Quontic Bank 1-Year and 2-Year CDs Are New Rate Leaders

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Deal Summary: 1-year CD (2.01% APY) and 2-year CD (2.51% APY), $500 minimum deposit.

Availability: Nationwide through online application.

New York-based Quontic Bank (Quontic) increased the rates on all its CDs this week. While 5-year CD saw the largest increase (56 bps), the 1-year CD (2.01% APY) and 2-year CD (2.51% APY) offer the most competitive rates and have the highest APYs (in their respective term-lengths) offered by online banks. Any Quontic CD can be opened with a $500 minimum deposit, with no stated balance cap.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.86%$500-Quontic Bank5 Year CD
2.81%$500-Quontic Bank3 Year CD
2.51%$500-Quontic Bank2 Year CD
2.01%$500-Quontic Bank1 Year CD
1.26%$500-Quontic Bank6 Month CD
Rates as of June 28, 2022.

Much of the following information was taken from the Quontic FAQs, which are listed at the bottom of the Certificates of Deposit page.

Interest is compounded daily and credited monthly, with dividends either reinvested or transferred to an external account through an ACH transfer.

Partial withdrawals are not allowed, only an early redemption. The Early Withdrawal Penalty reads (in part) as follows.

For time deposits up to 12 months, the penalty will be equal to the interest for the full length of the stated term.

For time deposits 12 months to under 24 months, the penalty equals one year interest.

For time deposits 24 months and over, the penalty equals two years interest.

If the accrued interest exceeds the penalty amount, the excess accrued interest over the penalty amount will be paid to you. If the accrued interest is less than the penalty amount, a reduction of the principal balance may result.

Funding a CD can be done from an external account through ACH or Plaid’s technology; funds from an existing Quontic Bank account can also be used to open a CD. If a CD is not funded within 30 days of opening, the account may be closed. According to CSR, there is no rate lock: the rate in effect when the funding is received will be APY applied to the CD.

Maturing funds will be distributed via cashier’s check or can be transferred to another Quontic Bank account (checking/savings). There is a 10-day grace period (beginning the days after the CD matures) before the CD will automatically renew.

Up to five beneficiaries can be named and Social Security numbers are required. Percentages can be assigned, if so desired.

CDs can be opened for a trust, but a certificated copy of the entire trust document is required. Government-issued IDs (valid driver’s license or passport) are required for all trustees. Funding a CD for a trust can only be done by check or wire transfer.

High Interest Checking

Quontic Bank’s rewards checking account, High Interest Checking, saw a small rate increase (9 bps) this week, nudging the APY to 1.10%.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.10*%--Quontic BankHigh Interest Checking
Rates as of June 28, 2022.

The High Interest Checking rate tiers were fairly convoluted history, but that has recently changed:

Earn 1.10% APY on all balance tiers when you make at least 10 qualifying debit card
point of sale transactions of $10 or more per statement cycle. Failure to make qualifying transactions will result in 0.01% interest and APY. Minimum opening deposit of $100.

The previous “up to $1 million” qualifying balance cap has been removed. According to the fine print on the High Interest Checking landing page,

1.10% annual percentage yield (APY) applies to all balance tiers, which are
identified as $0–$150,000, $150,000.01–$1,000,000 and balances over $1,000,000.

High Yield Savings

While High Yield Savings 1.01% APY poses no threat to the current savings account top rate, 1.26% APY, offered on the TAB Bank High Yield Savings, it is still a competitive rate, having the sixth highest savings account rate offered by online banks.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.25%-$1mQuontic BankHigh Yield Savings Account
Rates as of June 28, 2022.

The fee-free High Yield Savings can be opened with a minimum $100 deposit. There is a $10 excess transaction fee for each transaction/withdrawal beyond the six allowed per month.

DA reader, FLAbanker, brought up an important issue in a recent Review post:

Quontic's ACH limits are $2000 inbound or outbound. I was told that if I wanted
to move funds into my Quontic account, I should initiate it through another bank.

Availability

Headquartered in New York City, Quontic Bank offers its product line online to all U.S. citizens/residents aliens, 18 years or older, who have a valid Social Security number.

Quontic operates as a national, digital bank which allows us to pass on the overheard cost savings from operating an expensive network of branches on to our customers in the form of lower fees, better rates or higher rewards.

Opening any type of Quontic account, including CDs, must be done online, supposedly in “3 minutes or less.”

Quontic’s five branch locations (Queens, Brooklyn, Long Island, Miami, and Indianapolis) offer only loan origination and support services.

Bank Overview

Quontic Bank has an overall health grade of "C+" at DepositAccounts.com, with a Texas Ratio of 8.95% (excellent), based on March 31, 2022 data. In the past year, the Bank has increased its total non-brokered deposits by $95.54 million, an excellent annual growth rate of 19.01%. Please refer to our financial overview of Quontic Bank (FDIC Certificate # 57807) for more details.

Quontic Bank's low overall health grade is primarily the result of its highly negative Return on Equity ratio.(-37.02%).

Quontic Bank is currently the 58th largest bank headquartered in New York state, with assets in excess of $872 million. In late 2009, Steven Schnall, a New York real estate developer, bought the Long Island-based Golden First Bank, which was in financial trouble after only four years of being established. Schnall recapitalized the bank, brought in a new management team, and rebranded the institution as Quontic Bank.

According to a May 12, 2022 press release,

Ernst & Young LLP (EY US) announces that the Founder CEO of Quontic Bank was named an Entrepreneur Of The Year® 2022 New York Award finalist. Entrepreneur Of The Year is one of the preeminent competitive business awards for entrepreneurs and leaders of high-growth companies who think big to succeed.

Mr. Schnall was selected by a panel of independent judges according to the following criteria – entrepreneurial spirit, purpose, growth and impact – among other core contributions and attributes.

How the 1-Year CD Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, only one credit union has a higher rate than currently offered on the Quontic Bank 1-year CD. The following tables compares the 1-year CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.

APYCD Term (Early Withdrawal Penalty)Credit Union/Bank
2.26%12-Month Certificate (EWP=90 days)Connexus Credit Union
2.01%1-Year CD (EWP=365 days)Quontic Bank
2.00%12-Month CD (EWP=90 days)Crescent Bank
2.00%1-Year Bread Savings CD (EWP=180 days)Bread Financial
1.75%12-Month Money Market Certificate (EWP=maximum 30% of maturity dividends)PenFed Credit Union

How the 2-Year CD Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, two credit unions have higher rates than currently offered on the Quontic Bank 2-year CD. The following tables compares the 2-year CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.

APYCD Term (Early Withdrawal Penalty)Credit Union/Bank
3.00%24-Month Certificate Special (EWP=360 days)USALLIANCE Financial
2.86%24-Month Certificate (EWP=180 days)Connexus Credit Union
2.51%2-Year CD (EWP=730 days)Quontic Bank
2.50%2-Year Bread Savings CD (EWP=180 days)Bread Financial
2.50%24-Month CD (EWP=180 days)Crescent Bank

The above information and rates are accurate as of 6/7/2022.

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

Related Pages: New York savings accounts, savings accounts, money market accounts, 1-year CD rates, 5-year CD rates, nationwide deals, Internet banks

Comments
hwhiteco
  |     |   Comment #1
I'm no financial expert on the legalize of all Terms & Conditions but what exactly is the difference is between Certificates & CD's that DA classifies Quontic Bank as "New Rate Leaders" for 1& 2 Year fixed investment terms when Connexus CU has a 2.26% APY on a 1 yr Certificate & USALLIANCE Financial has a 3.0% APY on a 24 Month Certificate?
Quontic Bank Increases All CD Rates
Deal Summary: 3-year CD, 1.10% APY, $500 minimum deposit.

Availability: Nationwide through online application.

New York-based Quontic Bank (Quontic) increased the rates on all its CDs this week. While all the new APYs are competitive, the 2-year, 3-year, and 5-year CDs have the highest APYs (in their respective term-lengths) offered by online banks. To my eye, the 3-year CD (1.10% APY) is the most competitive CD in the product line. Any Quontic CD can be opened with a $500 minimum deposit, with no stated balance cap.

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Availability: High Interest Checking, 1.01% APY on qualifying balances up to $150k, 0.35% APY on qualifying balances of $150k-$1m.

Availability: Nationwide through online application.

The simple green arrow next to Quontic Bank’s High Interest Checking (HIC) in yesterday’s Best Bank Account Interest Rates Summary doesn’t begin to describe the various changes the HIC has recently experienced.

Here’s a summary of the changes:

  • The 1.01% APY is still in effect, but the qualifying balance cap has been increased from $100k to $150k.
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Deal Summary: 5-year CD, 1.11% APY, $500 minimum deposit

Availability: Nationwide through online application

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Much of the following information was taken from the Quontic FAQs, which are listed at the...

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Deal Summary: CDs – 6-month (0.65% APY), 1-year (0.75% APY), 2-year (0.85% APY), 3-year (1.00% APY), $500 minimum deposit.

Availability: Nationwide through online application.

New York-based Quontic Bank (Quontic) ended the week by raising the rates on all the CDs in its product line. I last wrote about these CDs in mid-December, when Quontic started accepting online applications after a several-month hiatus. About two weeks after that blog post, Quontic lowered the rates on its CDs by 25 bps. This week’s increases haven’t returned all the...

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Availability: High Interest Checking, 1.00% APY up to $100k.

Availability: Nationwide through online application.

When I saw that New York-based Quontic Bank had lowered the rate on its High Interest Checking (HIC) this week by a single basis point, it didn’t concern me very much. Then I realized the qualifying balance cap had been reduced from $1 million to $100k, decimating the HIC’s potential earnings. The new tiered APYs are,

  • 1.00% APY – on balances up to $100k
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