Banking

Rising Bank Nationally Available 1-Year CD Is Newest Rate Leader

Deal Summary: Term CDs – 1-year (3.30% APY) and 2-year (3.45% APY), $1k minimum deposit.

Availability: Internet bank

Rising Bank, the internet division of Missouri-based Midwest BankCentre, has increased its CD rate several times in the past four months. The most recent increases occurred this week, with the 1-year Term CD (3.30% APY) and 2-year Term CD (3.45% APY) each gaining 20 bps. The 1-year Term CD currently offers the highest rate for nationally available 1-year CDs. The minimum opening deposit for a Term CD is $1k, with no stated balance cap.

As stated in the Truth-in-Savings (page 29) disclosure, the Early Withdrawal Penalty the for 1-year Term CD reads as follows:

The fee we may impose will equal 90 days’ interest on the amount withdrawn subject to penalty.

Page 31 of the TIS states the Early Withdrawal Penalty for the 2-year Term CD:

The fee we may impose will equal 180 days’ interest on the amount withdrawn subject to penalty.

Interest is compounded and credited every three months, but unfortunately,

You cannot withdraw interest from your account before maturity.

Funding a Term CD and Maturing Funds

Funding a Term CD can be done by ACH or wire transfer. The quickest way to retrieve maturing Term CD funds is a transfer into a Rising Bank savings or checking account. CSR stated that type of transfer would take about an hour and doesn’t incur any type of fee. An ACH to the external account used for funding a Term CD is also possible and takes anywhere between 1-3 business days. There is a ten calendar day grace period before a Term CD automatically renews.

Rising Checking Account

The Rising Checking Account has been earning 0.30% APY ($1k minimum opening deposit) on balances between $1k and $1m for about 22 months. Interest is credit monthly, but if the account is closed before the interest is credited, you will not receive the accrued interest.

While the Rising Checking Account does not offer a competitive rate, it is a fee-free checking account with paper checks that offers additional liquidity for Rising Bank deposit accounts. For example, you could close a Term CD, move the funds into the Rising Checking Account, and then simply write a check(s) to access the CD funds. Note: The Rising Checking Account is subject to a $25k daily withdrawal limit and a $250k daily deposit limit.

Beneficiaries

Unlimited payable-on-death (POD) beneficiaries are allowed, but can only be named after an account is opened; the online application isn’t set up to accept beneficiaries. Only individuals and trusts (no charities/non-profits) can be named as beneficiaries. While Social Security numbers are not required for beneficiaries, CSR stated having a Social Security number for identification purposes is preferable.

Availability

Headquartered in Lemay, Missouri, Rising Bank offers its product line on a nationwide basis to U.S. citizens and resident aliens, 18 years or older, who have a valid Social Security number or Taxpayers Identification Number.

Rising Bank only offers individual and joint accounts. Custodial accounts and trust accounts are not permitted, but as mentioned above, a trust can be named as a beneficiary.

As an internet bank, Rising Bank has no brick-and-mortar branches. Opening any type of account can only be done online. The online application process is designed to be easily completed on a PC or a smartphone in three minutes or less.

Bank Overview

As an online division of Midwest BankCentre, Rising Bank operates under Midwest BankCentre’s FDIC Certificate and shares its financial history.

Rising Bank/Midwest BankCentre has an overall health grade of “A+” at DepositAccounts.com, with a Texas Ratio of 2.19% (excellent) based on June 30, 2022 data. In the past year, the Bank increased its total non-brokered deposits by $114.19 million, an excellent annual growth rate of 6.35%. Please refer to our financial overview of Rising Bank/Midwest BankCentre (FDIC Certificate # 1058) for more details.

According to the small print of Rising Bank’s website:

Rising Bank® and Midwest BankCentre® are treated as the same
entity for the purpose of calculating FDIC insurance limits and deposits.

Opening its virtual doors for business in early 2019, Rising Bank is the online division of Midwest BankCentre, a community bank with 17 branch locations in the greater St. Louis metropolitan area. Founded in 1906, Midwest BankCentre is currently the 13th largest bank in Missouri, with assets in excess of $2.4 billion and more than 51,000 customer accounts.

You might wonder, does a community bank have the technology resources to successfully run an internet bank? Financial technology (fintech) companies are helping community banks by providing services to help manage internet divisions. Midwest BankCentre has partnered with XpertSavers to assist with Rising Bank. The following excerpt from XpertSavers’ home page describes what they do:

XpertSavers is an alternative channel for banks and credit unions to gather deposits. Our team is led by a group of banking experts with a solid record of building internet deposit businesses, while meeting the rigorous regulatory and security demands of the financial industry.

How the 1-year CD Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, no bank or credit union has a higher rate than currently offered on the Rising Bank 1-year CD. The following table compares the 1-year CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.

APY CD Term (Early Withdrawal Penalty) Credit Union/Bank
3.30% 1-Year Term CD (EWP=90 days) Rising Bank
3.21% 12-Month Certificate (EWP=90 days) Connexus Credit Union
3.14% 1-Year Fixed CD (EWP=180 days) Lafayette Federal Credit Union
3.10% 13-Month CD (EWP=180 days) ConnectOne Bank
3.00% 1-Year Bread Savings CD (EWP=180 days) Bread Financial

How the 2-year CD Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, one bank and one credit union have higher rates than currently offered on the Rising Bank 1-year CD. The following table compares the 1-year CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.

APY CD Term (Early Withdrawal Penalty) Credit Union/Bank
3.59% 26-Month Bump Share Certificate Special (EWP=180 days) La Capitol Federal Credit Union
3.50% 2-Year Bread Savings CD (EWP=180 days) Bread Financial
3.45% 2-Year Term CD (EWP=180 days) Rising Bank
3.41% 24-Month Certificate (EWP=180 days) Connexus Credit Union
3.40% 24-Month CD (EWP=180 days) Crescent Bank

The above information and rates are accurate as of 9/15/2022.

To search for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.

For more updates check below links and stay updated with News AKMI.
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