Beal Bank, a consumer savings bank, primarily offers various deposit accounts such as CDs (certificates of deposit), IRA CDs, money market accounts, and a savings account. All deposited funds are insured by the federal government for up to $250,000 per depositor, and Beal Bank is a member of the FDIC.
Currently, these most competitive accounts offer fixed rates, and our review will specifically concentrate on their CD rates.
If you can maintain an average balance of more than $25,000, you can find better yields from online banks other than traditional ones. Additionally, their variable-rate savings account is not currently competitive with the national average market rates.
To determine if Beal Bank’s Certificates of Deposit are suitable for you, please continue reading our review below.
Beal Bank offers CDs with varying terms, ranging from 1 month to 5 years, and allows for a minimum deposit.
CDs 1 and 2 can be opened in one of their branches, except for nationwide consumers who can apply for them online.
Opening and submitting an online application is not possible for those. To begin an IRA CD, you need to contact a specialist at 877-TRY-BEAL from Beal Bank USA.
To provide some context, based on FDIC data, the average annual percentage yield (APY) for a 12-month certificate of deposit (CD) currently stands at 1.28%, while for a 60-month CD, it sits at 1.21%.
After the Federal Reserve’s latest increase in interest rates, the corresponding rates for the highest returns from FDIC-insured internet-based banks and credit unions available nationwide are gradually surpassing the 5.00% and 4.50% APY threshold.
Grace Period and Early Withdrawal Fees
Upon the maturity of the given 10-day grace period, you may close or modify it before it automatically renews, which you may do within the 10-day grace period.
If you need to withdraw funds from your CD prior to its maturity, you will face an early withdrawal fee.
For certificates of deposit with durations of one year or less, the penalty is calculated as the larger amount between:
For CDs with durations exceeding 1 year, the penalty is the higher of:
Within their Truth-in-Savings disclosure document, you can locate this computation and observe an illustration of the Substitution Expense, which corresponds to the disparity between the interest rate Beal Bank is providing for your CD and the estimated rate they would have to offer on a fresh CD in order to substitute the funds that you have withdrawn.
Compounding and Crediting Interest
Interest is both accumulated and added quarterly to your account.
This is a monthly account with a feature of daily compounding interest that tends to offer less frequent compounding schedules compared to many other banks.
How to Open and Fund your CD
CDs with durations of 3 months or longer can be applied for and opened online or via telephone.
To start navigating online, enter your ZIP code and click on the “Apply Now” button next to it. By doing so, you can open the CD term you prefer, and all the displayed rates will be available for you to see at once.