In mid-October, Utah-based Capital Community Bank (CCBank) launched its new online division - Limelight Bank. The new Bank initially offered three short-term CDs (6-, 12- and 18-month), with fairly unimpressive rates. Within three weeks of unveiling its limited product line, the rates rose to competitive levels, as did CD rates at many other internet banks. I expected to see Limelight Bank participate in the rates race following those increases, but the three APYs didn’t move much until yesterday. The new CD rates are 6-month (1.71% APY), 12-month (2.02% APY), and 18-month (2.08% APY), with the 6-month now the most competitive of the three. The minimum opening deposit is $1k.
|2.23%||$1k||-||Limelight Bank||18-Month CD|
|2.17%||$1k||-||Limelight Bank||12-Month CD|
|1.86%||$1k||-||Limelight Bank||6-Month CD|
Limelight Bank’s website still doesn’t provide a great deal of details about its CDs, and viewing the account disclosure requires going through the online application process. CSR emailed the 13-page Terms and Disclosure document, so I could review it. The Disclosure mentions that early withdrawals are only allowed if the Bank agrees.
If we consent to a request for a withdrawal that is otherwise not permitted you may have to pay a penalty. The penalty will be an amount equal to 90 days interest on the amount withdrawn.
Below are additional details I learned from my conversation with CSR:
- CDs can be funded with an electronic funds transfer via ACH from another bank, by wire transfer or by check. The Bank’s FAQs provide information for incoming wire transfers and for sending a check.
- Early withdrawal penalty for all three terms is an amount equal to 90 days of interest on the amount withdrawn.
- Partial withdrawals are allowed.
- When receiving funds from the CD, you can request to have the funds transferred by ACH to the account that was used to fund the CD. A wire transfer is another option, and there’s no wire transfer fee if the withdrawal is done at maturity. If the withdrawal is done before maturity, a $15 wire transfer fee will be charged.
- Grace period at maturity is 10 business days. The CDs will automatically renew to the same term, unless you request something different.
- You can choose to have the interest added back into the CD, or have it paid out on a monthly basis. This option must be requested after you apply. Bank account and routing information for monthly ACH transfers of the interest must be provided to Limelight Bank.
- Multiple beneficiaries can be designated. Social security numbers of the beneficiaries are not required.
- Accounts cannot be in the name of a trust, but a beneficiary can be a trust.
Headquartered in Provo, Utah, Limelight Bank is a division of Capital Community Bank, which offers its services and product line to all U.S. Citizens and Resident Aliens, 18 years or older.
Opening a CD must be done online. Funding a CD can be done electronically from another institution, but “you’ll need their routing number and your account number.” Checks and wire transfers can also be used to fund a new CD. The online application also states,
If another person will be joint on your accounts, they must enter and validate their personal information.
As an online division of Capital Community Bank (CCBank), Limelight Bank operates under CCBank’s FDIC Certificate and shares its financial history. Deposits held under Limelight Bank and CCBank are not separately insured, but are combined to determine FDIC-insured limit.
Limelight Bank/CCBank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.60% (excellent), based on September 30, 2017 data. In the past year, Limelight Bank/CCBank has increased its total non-brokered deposits by $91.63 million, an excellent annual growth rate of 41.47%. Please refer to our financial overview of Limelight Bank/CCBank (FDIC Certificate #33823) for more details.
Established in 1993 as the Orem Community Bank, CCBank is currently Utah’s 30th largest bank, with total assets of $373.7 million and total deposits of $312.6 million.
Limelight Bank joins other new internet banks in positioning itself as an eco-friendly alternative to traditional banking.
Offering competitive rates with an environmental conscience, Limelight Bank was formed to put the focus on you – our valued customers. Folks all around the country can feel good about banking online with us, as a portion of deposited funds will go towards solar energy initiatives.
How the CDs Compare
When compared to the similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationally, Limelight Bank’s 6-month CD APY currently ranks first.
When compared to the 206 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationally, Limelight Bank’s 12-month CD APY currently ranks fourth.
When compared to the 152 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationally, Limelight Bank’s 18-month CD APY currently ranks fifth.
The above rates are accurate as of 2/16/2018.
To find the most competitive CD rates, both nationwide and state specific, please refer to our CD Rates Table page.