When you think of online banking, you may feel rather apprehensive about applying for an account. Traditional banking has always provided a sense of familiarity and security. Because of this, making transactions from an Internet bank may lead others feeling unsure and doubtful.
Comparison of Rates
Fortunately, Internet banks like Ascencia Bank has shown that it has what it takes to rub shoulders with the leaders in banking. Currently, they offer a 1.05% APY for 1-year CD deposits. This amount is almost comparable to CIT Bank’s 1.08% and Ally Bank’s 1.00% – both of which are operating in the traditional banking way.
The 1.05% APY offering of Ascencia Bank is higher than another Internet bank giant, Virtual Bank. The latter currently offers a 1.01% APY. However, it can be noted that while Ascencia Bank compounds monthly, Virtual Bank does so daily. Generally, daily compounding can yield higher interest, but only on a small-scale difference to the monthly compounding.
Opening a CD account under Ascencia Bank would only require you to deposit $500 at the least, and up to $97,000 at most. As with any other banks, they also offer different CD terms. For their 6-month CD, an APY of 0.75% is issued. Both 2-year and 2.5-year CDs get a 0.95% APY, while a 3-year term allows one to earn a 1.16% APY. Lastly, their 5-year CD scheme can allow up to 1.28% annual growth of your money.
In as little as 20 days upon approval of your application, your money starts to benefit from the APY offered. You start gaining interest when all fees are paid and documents are submitted or signed.
Because an APY assures you of the total percentage growth if and only if you maintain the account for the specified term, an early withdrawal will forfeit you for gaining the same benefit. In this case, penalty fees are drawn in accordance to the regulations specified by Ascencia Bank. Similarly, withdrawal is not allowed within 90 days from opening the account.
About Ascencia Bank
Ascencia Bank is among the first few online banks that started to mushroom out in the past decade. Established in 1999, Ascencia Bank was launched by Porter Bankcorp, Inc. as a subsidiary. Now, it is recognized as one of the most successful Internet banks in the country. Its headquarter is located in Louisville, KY.