NexBank's Nationally Available 12-Month CD Is A Near Rate Leader

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Deal Summary: 12-month CD, 0.75% APY, $10k minimum/$240k maximum deposit.

Availability: Nationwide through online application.

If you look at Texas-based NexBank's page on DA, you will see a string of 0.75% APYs under the CD Rates heading. This is not an error: more than three years ago, NexBank began offering the same rate on its 12-, 18-, 24-, 36-, 48, and 60-month CDs.

APYMINMAXINSTITUTIONPRODUCTDETAILS
0.60%$10k$240kNexBank12 Month CD
Rates as of September 16, 2021.

The current 0.75% APY has been in effect for about 15 months, becoming quite competitive as other nationally available 1-year CDs have experienced rate decreases. All of NexBank’s CDs can be opened with a minimum $10k deposit, with a balance cap of $240k.

NexBank’s website is light on documentation, with no Truth-in-Savings Disclosure available online. According to CSR, the Early Withdrawal Penalty for the 12-month CD is 60 days’ interest on the amount being withdrawn, with partial withdrawals allowed. Should a withdrawal result in a balance of less than $10k, the CD will be closed.

Funding and Accessing Maturing Funds

The options for funding a NexBank CD include ACH, wire transfer, or check. According to CSR, funding instructions are detailed on the online application. Maturing funds can be distributed by cashier’s check or by wire, or transferred to a NexBank checking or savings account. NexBank CDs automatically renew following a 10-day grace period.

Availability

Headquartered in Dallas, NexBank offers a portion of its product line to all U.S. citizens and permanent U.S. residents (18 years or older, with a current U.S. address) through an online application.

Opening and funding a CD can be done online. If you prefer a brick-and-mortar experience, CDs can also be opened at either of the two full-service Dallas branches, located in the Uptown and University Park neighborhoods. The lobbies of both branches are open to walk-in traffic during normal business hours, Monday through Friday.

Bank Overview

NexBank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 7.46% (excellent), based on March 31, 2021 data. In the past year, NexBank has increased its total non-brokered deposits by $623.02 million, an excellent annual growth rate of 10.11%. Please refer to our financial overview of NexBank (FDIC Certificate # 29209) for more details.

Originally established in 1934 as the Terrell Federal Savings and Loan Association, NexBank has grown to become the 14th largest bank headquartered in Texas, with assets in excess of $9 billion. The NexBank rebrand occurred in 2004, when a group of Dallas investors purchased the bank in hopes of developing a “sophisticated and capable force in commercial real estate and specialty financing (local) and [a] leader in deposit and savings rates.”

According to a March 2021 press release,

NexBank Capital, Inc., a Dallas-based financial services company, announced that for the third consecutive year it has been recognized as a top-performing U.S. bank by S&P Global Market Intelligence.

NexBank Capital, Inc. ranked 17th in the nation among banks with $3 billion to $10 billion in assets. It had the fourth-highest return on average tangible common equity and the sixth-lowest efficiency ratio among the ranked banks.

How the CD Compares

When compared to the nationally available similar length-of-term CDs tracked by DepositAccounts.com, which require a minimum deposit of $10k or less and are offered by banks only, NexBank’s 12-month CD APY currently ranks first.

When compared to the nationally available similar length-of-term CDs tracked by DepositAccounts.com, which require a minimum deposit of $10k or less and are offered by both banks and credit unions, NexBank’s 12-month CD APY currently ranks second.

The above information and rates are accurate as of 7/24/2021.

To search for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.

Related Pages: Dallas CD rates, 1-year CD rates, nationwide deals

Comments
Kaight
  |     |   Comment #1
Nearly twenty years ago, early in 2002, a bank called Nextbank failed and was taken over by the FDIC. That bank was located in Arizona. I was surprised to see Ken's write up here because this bank, Nexbank, has very nearly the same name as that old, failed, bank!

Nextbank failed with just over a hundred grand of my CD dough still in residence there. Back then the FDIC limit was $100,000. But I had interest in the account which put me over the max. The FDIC sent the $100k to me so fast it made my head spin. But the more interesting part was:

The FDIC never relented in their efforts to refund me the several hundred dollar interest overage as well. They continued to send me checks which would arrive unexpectedly over perhaps the following three or four years. I assume they were liquidating Nextbank assets, and as they did they sent me money. Their final check was only for a few dollars. But by then the FDIC had made good almost all of my Nextbank account, interest included! It was a learning experience for me, one I found most interesting and instructive.

Nextbank, before failing, had been paying a very high interest rate on my CD. I never had a moment's regret about putting money there. The very high interest rate more than made up for the few dollars which, in the end, I might have lost when the bank failed.
Choice
  |     |   Comment #2
Ponzi schemes or bucket shops need to involve due diligence, even regulators are behind the curve in most cases. $100K then is $250K now…not petty cash. Thanks for sharing.  Next
SYC
  |     |   Comment #3
Beware:

Quote

"WARNING: NO ACH Out Upon CD Maturity

Posted by: Ravaan | Mar 21, 2021
This bank does NOT send your maturity funds via ACH out. I spoke with a CSR at the bank, and he informed me that you have to send them a letter (probably a notarized letter) requesting closure of the CD account upon maturity and they will MAIL YOU A PHYSICAL CHECK. This is an antiquated and dangerous practice in this day and age. Think about delays in mail delivery or if your check gets misplaced in the mail. Then you have a lot of hoops to go through to get your money back (which you could have invested elsewhere had they sent you via ACH). For a little extra APY, I would NOT go through this hassle. Peace of mind comes first.

Unquote
NexBank's 12-Month CD Holds Steady At 2.70% APY
Deal Summary: 12-month CD, 2.70% APY, $10k min/$240k max deposit.

Availability: Nationwide through online application.

When I last wrote about Texas-based NexBank’s 12-month CD in March 2015, its APY was 1.10%. What looks like a dismal rate today was fairly competitive at the time, with the 12-month CD appearing in the bi-weekly CD Rates Summary, albeit at the bottom of the 1-year CD category. Between April and December 2018, the 12-month CD gained 145 bps in three rate increases.

The 2.70% APY has been in effect...

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  • 24-month CD (1.35% APY)
  • The new rates represent the first increase for these CDs in almost eight months. The minimum deposit for any of these CDs is $10K, with no balance cap.

    According to CSR, the Early Withdrawal Penalty is the same for all three CDs: 60 days interest.

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