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Bank5 Connect Offering 24 Month Add-On CD At 4.25%

mishad
  |     |   4 posts since 2018

Not sure why this one isn't on DepositAccounts' CD rate table, but looks to be a really good deal. Am I missing something? 4.25% APY for 2 years, but it's an add-on CD so you can add funds at any time. https://www.bank5connect.com/products/cds/24-month-investment-cd

Anyone have experience with this bank? Nice rates on savings and checking too, but the savings account with a decent rate has a whopping $25K minimum!

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8
Hooked
  |     |   240 posts since 2019
I had an add-on CD with them several years ago and kept the checking account. Opened this 24-month CD last month with $1,500 (maximum credit card funding) and it only took two minutes online. They pull Chex for new customers.
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ichaelm
  |     |   485 posts since 2010
Eagle Bank, which is located in the D.C. metro area, isn't on the CD rate table either, but pays 4.45% for a 24-month term. However, you can't make additional deposits.
I see that only 2 people here have posted reviews of Bank5 Connect but both of them gave it 5 stars - that's encouraging.
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denki
  |     |   159 posts since 2019
Bank5 is the only place that rejected me ever likely because of too many accounts elsewhere, YMMV. After being rejected had no problem opening more accounts elsewhere.
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GH1
  |     |   1,061 posts since 2017
yes rejected many new people
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jbridge
  |     |   42 posts since 2024
Deposit Quest substack has been listing the Bank5 Connect 24-month Add-on for several months. https://depositquest.substack.com has been providing accurate rate information for nearly a year.
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belko
  |     |   170 posts since 2021
I've been with Bank5 Connect since 2018. I'm still with them.

Ok, so here goes. My main interest in them from 2018 onward has been their two-year add-on CDs. They were somewhat market-leading then as add-on CDs, but not in recent years. So, lately I never actually added-on to those add-ons, and left them at the minimum amount and set them on autopilot regarding renewal.

The Pros -
- FDIC-insured, not a tiny online bank, and no evident liquidity or systems problems that I've encountered.
- “FDIC-Plus” - this bank qualifies for the Massachusetts-only (so far as I know) DIF provision that insures accounts with more than $250K. Could make a difference for some.

The Cons -
- I called them today. Fairly long hold time even with only 1 ahead of me, so, maybe not many CSRs present? Or competent ones? Not promising.
- My intent was to liquidate my current 4 minimum add-on CDs (in aggregate less than 2.5K), given a reasonable EWP, to my existing liquid checking account with them, then use those funds to buy this new 4.25% 2-year add-on CD. Simple, no? Well, so it seemed. But no.
- First, in reference to the EWP fees, the CSR indicated that for each of my small CDs there would in fact be 2 EWP fees - one would be a $30 fee per CD, the 2nd would be a somewhat more normal EWP fee, amounting to the last 6 month's interest (from a 2-year CD). The latter was more-or-less expected; the former is something out of bizarro-world. I've actuality never heard of this kind of c**p before, from any FI. And, I don't recall that $30/CD EWP fee being disclosed to me in any way, before the fact.

So -
So thankfully, this information led me to recall that with the exception of Navy FCU (which is in certain ways is unusual), during the just-past rate hike cycle the main FIs I've relied on for add-on CDs have been, MACU and AgFed. MACU has that annoying $100K limit. AgFed I've carelessly ignored lately, but this c**p from Bank5  Direct today led me to re-examine, and I realized I already have a 2-year AgFed add-on CD paying 4.66% expiring 8/30/25. That's where my spare cash will go for now unless and until Bank5 can improve their act.
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racecar
  |     |   633 posts since 2014
Hm... well... it's... ok I guess, but don't forget, MACU has the same 4.25% rate for an Add-On CD that gives you one more year than this Bank5 one (a 36 month Add-On), with the same EWP (180 days). Note: MACU allows up to $100k max total for all your Add-Ons there.
https://www.macu.com/rates/certificates

So I'll pass on this Bank5 one myself, but here's the account disclosure for anyone interested. Looking at this, I don't see any mention of the additional EWP fee belko mentioned, nor the maximum cap PD mentioned, but that doesn't mean they won't be charged. If it were me, I'd ask the CSR about these additional fees/caps and maybe "buyer beware" should be considered. But here's what's on their website in the "Disclosures" area:

=====
Connect 24 Month Investment CD
Rate information: The interest rate on this account is 4.17% with an annual percentage yield of 4.25%. The interest rate(s) and annual percentage yield(s) are accurate as of 4/30/2025. If you would like more current rate and yield information, please call us at 855-552-2655. You will be paid this rate until next maturity.
Compounding frequency: Interest will be compounded monthly.
Crediting frequency: Interest will be credited into this account monthly.
Time requirements: This account matures 2 year(s) after account opening.
Early withdrawal penalties (a penalty may be imposed for withdrawals before maturity): The penalty will equal six months interest on the amount withdrawn subject to penalty. In certain circumstances, such as the death or incompetence of an account owner, the law permits, or in some cases requires, the waiver of the early withdrawal penalty. Other exceptions may also apply, for example, if this is part of an IRA or other tax-deferred savings plan.
Withdrawal of interest prior to maturity: The annual percentage yield is based on an assumption that interest will remain in the account until maturity. A withdrawal will reduce earnings.
Automatically renewable account: Your account will automatically renew at maturity. Each renewal term will be the same as the original term, beginning on the maturity date. Unless we tell you otherwise in writing, the interest rate will be the same we offer on new certificate of deposit accounts on the maturity date which have the same term, minimum balance (if any) and other features as the renewed certificate of deposit account. You will have a grace period of ten calendar day(s) after maturity to withdraw the funds without being charged an early withdrawal penalty. You may prevent renewal if you withdraw the funds in the account at maturity (or within the grace period, if any).
Daily balance computation method: Interest is calculated by the daily balance method which applies a daily periodic rate to the balance in the account each day.
Accrual of interest on noncash deposits: Interest will begin to accrue on the business day you deposit noncash items (for example, checks) into your account.
Minimum balance to open: The minimum balance required to open this account is $500.00.
Minimum balance to obtain the disclosed annual percentage yield: You must maintain a minimum daily balance of $500.00 in your account each day to obtain the disclosed annual percentage yield.
Deposit limitations: You may make an unlimited number of deposits into your account.
Effect on maturity: The maturity date for this account will remain the same after additional deposits.
Withdrawal limitations: You may make withdrawals of principal from your account before maturity only if we agree at the time you request the withdrawal. Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty. You can only withdraw interest credited in the term before maturity of that term without penalty. You can withdraw interest anytime during the term after it is credited to your account.
Additional Terms: The following additional terms apply to this account:
Fees may reduce earnings. Please refer to Bank5 Connect's Fee Schedule.
https://www.bank5connect.com/terms-legal/disclosures/account-disclosures
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mariafalter
  |     |   167 posts since 2010
According to Bank5 Connect’s fee schedule:

CD Closeout Fee
(Prior to CD maturity date) $30.00
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Rickny
  |     |   1,299 posts since 2017
I recently closed an account with them wglhich was an add on. I didn't "add on" any funds as rates went up. Good for nsurance if rates go down. They have the extra insurance too.
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belko
  |     |   170 posts since 2021
Question for long-time pre-existing Bank5 customers, not for customers who may have joined recently for this deal. If you recently initiated this CD, did you receive a Chex pull, or a hard credit inquiry, or (and this would be unlikely, but this bank is a little unusual) both? One poster mentioned Chex - wonder what others' experience was?

And, did anyone who initiated using credit card funding get stuck with it being coded as a cash advance instead of a purchase?

(BTW, I know MACU's add-ons pay more, but I'm maxed out there like probably several others, and my AgFed 4.66% add-on matures 8/30/25.)
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Hooked
  |     |   240 posts since 2019
Pre-existing customer and no Chex pull when I opened the CD. No hard credit inquiry either. Credit card funding went through as purchase, not cash advance.
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racecar
  |     |   633 posts since 2014
Some quesitons for anyone who knows, please.
I just called them and got some answers -- but can anyone confirm them?
Some contradict the info posted in this thread.

1) If you open the 24 month Add-On CD can you send funds to it directly from another FI or must you also open a savings account with them as well, first transfer the funds to the savings, then move them to the CD? According to a CSR you can link an external account to the CD directly and bring add-on funds to the CD directly, you don't need to open a savings as well. Is this true? I've never heard of a place, ever, where you can link an Add-On CD directly to an external FI, without a savings account.
2) Their page says all security freezes must be lifted (including credit, not just chex). Do they run a hard or soft pull? They say soft, but can anyone verify? Was told you must unfreeze all 3.
3) Their page says at maturity "we can transfer the funds to another account for you" or mail a check. Would that include an external account at another FI or just another account at Bank5? When I called I was told they could send it to an external account at maturity but I've never heard of a place where they will send matured funds to an acct at another FI that hadn't been the original funding source. The CSR did mention Plaid usage when joining, maybe this is done via Plaid? (if so I'd absolutely decline, I don't want Plaid). Has anyone been able to have their funds moved directly from a matured CD to an external FI without using Plaid or having to use their savings acct first?
4) Is this add-on a recent special or have they offered Add-Ons for many years like MACU?
5) If you have no other accounts and the CD matures, you'll have no more accounts with them. If you then want to open another CD a year or two later, do you have to go through the same join process all over again?
6) Since the savings requires $25k for decent interest, can you have just $1 in the savings just to "keep an account there" and not encounter fees for it?
7) No credit card funding -- at least according to the CSR I spoke to. This contradicts what others have said here. I was told credit card is not an option for funding even initially, that they use Plaid but you can select "fund later" for the trial deposits method, no credit card. So... was CSR wrong?

While any Add-On is nice, at first glance it honestly is questionable if I'd be at this place long-term for other things, and probably not worth the additional chex, the gotchas (like with the closeout fee disclosed separately) a credit pull etc for just one 2-yr CD.

Plus some of the answers I got from the CSR are different than those posted here (like CC funding). "Hooked" said he was able to fund it for $1,500 via CC last month but the CSR says no CC funding. If "Hooked" is correct then are the other answers the CSR gave wrong as well?

If you know the answers to any of the above, please post, thanks.

Add-Ons are always nice, but I just kind of have alarm bells going off about this place. Thoughts from those who have used them?
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belko
  |     |   170 posts since 2021
“4) Is this add-on a recent special or have they offered Add-Ons for many years like MACU?” Answer - They've offered them for many years.
“6) Since the savings requires $25k for decent interest, can you have just $1 in the savings just to "keep an account there" and not encounter fees for it?” Partial answer - I have a checking account in which I've kept a bit over $1 in for years with no fees.
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Hooked
  |     |   240 posts since 2019
@racecar - Just some quick answers in addition to belko’s: 1) Perhaps it works for new customers? But why not open a checking (no fees) at the same time so you can pull matured funds when the time comes. 2) No hard credit pull when I joined years ago. 3) Open a checking is the easiest solution. 5) Maintain $1 in checking. 7) See comment from ikbok of this morning.

I actually don’t remember whether credit card funding was an option when I opened the add-on CD years ago but it worked in March when I opened this CD.
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hiyield
  |     |   41 posts since 2017
Just applied on-line and my application is under review ;-(
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ikbok
  |     |   60 posts since 2023
I applied too and got same notice, unable to process further review required
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ikbok
  |     |   60 posts since 2023
credit card funding not allowed if system does not immediatly approve you, if need to be manually reviewed then cannot do credit card funding, told this by 3 csrs incl supervisor.
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hiyield
  |     |   41 posts since 2017
For some reason I didn't see any funding options during the application process on my browser.
Anyway, I have received a bunch of emails today and now on hold waiting if they don't like something else.
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GH1
  |     |   1,061 posts since 2017
chex systems cant find u. they will deny
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GH1
  |     |   1,061 posts since 2017
It was a awful bank to deal with. Never again
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hiyield
  |     |   41 posts since 2017
I just learned today.
Per FDIC website - Bank5 Connect is a trade name for Fall River Five Cents Savings Bank.
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MidAtlantic
  |     |   142 posts since 2012
Just as they say on their website:

What is Bank5 Connect's FDIC certificate number?

Our FDIC certificate number is 23286, and our FDIC insurance is under our legal name, Fall River Five Cents Savings Bank.
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Rickny
  |     |   1,299 posts since 2017
I opened one of these couple of years ago with $500 as rate insurance
Rates went up so no need for it. I think I had problems with them.
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ikbok
  |     |   60 posts since 2023
Others are right, nothing but problems with this place. I finally opened one up in case rates drop but every step was problems one after another and also different answers with every csr. And if I ever want to add to it it will likely be real hassle too. No one knows if it will be useful to have in future but unless you really really really want it I would move on.
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