CFG Bank Review: Earn Up to 5.25% APY on CD Savings Balances

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Baltimore-based CFG Bank is primarily an online bank that offers several deposit accounts, including a certificate of deposit (CD), with terms ranging from 12 to 60 months and a high-yield money market account. While the bank offers a standard savings account and a savings account for minors, CFG's real draw is its CDs and money market account.

For savers looking for a safe place to stash funds for short-term savings goals and maximize their deposits, CFG Bank could be a viable option. Here's what you need to know about this online bank.

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Highlights

• CD accounts earn up to 5.25% APY, depending on your chosen term.
• CD terms range from 12 to 60 months.  
• The bank offers up to 5.25% APY on its online money market account.
• The money market account carries a $10 monthly maintenance fee, waivable by maintaining a minimum daily balance of $1,000  
• Online money market accounts do not come with an ATM card or check-writing privileges.

Who Is CFG Bank Best for?

CFG Bank offers highly competitive rates on its CDs and money market account but may carry higher minimums than other online banks. CFG Bank may be a good fit if any of the following describes you:

• You're comfortable banking online or from your mobile device.
• You want to earn high-yield interest and can meet account minimums.
• You don't need a checkbook or ATM card. 
• You can meet minimum balance requirements to waive monthly fees.

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CFG Bank Certificates of Deposit

While CFG Bank doesn't offer the largest variety of CDs we've ever seen, pretty much all of its offered term lengths are at the top of their class in terms of interest rates. So long as you're interested in a CD with terms of 12-60 months, and are confident you won't need to withdraw your funds early, you'll likely earn one of the top rates available by choosing CFG.

CFG Bank CDs offers guaranteed earnings through a fixed interest rate for the duration of the CD term. The bank only offers four CD terms, ranging from 12 to 60 months. All four CD options earn high-yield APYs competitive with the best CD rates in the market. All CFG CDs require a $500 minimum deposit.

Below are details on CFG Bank's CD offerings:

CFG Bank doesn't allow additional deposits after opening and funding a CD. The bank charges an early withdrawal penalty if you pull CD funds from the account before maturity. While not a dealbreaker, it's worth noting that we had to request information on CD renewals and early withdrawal penalties from CFG Bank, as they are not publicly listed.

CFG Bank High Yield Money Market Account

If you have a long-term savings goal—as well as at least $1,000 in funds that you won't need for a while—CFG Bank's High Yield Money Market Account is a great option. Offering customers an impressive 5.25% APY, you'd be hard-pressed to find an account that will net you more interest on your savings balance. However, it's worth noting that you need to maintain a minimum daily balance of at least $1,000 to earn interest, and you'll be charged a $10 monthly maintenance fee if your account balance drops below $1,000. If you don't think you can easily meet this requirement, you're likely better off looking elsewhere.

The CFG Bank High Yield Money Market Account earns one of the highest rates on the market, much higher than the national average, according to the FDIC. The account's 5.25% APY is higher than you'll find at many of the top online banks for money market accounts or high-yield savings accounts.

CFG money market accounts require a $1,000 minimum deposit to open, which is higher than some banks. There's also a $10 monthly maintenance fee to consider. The bank waives the fee for customers who maintain a $1,000 minimum daily balance each month. There are no fees for excessive transactions, but the bank charges a $3 fee for statement or activity printouts. 

The only way to withdraw funds from a money market account is through a transfer to another bank or financial institution. You can deposit funds through bank transfers, mobile check deposits, by mail, or in person at one of the bank's local branches in Maryland.

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How Does CFG Bank Compare?

Other CFG Bank Accounts

In addition to its money market account and CDs, CFG offers the following accounts:

• A standard savings account
• YouthSaver account (for young adults under 18)
• Basic Checking
• Checking Plus Interest Checking
• Student Checking 

CFG Bank is also known for its commercial banking products and services.

Banking Experience

If you decide to open an account with CFG Bank, here's what you can expect:

• How to withdraw and deposit funds: CFG allows you to withdraw funds through a transfer to a linked external bank account. You can deposit money to your CFG account with bank transfers, mobile deposits, by mail and at its two branch locations in Maryland.
• Mobile app: CFG Bank's mobile app has a 4.3-star rating on the App Store, while its Google Play rating is lower at 3.3 stars. Customers can manage accounts, check balances, transfer money, view statements and set up account alerts through the app.
• Customer service: Customers have 24/7 access to automated bank support and live phone support Monday through Friday during business hours, plus email support. CFG Bank operates two bank branches for in-person support for customers in the greater Baltimore area.

Drawbacks

While CFG money market accounts and CDs earn competitive APYs, there are some drawbacks to consider before opening an account:

• Monthly fee: The bank's money market account hhas a $10 monthly fee unless you can meet the daily minimum balance requirement to waive it. Paying bank fees undermines savings growth from earned interest on deposits.
• Relatively high minimum deposit: Money market accounts require a $1,000 minimum deposit to open, while CDs have a $500 minimum opening deposit. Neither is the highest we've seen, but many banks offer similar account offerings with lower entry barriers.
• Limited access to funds: Accessing your funds requires transferring money to an external bank account, which can take several days to complete.

How to Open an Account

You can open most CFG Bank accounts online through the bank's website. You'll need to provide personal information to verify your identity during the application process, such as:

• Name
• Contact information
• Mailing address
• Date of birth
• Social Security number
• Government-issued photo ID
• Bank account information to fund your new account

About CFG Bank

CFG Bank was founded in 2009 in Baltimore, Maryland. While most of the bank's personal accounts and services occur online, the bank maintains a community presence in the greater Baltimore area with two local branches and a commercial office in Annapolis. Deposits to CFG Bank accounts are FDIC insured up to allowable limits.

Is CFG Bank Worth It?

CFG Bank certainly offers some of the most competitive APYs you'll find, even among online banks. Whether the bank is a good fit depends on how accessible you want your funds to be and whether you're comfortable banking digitally from a computer or mobile device. The bank only offers four CD terms, with the shortest option being 12 months. CFG is not the best choice if you prefer a shorter CD term.

Still, CFG offers high-yield rates with little downside for those that can meet the minimum requirements to open an account and avoid monthly fees.

FAQs

• Where is CFG Bank located?

  CFG Bank is headquartered in Baltimore, Maryland. The bank operates primarily online but has two local bank branches in Maryland for in-person banking.

• Is CFG Bank FDIC insured?

  Yes, money kept at CFG Bank is FDIC insured up to $250,000 per depositor, per insured bank, for each account ownership category.

• How do I add funds to my CFG High Yield Money Market Account?

  CFG allows you to add funds to a money market account via ACH transfer, mobile deposit, in person at a branch, or by mailing a check.