Latest Liquid Bank Account Rates
Federal Reserve, the Economy and CD Rate Forecast - Aug 2, 2022
Fed Meeting: Second Straight 75-bp Rate Hike - Strategies for SaversCD Rates Summary
The aggressive Fed rate hikes are driving up short-term CD rates. Long-term CD rates, on the other hand, have been impacted less. It’s not as bad as Treasury yields in which 6-month Treasury yield is now above the 10-year yield. I expect short-term CD rates will continue to get closer to the long-term CD rates as the Fed keeps hiking rates while the markets worry about rising rates causing a recession.
If the economy has a slowdown or a recession and inflation does subside, interest rates will surely drop. We may not see a repeat of the long zero rate period of 2008-2015, but a low rate period may last for multiple years. Locking in long-term CDs before rates fall is ideal, but it’s difficult to know exactly when to lock.
One strategy is to stay liquid with top-rate online savings or money market accounts. When great CD deals do come along, you can quickly take advantage of them with funds in these liquid accounts. The downside is the possibility that you may miss those CD deals. As interest rates fall, those online savings account rates will also fall.
If you jump too quickly into a CD, the risk is that you’ll miss out on higher CD rates. Choosing CDs with mild early withdrawal penalties (EWPs) can help with this risk. Also, look for EWPs that don’t eat into principal if you close the CD early into the term. This seems to be more common at credit unions. Both PenFed and Navy Federal EWPs have this feature.
Another useful feature for CD investors is the add-on deposit capability. I know several DA readers have successfully used add-on CDs during this recent zero rate period. When rates fall, an add-on CD allows you to make additional deposits into a CD that had been opened before rates fell. The add-on deposits will earn the old CD rate, which is likely much higher than anything available in the new low-rate environment. If rates don’t fall and you can find higher rates at other banks, you don’t make add-on deposits. If the add-on CD has a small balance, the additional interest that you could have earned in a higher-rate CD is minimal. An add-on CD is like an insurance policy for future low rates.
Two credit unions that are now offering add-on CDs with competitive rates and low minimum deposits are Navy Federal and Mountain America.
Navy Federal has a Special 33-month add-on CD with a minimum deposit of only $1k. It also has a very competitive yield (3.30% APY). There’s very little downside with opening this CD with the $1k minimum deposit. If it turns out that top CD rates don’t rise above 3.30%, you can always add more into this CD. If higher CD rates do become available, you avoid making add-on deposits. The only negative with this 33-month CD is that it has a maximum balance of $100k.
Mountain America Credit Union has add-on CDs that it calls Growth CDs. The minimum initial deposit is only $5, but it requires a minimum $10 automatic monthly deposit. Additional deposits are allowed throughout the term. The primary downside, like Navy Federal, is a $100k maximum balance. This month the Growth CDs with terms from 2 to 5 years had substantial rate increases that raised the yields to 2.75%. For add-on CDs, the longer terms provide the best insurance for extended periods of low rates. Thus, the 5-year Growth CD is the best deal.
Long-term CD rates don’t seem to have peaked yet, but their rate increases have been slowing down. This can be seen in the average online CD rates. In July, the 1-year online CD yield average increased 43.4 bps to 2.331%. The 5-year online CD yield average had a smaller increase in July, rising only 21.4 bps to 3.100%. This is similar to what we saw in June.
These averages are based on the 5-year Online CD Index and 1-year Online CD Index which are the average yields of ten online CD accounts from well-established online banks. Note, the charts haven’t yet been updated for August.
Noteworthy CD rate changes from the last two weeks are included below (All percentages are APYs).
I’ve separated them into three groups: 1) the popular banks, 2) the less well known banks that have been rate leaders, and 3) the credit unions with easy membership requirements.
Popular Online Banks:
- Synchrony Bank (5y 3.10% → 3.25%, 1y 2.00% → 2.30%)
- Marcus by Goldman Sachs (5y 2.90% → 3.20%, 1y 1.90% → 2.30%, 13m NP 1.25% → 1.55%)
- Capital One (5y 2.90% → 3.20%, 1y 1.90% → 2.25%)
- Sallie Mae Bank (5y 2.80% → 3.05%, 2y 2.50% → 3.00%, 1y 2.00% → 2.50%)
- Discover Bank (5y 2.90% → 3.00%, 1y 1.90% → 2.00%)
- Patriot Bank via SaveBetter (New 13m 2.75%, New 17m NP 2.55%)
- Live Oak Bank (5y 3.00% → 2.70%, 2.20% → 2.50%)
- Ally Bank (5y 20m Sel 2.40% → 2.50%, 13m Sel 2.00% → 2.25%)
- Sallie Mae Bank via SaveBetter (14m NP 2.20% → 2.50%, 10m NP 1.85% → 2.00%)
- Citi (18m 0.10% → 2.35%, 1y 0.10% → 2.00%)
- CIT Bank (13m 0.30% → 2.10%, 11m NP 1.85% → 2.00%)
Less well known banks that have been rate leaders in the past:
- Bread Financial (5y 3.35% → 3.65%, 2y 3.00% → 3.50%, 1y 2.50% → 3.00%)
- CFG Bank (5y 3.37% → 3.50% → 3.65%, 1y 2.04% → 2.55% → 2.75% → 3.05%)
- My eBanc (3y 2.74% → 3.51%, 2y 2.43% → 3.20%, 1y 2.02% → 2.79%)
- INSBANK Online (3y 2.05% → 3.50%)
- Credit One Bank NA (5y 3.20% → 3.30% → 3.35%, 13m New 2.75%)
- Citizens Access (5y 3.00% → 3.25%, 1y 1.90% → 2.25%)
- CD Bank (5y 2.87% → 3.15%, 2y 2.54% → 3.00%, 1y 2.06% → 2.55%)
- Popular Direct (4y 3.05% → 3.15%, 1y 2.25% → 2.35% → 2.60%)
- Luana Savings Bank (42m SU 3.05% → 3.10%, 1y 2.48% → 2.53% → 2.58%, 6m Spc 2.12% → 2.28% → 2.43%)
- State Bank of India (IL) (2y SC 2.89% → 3.04%, 1y 2.38% → 2.64%)
- First Internet Bank (4y 2.94% → 3.04%, 18m 2.38% → 2.63%, 1y 2.07% → 2.58%)
- ConnectOne Bank (23m 1.90% → 3.00%, 13m 2.25% → 2.65%)
- NexBank (5y 2.25% → 3.00%, 1y promo Jbo 2.20% → 2.85%)
- Bank5 Connect (21m 1.50% → 2.95%)
- mph.bank via SaveBetter (18m 2.50% → 2.85%, 1y 2.10% → 2.65%, 10m 1.90% → 2.55%)
- State Bank of Texas (1y 2.50% → 2.75%)
- Merrick Bank (3y 3.00% → 2.75%, 2y 2.95% → 3.00%, 18m 2.65% → 2.75% → 2.90%)
- BankUnitedDirect (2y 2.05% → 2.75%, 1y 1.90% → 2.50%)
- Banesco USA (1y 2.15% → 2.70%, 6m 1.75% → 2.25%)
- Paramount Bank (25m Spc 1.40% → 2.70%, 19m Spc 1.00% → 2.55%, 13m Spc 0.70% → 2.00%)
- Rising Bank (18m Rsg 2.25% → 2.50%, 1y 2.15% → 2.30% → 2.50%, 15m NP 1.75% → 2.00%)
- Quontic Bank (5y 3.30% → 2.20%, 1y 2.55% → 1.76%)
- Rising Bank (1y 2.00% → 2.15%)
- HSBC (1y 1.90% → 2.00%)
Credit unions that have easy membership requirements:
- Navy FCU (33m Spc w/add-on 2.60% → 3.30%, 1y 1.65% → 2.15%)
- USALLIANCE Financial (3y 2.25% → 3.25%, 2y 2.50% → 3.25%)
- Alliant CU (5y 3.05% → 3.25%, 1y 2.10% → 2.40%)
- AgFed CU (3y 2.70% → 3.25%, 6m 0.75% → 1.50%)
- PenFed CU (5y 3.00% → 3.20%, 2y 2.50% → 3.00%, 1y 2.00% → 2.30%)
- Hughes FCU (3y Jbo 2.22% → 3.15%, 1y 1.26% → 1.61%)
- NASA FCU (49m Spc 3.00% → 3.15%, 15m Spc 2.75% → 3.00%, 9m 2.50% → 2.80%)
- Service CU (2y 2.05% → 3.00%, 18m 1.80% → 2.25%)
- Department of Commerce FCU (5y 2.40% → 2.83%, 6m 2.22% → 1.97%)
- Abound CU (26m Spc 2.75% → 3.00%)
- Andrews FCU (5y Jbo 2.15% → 2.90%, 1y Jbo 1.85% → 2.05%)
- Mountain America CU (5y AO 1.75% → 2.75%, 2y AO 1.00% → 2.75%)
- CommunityWide FCU (5y 2.60% → 2.70%, 1y 2.00% → 2.20%, 6m 1.60% → 2.00%)
Brokered CD Rates
For non-callable brokered CDs, most of the rate gains for the top CDs were the shorter durations of two years and under. For terms of three years and over, there were some rate declines. In addition, there were fewer non-callable CDs listed. In the case of Vanguard, there were no non-callable, new-issue 4-year CDs listed. This was also the case for 3-year CDs in the morning, but a non-callable 3-year CD did become available in the afternoon. At Fidelity, two banks, State Bank of India and First Financial Bank USA, were the only ones listing CDs for 5-, 4- and 3-year terms.
Brokered CDs now only have the advantage over direct CDs for terms under 12 months. For terms of 12 months and longer, top direct CD rates either match or are higher than top non-callable brokered CD rates.
For terms over five years, there were again no non-callable CDs at both brokerage firms.
The callable feature gives the bank the right to redeem a CD early. That can save the bank money when interest rates fall. However, the CD holder loses out if rates fall and the CD is called early. The lack of non-callable long-term CDs suggests that banks think that rates may be lower over the long run. Thus, they only offer callable long-term CDs that they can choose to call before maturity if rates do in fact fall.
Direct CD Rates and Deals
For direct CDs, Bread Financial’s recent rate hikes have moved them into rate leader status for several terms. They’re either the highest rate or tied for the highest rate for 2-, 3-, 4- and 5-year terms. For 1-year CDs, they’re the first ones to reach 3% APY, and for 2-year CDs, they’re the first to reach 3.50% APY. They had been the rate leader for 1-year CDs until this evening. I checked the rates at CFG Bank and noticed that they increased their 1-year CD rate from 2.75% to 3.05% APY. Below are the full list of APYs and early withdrawal penalties (EWPs) for all five CDs at Bread Financial:
- 1-year: 3.00% APY, EWP = 180 days
- 2-year: 3.50% APY, EWP = 180 days
- 3-year: 3.55% APY, EWP = 180 days
- 4-year: 3.60% APY, EWP = 365 days
- 5-year: 3.65% APY, EWP = 365 days
CFG Bank is now the rate leader for both the 1-year and 18-month CD. Their 3-year and 5-year CD rates are tied with Bread Financial’s. Below are the full list of APYs and early withdrawal penalties (EWPs) for all four CDs at CFG Bank:
- 1-year: 3.05% APY, EWP = 180 days
- 18-month: 3.20% APY, EWP = 180 days
- 3-year: 3.55% APY, EWP = 180 days
- 5-year: 3.65% APY, EWP = 180 days
For terms under one year, NASA Federal Credit Union’s 9-month CD Special has the highest rate (2.80% APY). The EWP is 182 days of interest.
For a 6-month term, Barksdale Federal Credit Union is the rate leader. This 6-month CD has a 2.78% APY and an EWP of 90 days’ dividends. It’s available nationwide, but for most people, a military relationship is required to qualify for credit union membership.
Also noteworthy for a short-term CD deal are the new no-penalty CDs that are available through the SaveBetter.com platform. Sallie Mae Bank is now offering two no-penalty CDs at SaveBetter: a 14-month (2.50% APY) and a 10-month (2.00% APY). And just this week, Patriot Bank has started offering an even more competitive no-penalty CD (2.55% APY 17-month). These no-penalty CDs are patterned after Ally Bank’s 11-month no-penalty CD. A full withdrawal/closure can be done anytime after six days from account funding. All accrued interest will be paid out along with the full principal at the time of closure. With these no-penalty CDs, a longer term is always better. You can essentially make the CD have any term you want from 7 days to the default maturity date. Thus, these no-penalty CDs are included in the “under one year” category even though they have terms over one year.
It should be noted that SaveBetter is not a bank. It just acts as a middleman between you and the bank. This arrangement has some drawbacks as I described in my review of SaveBetter.
New Category - Nationally Available Add-On CDs
In August 2021, a new category for nationally available add-on CDs was added near the bottom of the tables. These are CDs in which you can make one or more additional deposits during the term. Add-on CDs are most valuable when rates are falling or when rates may fall in the future.
As I mentioned above, the new higher rates of Navy Federal’s 33-month CD Special (3.30% APY) and Mountain America’s Growth CDs for terms of 24 to 60 months (2.75% APY) are currently the best add-on CD deals. Both have small minimum initial deposits and allow an unlimited number of add-on deposits. The primary downside with both is a maximum balance of $100k.
The best add-on CDs have long terms, small minimum deposits, and allow add-on deposits with no limits on the number of deposits or the size of deposits. These types of add-on CDs can be a great hedge against a long low-rate environment in which rates stay low or fall even lower. Deposit the minimum, and use the add-on CD as a back-up CD when your other CDs mature. If you can’t find a higher rate when the CD matures, you can always deposit the funds into the add-on CD.
Note, add-on CDs do have a risk that the institution could refuse to allow add-on deposits or may limit the amount of add-on deposits in contradiction to the original CD disclosure. A few credit unions in the past have failed to honor their add-on terms. I described one example in this 2014 blog post.
Savings and Money Market Accounts
In the last couple of weeks, several online banks have raised their savings or money market rates above 2%. The current rate leader is CFG Bank with a money market account that earns 2.30% APY.
For more details about these three accounts, please refer to my latest liquid account summary.
Federal Reserve and Interest Rate Summary
The Fed and economy review is now split off on a separate blog post. My weekly summaries will now be focused entirely on deposit rates and deals. Please keep all discussion about the Fed, the economy and politics to my Fed/Economy review blog post.
Here's the link to last week's savings/checking account summary. You can always get the latest rates for savings/checking accounts and CDs by using our rate tables, available via the navigational menu on top.
Yields Accurate as of August 3, 2022
Under 1-Year CD Rates
| Institution | Rates | Notes |
|---|---|---|
| Fidelity Brokered CD | 2.90% (APR) 9-month non-callable CD | Issued by CSPA, WFB* |
| The Vanguard Group Brokered CD | 2.85% (APR) 7-9 month non-callable CD | Issued by BMOH, PWB* |
| NASA Federal Credit Union | 2.80% ($10k) 9-month Share Certificate Special | Easy membership Account review |
| Barksdale Federal Credit Union | 2.78% ($1k) 6-month Certificate (**NTS) | Military relationship See review |
| Fidelity Brokered CD | 2.75% (APR) 6-month non-callable CD | Issued by MRB, PKWBT, WAB* |
| The Vanguard Group Brokered CD | 2.70% (APR) 4-6 month non-callable CD | Issued by BHAP, BUN, WEB* |
| Patiot Bank | 2.55% ($1) 17-month No Penalty CD via SaveBetter | Internet bank |
| Sallie Mae Bank | 2.50% ($1) 14-month No Penalty CD via SaveBetter | Internet bank See review |
| Luana Savings Bank | 2.43% ($100k), 2.33% ($1k) 6-month Certificate Special | Account review |
| Fidelity Brokered CD | 2.40% (APR) 3-month non-callable CD | Issued by MRB* |
| Merrick Bank | 2.35% ($25k) 6-month CD | Account review |
| The Vanguard Group Brokered CD | 2.35% (APR) 1-3 month non-callable CD | Issued by ALLY, BotW, 1stCOM, MCBTN, PKWBT* |
| Banesco USA | 2.25% ($1.5k) 6-month CD (**NTS) | Account review |
| Interior Federal Credit Union | 2.13% ($100k), 2.03% ($500) 6-month Jumbo Share Certificate | Easy membership See review |
| Lafayette Federal Credit Union | 2.12% ($500) 7-month Fixed CD | Easy membership See review |
| Department of Commerce Federal Credit Union | 2.07% ($25k), 1.97% ($500) 6-11 month CD | Easy membership See review |
| TAB Bank | 2.05% ($1k) 9-month CD | Account review |
| Sallie Mae Bank | 2.00% ($1) 10-month No Penalty CD via SaveBetter | Internet bank See review |
| Rising Bank | 2.00% ($1k) 15-month No Penalty CD | Account review |
| Sallie Mae Bank | 2.00% ($2.5k) 9-month CD | Internet bank See review |
| Bellco Credit Union | 1.65% ($2.5k) 36-month Smart Move CD | Easy membership - one partial withdrawal allowed, $1k min must be maintained See review |
| Western Vista Federal Credit Union | 1.60% ($500) 9-month CD Special | Easy membership See review |
Noteworthy Local Deals - Under 1-Year CDs
| Home Bank of California | 2.53% ($10k) 9-11 month CD (**NTS) | San Diego metro area See review |
| Gain Federal Credit Union | 2.50% ($50k), 2.00% ($25k), 1.50% ($1k) 9-month Summer Certificate Special (**NTS) | Easy membership in Southern California See review |
| Woodlands National Bank | 2.48% ($50k) 9-month CD Special | Minneapolis metro area See review |
| General Electric Credit Union | 2.25% ($500) 9-month Share Certificate (**NTS) | 21 Ohio, 9 Kentucky, and 5 Indiana counties See review |
| Mobility Credit Union | 2.02% ($500) 9-month CD | Easy membership in Texas See review |
1-Year CD Rates
| CFG Bank | 3.05% ($500) 12-month CD (**NTS) | Account review |
| The Vanguard Group Brokered CD | 3.05% (APR) 10-12 month non-callable CD | Issued by SAFB* |
| Bread Financial | 3.00% ($1.5k) 1-year Bread Savings CD | Account review |
| Fidelity Brokered CD | 3.00% (APR) 1-year non-callable CD | Issued by AMEX NB, BMOH, TMBLM* |
| Barksdale Federal Credit Union | 2.99% ($1k) 12-month Certificate (**NTS) | Military relationship See review |
| Patiot Bank | 2.75% ($1) 13-month No High Yield CD via SaveBetter | Internet bank |
| State Bank of Texas (SBT) | 2.75% ($25k) 12-month CD | Account review |
| Credit One Bank, N.A. | 2.75% ($100k) 13-month Jumbo CD(**NTS) | Account review |
| Banesco USA | 2.70% ($1.5k) 12-month CD (**NTS) | Account review |
| Latino Credit Union | 2.65% ($200k), 1.50% ($100k) 12-month Jumbo CD | Easy membership See review |
| Interior Federal Credit Union | 2.54% ($100k), 2.44% ($1k) 12-month Jumbo CD | Easy membership See review |
| Quorum Federal Credit Union | 2.50% ($1k) 13-month Term Savings CD (**NTS) | Easy membership See review |
| Consumers Credit Union | 2.45% ($200k) 11-month Super Jumbo CD Special | Easy membership See review |
| Veridian Credit Union | 2.40% ($100k) 12-month Jumbo CD Special | Easy membership See review |
Noteworthy Local Deals - 1-Year CDs
| Tioga-Franklin Savings Bank | 3.04% ($5k) 1-year CD | Pennsylvania, New Jersey, and DelawareSee review |
| General Electric Credit Union | 3.00% ($250k), 2.75% ($100k), 2.50% ($500) 1-year Jumbo Plus Share Certificate (**NTS) | 21 Ohio, 9 Kentucky, and 5 Indiana counties See review |
| Guardian Credit Union | 2.53% ($10k) 12-month CD Special (**NTS) | 13 Alabama counties See review |
| Home Bank of California | 2.53% ($10k) 12-17 month CD (**NTS) | San Diego metro area See review |
| Communications Federal Credit Union | 2.50% ($1k) 13-month Share Certificate Special (**NTS) | Easy membership in Kansas and Oklahoma See review |
18-month CD Rates
| CFG Bank | 3.20% ($500) 18-month CD | Account review |
| The Vanguard Group Brokered CD | 3.20% (APR) 13-18 month non-callable CD | Issued by UBS* |
| Fidelity Brokered CD | 3.15% (APR) 18-month non-callable CD | Issued by DIS, PWB* |
| NASA Federal Credit Union | 3.00% ($10k) 15-month Share Certificate Special | Easy membership Account review |
| mph.bank | 2.85% ($1) 18-month High-Yield CD via SaveBetter | Account review |
| Interior Federal Credit Union | 2.78% ($100k), 2.68% ($1k) 20-month Bump Up Jumbo Share Certificate | Easy membership See review |
| mph.bank | 2.75% ($1) 15-month High-Yield CD via SaveBetter | Account review |
| ConnectOne Bank | 2.75% ($500) 18-month CD (**NTS) | Account review |
| Sallie Mae Bank | 2.75% ($2.5k) 18-month CD (**NTS) | Internet bank See review |
| Latino Credit Union | 2.70% ($200k), 1.60% ($100k) 18-month Jumbo CD | Easy membership See review |
| PenFed Credit Union | 2.60% ($1k) 18-month Money Market Certificate (**NTS) | Easy membership See review |
| Alliant Credit Union | 2.60% ($1k) 18-23 month Share CD (**NTS) | Easy membership See review |
Noteworthy Local Deals - 18-Month CDs
| Frontwave Credit Union | 3.25% ($1k) 18-month Certificate Special (**NTS) | 3 Southern California counties See review |
| CoastLife Credit Union | 3.09% ($1k) 15-month CD Promo (**NTS) | 5 Texas counties (Corpus Christi area) See review |
| BCU | 3.00% ($250k) 18-month Jumbo CD (**NTS) | 5 Illinois and 1 Wisconsin counties See review |
| Farmers State Bank | 2.85% ($5k) 17-month CD Special | All Iowa counties See review |
| American Eagle Bank | 2.75% ($1k) 18-month CD Special | Chicago metro area See review |
2-Year CD Rates
| Bread Financial | 3.50% ($1.5k) 2-year Bread Savings CD | Account review |
| Fidelity Brokered CD | 3.35% (APR) 2-year non-callable CD | Issued by UBS* |
| The Vanguard Group Brokered CD | 3.35% (APR) 2-year non-callable CD | Issued by AMEX NB, SBoIIL, UBS* |
| USALLIANCE Financial | 3.25% ($500) 24-month Certificate Special (**NTS) | Easy membership Account review |
| Barksdale Federal Credit Union | 3.04% ($1k) 24-month Certificate (**NTS) | Military relationship See review |
| ConnectOne Bank | 3.00% ($500) 23-month CD (**NTS) | Account review |
| PenFed Credit Union | 3.00% ($1k) 2-year Money Market Certificate (**NTS) | Easy membership See review |
| Sallie Mae Bank | 3.00% ($2.5k) 24-month CD (**NTS) | Internet bank See review |
| Merrick Bank | 3.00% ($25k) 24-month CD | Account review |
| Consumers Credit Union | 3.00% ($250k) 22-month Super Jumbo CD Special | Easy membership See review |
| State Bank of India (IL) | 2.89% ($2.5k) 24-month Senior Citizen CD | See review |
| Interior Federal Credit Union | 2.89% ($100k), 2.79% ($1k) 23-month Jumbo Share Certificate | Easy membership See review |
| Lafayette Federal Credit Union | 2.88% ($500) 2-year Fixed CD | Easy membership See review |
Noteworthy Local Deals - 2-Year CDs
| General Electric Credit Union | 3.25% ($250k), 3.00% ($100k), 2.75% ($500) 2-year Jumbo Plus Share Certificate (**NTS) | 21 Ohio, 9 Kentucky, and 5 Indiana counties See review |
| ValleyStar Credit Union | 3.04% ($10k) 2-year CD Special (**NTS) | 25 Virginia and 4 North Carolina counties See review |
| Listerhill Credit Union | 3.03% ($500) 24-month Promotional CD | Easy membership in Alabama, Florida, Georgia, Mississippi, and Tennessee See review |
| Metro Credit Union | 3.00% ($500) 24-month CD Special | 11 Massachusetts and 3 Rhode Island counties See review |
| Advia Credit Union | 3.00% ($500) 22-month Promo Rate CD | Michigan's Lower Peninsula, 9 Wisconsin and 7 Illinois counties See review |
3-Year CD Rates
| CFG Bank | 3.55% ($500) 36-month CD | Account review |
| Bread Financial | 3.55% ($1.5k) 3-year Bread Savings CD | Account review |
| INSBANK Online | 3.50% ($2.5k) 3-year CD (**NTS) | Account review |
| Interior Federal Credit Union | 3.35% ($100k), 3.25% ($1k) 36-month Jumbo Share Certificate | Easy membership See review |
| The Vanguard Group Brokered CD | 3.35% (APR) 3-year non-callable CD | Issued by COBNA ,COBUSA, SMB * |
| Navy Federal Credit Union | 3.30% ($1k/$100k) 33-month Certificate Special (**NTS) | Easy membership See review |
| PenFed Credit Union | 3.25% ($1k) 3-year Money Market Certificate | Easy membership See review |
| Langley Federal Credit Union | 3.25% ($500) 33-month CD Special | Easy membership See review |
| AgFed Credit Union | 3.25% ($250) 36-month Certificate (**NTS) | Easy membership See review |
| USALLIANCE Financial | 3.25% ($500) 36-month Certificate Special (**NTS) | Easy membership Account review |
| State Bank of India | 3.19% ($25k) 3-year Senior Citizen CD | See review |
| Fidelity Brokered CD | 3.10% (APR) 3-year non-callable CD | Issued by 1stFB* |
Noteworthy Local Deals - 3-Year CDs
| General Electric Credit Union | 3.50% ($500) 3-year Share Certificate | 21 Ohio, 9 Kentucky, and 5 Indiana counties See review |
| Sidney Federal Credit Union | 3.21% ($500) 32-month CD Special (**NTS) | 14 Central New York counties See review |
| National Bank of New York City | 3.15% ($2.5k) 42-47 month CD | NYC Tri-state area See review |
| Old Missouri Bank | 3.09% ($1k) 37-month CD Special | Springfield (MO) Metropolitan Statistical Area See review |
| Visions Federal Credit Union | 3.05% ($500) 36-month Double Bump CD (**NTS) | 14 NY, 5 NJ, and 4 PA counties See review |
4-Year CD Rates
| Bread Financial | 3.60% ($1.5k) 4-year Bread Savings CD | Account review |
| Interior Federal Credit Union | 3.40% ($100k), 3.30% ($1k) 48-month Jumbo Share Certificate | Easy membership See review |
| Lafayette Federal Credit Union | 3.39% ($500) 4-year Fixed CD | Easy membership See review |
| State Bank of India | 3.24% ($25k) 4-year Senior Citizen CD | See review |
| Fidelity Brokered CD | 3.20% (APR) 4-year non-callable CD | Issued by 1stFB* |
| NASA Federal Credit Union | 3.15% ($10k) 49-month Share Certificate Special | Easy membership Account review |
| Popular Direct | 3.15% ($10k) 48-month Popular Direct CD (**NTS) | Easy membership See review |
| TAB Bank | 3.10% ($1k) 48-month CD (**NTS) | Account review |
| Luana Savings Bank | 3.10% ($100k), 2.99% ($1k) 42-month Step-Up CD Special (**NTS) | Account review |
| Latino Credit Union | 3.05% ($200k), 2.25% ($100k) 48-month Jumbo CD | Easy membership See review |
| Alliant Credit Union | 2.90% ($1k) 48-month Share CD (**NTS) | Easy membership See review |
Noteworthy Local Deals - 4-Year CDs
| National Bank of New York City | 3.25% ($2.5k) 54-59 month CD | NYC Tri-state area See review |
| National Bank of New York City | 3.20% ($2.5k) 48-53 month CD | NYC Tri-state area See review |
| First Financial Credit Union (IL) | 3.05% ($1k) 48-month Certificate | Chicagoland See review |
| Encompass Credit Union | 3.05% ($1k) 48-59 month CD (**NTS) | Clinton, Howard, and Tipton Counties, Indiana See review |
| Franklin Mint Federal Credit Union | 3.00% ($500) 48-month CD | Easy membership in SE Pennsylvania and northern Delaware See review |
5-Year CD Rates
| CFG Bank | 3.65% ($500) 60-month CD | Account review |
| Bread Financial | 3.65% ($1.5k) 5-year Bread Savings CD | Account review |
| Lafayette Federal Credit Union | 3.64% ($500) 5-year Fixed CD | Easy membership See review |
| The Vanguard Group Brokered CD | 3.55% (APR) 5-year non-callable CD | Issued by SBoI* |
| Fidelity Brokered CD | 3.55% (APR) 5-year non-callable CD | Issued by SBoI* |
| Interior Federal Credit Union | 3.52% ($100k), 3.41% ($1k) 60-month Jumbo Share Certificate | Easy membership See review |
| Credit One Bank, N.A. | 3.35% ($100k) 60-month Jumbo CD (**NTS) | Account review |
| State Bank of India | 3.34% ($25k) 5-year Senior Citizen CD | See review |
| M.Y. Safra Bank | 3.26% ($500) 60-month MYSB Direct Online CD (**NTS) | Account review |
| Alliant Credit Union | 3.25% ($1k) 60-month Share CD | Easy membership See review |
| PenFed Credit Union | 3.20% ($1k) 5-year Money Market Certificate (**NTS) | Easy membership See review |
| Latino Credit Union | 3.10% ($200k), 2.35% ($100k) 60-month Jumbo CD | Easy membership See review |
Noteworthy Local Deals - 5-Year CDs
| General Electric Credit Union | 3.50% ($500) 5-year Share Certificate | 21 Ohio, 9 Kentucky, and 5 Indiana counties See review |
| National Bank of New York City | 3.35% ($2.5k) 60-month CD | NYC Tri-state area See review |
| Asian Bank | 3.25% ($1k) 60-month CD | SE Pennsylvania Account review |
| Patriot Federal Credit Union | 3.15% ($250k), 3.10% ($100k), 3.05% ($25k), 3.00% ($10k), 2.90% ($1k) 60-month CD | 1 Pennsylvania, 2 Maryland, and 3 West Virginia counties See review |
| Members Choice Credit Union | 3.05% ($500) 60-month Share Certificate (**NTS) | 33 eastern Kentucky counties |
Over 5-Year CD Rates
| First National Bank of America | 3.35% ($1k) 84-month CD | Account review |
| First National Bank of America | 3.30% ($1k) 72-month CD | Account review |
| Marcus by Goldman Sachs | 3.20% ($500) High-Yield 6 Year CD | Account review |
| PenFed Credit Union | 3.20% ($1k) 7-year Money Market Certificate | Easy membership See review |
| Discover Bank | 3.00% ($2.5k) 10-year CD | Account review |
| Navy Federal Credit Union | 3.15% ($100k min) 7-year Certificate | Account review |
| Affinity Plus Federal Credit Union | 3.00% ($500) 66-month CD Promo | Easy membership See review |
| AFFCU | 2.85% ($1k) 7-year Share Certificate | Easy membership See review |
| Credit Human | 2.80% ($1k) 120-month CD | Easy membership See review |
| KS StateBank | 2.65% ($500) 7-year CD | Account review |
Noteworthy Local Deals - Over 5-year CDs
| iTHINK Financial | 3.56% ($1k) 84-month Certificate | 11 Florida and 12 Georgia counties See review |
| Citadel | 3.30% ($75k), 3.25% ($500) 84-month Bonus CD | 6 SE Pennsylvania counties See review |
| Security Service Federal Credit Union | 3.25% ($50k), 3.20% ($25k), 3.15% ($500) 7-year CD | Easy membership in Colorado, Texas, and Utah See review |
| Lebanon Credit Union | 3.15% ($500) 66-month CD Special (**NTS) | Lebanon County, Pennsylvania See review |
| Manasquan Bank | 3.00% ($500) 7-year CD | New Jersey See review |
| Campus Federal | 3.00% ($1k) 72-month CD | Easy membership in Louisiana See review |
*1stCOM (First Commercial Bank USA), 1stFB (1st Financial Bank USA SD), ALLY (Ally Bank), AMEX NB (American Express National Bank), BHAP (Bank Hapoalim), BMOH (BMO Harris), BotW (Bank of the West), BUN (BankUnited), COBNA (Capital One Bank NA), COBUSA (Capital One Bank USA), CSPA (Customers Bank PA), DIS (Discover Bank), MCBTN (Mountain Commerce Bank TN), MRB (Merchants Bank) PKWBT (Parkway B&T IL), PWB (Pacific Western Bank), SAFB (Safra Bank), SBoI (State Bank of India), SBoIIL (State Bank of India IL), SMB (Sallie Mae Bank), TMBLM (The Mercantile Bank of Louisiana, Missouri), UBS (UBS Bank USA), WAB (Western Alliance Bank), WEB (WEB Bank), WFB (Wells Fargo Bank)
**New To Summary, as of August 3, 2022
Nationally Available Add-On CD Rates
| Institution | Rates | Notes |
|---|---|---|
| Navy Federal Credit Union | 3.30% ($1k/$100k) 33-month Certificate Special (**NTS) | Unlimited deposits throughout term Account review |
| Navy Federal Credit Union | 3.00% ($50 min/$3k max) 12-month Special Easy Start CD | Unlimited deposits throughout term, checking relationship, direct deposit Account review |
| Rising Bank | 2.80% ($25k min) 36-month Rising CD | Two additional deposits during term Account review |
| Mountain America Credit Union | 2.75% ($5 min/$100k max) 36-month Growth CD | Unlimited deposits throughout term, min $10 automatic monthly deposit See review |
| Mountain America Credit Union | 2.75% ($5 min/$100k max) 48-month Growth CD | Unlimited deposits throughout term, min $10 automatic monthly deposit See review |
| Mountain America Credit Union | 2.75% ($5 min/$100k max) 60-month Growth CD | Unlimited deposits throughout term, min $10 automatic monthly deposit See review |
| My Banking Direct | 2.50% ($500) 12-month CD | Unlimited additional deposits See review |
| Rising Bank | 2.50% ($5k min) 18-month Rising CD | One additional deposit during term Account review |
| Achieva Credit Union | 2.40% ($75k), 2.30 ($500) 42-month Promotional CD | Unlimited additional deposits See review |
| AgFed Credit Union | 2.30% ($25) 24-month Asset Builder Certificate | Unlimited additional deposits of any amount See review |
| AgFed Credit Union | 2.05% ($25) 18-month Asset Builder Certificate | Unlimited additional deposits of any amount See review |
| Navy Federal Credit Union | 2.05% ($100 min) 18-month Easy Start CD | Unlimited deposits throughout term Account review |
| Navy Federal Credit Union | 2.05% ($100 min) 12-month Easy Start CD | Unlimited deposits throughout term Account review |
| Navy Federal Credit Union | 2.05% ($100 min) 24-month Easy Start CD | Unlimited deposits throughout term Account review |
| AgFed Credit Union | 1.90% ($25) 12-month Asset Builder Certificate | Unlimited additional deposits of any amount See review |
| Michigan State University Federal Credit Union | 1.85% ($100k) 1-year Add-On Jumbo CD | A total of $10k in additional deposits per member Account review |
| Bellco Credit Union | 1.65% ($2.5k) 36-month Smart Move CD | One-time additional deposit of $100+, one partial withdrawal allowed, $1k min must be maintained See review |
| Michigan State University Federal Credit Union | 1.60% ($50) 1-year Add-On CD | A total of $10k in additional deposits per member) Account review |
| Evansville Teachers Federal Credit Union | 1.50% ($25) 1-year Save to Win Certificate | Unlimited deposits throughout term See review |
| Credit Human | 1.40% ($5k) 12-month Liquid CD | Easy membership See review |
| Heartland Credit Union (KS) | 1.15% ($100k), 1.10% ($25k), 1.05% ($500 min) 30-Month Add-On CD | Unlimited deposits ($500 min) throughout term Account review |
| Blue Federal Credit Union | 1.14% ($100k), 1.09% ($50k), 1.04% ($2k) 30-month Expandable CD | Unlimited deposits throughout term Account review |
| Vibrant Credit Union | 0.80% ($100 min) 5-Year Add-On CD | Unlimited deposits throughout term Account review |
| Pen Air Federal Credit Union | 0.75% ($500 min) 15-month Add-On CD | Unlimited deposits throughout term Account review |
| Bank5 Connect | 0.50% ($500 min) 24-month Investment CD | Unlimited deposits throughout term Account review |
CDs Removed Due To Low Rates Or Expired Specials
CDs Removed, No Longer Available
| OlyFed | 2.02% ($100k), 1.71% ($10k) 7-month Summer Savings CD | Olympia (WA) metro area See review |
| Belco Community Credit Union | 2.50% ($1k) 10-month CD Special | 7 South Central Pennsylvania counties See review |
| CFG Bank | 1.70% ($500) 13-month Penalty Free CD | Account review |
CDs Removed, Rate Too Low
| M.Y. Safra Bank | 1.80% ($500) 6-month MYSB Direct Online CD | Account review |
| Quontic Bank | 1.15% ($500) 6-month CD | Account review |
| Heritage Community Bank | 2.02% ($1k) 8-month CD Special | Franklin, Osage, Warren Counties, Missouri See review |
| Alma Bank | 2.00% ($2.k) 9-month CD | New York City and northern New Jersey See review |
| mph.bank | 2.65% ($1) 12-month High-Yield CD via SaveBetter | Account review |
| Merrick Bank | 2.60% ($25k) 12-month CD | Account review |
| mph.bank | 2.55% ($1) 10-month High-Yield CD via SaveBetter | Account review |
| Lafayette Federal Credit Union | 2.37% ($500) 1-year Fixed CD | Easy membership See review |
| Quontic Bank | 1.76% ($500) 1-year CD | Account review |
| Schools Federal Credit Union | 2.50% APY ($5k min/$50k max; additional deposits throughout term up to $50k max) Special 12-month Relationship CD | Employees and students of Los Angeles Unified School District and Los Angeles Community College District |
| Trinity Bank | 2.42% ($1k) 1-year CD | Fort Worth, Texas metro area |
| Infinity Credit Union | 2.35% ($1k) 10-month CD Special | Cumberland and York Counties, Maine |
| Credit One Bank, N.A. | 2.75% ($100k) 18-month Jumbo CD | Account review |
| Luana Savings Bank | 2.74% ($100k), 2.63% ($1k) 18-month CD | Account review |
| Synchrony Bank | 2.65% (no min) 19-month CD | Account review |
| Merrick Bank | 2.65% ($25k) 18-month CD | Account review |
| USALLIANCE Financial | 2.50% ($500) 18-month Certificate Special | Easy membership Account review |
| Veridian Credit Union | 2.50% ($100k) 18-month Bump-Up Jumbo CD | Easy membership See review |
| FivePoint Credit Union | 2.68% ($1k) 18-month High Rate CD Special | 16 SE Texas counties See review |
| Hanover Bank | 2.55% ($500) 18-month CD | Greater NYC metro area See review |
| TruStone Financial Credit Union | 2.50% ($2.5k) 20-month CD Special | 16 Minnesota and 5 Wisconsin counties See review |
| State Bank of India | 2.88% ($25k) 2-year Senior Citizen CD | See review |
| Rising Bank | 2.85% ($100k) 2-year Jumbo CD | Account review |
| GreenState Credit Union | 2.80% ($1k) 26-month CD Special | Easy membership See review |
| Quontic Bank | 1.95% ($500) 2-year CD | Account review |
| First Bank of the Lake | 3.00% ($5k) 26-month CD Special | Lake of the Ozarks area See review |
| Community Bank of the Bay | 2.84% ($100k), 2.63% ($1k) 24-35 month CD | San Francisco Bay area, possible nationally available See review |
| Lafayette Federal Credit Union | 3.13% ($500) 3-year Fixed CD | Easy membership See review |
| Veridian Credit Union | 3.10% ($100k), 3.00% ($1k) 41-month Bump-up Jumbo CD Special | Easy membership See review |
| Quontic Bank | 2.06% ($500) 3-year CD | Account review |
| M.Y. Safra Bank | 3.06% ($500) 36-month MYSB Direct Online CD | Account review |
| Main Street Bank (MA) | 3.04% ($1k) 35-month CD Special | Middlesex and Worcester Counties, Massachusetts See review |
| First Bank of the Lake | 2.65% ($5k) 36-month CD | Lake of the Ozarks area See review |
| M.Y. Safra Bank | 3.05% ($1k) 48-month MYSB Direct Online CD | Account review |
| First National Bank of America | 3.05% ($1k) 48-59 month CD | Account review |
| Luana Savings Bank | 3.05% ($100k), 2.94% ($1k) 48-month CD | Account review |
| Community Bank of the Bay | 3.30% ($100k), 3.05% ($1k) 48-59 month CD | San Francisco Bay area, possible nationally available See review |
| First Internet Bank | 3.25% ($1k) 60-month CD | Account review |
| Genisys Credit Union | 3.03% ($500) 61-month Share Certificate Special | Easy membership Account review |
| Quontic Bank | 2.20% ($500) 5-year CD | Account review |
| Community Bank of the Bay | 3.30% ($100k), 3.05% ($1k) 60+ month CD | San Francisco Bay area, possible nationally available See review |
Hope to post an experience I had with an FI this week as a warning, but I am still waiting on them to resolve the issue. TERRIBLE service!
Only thing I want to say here is that it is probably not a good idea to buy brokered CDs unless you know what you are doing. It's very easy to make a serious mistake. It's a very different animal and more complex than a direct CD. And it may not end up giving you the return you expected.
However, (and this is a completely different topic) if the FI I had the problem with this week doesn't get it resolved by tomorrow, and also doesn't follow up on their promise to contact me, I will be very tempted to report my experience here. And it is juicy.
Thanks.
I don't want to overstate it. You are probably fine. But a CD is essentially a bond and it can get complicated especially if you're buying it on a secondary market.
The main point I started writing about and then decided to wait until I had more time was that you cannot directly compare the yields listed on brokered CDs with the yields you see listed on direct CDs. Just because one shows a higher percentage than the other does not necessarily mean it will yield a higher return.
There are other things too, like potentially different tax treatment.
So again, I don't want to overstate it. What I was going to say was intended to be instructive and not really a warning.
It really is unrelated to the warning I was talking about. That is about a specific FI and something they did that's completely unrelated to this.
I had been waiting for them to resolve the issue before I talk about what happened here. But I'm losing my patience with them and might not wait that long.
Redeeming a bank CD before maturity will cost you the EWP and maybe up to an additional month of interest. Redeeming a brokered CD before maturity requires selling it on the secondary market, at the market price, which may be more or less than you originally paid. If you hold either type to maturity, there is no difference. At maturity, bank CD's will automatically renew unless you take action. Brokered CD's do not renew. Interest on both are taxed annually. (Please correct me if I have any errors or omissions.)
P_D is correct, it can get complicated if you are purchasing secondary market brokered CDs. When you purchase secondary market brokered CDs you have to deal with the additional complexities of: discount amount, premium amount, accrued interest, mark-up fees, utilizing the de minimis tax rule to determine if a secondary market CD purchased at discount is taxed at the ordinary income tax rate or at the capital gains tax rate, including the premium amount in the tax basis of the CD, or electing to amortize the premium amount over the term of the CD. It may be preferable to just simplify life and only buy new-issue, brokered CDs instead. In that situation the CDs are purchased at par and you don’t have to deal with the added tax intricacies of brokered CDs purchased in the secondary market.
This is a huge topic that could fill a book. Fixed income securities are an entire species unto themselves and a specialty that could consume an entire career (and does for many people in the business).
I just wanted to touch on one particular quantitative point, and that is that there is a difference between a brokered CDs YTM and a direct CDs APY. Except for some specific cases, the two do not produce the same measure of the yield of the CD.
The formula for YTM is different than the formula for APY. In technical terms, YTM represents the discounted internal rate of return that equates the expected net cash flows of the CD to the purchase price. It is neither equivalent to an APY nor an APR. All three are different.
What people here generally are interested in when comparing CDs of similar terms and risk profiles is determining which one will have the most total cash in the pot at maturity. So I will focus on that to keep it simple and not get into trading or closing the CD before maturity. I’ll use an example of a direct CD that compounds monthly and has an APY of 3.00% and a brokered CD that pays out interest monthly has a YTM of 3.00%.
So given this example, which one will generate more total cash by the maturity date?
The answer is I don’t know.
Why? Because the critical difference between APY and YTM is that YTM makes the assumption that the interest is reinvested until maturity at the internal rate of return when paid out.
But this assumption is more theoretical than practical. In practice most brokered CD buyers will never reinvest the interest payments at exactly the IRR until maturity. It is theoretically possible, but practically nearly impossible. So you could call it a dubious assumption.
On the other hand a direct CD almost always comes with a guarantee that you will have the option to reinvest the interest payments at a rate that will generate exactly the stated yield and end up with an exact amount of money in the pot at maturity that can be known in advance. So generally there is more certainty of return with a direct CD compared to a brokered CD with periodic interest payments before maturity.
So which one is likely to produce the most return? Again the theoretical answer is I don’t know. It depends on the reinvestment rate you actually get on the interest payments on the brokered CD. That rate could be higher or lower than 3.00%. So you could end up with more or less money than you do with the direct CD even though the stated “yields” of the two are equivalent. Again that is because APY and YTM are not the same measure.
Speaking practically now though instead of theoretically. What are the chances that most people here who buy that 3.00% brokered CD will be reinvesting the interest payments from it at a rate that is equal to or higher than 3.00% for the entire term of the CD? I think that most would put the money in a liquid account at least until they consolidate into enough to buy another CD. Is it possible that liquid account rates could reach or exceed 3.00% before the CD matures? Yes, anything is possible and even if the liquid account is lower now it could be higher later offsetting the lower earlier rate. But having considered all of that, my point is that for practical purposes, in general, I think that the brokered CD is likely to produce less money in the pot at maturity than the direct CD and therefore would have to have a higher rate than the direct CD to produce the same total return.
There are pros and cons to both investments, but I think this one point is important to understand. You cannot directly compare APY to YTM AND as a practical matter, you typically may end up with less total return with a brokered CD than with a direct CD of an equivalent rate.
Also the same concept applies to both new issue brokered CDs and secondary market CDs since they both quote their yields in YTM. Also this concept is generally about CDs with terms longer than one year that pay interest before maturity.
Using the example I gave in comment #41:
1. If you buy the CD directly from a bank or credit union, you are guaranteed a 3.00% annualized return to maturity.
2. If you buy the CD from a brokerage, you are not guaranteed a 3.00% annualized return to maturity.
3. In practice, for most retail buyers at least, if you buy the CD from a brokerage you will probably realize an annualized return to maturity of less than 3.00%.
4. I didn't mention this before, but the likelihood is that the difference between the two returns would probably be relatively small in most market environments. Nevertheless for those who enjoy squeezing out every basis point of yield, this may be good to know.
The only reason I had an account with them is because they acquired the FI that I previously had an account with.
I may or may not give them another day or two to get this straightened out. At some point I will report what happened. It may not even be an issue for some depositors depending on how their account situation. For me it was one of the most outrageous things I have ever seen an FI do.
Has to do with an invasion of privacy. So even if the particular thing that happened doesn't apply to some, it is a massive breach of integrity and trust. Fortunately I have no money in this account and after this happened have crossed them off the list of prospects for a large deposit.
EDIT:
I just got a response and it is even worse! I am fuming! About to escalate it to the CEO if necessary.
Please do post when you get a chance--always good to know which FI's to avoid.
As noted on the Bread Savings site, "Bread Savings™ is a product of Comenity Capital Bank". Potential investors may want to be aware that the Better Business Bureau "opened an investigation into Comenity Bank on July 12, 2022." Depending on your bank criteria, you may or may not care. FYI. BBB Alert details can be found on the Comenity Bank BBB site here
https://www.bbb.org/us/oh/columbus/profile/credit-cards-and-plans/comenity-bank-0302-6558
But what is this with BBB showing an A+ on their review page? What is that all about? If that's an A+, I'd hate to see what an F looks like!
If you're having the LOSING bank initiate the 'push' out to fund your CD elsewhere, I've found that that takes longer. If the GAINING bank initiates, then its usually quite quick. It can also vary if the bank is using a third-party service for sending ACH...then for sure there will be added processing time.
Bottom line: If you gave ACH instructions to either side to move funds, their caveat is usually 3-5 business days, but I personally have never seen the gaining bank take more than 2 days.
First, note that the bank that did this has a name similar to LendingTree but it is NOT associated with LendingTree in any way. Just want to make that clear.
The bank is LendingClub Bank.
Here is the gist of it.
I have an account at this bank which I opened years ago at another bank and they acquired that bank a couple of years ago. Knowing the checkered past of LendingClub, including accounting irregularities, scandals and management shakeups, and their history as a fintech and I think the first “peer-to-peer” lender I would never have opened an account there anyway.
When they acquired the account, I left it open anyway but withdrew all the funds. I kept the account open though because places that take certain kinds of trusts are uncommon and they did. So I thought maybe I might use them for something in the future and didn’t have time or need to do any due diligence at the time. They do have FDIC.
Recently I saw that they were offering a pretty good rate on their savings account. 2%+. So just for the heck of it I began to investigate.
One of the things I did was try linking an external account. That’s where the trouble started.
I attempted to link two external accounts. Both processes failed with an error message.
BUT…
When I decided to forget about it, and that that was the last straw (their website is riddled with bugs and their customer service has been horrific), I looked at my Web page and could not believe what I saw.
I see this section called “Net Worth.” And there was a number in it. At first it didn’t seem like a big deal. I have seen other FIs that offer a tool to add your information on other assets and it keeps track of them for you and reports budgeting, etc. I assumed the number I was seeing was an example that was already in there to help people set it up. But let’s just say it seemed like a very high number to be an example for the average depositor. So something immediately seemed odd.
So I opened up that section and was completely blown away. It listed EVERY ONE of the over a dozen accounts I had at the two other financial institutions that I had tried unsuccessfully to link WITH THE BALANCES IN ALL OF THE ACCOUNTS! Remember I only tried to link two of those accounts.
Mind you these accounts are not all even for the same entities. Some are for trusts, some are individual and some are IRAs. I could not believe my eyes.
Furthermore, when I went back to see a list of external accounts EVERY SINGLE ACCOUNT was on the list of linked accounts even though I never requested links to any but two of them and even though the linking process had failed.
Unless there is something in their disclosures somewhere that says you are authorizing them to get all of that information when you link an account, it is a massive invasion of privacy. Who authorized them to get all that information about all those accounts?! They just helped themselves to my private information.
There is more, but I will stop there and summarize.
*Terrible web site (bugs, unexpected behavior, seems like some high school kid coded it)
*Terrible customer service (although some of them were better than others and considering what they have to work with the blame doesn’t necessarily belong to them)
*OUTRAGEOUS violations of your private information.
Bottom line: I cannot recommend this bank. Who knows what kind of security risk they expose you to? I don’t trust them. I felt my information was hacked and taken without my permission by my own bank. It was a really creepy feeling. Never saw anything like this before.
You know what it feels like? It feels like a shady fintech tried to go legit by acquiring a legit bank and getting out of the failed “peer-to-peer lending” business fad that it pioneered. But the ghost of the past still haunts them.
Fortunately, in the numerous external accounts I've linked, I have not seen something like this. But that doesn't mean it has happened. Doesn't sound legal though.
In my LendingClub online account, I tried to create a link to a single savings account at another bank where I had multiple accounts. It seemed like a normal process. I put in the routing and account number and then try to create the link. But before it got to the end of that process there were error messages. It seemed like it never completed.
So I decided to give it one more try before I crossed that bank off my list completely because of the other flags that I already observed and did not like.
I tried to create a link to a single savings account at another bank where I have multiple accounts. It also ended in an error, but with a different error message.
It clearly seems that neither of the processes completed because I never got to the last step where where it normally tells you either it's successful or it sends out trial deposits.
After I did that they apparently downloaded at a minimum the name of all my accounts and the balances. I don't know what other data they got but it's entirely possible they got even more data. And again, this is information for different entities. It's not only my personal accounts. Who the hell authorized them to do that!
And equally as strange it appears that all of the accounts were successfully linked for transfers even though it never went through the trial deposit process or instant verification process. Anyone with access to my lending club account would have had access to all of those accounts. Completely unacceptable. I'm I'm just glad I noticed it before logging off because I assumed nothing had happened. And I don't know if I would ever open that web page again. I would have hated to have left it in that state with all that information accessible to a hacker.
My guess is that this is not nefarious intent but rather ignorant or buggy software design, possibly because whoever wrote their scripts never anticipated a situation like this.
But whatever the case is it felt like an outrageous violation of my privacy. It was kind of that feeling that you need to take a quick security shower.
So I immediately changed all the security information on the other accounts FWIW.
A couple of questions, for the purpose of being able to guard against this type of thing myself -
I'm sure you know that for years there's been the “trial deposits” method of linking to accounts: from the financial institution you want to link from, you type in the routing no., account no. and perhaps account type of the account at the FI you want to link to. The “from” FI sends 1 or 2 small ACH trial deposits to the “to”, later you see them at the “to”, verify them at the “from”, and you're good to go. Notably, customers have nearly always been under the impression that this gave the “from” FI visibility on only THAT PARTICULAR ACCOUNT at the “to” FI. That's certainly been my understanding.
Alternatively, you're also no doubt aware of the growth of “services” such as Plaid, which tout their ability to make very quick links between people's accounts at different financial institutions. To do so, Plaid normally requests one's UserID and password at the “to” FI. Assumably this gives Plaid access to ALL of the user's accounts at that “to” FI, at least until he changes his password and/or UserID (and perhaps even after that, if Plaid also collects account numbers, account types and routing numbers during the time it has access via the original UserID/password combination). There may be other services aside from Plaid which also employ the “UserID/password” method.
In reading your post #23, it seems like LendingClub Bank was using the traditional “trial deposits” method. Is that assumption correct? Or, did you at any point also enter your UserID/password, when prompted by their system, for either of your two “target” banks? Your posts didn't mention “Plaid”, but was there any indication of any specific “new”, “better” or “special” technology (you know how advertising is!) they were using to link accounts?
Either way (either the “trial deposits” or the “UserID/password” method), this stinks. However I think if LendingClub Bank is using the “trial deposits” method it's a bit worse, because for years many people have assumed that this method provided visibility only to a single account at the “to” FI.
After it happened I was asking myself the same question. When you link a single account with the "manual" trial deposit method, does that give the FI any kind of access to your other accounts at the same external FI? I don't know the answer to that question. Of course you would assume not. But who ever encounters something like this? So the question never comes up.
As to this specific case. I don't think they use Plaid, they seem to use either some other third party facility similar to Plaid (likely) or maybe an in-house version (unlikely). I don't remember it being Plaid unless it was unbranded somehow and it was not "Plaidlike." I like others are not fans of Plaid or other similar "instant" verification methods in the sense that it is intrusive and also unreliable (I'd say it only works for me about 60-70% of the time) and for the FI I use most these days the connection between the FI and Plaid seems to always be down.
I can't say I hate it though because a few times it gave me instant links when I really needed them saving me money over having to wait days for linking. I have mixed feelings about it. Some FI's were doing their own instant linking before Plaid came on the scene.
So what happened in my case. Unfortunately I don't have a perfect recollection.
For the first FI I attempted to link to I used their instant verification method. That failed. I then used the trial balance "manual" method for that FI and that seemingly also failed since it ended with an error message (I subsequently found that there were trial deposits sent *just for that single account* in spite of the fact it seemed to fail). So for the first FI they definitely had potential access to all the accounts since they had the username and password.
For the second FI, I am a little fuzzier. I do not recall whether I decided to only use a manual process or also tried the instant method first. But my guess is that I used the same process as the first FI because I was testing things out and I think my thinking was that I wanted to see if there was just something wrong with the linking process to that particular FI or whether it was LendingClub's problem. So I think I repeated the same process as the first time and got the same result but with a different error message.
So I don't think this can shed any light on the question of what information the FI gets when you only use a "manual" linking process to a single account with trial balances and the presumption that they only get information about that single account still may be correct. I would say to only use that process when you have that option (I have heard of cases where instant linking was the only option and I think maybe I encountered that myself once) for maximum security. Unless there is information to the contrary I think that is the prudent presumption.
And if you use the instant linking method always change your password at any external FI that you link or attempt to link to.
There is always a risk in linking accounts. But sometimes it is the most efficient way to get things done and can't be avoided. All you can do is try to minimize the risk. I do have to say that of the at least hundreds of links I have created over the past few years, including instant links, probably encompassing at least dozens of FIs, I have never had a security breech. But that doesn't mean it could not happen.
However, what they did was pretty unusual. I know that a lot of people give extended access to the money management and tax software. Giving up that level of control always struck me as being a little too lax for the benefits involved.
My brokerage account wants me to do that for convenience sake. My gut feeling is they want to know where else I've got my money stashed away. So, I say no thanks to that as well.
I always love when setting-up a new link that they offer "instant verification". Giving a user name and password to a third party is always a bad idea. That sets you up with a world of hurt if the account you want to link ever gets hacked. The first thing they're going to ask you is if you've ever shared your personal information with anyone. I'll just do the trial deposits, thank you.
https://www.suneast.org/save/savings-accounts-and-certificates/certificates/
Oil below $90 from $120. Lumber has fallen from 1670 in May '21 to 479 today. Do commodities make a difference? What do you think. But hey - hold out for 4%. Don't be a foolish sheeple and lock in now! Because inflation!
6/9 2.85, 3.10, 3.15, 3.20, 3.35, N/A
8/3 3.35, 3.35, 3.55, 3.55, N/A, N/A
Note that Celtic hasn't come out with any new issue 7 or 9 yr since the Fed raise last week. However, their previous 9 yr 3.75 is now trading at 3.5.
Actually, it's VERY FUNNY.
PS
Wanted WhartonFoolOfEconomics but you're limited to 16 characters.
And, I don't see "impersonating a regular contributor" as against the comments guidelines.
I'd explain why P__D's post was funny but that would probably be against the comments guidlines!
This is a humor impaired site.
Thanks, P__D, we need more of your ilk to lighten-up this site.
Still, this is huge, and just the kind of action we've been waiting for. Stay liquid and get 3.5. Yes please!
In the meantime, I opened an account at Bread Financial. Instant gratification! Immediately got an account number and opened two CD's (2YR and 3YR) at rates equal or better than CFG. OK the Bread HYSA pays 2.15% while CFG's HYMM pays 2.3%.
https://www.nasb.com/landing-pages/premium-savings-account-special-deposit-accounts-9
Therefore, I conclude, someone had access at that FI to that software and used it against the owners. Look for disclosure of what you have allowed (implicitly or not) to that FI to do with that info. It is not illegal or against the law to use such software, is it immoral, I think so. The best way to remedy such problems it to close the account(s) at once at that FI. Changing password at the other FI(s) is irrelevant info, the software do not rely on passwords or user IDs it uses specific info about the owner of the account(s) at the other FI(s).
Can anyone recommend the best brokerage firm for fixed income? Ameritrade's selection of non-callable new issue CDs and treasuries seems very limited. Merrill's treasury yields are actually higher. Which brokerage has the widest selection and the highest yields? Thanks!
post and settle, and (3) Be enrolled and receive e-statement notice. APY calculations are based on an assumed total account balance of $10,000 plus $100,000. If qualifications are met
each monthly qualification cycle: (1) balances up to $10,000 receive APY of 3.01%; and (2) balances over $10,000 earn 0.25% interest rate on portion of
balance over $10,000, resulting in a range of 3.01% - 0.50% APY depending on the balance (3) domestic ATM fees up to $4.99 per item will be reimbursed on the last day of
your statement cycle. ATM receipt must be presented for $4.99 maximum ATM fee reimbursement if surcharge is $5.00 or higher. Fees may reduce earnings. If qualifications
are not met, all balances earn 0.05% APY. Qualifying transactions must post to and settle account during monthly qualification cycle. Transactions may take one or more banking days
from the date transaction was made to post to and settle on account. ATM transactions do not count towards qualifying debit card transactions. “Monthly Qualification Cycle” means a period
beginning one day prior to the first day of the current statement cycle through one day prior the close of the current statement cycle.
So for a decent 5 yr we may have to cherry pick a smaller FI that could use some $ and hope they aren't too onerous to do business with.
https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202208