Rising Bank Boosts Rates On Its Nationally Available Rising CDs
Missouri-based Rising Bank significantly raised the rates on its Rising CDs this week. Following the addition of 70 and 60 bps, the 18-month and 26-month Rising CDs currently earn 4.90% APY and 4.40% APY, respectively. (While the 36-month Rising CD has a new 4.35% APY, according to the Rising CD Rates and Terms page, new accounts are “Not Currently Available.”) All Rising CDs have a balance cap of $1 million, but require different minimum opening deposits.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 4.90% | $5k | $1m | Rising Bank | 18 Month Rising CD | |
| 4.40% | $10k | $1m | Rising Bank | 26 Month Rising CD |
The Rising CDs have been part of the Rising Bank product line for more than four years. The aptly-named Rising CDs offer a one-time rate “exchange” and a one-time additional deposit (minimum $5k). The two options function completely independent of each other: you can choose to just use the add-on deposit option without the bump-up option – or vice versa – or utilize both. If you opened a Rising CD previously (no matter which term-length), this might be a good time to consider exercising the bump-up option.
As I see it, there are two drawbacks for the 18-month Rising CD: 1) the sizeable $5k minimum opening deposit, which isn’t necessarily a major deterrent since the APY is competitive for an add-on CD, and 2) the one allowable add-on deposit, although the maximum balance is a generous $1 million.
The rate bump-up option is described in the Truth-In-Savings disclosure (page 22) as follows:
We will not change the rate on your account during the term of the account. However, you have the option to exchange this interest rate two times during the original term of the account. The new interest rate will be the interest rate we are then offering on the 18 Month Rising Certificate of Deposit. This exchange will be at no cost to you. If you make an exchange, the maturity date of this account will remain the same as originally scheduled. You may exercise this option one time during the original term of the account.
Early Withdrawal Penalty
As stated in the Truth-In-Savings disclosure (page 23), the Early Withdrawal Penalty for all Rising CDs reads as follows:
The fee we may impose will equal 180 days’ interest on the amount withdrawn subject to penalty.
There is also a possibility of losing more than the stated 180 days’ interest, if you opt to close the Rising CD early. Interest is credited every three months and "If you close your account before interest is credited, you will not receive the accrued interest.” If a CD is closed just prior to the interest being credited, that would effectively equal a 3-month EWP on top of the 180 days' interest. If a CD is closed right after the crediting, there would be no additional penalty.
Other Increased Rates
In addition to the new Rising CD rates, Rising Bank also upped the rates (albeit modestly) on its 1-year Term CD (5.25% APY), 6-month Term CD (5.15% APY), and High Yield Savings Account (4.50% APY). While not offering outstanding APYs, they are noteworthy and merit a mention.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 5.50% | $1k | $1m | Rising Bank | 1 Year Term CD | |
| 5.25% | $1k | $1m | Rising Bank | 6 Month Term CD | |
| 5.00% | $1k | $500k | Rising Bank | High Yield Savings Account |
Availability and Account Opening
Headquartered in Lemay, Missouri, Rising Bank offers its product line on a nationwide basis to U.S. citizens and resident aliens, 18 years or older, who have a valid Social Security number or Taxpayers Identification Number.
Rising Bank only offers individual and joint accounts. Custodial accounts and trust accounts are not permitted, but a trust (no charities/non-profits) can be named as a beneficiary.
As an internet bank, Rising Bank has no brick-and-mortar branches. Opening any type of account can only be done online. The online application process is designed to be easily completed on a PC or a smartphone in three minutes or less.
Funding and Other Particulars
- Funding – ACH or wire transfer (no fee).
- Ownership – Individual or joint.
- Interest – compounded/credited quarterly, but interest cannot be withdrawn before maturity.
- Maturing Funds – ACH to originating account (1-3 business days) or transferred into a Rising Bank checking or savings account (completed in an hour).
- Grace Period – 10 calendar days before automatic renewal.
- Beneficiaries – Unlimited (but only after a CD is opened), equal shares, Social Security numbers preferable but not required.
Bank Overview
As an online division of Midwest BankCentre, Rising Bank operates under Midwest BankCentre’s FDIC Certificate and shares its financial history.
Rising Bank/Midwest BankCentre has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.11% (excellent) based on March 31, 2023 data. In the past year, the Bank increased its total non-brokered deposits by $286.14 million, an excellent annual growth rate of 15.1%. Please refer to our financial overview of Rising Bank/Midwest BankCentre (FDIC Certificate # 1058) for more details.
According to the small print of Rising Bank’s website:
Rising Bank® and Midwest BankCentre® are treated as the same
entity for the purpose of calculating FDIC insurance limits and deposits.
Opening its virtual doors for business in early 2019, Rising Bank is the online division of Midwest BankCentre, a community bank with 16 branch locations in the greater St. Louis metropolitan area. Founded in 1906, Midwest BankCentre is currently the 13th largest bank headquartered in Missouri, with assets in excess of $2.6 billion and more than 54,000 customer accounts.
According to an October 2022 press release, the U.S. Small Business Administration has awarded Midwest BankCentre Preferred Lender Program status.
The SBA preferred lender status allows Midwest BankCentre to streamline its commercial loan process by removing significant timing and documentation hurdles that can add weeks of closing time to a transaction. This gives borrowers the opportunity to achieve their funding goals sooner and more efficiently
The SBA gives membership in the program only to financial institutions with proven capability and commitment to small business lending and strict adherence to SBA guidelines.
How the 18-Month Rising CD Compares
When compared to the nationally available add-on CDs tracked by DepositAccounts.com that have a similar term-length and a minimum deposit requirement of $5k or less, only two credit unions have higher rates than currently offered on the Rising Bank 18-month Rising CD. The following table compares the 18-month Rising 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 6/23/2023.
To search for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.
In any case, with this rate increase I bumped up my 36-month Rising CD to 4.35%, but there's only a little more than 2 years left. So now it's basically a 26-month add-on CD at 4.35% (I've not added any funds to it so far). Smart or dumb? Depends on what happens next with rates.
I also have this bank's 18-month Rising CD which can be bumped up to 4.90% APY, but clearly, that 18 month timeframe is quite competitive among other FIs as you can see from the DA.com data.
These 36-month add-on CDs are clearly not "cheap" rate insurance due to their $25K initial deposit minimum (however, I could add-on up to $1M if conditions warrant). Of all the add-ons I've bought this rate cycle this is by far the most questionable, even though it still may play out under the right conditions.