Deal Summary: 12-month eCD, 1.46% APY; 18-month eCD, 1.51% APY; $10k minimum deposit
The first weekend in April produced a spate of rate increases (possibly affected by the Fed's March rate hike), including VirtualBank’s 12-month eCD (1.46% APY) and 18-month eCD (1.51% APY). These new rates are the highest since the eCDs were first offered in September 2011.
|1.51%||$10k||-||Virtual Bank||18 Month eCD|
|1.46%||$10k||-||Virtual Bank||12 Month eCD|
The minimum opening deposit for any of VirtualBank’s eCDs is $10k, with no stated balance cap. Interest is compounded and credited monthly.
About ten days ago, I wrote a Forum post about VirtualBank’s recent rate increase on its 5-year eCD (2.22% APY). While it’s a fairly competitive rate, the Early Withdrawal Penalty is a hefty 18 months.
As stated in VirtualBank’s Terms and Conditions, the Early Withdrawal Penalty (EWP) reads as follows:
Term greater than 180 days, but less than or equal to one year, three months EWP.
Term greater than one year, but less than or equal to two years, six months EWP.
Headquartered in Miami, VirtualBank is an internet-only bank that offers it services and product line nationwide.
As stated on the eCD page opening any VirtualBank eCD must be done online:
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.
VirtualBank 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 operating under Sabadell United Bank’s FDIC Certificate. Sabadell United Bank maintains a high-level presence in South Florida with 24 branches and assets in excess of $5.5 billion.
VirtualBank/Sabadell United Bank has an overall health grade of "A" at DepositAccounts.com, with Texas Ratio of 7.34%, based on December 30, 2016 data. In the past year, the Bank has increased its total non-brokered deposits by $291.84 million, an excellent annual growth rate of 7.19%. Please refer to our financial overview of VirtualBank/Sabadell United Bank (FDIC Certificate # 21837) for more details.
How the eCDs Compare
When compared to the 202 similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, VirtualBank's 12-month eCD APY currently ranks second, regardless of minimum deposit.
When compared to the 148 similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, VirtualBank's 18-month eCD APY currently ranks third, regardless of minimum deposit.
The above rates are accurate as of 4/3/2017.