Earlier this month, the newly re-branded Lincoln 1st Bank (formerly Lincoln Park Savings Bank) added an 18-month Variable Rate CD (1.65% APY) to its product line.
The minimum deposit is $5k, and while no balance cap is mentioned, the promotional page does state, "FDIC insured up to $250,000." As many DA readers know, there are several ways to extend FDIC coverage over $250k.
Variable CD rates are frequently tied to a such determinants as prime rate, consumer price index, treasury bills, or market index. Lincoln 1st Bank’s 18-month Variable Rate CD takes a different approach:
Disclosed APY requires that you maintain a Lincoln 1st Bank Access Checking account with one (1) or more direct deposits totaling $500.00 or more during the month.
The disclosed APY will be applied for the month(s) following any month in which these conditions are met.
The disclosed APY will be reduced by 0.50% for any month(s) in which these conditions were not met during the preceding month.
According to CSR, the Early Withdrawal Penalty on the 18-month Variable Rate CD is "six months of interest on the amount being withdrawn." CSR also stated that the Direct Deposit needs to be a "payroll or Social Security payment."
Lincoln 1st Bank is located in Morris County, New Jersey, which is the sixth-wealthiest county in the United States by median household income. While the Bank’s market area is northern New Jersey, more than 90% of its customers are from the Lincoln Park, Pequannock, Montville and Wayne area.
Opening any type of account (including the 18-month CD) with Lincoln 1st Banks must be done in person at either of two New Jersey branches, located in Lincoln Park and Montville. The Bank's online platform is currently dedicated to account management and bill payment services.
Lincoln 1st Bank (FDIC Certificate # 28963) has an overall health grade of "C+" at DepositAccounts.com, with a Texas Ratio of 26.45% (average) as of December 31, 2015. In the past year, Lincoln 1st Bank has increased its total deposit by $19.01 Million, an excellent annual growth rate of 17.25%. Please refer to our financial overview of Lincoln 1st Bank for more details.
Established in 1922 as the Lincoln Park Savings and Loan Association, the newly-minted Lincoln 1st Bank is in the process of re-branding, having been known as the Lincoln Park Savings Bank for the past 12 years. According to David G. Baker, President and CEO, the Bank's new name and tagline – Your Bank. Your Neighbor. – reflects its continuing commitment to furthering the financial goals of its customers.
How the CD Compares
When compared to the 189 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available to New Jersey residents, Lincoln 1st Bank’s 18-month Variable Rate CD APY currently ranks first.
The above rates are accurate as of 4/22/2016.