Minnesota-based Heritage Bank is once again offering the 6-month and 12-month Triple Option CDs. It’s been about three years since I last wrote about the Triple Option CDs. At that time, the Triple Option CDs offered tiered rates of 2.21% APY and 2.31% APY based on balances of $10k+ and $100k+, respectively.
Heritage Bank has restructured the Triple Option CS, with both currently offering 4.44% APY on balances of $25k or more, and near-zero rates of 0.14% APY and 0.18% APY on balances up to $25k.
The Triple Option features include additional deposits, unlimited rate bumps, penalty-free withdrawals, albeit with limitations.
Anytime Unlimited Rate Bump Up: You can reset the rate of your CD at any time to Heritage Bank’s posted rate, for any term equal to or greater than the current term. When the rate is reset, the CD term is also reset. Plus, you can bump the rate as many times as you want.
Penalty-Free Withdrawals: You can withdraw from your CD balance without penalty at any time during your CD’s term for medical expenses. The minimum amount is $1,000 per withdrawal.
Anytime Additional Deposits: You can add money to your CD at any time. The minimum is $1,000 per deposit and additions are allowed up to 100% of the CD’s original balance each term.
The Certificates of Deposit page lists the Early Withdrawal Penalty, which reads as follows:
Standard early withdrawal penalty (excluding withdrawals for medical expenses)
- Maturity of six months or less: Three months loss of interest
- Maturity of greater than six months: Six months loss of interest
- Minimum penalty: $40.00
Availability and Account Opening
Headquartered in Spicer, Minnesota, Heritage Bank offers its product line to all U.S. citizens and resident aliens, 18 years or older, who have a valid Social Security number.
Heritage Bank has improved its website, with checking and savings accounts available to be opened online. While the Certificates of Deposit page actually has an “Apply For Certificates of Deposit” button, it disappointingly leads to a “Contact Me” form.
Please complete the form below and our Customer Care Team will contact you to open your account!
Opening a Triple Option CD can also be done over the phone (800.344.7048), with all required documentation sent via email, fax, or snail-mail.
A Triple Option CD can also be opened at any of the four Minnesota branches located in Pennock, Raymond, Spicer, and Willmar, the two Sioux City, Iowa branches, or the Sioux Falls, South Dakota branch.
Funding and Other Details
The following information is from a conversation with CSR.
- Funding – ACH ($2.50 fee), wire ($18 fee), check, or transfers from another institution initiated through Heritage Bank’s Digital Banking platform.
- Interest – Compounded/credited monthly; dividends can be paid out or transferred to another account.
- Maturing Funds – ACH ($2.50 fee), wire ($30 fee), cashier’s check to address on file, internal transfer or transfer to another institution initiated through the Digital Banking platform..
- Beneficiaries – Unlimited, equal shares, Social Security number required.
- Grace Period – 10 calendar days before automatic renewal.
- Credit Check – Soft pull.
Heritage Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 2.75% (excellent) based on June 30, 2022 data. Heritage Bank has an above average capitalization level (10.72%), the result of holding $436.98 million in assets with $46.83 million in equity. Please refer to our financial overview of Heritage Bank (FDIC Certificate # 19254) for more details.
Founded in 1964 as the National Bank of Willmar, the Bank was a privately owned, community bank established and run by the Geiger family. The Bank was renamed Heritage Bank in 1984, and in 1989 acquired two Minnesota banks (The Citizens National Bank of Madelia and State Bank of Pennock). Further acquisitions occurred in 2004 (Farmers’ State Bank of Raymond) and 2011 (Heritage Bank, N.A. in Iowa). The biggest news in Heritage Bank’s story happened more than eight years ago:
The 150 employees of Heritage Bank will all be employee-owners. On Monday, Nov. 3, 2014, bank management announced that Heritage Bancshares Group, Inc., the parent company of Heritage Bank N.A., will become an employee-owned company through an Employee Stock Ownership Plan (ESOP).
“It is a win-win proposition for Heritage Bank, its employees and our local economy,” said Heritage Bank CEO Tom Geiger “By funding the ESOP, Heritage is investing in the employees who have helped make the company successful, and keeping that investment right here, helps support the local communities we serve.”
How the 6-Month Triple Option CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $25k or less, two banks have a higher rate than currently offered on the Heritage 6-month Triple Option CD. The following table compares the 6-month Triple Option CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
How the 12-Month Triple Option CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available nationwide, the Heritage Bank 12-Month Triple Option CD APY isn’t that competitive. But when compared to nationally available add-on CDs with similar length-of-terms, the 12-Month Triple Option CD fares much better.
The above information and rates are accurate as of 1/3/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.