Update: Nexity Bank is now AloStar.
Nexity Bank of Burmingham, Alabama has been increasingly ranked amongst the top yielding banks for shorter term CD rates. As of today they are in the number 2 spot for 6 month CD’s with a rate of 2.58% and an APY of 2.61%. Their CD rates are competitive, but frequently come with a minimum deposit of anywhere from $1,000 to $10,000. Their primary banking products consist of Bank CD’s (certificates of deposit), IRA CDs, money market accounts, and online banking.
Nexity Bank CD Rates
Nexity Bank’s featured CD rates are as follows: 90 day CD yielding 2.11% APY, 6 month CD yielding 2.61% APY, 9 month CD yielding 2.76% APY, 12 month CD yielding 2.91% APY and a 24 month CD yielding 2.85% APY.
Keep in mind you may also get a slightly higher rate (between 0.05% – 0.20% APY) when you commit to deposits over $50,000. Nexity Bank guarantees that regardless of the term of the certificate of deposit you choose, you are getting one of today’s highest rates of return on your money. Interest is compounded daily. The interest earned on certificates with a term of 12 months or less is paid at maturity; greater than 12 months paid annually.
Like most banks, Nexity CDs automatically renew at maturity, so if you do not wish to keep your money locked into a CD for longer than the duration you selected you must be proactive about receiving your invested funds upon the maturity date. Banks typically do this to keep your money for as long as possible. Banking consumers are frequently blind-sided by this technique if they don’t fully read the fine print in the terms and conditions.
Nexity Bank IRA CD Rates
12 month IRA CD yielding 2.66% APY. 24 month IRA CD yielding 2.60% APY. 36 month IRA CD yielding 2.60% APY. These rates are subject to change, so check with Nexity Bank directly before investing.
The primary advantage of a Nexity Bank’s, or any bank’s, Individual Retirement Account is the potential tax savings. At Nexity, you will receive high rates on your investment with zero administrative fees. In exchange for higher rates banks will sometimes impose monthly administrative fees. Nexity Bank waives these fees. You can invest in your IRA CD by making an annual contribution or by rolling over or transferring funds from an existing IRA or qualified plan at another institution. Like most IRA CD’s, your Nexity IRA CD is FDIC insured up to $250,000.
Money Market Rates through Nexity Bank
Neixty’s Money Market accounts yield rates that are less competitive then their other savings products. Currently they offer a money market account with a yield of 2.50% APY for balances greater than $50,000 and only 1.00% APY for balances under $50,000.