Seattle Bank Unveils Near Rate-Leading 18-Month CD
Seattle Bank has introduced a new 18-month CD to its nationally available product line. Offering a competitive 5.80% APY, the 18-month CD can be opened with a $1k minimum deposit; there is no stated balance cap. While not as competitive as the 18-month CD, the 24-month CD offers a 5.50% APY.
The CDs are also available as IRA CDs (earning the same APYs), but IRA CDs must be opened in-branch, with no online or phone openings possible.
Early Withdrawal Penalty
As stated on the Certificates of Deposit page, the Early Withdrawal Penalty (EWP) reads as follows:
Penalties may affect principal balance and are as follows:
90 days interest for terms less than or equal to 12 months, and 180 days interest for terms over 12 months.
In a comment in response to my February 2023 Seattle Bank blog post, DA reader, Watchdog, provided this vital piece of information:
EARLY WITHDRAWAL PENALTY MAY NOT BE GUARANTEED?
I received a copy of the bank's Deposit Account Agreement and Disclosure document a few months ago and the document stated the following on page 3 under the TIME DEPOSITS section: "We will consider requests for early withdrawal and, if granted, the penalty provided in the Schedule will apply."
While referenced in the fine print of the Certificates of Deposit page, the Deposit Account Agreement and Disclosure document is NOT available on Seattle Bank’s website.
Availability and Account Opening
Headquartered in Seattle, Washington, Seattle Bank previously offered its services and product line to the residents of Washington State. Seattle Bank expanded its market area and has been offering its product line on a nationwide basis for more than a year.
Previously, the online application suggested that out-of-state applicants could possibly open a CD: “If you reside outside of the state of Washington, your application will be considered on a case-by-case basis.” The new online application has done away with the “case-by-case basis” caveat.
Opening a CD can be opened online, by phone (206.281.1500), at the sole Washington branch, located on University Street in Seattle, or via email ([email protected]).
Funding and Other Details
The following information is from a conversation with CSR.
- Funding – ACH, wire, or internal transfer.
- Interest – Compounded daily/credited quarterly, with option of recurring quarterly deposit into a Seattle Bank liquid account.
- Maturing Funds – Wire, check, or internal transfer.
- Beneficiaries – Unlimited (application can accommodate four), equal shares, Social Security numbers not required, must be a person – no trusts or charities.
- Grace Period –10 calendar days before automatic renewal. “18 Month CD: At maturity, the account will auto-renew to a regular twelve (12) month CD.”
- Credit Check – ChexSystems.
Bank Overview
Seattle Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 12.81% (excellent), based on June 30, 2023 data. In the past year, the Bank has increased its total non-brokered deposits by $113.15 million, an excellent annual growth rate of 21.6%. Please refer to our financial overview of Seattle Bank (FDIC Certificate # 35139) for more details.
Seattle Savings Bank was founded in 1999 by Seattle Mortgage as an institution to attract deposits that could be used to make loans. In 2008, as a surge of bad loans hit, the bank was deemed “significantly undercapitalized” by Federal Regulators and told to “clean up its act and find new capital or a buyer.” In what would be a feel-good ending in a movie, the newly re-branded Seattle Bank formed a group of more than 60 local investors who recapitalized the bank in 2010 with $50 million. Since then, Seattle Bank has grown to become 19th largest bank headquartered in Washington State, with assets in excess of $815 million and more than 6,300 customer accounts.
How the 18-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, have fixed rates, and have minimum deposit requirements of $10k or less, one credit union has a higher rate than currently offered on the Seattle Bank 18-Month CD. The following table compares the 18-Month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
How the 24-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, have fixed rates, and have minimum deposit requirements of $10k or less, one bank has a higher rate than currently offered on the Seattle Bank 24-Month CD. The following table compares the 24-Month 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 10/20/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
