Sometime during the summer, New York-based Quontic Bank (Quontic) suspended new online applications for its CDs. Even though Quontic continued to list five CDs in their rate table, the “Open Now” button was replaced with a “Contact Us” button. When I contacted Quontic about the status of the CDs, I received the following reply:
Thank you for your inquiry. Currently we are not offering any new CD products. If you would provide us with your contact information, we'd be more than happy to contact you once our CD products become available.
I’m pleased to announce that Quontic is once again accepting online applications for its CDs. At this time, there are only four CDs in the product line: a 5-year CD is not listed.
|0.75%||$500||-||Quontic Bank||3 Year CD|
|0.70%||$500||-||Quontic Bank||2 Year CD|
|0.65%||$500||-||Quontic Bank||1 Year CD|
|0.60%||$500||-||Quontic Bank||6 Month CD|
Much of the following information comes from Quontic’s FAQs 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 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 by ACH, wire, or mailing a check; 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.
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.
Opening any type of Quontic account, including CDs, can be done online, supposedly in “3 minutes or less.”
All of Quontic's branches continue to be closed to walk-in traffic. The restrictions outlined in the Quontic’s COVID-19 Business Continuity Plan are still in effect.
In accordance with suggested public safety guidelines, Quontic Bank’s branch located at 31-05 Broadway, Astoria, NY 11106, will be closed as of March 17th until further notice.
Customers that need to conduct banking transactions in person can do so on an appointment-only basis by contacting us by phone, email, or filling out the form below.
Daily ATM cash withdrawal limits have been temporarily raised to $1,000 for your convenience.
Quontic Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 6.46% (excellent), based on September 30, 2020 data. In the past year, the Bank has increased its total non-brokered deposits by $108.97 million, an excellent annual growth rate of 36.57%. Please refer to our financial overview of Quontic Bank (FDIC Certificate # 57807) for more details.
Please refer to the section on PPP loans in this article for information regarding Quontic Bank's low Capitalization Grade.
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. Currently the 48th largest bank headquartered in New York state, Quontic Bank has assets in excess of $1.2 billion.
As stated in a September 28, 2020 press release,
Quontic Bank Acquisition Corp., the parent company of Quontic Bank, today announced the pricing and closing of a private placement of $8.0 million aggregate principal amount of fixed-to-floating rate subordinated notes.
“We are excited to announce another successful round of funding for Quontic. This capital provides us cost-efficient Tier 1 capital for the bank that further supports our mission as an adaptive digital Community Development Financial Institution (“CDFI”),” said Steve Schnall, Founder/CEO and Chairman of Quontic. “In a post-COVID-19 environment, the need to embrace and become digitally focused has never been more important. We feel we are well ahead of the curve in the digital evolution of banking, a position attained through our incessant focus on driving digital innovation for our customers. This investment signifies a meaningful vote of confidence in Quontic, a platform that has embraced a transformed banking approach that adapts to the diversity of circumstances that exist in our customers’ lives while providing differentiated services to elevate their financial strength.”
How the CDs Compare
When compared to 218 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are nationally available, Quontic Bank’s 1-year CD APY currently shares the top spot with CommunityWide Federal Credit Union’s 12-month Share Certificate APY.
When compared to 202 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are nationally available, Quontic Bank’s 6-month CD APY currently ranks second.
When compared to 206 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are nationally available, Quontic Bank’s 2-year CD APY currently ranks second.
The above rates are accurate as of 12/16/2020.
To search for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.