At the end of last week, Liberty Bank added an 18-month CD Special (1.50% APY). The minimum opening deposit is $500 of new money, with a balance cap of $250k.
A Liberty Bank personal checking account (either new or existing) is required to open the 18-month CD Special. The Bank offers three checking accounts: Quarter Back Checking®, PayBackSM Checking, and Interest Checking. Any of these accounts satisfy the checking relationship requirement.
Rate Bump Option
The fine print on the Savings Rates page states,
If the Federal Reserve raises the federal funds rate during the term of the CD, the account
holder of this account will receive a one-time APY increase of .25% within 5 business days.
This is the first time I’ve encountered a rate bump feature worded this way. While not a significant plus for the account holder, it certainly simplifies the process by specifically stating how it works. It also prevents the bank from keeping new rates low, in an effort to thwart customers from making use of a rate bump.
According to CSR, the Early Withdrawal Penalty is a combination of a “flat fee of $25 and 3% of the amount being withdrawn.”
Headquartered in Middletown, Connecticut, Liberty Bank’s market area is primarily Connecticut, but the Bank’s website does state that residents of Hampden, Hampshire, and Worcester Counties, Massachusetts, and Washington County, Rhode Island are “invited to apply.”
While Liberty Bank does offer a variety of online CDs, the 18-month CD Special must be opened in person at any of 56 full-service Connecticut branches, which are located throughout the state.
Liberty Bank (FDIC Certificate # 17943) has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 4.17% (excellent) based on March 31, 2016 data. In the past year, Liberty Bank has increased its total deposits by $481.81 million, an excellent annual growth rate of 16.42%. Please refer to our financial overview of Liberty Bank for more details.
How do you summarize Liberty Bank’s 191-year history in one short paragraph? Perhaps with a few facts and a historical anecdote.
Originally founded in 1825 as The Middletown Savings Bank, Liberty Bank is currently Connecticut’s 4th largest bank with assets in excess of $4.3 billion. The Bank is also the State’s oldest mutual bank and is still maintains its original location on Main Street in Middletown. In the past 40 years, there have been two name changes and six acquisitions.
In 1844, Frederick Sheffield, a young merchant from Old Saybrook, rode his horse to
Middletown to deposit $8. Six months later, he made an additional deposit of $18. In
1994, Sheffield's relatives decided to close the account. It had been maintained over the
years, handed down through the generations, and had grown through compounding interest to more than $32,000. At the time it was the oldest individually owned savings account in America.
How the CD Compares
When compared to the 164 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available to Connecticut residents, Liberty Bank’s 18-month CD Special APY currently ranks second.
The above rates are accurate as of 6/29/2016.