VirtualBank Offers Two Competitive Mid-Term Length CDs


Availability: Nationwide

Yesterday, internet bank VirtualBank raised the rates on two of its mid-term eCDs: 12-month eCD (1.16% APY) and 18-month eCD (1.21% APY). The minimum opening deposit for any of these eCDs is $10K, with no maximum balance cap.

As stated in VirtualBank’s Terms and Conditions, the Early Withdrawal Penalty (EWP) reads as follows:

    Greater than

    180 days

    One year

    But less than or equal to

    One year

    Two years


    3 months

    6 months

1.21%$10k-Virtual Bank18 Month eCD
1.16%$10k-Virtual Bank12 Month eCD
Accounts mentioned in this post. Rates as of October 21, 2016.


Headquartered in Miami, VirtualBank is an internet only bank that offers it services and product line nationwide.

Opening an eCD at VirtualBank can be done online, and the procedure as described by VirtualBank is as follows:

Step 1: Complete our online certificate of deposit application and provide certain information about yourself and any joint owner. To fund the eCD quickly and electronically, we will need your personal checking account number, bank name and routing number. You can choose to connect the eCD to any checking account, including one at VirtualBank.

Step 2: We'll send two small deposit amounts to your personal checking account. You then review your checking account transactions to verify these deposits.

Step 3: Let us know you received both deposits and verify the amounts online.

Step 4: Then we'll electronically transfer the opening deposit from your connected checking account.

Credit Union Overview

VirtualBank has an overall health grade of "A" at, with an average Texas ratio of 18.31%, based on September 30, 2014 data. In the past year, VirtualBank has increased its total deposits by $554.27 Million, an excellent annual growth rate of 18.35%. Please refer to our financial overview of VirtualBank for more details.

VirtualBank (FDIC Certificate # 21837) was originally the internet branch of Lydian Private Bank. When Lydian failed in 2011, Sabadell United Bank assumed all deposits, and VIrtualBank has continued to operate as an internet bank solely. Sabadell United Bank’s maintains a high level presence in South Florida with 27 branches and assets in excess of $4.5 Billion.

How the CDs Compare

When compared to other similar length-of-term CDs tracked by, that require a similar minimum deposit and are available nationally, VirtualBank's 12-month eCD and 18-month eCD are competitive, with the 18-month eCD most attractive.

The above rates are accurate as of 2/6/2015.

To look for the best nationwide CD rates and the best CD rates in your state, please refer to our CD rates table.

Several Competitive CD Rates at VirtualBank

It has been awhile since we’ve seen noteworthy rates at VirtualBank. The bank is now offering a few very competitive CD rates. VirtualBank calls these eCDs. The two most competitive eCD rates include a 2.31% APY for a 5-year term and a 1.07% APY for a 1-year term. Minimum deposit is $10,000. Below is a list of the eCD rates as shown at VirtualBank’s eCD page as of 5/1/2014:

The early withdrawal penalties are fair. Details are listed in the bank’s terms and conditions document (link at the bottom of...

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Virtual Bank has recently increased the rates on its eCDs and its eMoney Market. VirtualBank now offers both Regular CDs and these eCDs. The eCDs have rates up to 15 basis points higher than the Regular CDs. The most competitive CD rates are for terms of 2 years and under. These include a 4.08% APY 6-month CD, a 4.13% APY 9-month CD and a 4.45% APY 12-month CD. The minimum deposit is $10,000.

I have more details about VirtualBank's CDs in my August post. A commenter in that post noted that...

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This was going to be my first post for today, but WaMu's new 4.50% 12-month CD caused me to go with that first (see post). For those who may already be maxed out at WaMu or may prefer to stay away from them, a VirtualBank CD is another reasonable choice. With these two...

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VirtualBank just increased the rate on its 12-month CD from 5.39% to 5.55% APY. The 5.55% APY is now the best yield for a one-year CD that's available nationally. The 6-month CD rate also increased by 5 basis points to 5.44% APY.

VirtualBank CDs have the following features:
  • $10,000 minimum to open
  • Compounded daily and credited monthly
  • Joint and Trust accounts can be selected
  • A beneficiary can be included
  • Can be reinvested or deposited into a VirtualBank eMoney Market Account
  • Early withdrawal penalty equals: 1 month...

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VirtualBank's 3-Month CD up to 5.50%
VirtualBank increased the yield on its 3-month certificate of deposit to 5.50% APY. All other CD rates remain the same. The 3-month yield had been 5.44%. In the last couple of weeks, VirtualBank has made several increases to the rates of its short term CDs.

Some details about VirtualBank CDs from my experience and from info from the VirtualBank service representatives include:
  • Early Withdrawal Penalties: 1 month of interest for terms under 6 months, 3 months of interest for terms 6 months to under 1 year, 6 months of interest for terms...

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