NexBank's 12-Month CD Holds Steady At 2.70% APY
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 for about seven months and has become quite competitive as other nationally available 1-year CDs have experienced rate decreases. All of NexBank’s CDs require a minimum $10k opening deposit and are capped at $240k. According to CSR, the Early Withdrawal Penalty is 60 days interest.
If you look at DA’s NexBank page and see a string of 2.70% APY under the CD Rates heading, it’s not an error: 2.70% APY is the current rate for NexBank’s 12-, 18-, 24-, 36-, 48, and 60-month CDs.
Funding and Accessing Maturing Funds
Funding a CD can be done by ACH, wire transfer, or check. Maturing funds will be distributed by cashier’s check or by wire. There is a 10-day grace period before a CD automatically renews.
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-servce Dallas branches, located in the Uptown and University Park neighborhoods.
Note: NexBank’s online application requires that a username and password be created, allowing the applicant “to check the status of your application, or pick up where you left off.”
Bank Overview
NexBank has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 1.09% (excellent), based on March 31, 2019 data. NexBank has an average capitalization level (8.62% APY), the result of holding $8.22 billion in assets with $708.4 million in equity. 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 tenth largest bank headquartered in Texas. 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 2017 HousingWire article,
NexBank Capital, a Dallas-based financial services company, announced this week that it recently completed a $20 million common equity capital raise.
NexBank currently offers mortgage banking in the form of warehouse lending, wholesale lending, and correspondent lending; commercial banking; and institutional services.
According to details provided by the company, the capital will be used for “general corporate purposes,” although John Holt, NexBank Capital’s president and CEO, said that the money will be used to fund the company’ growth.
How the CD Compares
When compared to 212 similar length-of-term CDs tracked by DepositAccounts.com, which require a minimum deposit of $10k or less and are available nationwide, NexBank’s 12-month CD APY currently ranks second.
The above rates are accurate as of 7/24/2019.
To search for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
