Limelight Bank Boosts 12-Month CD Rate
Utah-based Limelight Bank (an online division of Utah-based Capital Community Bank) added 25 bps to its 12-month CD this week. Currently earning 5.75% APY, the 12-month CD has the highest APY of any 1-year CD offered by an internet bank. Limelight Bank's 18-month CD (5.60% APY) also had a rate increase of 25 bps, but it's not quite as competitive as the 12-month term. The minimum opening deposit is $1k, with a balance cap of $500k.
It’s been slightly more than six years since Limelight Bank opened its virtual doors and, for the most part, its limited product line (four CDs) has produced a series of rather ho-hum rates. While most of the competitive nationally available one-year CDs have seen dramatic rate hikes in the past year, the Limelight Bank approach has been “slow but steady” increases: in the past 12 months, a total of 175 bps have been added to the 12-month CD in series of nine rate increases.
Early Withdrawal Penalty
According to CSR, a partial withdrawal or an early closure is allowed only if the Bank agrees to do so. She then quoted the Early Withdrawal Penalty from the Truth-in-Savings document for me:
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 The penalty will be an amount equal to 90 days interest on the amount withdrawn.
Availability and Account Opening
Headquartered in Provo, Utah, Limelight Bank is an online division of Capital Community Bank, and offers its services and product line to all U.S. citizens and resident aliens, 18 years or older, who have a valid Social Security number.
Opening a CD must be done online. CDs can only be opened by individual consumers. While businesses, organizations, or trusts cannot open a CD, a trust may be named as a beneficiary.
Funding and Other Details
The Limelight Bank website provides little detail about its CDs, the FAQs are limited, and viewing the account disclosure requires going through the online application process. The following information was provided by CSR.
- Funding – ACH, wire, or check. (See the FAQs for detailed instructions.)
- Ownership – Individual accounts only.
- Interest – Compounded/credited monthly and can be transferred to another bank account via ACH.
- Maturing Funds – Will be disbursed the way it was deposited: an ACH back to the original ACH funding account, a wire (fee-free) to the original wire account, or a cashier’s check.
- Grace Period – 10 calendar days before automatic renewal.
- Beneficiaries – Unlimited with percentages available. Social Security numbers are required.
- Credit check – ChexSystems
Bank Overview
Limelight Bank/CCBank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 10.53% (excellent), based on September 30, 2023 data. In the past year, the Bank has increased its total non-brokered deposits by $161.4 million, an excellent annual growth rate of 37.12%. 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 27th largest bank, with assets of nearly $857 million and more than $676 million of deposits.
One of the newer internet banks, Limelight Bank opened its virtual doors in October 2017. 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 12-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available nationwide and have minimum deposit requirements of $10k or less, one bank and two credit unions have higher rates than currently offered on the Limelight Bank 12-month CD. The following table compares the 12-month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions. When compared to 1-year CDs offered by online banks, the Limelight Bank 12-month CD currently has the highest APY.
The above information and rates are accurate as of 12/1/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
