NexBank CD Rates: Lock In Up to 5.35% APY with Flexible Terms

If you're looking for a safe place to grow your savings, certificates of deposit (CDs) are a solid choice. And right now, NexBank is offering some pretty attractive rates. Whether you're a seasoned saver or just starting to explore CDs, NexBank has options that might catch your eye. Let's break down what they're offering and what you should know before you commit.

What's on the Table?

NexBank is currently offering a range of CDs with rates that stand out in today's market. The headline is a 12-month CD at 5.35% APY, which is quite competitive. If you're looking for something shorter, the 6-month option at 5.20% APY is also strong. And for those who prefer even more flexibility, there's a 3-month CD at 4.75% APY.

But here's the twist: the best rates require a $25,000 minimum deposit. That's a significant chunk of change. However, if you're working with less, there's a high-yield CD powered by Raisin that only needs $1 to get started, though the APY drops to 5.15% for a 12-month term. That's still a great rate for such a low entry point.

NexBank also offers standard CDs with lower minimums of $10,000, but the rates are slightly lower for some terms. For instance, the standard 12-month CD is also at 5.35% APY, but the 6-month drops to 5.25%. So it's worth comparing the promotional and standard options to see which fits your budget and goals.

• 12-month promotional CD: 5.35% APY with $25,000 minimum
• 6-month promotional CD: 5.20% APY with $25,000 minimum
• 3-month promotional CD: 4.75% APY with $25,000 minimum
• 12-month high-yield CD via Raisin: 5.15% APY with $1 minimum
• Standard CDs start at $10,000 with rates up to 5.35% APY

The Fine Print You Shouldn't Ignore

Before you jump in, there are a few things to keep in mind. First, these are CDs, so your money is locked up for the term. If you need to withdraw early, you'll face a substantial penalty. That's standard, but it's worth emphasizing because it can eat into your returns if you're not careful.

Also, the promotional rates are for new money only. That means you can't just transfer existing NexBank funds into these CDs. You'll need to bring in fresh funds. And if you're considering a jumbo CD, note that the minimum has been raised to $250,000, which is a big jump from the previous $100,000.

On the plus side, there are no fees, and your deposits are FDIC insured up to the legal limit. That's a nice safety net. Plus, you can open an account online in minutes, and you can name unlimited beneficiaries, which is a nice touch for estate planning.

• Early withdrawal penalty: substantial
• Promotional rates require new money
• Jumbo CD minimum: $250,000
• No monthly fees
• FDIC insured
• Unlimited beneficiaries allowed

How to Get Started

Opening a NexBank CD is straightforward. You can apply online, and the process is quick. If you're going the Raisin route, you'll need to create an account with Raisin first, then choose the NexBank CD. Raisin acts as a marketplace, making it easy to compare and fund your CD.

You can fund your account via ACH transfer from an external bank. That's convenient. And once your CD matures, you'll have a 10-day grace period to decide what to do. If you don't act, it'll automatically renew, so mark your calendar.

One more thing: NexBank does a soft pull on your credit, so your credit score won't be affected by applying. That's a relief for those who are rate shopping.

• Apply online in minutes
• Fund via ACH transfer
• 10-day grace period after maturity
• Soft credit inquiry

Is It Worth It?

In a world where many savings accounts are still paying under 1%, these rates are a breath of fresh air. If you have $25,000 sitting in a low-yield account, moving it to a 12-month CD at 5.35% APY could earn you over $1,300 in a year. That's real money.

But don't just take my word for it. Compare these rates with other top CDs on the market. You might find something even better, but NexBank is definitely in the running. Just remember to factor in the lock-up period and the penalty for early withdrawal.

If you're comfortable with the terms, this could be a smart move for your savings. And with FDIC insurance, your principal is safe up to $250,000. So, what are you waiting for? Check out the current rates and see if it's a fit for you.

• Earn up to 5.35% APY on a 12-month CD
• Low minimum options available via Raisin
• FDIC insured and no fees
• Rates are competitive but require a commitment

Bottom Line

• NexBank offers competitive CD rates, with the best rates requiring a $25,000 minimum deposit.
• The Raisin-powered high-yield CD allows you to start with just $1, though the APY is slightly lower.
• Be aware of the early withdrawal penalty and the fact that promotional rates are for new money only.
• FDIC insurance and no fees make these CDs a safe and cost-effective option.

Common Questions