Rising Bank Offers Competitive 1-Year CD and Add-On CD Rates

This is the fourth time in two months that the Rising Bank 1-year Term CD APY has been a rate leader or a near-rate leader for nationally available 1-year CDs. This week’s 40 bps increase resulted in a very competitive 3.70% APY, which is currently the highest 1-year CD rate offered by an internet bank for deposits under $25k. The minimum opening deposit is $1k, with no stated balance cap.

As stated in the Truth-in-Savings (page 21) disclosure, the Early Withdrawal Penalty the 1-year Term CD reads as follows:

The fee we may impose will equal 90 days' interest on the amount withdrawn subject to penalty.

Interest is compounded and credited every three months, but unfortunately,

You cannot withdraw interest from your account before maturity.

Rising CDs

As I mentioned in yesterday’s CD Rates Summary, Rising Bank upped the yields on its 18-month and 26-month Rising CDs to 3.75% APY and 3.80% APY, respectively. In addition to offering very competitive rates, the Rising CDs have an add-on deposit option, which could be very useful if rates should happen to fall in the next year.

As I see it, there are two drawbacks for the Rising CDs: 1) substantial minimum opening deposits – $5k for the 18-month and $10k for the 26-month – that aren't necessarily major deterrents since the APYs are competitive. 2) Only one add-on deposit is allowed, but the maximum balance is a generous $1 million (up from the previous limit of $500k).

There is also have a one-time bump-up rate option. (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 either of these Rising CDs previously, this might be a good time to consider using the bump-up option.

The rate bump-up option is described in the Truth-In-Savings disclosure (page 33) 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 [or 26 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.

Both Rising CDs are subject to an Early Withdrawal Penalty of 180 days of interest on the amount being withdrawn.

High Yield Savings

Following a recent 15 bps rate increase, the High Yield Savings APY is at its all-time high (5 bps higher than the initial 2.45% APY in 2019). The current 2.50% APY applies to balances of at least $1k and up to a maximum of $1 million.

The High Yield Savings account requires a minimum $1k opening deposit and a minimum $1k balance to qualify for interest. According to the Truth-In-Savings disclosure (page 20),

You must maintain a minimum balance of $1,000.00 in the account each day to obtain the disclosed annual percentage yield.

Interest will not be compounded. Interest will be credited to your account every month.

If you close your account before interest is credited, you will not receive the accrued interest.

Potential Fees

The fee schedule list three possible fees for the High Yield Savings: $24 fee for outgoing domestic wire transfer, $14 fee for each chargeback, and $10 fee if the account is closed within 120 days of opening. There are no monthly maintenance fees, no minimum balance fees, or excessive withdrawal fees on transactions beyond the allowed six per four-week period.

Funding and Accessing

Account opening and account management is totally paperless. Deposits and withdrawals must be made by ACH or wire transfers, with a withdrawal limit of $25k per day and a deposit limit of $250k per day. There is no check writing or ATM/debit card and paper check deposits are not accepted.

Beneficiaries

Unlimited payable-on-death (POD) beneficiaries are allowed, but can only be named after an account is opened, as the online application isn’t set up to accept beneficiaries. Only individuals and trusts (no charities/non-profits) can be named as beneficiaries. While Social Security numbers are not required for beneficiaries, CSR stated having a Social Security number for identification purposes is preferable.

Availability

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 as mentioned above, a trust 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.

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 2.19% (excellent) based on June 30, 2022 data. In the past year, the Bank increased its total non-brokered deposits by $114.19 million, an excellent annual growth rate of 6.35%. 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 13^th largest bank in Missouri, with assets in excess of $2.4 billion and more than 51,000 customer accounts.

In addition to multiple awards from Small Business Monthly Magazine and others, in 2019 we were one of only eight banks nationally to be honored as Community Commitment Award winners by the American Bankers Association. This award, in the area of Community and Economic Development, reflects our commitment to diversity and empowering our most economically challenged communities to rise alongside our most affluent communities. In 2021 and 2022 we were honored to be awarded a Top Workplace in St. Louis by The Post Dispatch.

How the 1-Year Term 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 Rising Bank 1-year Term CD. The following table compares the 1-year Term CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.

How the Rising CDs Compare

When compared to the nationally available add-on CDs tracked by DepositAccounts.com that have minimum deposit requirements of $10k or less, no banks or credit unions have higher rates than currently offered on either the Rising Bank 18-month or 26-month Rising CD. The following table compares the Rising CDs to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.

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

The above information and rates are accurate as of 9/29/2022.