Nashville-based INSBANK rebranded its online division as Finworth in March and by late summer, the Finworth product line included several competitive CDs. Finworth has been restructuring the CD product line, with the most recent changes being the removal of the 8-, 16-, and 21-month CDs and the re-addition of the 14-month CD (5.70% APY) and 22-month CD (5.50% APY). Of the two, the 22-month CD has the more competitive rate. 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.
Finworth Interest Rate Advantage
Finworth compounds CD interest annually, which is often advantageous for those interested in receiving a monthly interest check. I was going to compare the Finworth 22-month rate/5.50% APY to the Newtek 24-month CD rate/5.60% APY, demonstrating how the Finworth 22-month monthly interest outperforms that of the Newtek 24-month CD. I forgot one thing: Newtek does not permit the withdrawal of earned interest. LSS, for those who want monthly payments from their CDs, Finworth is a better deal than what you may expect from their APYs.
Early Withdrawal Penalty
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 EWP for the 22-month CD is 10 months of interest.
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 recent conversation with a bank official.
- Funding – ACH initiated by Finworth after application has been approved.
- Ownership – Individual or joint.
- 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
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 1.40% (excellent), based on June 30, 2023 data. In the past year, INSBANK has increased its total non-brokered deposits by $31.52 million, an excellent annual growth rate of 6.26%. 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 38th largest bank headquartered in Tennessee, with assets in excess of $811 million and more than 4,200 customer accounts.
How the 22-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, two banks have higher rates than currently offered on the Finworth 22-month CD. The following table compares the 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 11/13/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our Best CD Rates Table page.