Just opened an account after doing some major research because I had not heard of them before. I am an elderly person looking for a solid account with my wife as joint and need to ensure my money is safe!! They are indeed FDIC insured by a parent company, City National Bank of Florida. I called and asked some questions about their deposit and withdrawal policy. The rep was clear and provided the answers that I needed. Setting up an account online was, in my opinion, straightforward and very similar to other banks I've used in the past. I've had terrible situations with bank's that I've had no prior experience with. A big red flag for me is a customer rep that seems annoyed at my questions! We will see how things go with Total Direct Bank as I continue my relationship with them. So far they have the second best CD rate on the list and I felt they are doing a good job of presenting themselves. I will update my comment if my experience later on changes from my initial one.
TotalDirectBank is a welcome addition to the direct banking landscape.
They have come a long way over the last year since their launch! I opened an eCD back then and the process has improved a lot. The new eMM product and application process were great. Love the #1 rate.
I also appreciate that it’s very easy to call them and talk to a real human being!
I opened a Total Direct Bank CD recently and here are some notes on the accounts and the account creation process. I wrote these afterwards, so there could be mistakes/omissions.
You fill out an online application including the funding amount and at the end of the process you have two choices on how to fund the account. One is to send a check which they have to receive in 30 days (which implies there is a 30 day rate lock).
The other funding method is to select your bank from a list and enter your credentials (login/password) into a program called Plaid. It then displayed the account that I wanted to transfer funds from. It did not display other accounts perhaps because they were CD’s rather than savings accounts or did not have enough money to fund the new account. Once you confirm the account, it apparently gathers the account number and routing number to do an ACH transfer. The list of banks seemed extensive.
My first reaction to this idea was negative (as other commenters have said). Plaid claimed to encrypt the credentials. A TDB rep told me that each of the associated banks had to agree and do some setup to make this possible. I know Yahoo Finance has a way to access brokerage accounts and trades can be placed in Yahoo. So, this limited access does seem somewhat common. I did change my password at the other bank afterwards.
TDB rep told me they do not compound interest (which must be why TDB interest rates and APY are the same).
However, you can have your interest sent to a linked account monthly or quarterly. There is a choice on this during the account creation, but I found it confusing. I learned how it worked after calling TDB after I completed the online process. The rep checked my CD Terms and explained how this worked and allowed me to change the setting. It sounded like future changes would not be possible.
As others have mentioned, after account creation no email is sent confirming the new account. That left some doubt in my mind that the account was created. A few days later, I did get two emails. One with a temporary password, the other with a link that uses that password to access a CD Terms PDF file with the details of the account. A few days later, I got a Welcome email with steps to enroll in online banking and to access disclosures.
Note the TDB Support can only be contacted M-F during business hours.
While the CD rates and fees were quite competitive, I bailed out of the opening process when I learned I'd have to share my funding account login id and password with some third party in order to fund the CD via ACH transfer. Not something I'd recommend anyone do, and a red flag for me as I'd question the security sense of any bank that encourages customers to share their login information with others. Why not just verify access to the funding accounts by the common 2 small deposits rather than steal your customers' passwords?
|FDIC Certificate #||20234|
|Return on Assets - YTD||1.05%|
|Return on Equity - YTD||8.82%|
|Annual Interest Income||$293.3MM|
|Assets and Liabilities|
|Assets||Q2 2019vs Q2 2018||$15.05B$14.10B|
|Loans||Q2 2019vs Q2 2018||$10.59B$9.97B|
|Deposits||Q2 2019vs Q2 2018||$11.81B$10.91B|
|Equity Capital||Q2 2019vs Q2 2018||$1.80B$1.65B|
|Loan Loss Allowance||Q2 2019vs Q2 2018||$42.7MM$24.4MM|
|Unbacked Noncurrent Loans||Q2 2019vs Q2 2018||$27.6MM$35.5MM|
|Real Estate Owned||Q2 2019vs Q2 2018||$161.00K$388.00K|
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|APY||MIN||MAX||ACCOUNT NAME||VIEW DETAILS|
|2.25%||$5k||$500k||Direct Money Market Deposit Account|
|APY||MIN||MAX||ACCOUNT NAME||VIEW DETAILS|
|2.60%||$25k||$500k||60 Month CD|
|2.50%||$25k||$500k||36 Month CD|
|2.40%||$25k||$500k||24 Month CD|
|2.25%||$25k||$500k||12 Month CD|
|2.00%||$25k||$500k||3 Month CD|
TotalDirectBank is an Internet only bank and does not have branch locations. Its headquarters is located at 25 West Flagler Street - Miami, FL 33101