About a month ago, I wrote about Limelight Bank, the new online division of Utah's Capital Community Bank (CCBank). Limelight Bank's initial offerings were three short-term CDs, with slightly disappointing rates. Following today’s rate increases, the 12-month CD (1.71% APY) and 18-month CD (1.75% APY) have become competitive. The minimum opening deposit is $1k, with a balance cap of $250k.
|1.86%||$1k||-||Limelight Bank||18-Month CD|
|1.81%||$1k||-||Limelight Bank||12-Month CD|
Currently, Limelight Bank’s website doesn’t provide a lot of details on 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 The penalty will be an amount equal to 90 days interest on the amount withdrawn.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- Early withdrawal penalty for all three terms is an amount equal to 90 days of interest on the amount withdrawn.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 (a division of Capital Community Bank) offers its services and product line to all U.S. Citizens and Resident Aliens, 18 years or older.
The “Open an Account” button on all of the pages of Limelight Bank’s website redirects to their online application tool. 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 7.24% (excellent), based on June 30, 2017 data. In the past year, Limelight Bank/CCBank has increased its total non-brokered deposits by $82.96 million, an excellent annual growth rate of 40.31%. Please refer to our financial overview of Limelight Bank/CCBank (FDIC Certificate #33823) for more details.
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.
CCBank was established in 1993 as the Orem Community Bank. CCBank is currently Utah’s 30th largest bank, with total assets of $343.5 million and total deposits of $288.8 million.
How the CDs Compare
When compared to the 207 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 second.
When compared to the 144 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 fourth.
The above rates are accurate as of 11/2/2017.
To find the most competitive CD rates, both nationwide and state specific, please refer to our CD rates table or our new Rates Map page.