Although TAB Bank’s 12-month CD APY dropped by 44 bps in three rate decreases in the past year, its current 2.25% APY is quite competitive. In fact, it's now the highest rate that's available from an online bank. The minimum opening deposit is $1k, with no stated balance cap.
As stated in the Truth in Savings document, the Early Withdrawal Penalty reads as follows:
If your account has an original maturity of 12 months or less: The fee we may
impose will equal 90 days interest on the amount withdrawn subject to penalty.
Funding a TAB Bank CD can be done by ACH, wire transfer, or check; maturing funds can be distributed through the same three methods. The 12-month CD will automatically renew following the ten day grace period.
TAB Bank added a Kasasa Cash Checking account in April earning 4.00% APY on qualifying balances up to $50k. Qualifying balances over $50k earn 0.25% APY, with non-qualifying balances earning 0.05% APY. It remains the best deal for a reward checking account.
The monthly qualification requirements are fairly standard:
- Have at least 15 debit card purchases (minimum $5)
- Have at least one direct deposit, one ACH, or one bill pay transaction
Kasasa Cash Checking account has no monthly maintenance or opening/closing fees and there’s no minimum opening deposit requirement. Nationwide ATM fees will be reimbursed up to $15 per cycle if the monthly qualifications are met. New accounts automatically meet the qualification requirements during the account’s first statement cycle. There is a limit of one account per Social Security number.
Headquartered in Ogden, Utah, TAB Bank offers its product line nationwide. Since I last wrote about the 12-month CD in June 2018, an online application has been added – a distinct improvement over submitting an application by phone, e-mail, or even snail-mail.
CDs can also be opened at the sole Utah branch located on Harrison Boulevard in Ogden. A download of the CD Application is still available on TAB Bank’s website, though I can’t imagine it’s used very often.
TAB Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 18.56% (above average), based on June 30, 2019 data. In the past year, TAB Bank increased its total non-brokered deposits by $72.58 million, an excellent annual growth rate of 24.25%. Please refer to our financial overview of TAB Bank (FDIC Certificate # 34781) for more details.
Established in 1998 as the Transportation Alliance Bank, Inc. by parent company, Flying J Inc., TAB Bank was originally founded to provide financial services to the US and Canadian trucking industry. The Bank has subsequently expanded to offer custom working-capital solutions to businesses from a variety of industries. TAB Bank is currently Utah’s 25th largest bank, with assets in excess of $724 million.
How the CD Compares
When compared to 208 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and available nationwide, TAB Bank’s 12-month CD APY shares the second spot with 1-year CDs offered by Quontic Bank, CommunityWide Federal Credit Union, and Wheelhouse Credit Union.
The above rates are accurate as of 11/15/2019.
To look for the best CD rates, both nationwide and in your state, please refer to our CD Rates Table page.