Seattle Bank Now Offers Product Line Nationwide

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Availability: Bump Up CDs – 24-month (1.71% APY) and 36-month (1.82% APY), $1k min/$220k max deposit.

Availability: Nationwide through online application

Before anyone feels the need to comment on the competitiveness of the Seattle Bank two Bump Up CDs, please understand this blog post serves an introduction to one of latest banks offering CDs on a nationwide basis.

At the beginning of the month, Seattle Bank substantially raised the rates of the majority of its CDs and unveiled the two Bump Up CDs. Although the CDs had rate increases of 96-138 bps, the new APYs are short of the current rate leaders.

The two limited-time Bump Up CDs don’t have the greatest rates, but they do have APYs higher than offered by two other online banks (Ally and Rising Bank) with similar bump-up CDs. Either Bump Up CD can be opened with a $1k minimum deposit and is capped at $220k. Interest is compounded daily and paid quarterly, with interest either reinvested or deposited into a Seattle Bank checking or savings account.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.80%$25k$500kRising Bank36 Month Rising CD
2.25%$5k$500kRising Bank18 Month Rising CD
1.75%--Ally Bank2 Year Raise Your Rate CD
1.75%--Ally Bank4 Year Raise Your Rate CD
Rates as of June 26, 2022.

The Seattle Bank higher rates are offset by a couple of limitations. For example, unlike the Rising CDs, the Bump Up CDs don’t have an add-on deposit option. In addition, both the 24-month and 36-month Bump Up CDs allow only one bump-up, unlike the longer-term bump-up CDs at Ally and Rising Bank that allow two bump-ups. Another limitation listed on the landing page reads as follows:

One-time bump option allowed six (6) months from the date the account is opened, up until three (3) months before the end of the term.

The Bump Up CD FAQs explain how the bump works and it definitely has some drawbacks.

How will the new “bumped-up” rate be determined?

    Should you decide to bump your rate, your new interest rate and APY will be equal to the interest rate and APY for the current standard CD with the term equal to – or closest but shorter than – the remaining number of days left on your certificate. For example, if you have a 24-month CD and you choose to bump 12 months and 1 day after opening your account, you will receive the rate and APY for the 9-month CD.

Long story short, the bump-up option’s intrinsic value is dependent on the shorter-term CD rates rising considerably.

The Bump Up CDs are also offered as IRA Bump Up CDs (Traditional and Roth), earning the same APYs with the same deposit requirements.

According to CSR, partial withdrawals are permitted, with an Early Withdrawal Penalty of 180 days interest for terms of 12 months or greater.

Funding and Maturing Funds

Funding any kind of CD can be done by ACH, wire, or check. Maturing funds will be distributed via cashier’s check, wire transfer, or transferred to another Seattle Bank liquid account (checking or savings). There is a 10-day grace period before a CD automatically renews.

Beneficiaries can be named, with percentages assigned, if so desired. Social Security numbers are NOT required when naming beneficiaries, with only full legal name, date-of-birth, and address being necessary.

Availability

Headquartered in Seattle, Washington, Seattle Bank previously offered its services and product line to the residents of Washington State. Seattle Bank has expanded its market area and currently offers the product line on a nationwide basis.

On a historical note, the online application used to suggest 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 market area has done away with the “case-by-case basis” caveat.

Opening a CD can be opened online, or at the sole Washington branch, located on University Street in Seattle.

Bank Overview

Seattle Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 14.40% (above average), based on December 31, 2022 data. In the past year, the Bank has increased its total non-brokered deposits by $97.45 million, an excellent annual growth rate of 19.59%. 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 and with which 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 Washington’s 21st largest bank, with assets in excess of $762 million.

The above information and rates are accurate as of 5/10/2022.

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

Related Pages: Seattle CD rates, 5-year CD rates, nationwide deals

Comments
deskandchairs
  |     |   Comment #1
Since they do not offer/allow ACH transfers of CD proceeds at maturity, a typical solution would be to open a savings account to which the proceeds are transferred at maturity, as permitted by Seattle bank and then "pull" those funds by ACH from another financial institution. I have called and written to try to determine if this would be permitted. One customer service rep told me he "thought" an ACH initiated elsewhere would be blocked. Another provided very confusing response.
Has anyone using this bank been able to pull funds out of savings by ACH initiated elsewhere?
Be careful in dealing with this bank as they are not very sophisticated and customer service/branch personnel are not very knowledgeable. Unless they have improved, they are not ready to compete nationally.
gregk
  |     |   Comment #2
It sounds as if you quite seriously considered depositing funds in a Seattle Bank CD.

I'm curious as to why?
deskandchairs
  |     |   Comment #3
gregk, I opened several CDs with Seattle Bank in late 2019 and early 2020 when they had very competitive offerings and I had maxed out the FDIC limits at other online banks. Those CDs are starting to mature, so I've been with them for the full "cycle." I'm not eager to invest with them again unless their rates are clearly superior.
gregk
  |     |   Comment #4
Understand the context now. Thanks.
Seattle Bank Has Competitive CDs Statewide, 60-Month, 3.30% APY
Availability: CDs – 12-month (2.80% APY), 24-month (2.95% APY), 36-month (3.00% APY), 48-month (3.15% APY), 60-month (3.30% APY), $1k minimum deposit

Availability: Washington State

Seattle Bank recently raised the rates on the majority of its CDs, resulting in competitive rates across the board. Any of the CDs can be opened with a $1k minimum deposit, with the “maximum balance per CD between $210,000 and $245,000, depending on the term.” (The maximum balances are detailed on the Deposit Rates page.)

Interest is compounded daily and...

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