosting the rates on three other CDs. All Finworth CDs require a $50k minimum opening deposit. While there is a balance cap of $240k per CD, there is no limit on the number of CDs that can be opened.

All of these Finworth CDs have rate-leading or near rate-leading APYs and are prominently featured in yesterday’s CD Deals Summary.

Finworth Interest Rate Advantage

The Finworth 21-month CD APY trails the MapleMark Bank 24-month Special CD APY by 5 bps, but the difference between the two interest rates is 7 bps (Finworth 5.48% vs MapleMark Bank 5.41%). The difference between the APYs is the result of compounding frequency: Finworth compounds annually, with MapleMark Bank compounding daily. For those interested in receiving a monthly interest check, the Finworth 21-month CD outperforms the MapleMark Bank 24-month CD, as compounding is not an issue.

Early Withdrawal Penalty (Updated 9/6/2023)

According to CSR, partial withdrawals are not allowed: a Finworth CD can only be closed early with the Early Withdrawal Penalty (EWP) applying to the entire CD balance. The EWPs are as follows:

• 6 months interest – 9- and 13-month CDs
• 8 months interest – 15- and 18-month CDs
• 10 months interest – 21- and 22-month CDs
• 90 days interest – 9-month CD
• 180 days interest – 13- and 15-month CDs
• 240 days interest – 18-, 21-, and 22-month CD

Availability and Account Opening

Headquartered in Nashville, Tennessee, Finworth is the online division of INSBANK and offers its limited product line on a nationwide basis to all U.S. citizens and resident aliens (18-years or older) with a valid Social Security number.

Opening a CD can only be done online, which takes "about 10-15 minutes." Once an application is submitted, the CD rate is locked in. After the application has been reviewed, an email will be sent to complete the funding portion of the application.

Funding and Other Details

The following information is from FAQs page and a conversation with a bank official.

• Funding – ACH initiated by Finworth after application has been approved.
• Ownership – Individual, joint, or trust. (Updated 9/6/2023)
• Interest – Compounded/credited annually. Can be paid out monthly by check or ACH to another bank account, or added back into the CD every 12 months.
• Maturing Funds – ACH to original funding account or cashier’s check to address on file.
• Grace Period – 10 calendar days before automatic renewal.
• Beneficiaries – Up to 4 during account opening; additional beneficiaries can be added by contacting Finworth. The default is equal shares, but percentages can be assigned. Social Security numbers not required.
• Credit Check – ChexSystems

Bank Overview

As an online division of INSBANK, Finworth operates under INSBANK’s FDIC Certificate and shares INSBANK’s financial history.

Finworth/INSBANK has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.34% (excellent), based on March 31, 2023 data. In the past year, INSBANK’s non-brokered total deposits have been decreased by -$1.4 million, an average annual growth rate of -0.27%. Please refer to our financial overview of Finworth/INSBANK (FDIC Certificate # 35521) for more details.

INSBANK was founded in 2000 as the Insurors Bank of Tennessee, originally targeting independent insurance agents. In an interview in the Nashville Business Journal, InsBank President and CEO, Jim Rieniets gave an overview of InsBank.

Originally we were a pet-project of independent insurance agents. The Financial Services Modernization Act was going to allow banks get into the insurance business and insurance companies to get into banking. These independent agents were saying, "Great, we’re sort of caught in the middle’," … that’s how our company was born.

We slowly diversified over time, we stuck with a commercially focused business model but not just reliant on the insurance industry and referrals from it. We continue to have friends and clients in that group. But it’s not all we are today.

In 23 years, INSBANK has grown to become 38^th largest bank headquartered in Tennessee, with assets in excess of $785 million and more than 4,100 customer accounts.

How the 13-Month CD Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and have minimum deposit requirements of $50k or less, no banks or credit unions have higher rates than currently offered on the Finworth 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 15-Month and 18-Month CDs Compare

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and have minimum deposit requirements of $50k or less, no banks or credit unions have higher rates than currently offered on the Finworth 15-month CD. The following table compares the 15-month CD and 18-month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.

How the 21-Month and 22-Month CDs Compare

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and have minimum deposit requirements of $50k or less, only one bank has a higher rate than currently offered on the Finworth 21-month CD. The following table compares the 21-month CD and 22-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 8/31/2023.

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