Rising Bank Ups Rate of 18-Month Rising CD (Competitive Add-On CD)
As I noted in yesterday’s CD Rates Summary, Missouri-based Rising Bank raised the rate on its 18-month Rising CD this week. Following the addition of 45 bps, the 18-month Rising CD currently earns 4.20% APY on balances between $5k and $1 million. In addition to offering a competitive rate, the 18-month Rising CD also has an add-on deposit option, which could be very useful if rates should happen to fall in the next year.
A Rising CD also has 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 an 18-month Rising CD 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 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 one time 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.
The 18-month Rising CD is subject to an Early Withdrawal Penalty of 180 days of interest on the amount being withdrawn.
My Take
As an add-on CD, this 18-month Rising CD has three drawbacks: 1) a relatively short term. Add-on CDs with longer terms provide much more protection from future low rates. 2) a sizable $5k minimum opening deposit, which isn’t necessarily a major deterrent since the APY is competitive. 3) Only one add-on deposit is allowed, but the maximum balance is a generous $1 million (up from the previous limit of $500k).
Although it’s not the ideal add-on CD that can protect you from future low interest rates, it’s still one of the best add-on CDs currently available. Even without the add-on and bump-up options, it’s competitive compared to other standard 18-month CDs. The add-on option provides the most potential benefit. However, the rate increases of the 18-month Rising CD this year have shown that the bump-up option may also prove to be useful.
Funding and Other Particulars
- Funding – ACH or wire transfer.
- Maturing Funds – ACH to originating account (1-3 business days) or transferred into a Rising Bank checking or savings account (completed in an hour).
- Interest – compounded and credited quarterly, but interest cannot be withdrawn before maturity.
- 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.
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 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.
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 13th 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 18-Month Rising CD Compares
When compared to the nationally available add-on CDs tracked by DepositAccounts.com that have minimum deposit requirements of $10k or less, only one credit union has a higher rate 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 11/10/2022.
To search for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.
