VirtualBank Leads With 12Mo eCD (2.11% APY) And 24Mo eCD (2.33% APY)

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Deal Summary: 12-month eCD (2.11% APY), 24-month eCD (2.33% APY), $10k minimum deposit.

Availability: Internet bank

VirtualBank, an internet division of IBERIABANK, has just become a leader in the rates race by raising the rates on its 12-month eCD (2.11% APY) and 24-month eCD (2.33% APY). The minimum opening deposit for any VirtualBank eCD is $10k, with no stated balance cap.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.33%$10k-Virtual Bank24 Month eCD
2.11%$10k-Virtual Bank12 Month eCD
Accounts mentioned in this post. Rates as of January 23, 2018.

In the months following IBERIABANK’s August 2017 acquisition of VirtualBank, there was little rate activity for the eCDs. That changed yesterday when the 12- and 24- eCD APYs gained 42 bps and 49 bps, respectively.

When I last wrote about VirtualBank, the Bank’s website was a “work in progress,” being renovated and updated following the acquisition. Finding the information I needed required a few phone calls and a fair amount of patience. I’m happy to report that VirtualBank’s website seems to be functional.

As stated in the Deposit Account Agreement document, the Early Withdrawal Penalty reads as follows:

Terms greater than 30 days but less than or equal to one year:
100% of interest in amount withdrawn.

Terms greater than one year but less than or equal to two years:
1% of an amount withdrawn.

Two weeks ago, DA reader, Db1234, wrote a review of VirtualBank that raises concerns about receiving funds from a maturing CD. I will look into this matter further and update this blog post when I have more information.

Setting up 3 CDs was easy, and customer service people were helpful. Upon CD maturity, though, things turned for the worst: I learned that getting money back required a paper check. They will accept the initial deposit from a linked external account. But when the account is cancelled, they insist on sending a paper check. This gives them the benefit of interest that would have been earned during the time the check is processed, mailed, and eventually cashed. Interest you will lose during the float period makes their rate uncompetitive with other online banks.

Cancelling a CD at the end of its term also requires sending them a “bankmail”—an internal VirtualBank communication—about your wishes. Again unlike other banks, they make no indication on the online account records about the desired treatment of the funds upon maturity. Upon maturity, my online account showed that the CD had been rolled over, requiring a lengthy call to correct the situation.

Availability

Currently headquartered in Miami, VirtualBank became an internet division of IBERIABANK in August 2017. Accounts at VirtualBank can be opened by U.S. citizens with valid Social Security numbers.

Opening any VirtualBank eCD can be done online, and eCD Trust Accounts are available. As stated on the online application,

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.

Since being acquired by IBERIABANK, VirtualBank has added a PDF version of the eCD Account Application, which can be returned by snail mail or by fax.

Bank Overview

As an internet division of IBERIABANK, Virtual Bank operates under IBERIABANK’s FDIC Certificate and shares its financial history.

VirtualBank/IBERIABANK has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 4.41% (excellent), based on September 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $5.12 billion, an excellent annual growth rate of 33.85%. Please refer to our financial overview of VirtualBank/ IBERIABANK (FDIC Certificate # 28100) for more details.

VirtualBank was originally the internet branch of Lydian Private Bank. When Lydian failed in 2011, Sabadell United Bank assumed all deposits, as well as the VirtualBank division. On July 31, 2017, IBERIABANK Corporation finalized its acquisition of Sabadell United Bank, including VirtualBank.

IBERIABANK is currently Louisiana’s largest bank, with assets in excess of $27.8 billion and more than 453,000 customer accounts. The acquisition of Sabadell United Bank expanded IBERIABANK’s presence in South Florida and increased its asset base by more than $5 billion.

How the eCDs Compare

When compared to the 208 similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and require a minimum deposit of $10k or less, VirtualBank's 12-month eCD APY currently ranks first.

Interest RateCD Length of TermCredit Union/Bank
2.11% APY12-Month eCD ($10k min)VirtualBank
2.10% APY1-Year CD ($2.5k min)Live Oak Bank
2.01% APY12-Month Certificate ($5k min)Connexus Credit Union

When compared to the 201 similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and require a minimum deposit of $10k or less, VirtualBank's 24-month eCD APY currently ranks first.

Interest RateCD Length of TermCredit Union/Bank
2.33% APY24-Month eCD ($10k min)VirtualBank
2.30% APY2-Year CD ($2.5k min)Live Oak Bank
2.27% APY24-Month Certificate ($5k min)Connexus Credit Union

The above rates are accurate as of 1/19/2018.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.

Related Pages: 1-year CD rates, 5-year CD rates, nationwide deals, Internet banks

Comments
Kaight
Kaight   |     |   Comment #1
Gosh that is, in my view anyway, an eye-popping amount of flatness in the yield between the two offerings. It's almost as if they are seeking to force us to go short.
itserich
itserich   |     |   Comment #2
It closely mirrors Treasury yields.

Here is a nice story with 3 Fed officials respectively supporting zero, 2 and 3 rate increases in 2017.

http://gulfnews.com/business/economy/fed-officials-see-benefits-in-letting-inflation-run-above-target-1.2159859
itserich
itserich   |     |   Comment #3
Navy Federal CD rates are not appearing on the dropdown charts. I checked 2, 3 and 4 year lists and they did not appear on any.

Can't find a place on the site to report technical errors.
Ken Tumin
Ken Tumin   |     |   Comment #4
To see Navy Fed CD rates in the rate tables, make sure to select "Advanced options" on the right of the top filter box. Then you should see "Include credit unions with membership based on any industries that you or immediate family members currently or have previously worked in." Click either "Gov / Military" or "Select All", and Navy Fed CDs should appear.
itserich
itserich   |     |   Comment #5
Thanks. Other helpful filters could be variable rate, add on and bump up features.
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Availability: Internet bank

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Availability: Internet bank

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As stated in the Terms and Conditions, the Early Withdrawal Penalty reads as follows:

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Currently headquartered in Miami, VirtualBank is an internet bank that...

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Availability: Internet bank

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Availability: Internet bank

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Availability: Internet bank

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