National Bank of New York City Long-Term CD Rates Leap Up
Earlier this year, National Bank of New York City (NBNYC) began a four-month series of significant rate increases on its longest-term CDs. The rates had remained unchanged since mid-June, but two recent rate hikes have made the 54-59 month CD (4.00% APY), and 60-month (4.05% APY) near-rate leaders. (Since mid-February, the 54-59 month and 60-month CDs have added 250 and 230 bps, respectively.) The minimum opening deposit is $2.5k, with no stated balance cap.
The CDs are also available as IRA CDs (Traditional), earning the same APYs with the same funding requirements.
Note: National Bank of New York City structures the terms of its CDs differently than most banks: rather than having terms in multiple of 12 months (i.e. 48-month), NBNYC structures all its CDs (with the exception of the 60-month CD) in multiples of six months (i.e., 48-53 month and 54-59 month), allowing the term-length to be customized.
As stated on the Savings page, the Early Withdrawal Penalty reads (in part) as follows:
If your account has an original mature of 48 months or more:
The fee we may impose will equal 24 months interest on the amount withdrawn subject to penalty.
There is no language on NBNYC’s website that gives the bank the right to deny an early withdrawal request.
As stated on NBNYC’s Rates page,
Interest compounded daily for balances under $100,000.
Simple interest for balances greater than $100,000.
Funding and Accessing Maturing Funds
NBNYC’s website does not provide any types of disclosures; the following information was obtained in a conversation with CSR. Funding a CD can be done by ACH or wire transfer, by check, or through a transfer from another NBNYC account. Maturing funds will be distributed by check to the address on file, by wire transfer, or deposited in an NBNYC savings account. There is a 10-day grace period before a CD automatically renews.
Availability
Headquartered in Flushing, Queens, National Bank of New York City’s market area includes the NYC Tri-state area (where New York, New Jersey, and Connecticut share common boundaries).
U.S. citizens, 18 years or older, who live in the following areas are eligible to open an NBNYC account online.
New York – five boroughs of New York City, Nassau, Suffolk, and Westchester Counties.
New Jersey – Hudson and Passaic Counties
Connecticut – Fairfield County
Opening a CD can also be done at the sole branch location on 38th Avenue in Flushing (Queens). CSR stated that opening a CD online is the best/easiest option, but an appointment for a face-to-face transaction can be scheduled by calling 718.358.4400. FYI – the Flushing branch offers a “large, convenient, and free parking lot adjacent to the bank.”
Bank Overview
National Bank of New York City has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 8.47% (excellent) based on June 30, 2022 data. NBNYC has an excellent capitalization level (18.59%), the result of holding $212.69 million in assets with $39.53 million in equity. Please refer to our financial overview of National Bank of New York City (FDIC Certificate # 18734) for more details.
The National Bank of New York City first opened its doors in 1963, operating as Flushing National Bank. NBNYC is probably the only bank I know of to have been the subject of a two-part “talk story” in “The Talk of the Town” section in The New Yorker. While having a rather imposing name, NBNYC is really a community-oriented institution – the kind of bank where you could have a conversation with the Bank’s president, if he happened to be in his office. According to The New Yorker article, Jack Farber (then president) stated,
We changed the name when we decided to open up a branch in Manhattan [in 1982, and now closed]. Our Flushing customers are very loyal, so they naturally stayed with us. If we called ourselves the Joe Blow National Bank we wouldn’t lose those customers.
How the 60-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the NYC Tri-state market area and have minimum deposit requirements of $10k or less, only one bank has a higher rate than currently offered on the NBNYC 60-month CD. The following table compares the 60-month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
How the 54-59 month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the NYC Tri-state market area and have minimum deposit requirements of $10k or less, only one bank has a higher rate than currently offered on the NBNYC 54-59 month CD. The following table compares the 54-59 month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
The above information and rates are accurate as of 10/1/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
