New Internet Bank, Rising Bank, Launches with Savings Account and CDs

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Deal Summary: High Yield Savings, 2.45% APY on balances of $1k to $500k; 1-Year Term CD (2.85% APY); 3-Year Rising CD (3.00% APY)

Availability: National (internet bank)

On Monday, Rising Bank, the new internet division of Midwest BankCentre, opened its virtual doors for business. The product line debuted with a High Yield Savings account and CDs with terms from one to three years. The High Yield Savings Account earns 2.45% APY on balances of $1k and up to a maximum of $500k.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.45%$1k$500kRising BankHigh Yield Savings Account
Rates as of February 21, 2019.

Account Details

Rising Bank’s disclosures page has links to the account disclosure and the fee schedule.

The High Yield Savings account requires a minimum $1k opening deposit and a minimum $1k balance to qualify for interest. According to the account’s truth-in-savings disclosure:

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

Maximum balance is $500k per account.

According to the disclosure, “interest will not be compounded,” but “interest will be credited to your account every month.” It’s important to note that “if you close your account before interest is credited, you will not receive the accrued interest.”

Potential Fees

The fee schedule only lists two fees: $24 fee for outgoing domestic wire transfer and a $12 fee for each chargeback. There are no monthly maintenance fees, no minimum balance fees or excessive withdrawal fees. Even though there are no excessive withdrawal fees, there is still the typical savings account limit of six withdrawals per month as required by federal regulation. If you go over this limit too many times, Rising Bank may close your account.

Funding and Accessing

Account opening and account management is paperless. Paper check deposits are not accepted. Also, there is no ATM/debit card. Deposits and withdrawals must be made by ACH or wire transfers. In their ACH bank-to-bank transfer system, they are still deciding on ACH limits. If they settle on small limits, you can always fall back on initiating an ACH transfer from your other bank.

Rising Bank CDs

Rising Bank is also offering two types of CDs. The first type is the standard CD. These have the names Term CDs (minimum deposit of $1k) and Jumbo CDs (minimum deposit of $100k). The second type is the Rising CD, and it has both a rate bump-up option and an add-on deposit option. Minimum deposit for the Rising CD is $25k.

Maximum balance for any of the CDs is $500k per account.

According to the CD truth-in-savings disclosure, Interest is compounded and credited to your account every three months. This is important to know if you do an early account closure. You will not receive accrued interest if you close the CD before interest is credited.

Under the CD transaction limits, the truth-in-savings disclosure states:

You may not make withdrawals of principal from your account before maturity.

This also applies to interest:

You cannot withdraw interest from your account before maturity.

However, after the transaction limits, the disclosure lists the early withdrawal penalties which implies that early withdrawals are permitted with penalty. The early withdrawal penalty for the 12-month CD is equal to 90 days’ interest on the amount withdrawn. For longer terms, the penalty is equal to 180 days’ interest on the amount withdrawn.

Term and Jumbo CDs

Currently, Rising Bank is listing just one Jumbo CD (2-year term), and its APY is the same as the 2-year Term CD APY. Minimum deposit is $100,000.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.95%$100k$500kRising Bank2 Year Jumbo CD
Rates as of February 21, 2019.

Three Term CDs are listed. These have 1-year, 2-year and 3-year terms. Minimum deposit is $1,000. All three rates are currently fairly competitive.

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.00%$1k$500kRising Bank3 Year Term CD
2.95%$1k$500kRising Bank2 Year Term CD
2.85%$1k$500kRising Bank1 Year Term CD
Rates as of February 21, 2019.

Rising CDs

Rising Bank’s Rising CDs have two unique features that can be useful in an uncertain interest rate environment.

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.00%$25k$500kRising Bank36 Month Rising CD
2.85%$25k$500kRising Bank18 Month Rising CD
Rates as of February 21, 2019.

The most useful of the two features in my opinion is the add-on deposit option. For the 18-month Rising CD, you have one option to make an additional deposit during the term. For the 36-month Rising CD, you have two options to make additional deposits. Minimum deposit for additional deposits is $5k.

The $25k minimum initial deposit and the $500k maximum balance limit some of the benefits of the add-on deposit feature. The ideal add-on CD has a small minimum initial deposit and no limits on the add-on deposit amount. Nevertheless, the Rising CD is still a good deal when there’s a real possibility of falling rates in the next year or two. Since I think it’s unlikely that rates will fall quickly, the 36-month Rising CD is more useful than the 18-month. The current APY of 3.00% is fairly competitive. A year or two from now, 3% may look high for CDs. If that occurs, you can always fall back on this CD and make one or two additional deposits and get a 3% APY for the remaining time.

The second feature is the rate bump-up option. Here’s an excerpt of the description of this feature from the 18-month Rising CD account disclosure:

you will 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.

The bump-up feature is described the same for the 36-month Rising CD except that you can bump up the rate two times.

This bump-up option works just like it does for Ally Bank’s Raise Your Rate CDs. My primary issue with the bump-up feature is that it depends on the bank keeping the rate competitive. Another problem is that even if the bank does keep the CD rate competitive, it still can be difficult to know when to use the bump-up option. If you jump too early on a rate bump, you may miss out on future rate increases. On the other hand, if you wait too long, you’ll lose the benefit of the higher rate since there will be less time until the CD matures.

Update 2/8/19: I was told by the Rising Bank official that the add-on option and the bump-up option are completely independent of each other. You can choose to just use the add-on option without the bump-up option or vice versa. Thus, if rates fall instead of rise, you can just use the add-on option.

Trust Accounts and Beneficiaries

Rising Bank currently does not open accounts in the name of a trust.

Multiple payable-on-death (POD) beneficiaries are allowed, but they must be designated after the account is opened. This cannot be done in the online application. Regarding the information required for listing beneficiaries, I was told they prefer to have the social security numbers of the beneficiaries (to help with identification), but it’s not required. Only persons and trusts can be named as beneficiaries. Charities/non-profits cannot be named.

Availability

Rising Bank is offering accounts nationwide. Anyone 18 years or older with a valid Social Security number or Taxpayers Identification Number can open an account.

Only individual and joint accounts can be opened with Rising Bank. Custodial accounts and trust accounts are not permitted, but as mentioned above, trusts can be named as a beneficiary.

According to a Rising Bank official, there is no hard credit pull in the application process. It’s just a soft pull, and there should be no need to unfreeze your credit if you had done a credit freeze.

As an internet bank, Rising Bank has no brick-and-mortar branches. Opening a High Yield Savings account and/or CD can only be done online. The online application process is intended to be easy enough that it can be completed on a PC or a smartphone in three minutes or less.

Bank Overview

Rising Bank is a new online division of Midwest BankCentre. Midwest BankCentre is a community bank with 19 branch locations in the St. Louis metro area of Missouri. It’s a sizeable community bank with $1.9 billion in assets and $1.4 billion in deposits.

Why is a community bank starting an internet bank? The Rising Bank official said that they see it as a good way to increase core deposits. Unlike brokered deposits, core deposits are seen as a more stable source of funding. They allow building of a customer relationship that makes the deposits less sensitive to interest rates. They also give the bank cross-marketing opportunities. The official said they have near-term plans to add new products including a checking account and loans.

Does a community bank have the technology resources for an internet bank? One thing that is helping community banks manage an online bank are financial technology (fintech) companies that provide services to community banks. One of those fintech companies that is partnering with Rising Bank is XpertSavers. The following excerpt from XpertSavers’ home page describes what they do:

XpertSavers is an alternative channel for banks and credit unions to gather deposits. Our team is led by a group of banking experts with a solid record of building internet deposit businesses, while meeting the rigorous regulatory and security demands of the financial industry.

The good news for savers is that we should see more community banks like Midwest BankCentre launch internet banks. This should lead to more competition which should result in better rates and service. These fintech companies should also help improve the software usability in account opening and managing. However, I expect it will take time before the usability equals that from the large, well-established internet banks like Ally and Synchrony.

As an online division of Midwest BankCentre, Rising Bank operates under Midwest BankCentre’s FDIC Certificate and shares its financial history. Rising Bank/Midest BankCentre has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.92% (excellent) based on September 30, 2018 data. In the past year, the Bank increased its total non-brokered deposits by $30.86 million, an above average annual growth rate of 2.32%. Please refer to our financial overview of Rising Bank/Midwest BankCentre (FDIC Certificate # 1058) for more details.

Note: 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.

Midwest BankCentre was founded in St. Louis in 1906. The Bank has grown in recent years due to acquisitions. In April 2015, they acquired Southern Commercial Bank, and in July 2016, they acquired Bremen Bank and Trust Company.

How the High Yield Savings Compares

When compared to the Savings Accounts tracked by DepositAccounts.com that are available nationwide, Rising Bank’s High Yield Savings APY currently ranks second, tied with CIT Bank’s Savings Builder.

Interest RateAccount NameCredit Union/Bank
2.53% APYHigh Rate Savings ($50k min/$5m max)North American Savings Bank
2.45% APYHigh Yield Savings ($1k min/$500k max)Rising Bank
2.45% APYSavings Builder w/o mo deposits ($25k min/no max)CIT Bank
2.40% APYMySavings Account (no min/no max)MySavingsDirect

How the 12-Month Term CD Compares

When compared to the 210 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationally, Rising Bank’s 12-month Term CD ranks third, tied with several others.

Interest RateCD Length of TermCredit Union/Bank
2.95% APYSenior Citizens 1 Year CD ($2.5k min)State Bank of India (IL)
2.89% APYOnline 13 Month CD ($500 min)MutualOne Bank
2.85% APY12-Month Term CD ($1k min)Rising Bank
2.85% APY12-Month CD ($2.5 min)Live Oak Bank

How the 36-Month Rising CD Compares

Since there aren’t many CDs that allow rate bumps and add-on deposits, it’s difficult to compare the Rising CDs. I’ll just compare the 36-month Rising CD to two other CDs. The first is Mountain America Credit Union’s 3 Year Term Deposit Plus. This is an add-on CD, but it has a maximum balance of $100k. There is no rate bump option. The second is Ally Bank’s 4-year Raise Your Rate CD. This only offers the rate bump-up option. There is no add-on deposit option. As can be seen below, Rising Bank’s 36-month Rising CD ranks second on rate.

Interest RateCD Length of TermCredit Union/Bank
3.35% APY3 Year Term Deposit Plus - add-on only ($5 min/$100k max)Mountain America Credit Union
3.00% APY36-Month Rising Rate CD, rate bump & add-on ($25k min/$500k max)Rising Bank
2.60% APY4 Year Raise Your Rate CD, rate bump only (no min/no max)Ally Bank

The above rates are accurate as of 2/7/2019.

To review the best Savings, Money Market and CD rates, both nationwide and state specific, please refer to our Savings Account rates table, Money Market Account rates table and our CD rates table.

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

Comments
RonPaul
RonPaul   |     |   Comment #1
This part does not make any sense: “interest will not be compounded,” but “interest will be credited to your account every month.”
larry
larry   |     |   Comment #2
RonPaul (Comment #1)
I think that is the hook to keep you in on a monthly basis. It's probably more stable for them then having individuals moving large sums out when good deals from other financials institutions pop up. I have to agree with Ken that the rising rate cd is not as attractive as the add-on cd because you can add-on as many times as you prefer.
???
???   |     |   Comment #4
The Rising CD, has both a rate bump-up option AND an add-on deposit option. Minimum deposit for the Rising CD is $25k.
larry
larry   |     |   Comment #15
#4 did you not read the write up? With the rising CD you have only one or two chances to add-on depending on the length of time you choose. The other fixed add-on CD's have unlimited add-on features. I wondering why I have to explain that to you?
Duuuh! larry
Duuuh! larry   |     |   Comment #16
My post was a Copy/Paste from the article
larry
larry   |     |   Comment #17
Why are u chasing me all over the Internet? First, it's 4handlelarrry and now it
s larry? You got me, if you are referring to me as a republican. I believe if you make it legit and earn it within the rules, the hockey stick with the left!







11
NOT GUILTY
NOT GUILTY   |     |   Comment #18
mr larry
there are other people on the site that are harassing you and mr rjm. my moniker is fixed to me though i change its title to reflect topics or situations. if you two actually pay attention you'll find a solid moniker behind MY posts. none which i believe is personally harassment . mr rjm Went Off The Deep End last night and openly threatened me. along with you going so far as to try and trace my email address or IP address.
???
???   |     |   Comment #19
my apology mr larry
it was mr Nobody who plays columbo
Vic
Vic   |     |   Comment #9
RE: Comment #1
One does indeed contradict the other. On Rising Bank's webpage, the APR and APY for the HYSA are advertised to be 2.43% and 2.45% respectively; that means that the interest is compounded monthly.
???
???   |     |   Comment #10
Aren't we talking about the CDs?
???
???   |     |   Comment #3
Ya dont make money on your interest
QED
QED   |     |   Comment #5
It's a decent rate of interest. But absent any sort of rate lock whatsoever on the savings, I will pass.  They need to lock the rate at least long enough to make worthwhile the effort it takes to apply and get the account going.
Cleopatra
Cleopatra   |     |   Comment #6
I'll check back in 20 yrs and see if they are still in business.
anonymous
anonymous   |     |   Comment #7
Can the "add-on" and "bump-up" options be exercised at different times? (E.g., add money to the CD after 1 year, and bump up the rate after 2 years?)

Can the "add-on" option be done while preserving the original rate? (E.g., CD rates fall and I want to add more money at the original rate?)

The reason I ask these questions is because I have "Rate Climber" CDs at a CU which are similar, but my understanding is that the "add-on" and "bump-up" have to occur together at that CU. So, what I described above would not be possible at my CU.
???
???   |     |   Comment #8
re-read the summary. it points to your ???
then you need to talk to the bank for minute ( my 'noot ) details.
Ken Tumin
Ken Tumin   |     |   Comment #13
That's a good question, and I did ask that to the official, but I forgot to mention that in the post. I updated the post with what I was told. In summary, I was told that the two options are completely independent of each other, which is important if rates fall.
myturn1959
myturn1959   |     |   Comment #20
I just talked to a CSR and they said the only time you can add funds is if you bump the rate. So in a declining rate environment one could not add funds to the cd.
anonymous
anonymous   |     |   Comment #21
Sounds like this is contradicting what Ken was told. I should also add, that I read through their CD disclosures before I posted my comment #7 and the disclosures don't provide clarity for this question. But at least, the disclosures don't specifically indicate that the "add-on" has to occur with a bump in the interest rate. From Page 38 of the disclosures:

Option Plan and Rate Information: The interest rate and annual percentage yield
may change. 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 36 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 two times during the original term of the account.

[...]

Transaction limitations:
You may make no more than two deposits into your account during the term of
the Certificate of Deposit.
The minimum amount you can deposit is $5,000.00.
Ken Tumin
Ken Tumin   |     |   Comment #22
I'm in the process of getting more clarification on this from the official. I do wish the disclosure provided clarity on this issue.
Ken Tumin
Ken Tumin   |     |   Comment #23
I received confirmation that my comment and update were correct. The two options are completely independent of each other. They should be updating their FAQs to include a Q&A of this topic soon.
RJM
RJM   |     |   Comment #11
Nice to see another online bank with competitive rates.

I have All American and Northern at 2.50% and NASAs 15 month at 3.20% and 25 month at 3.25% so I do not need Rising at this time.
john
john   |     |   Comment #12
hell of a name for a bank ,sounds like a joke def not for me
RJM
RJM   |     |   Comment #14
Do you like BankPurely and iGobanking any better? Rising seems less stupid to me.
#24 - This comment has been removed for violating our comment policy.

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