Bask Bank CD rates: Complete guide to certificate of deposit options
Bask Bank has been around since 1999 and now offers CDs alongside its bank accounts. If you’re seeking a certificate of deposit from a fully digital bank, Bask Bank is worth considering. As an online bank without physical branches, all services are delivered digitally for your convenience.
Bask Bank operates as a division of Texas Capital Bank, ensuring your deposits are insured and backed by a reputable financial institution.
With multiple CD options available, you can select one that aligns with your financial goals and needs. Opening a Bask certificate of deposit online is quick and straightforward, allowing you to start earning interest on a fixed-term deposit with ease. Here’s everything you need to know about Bask Bank CDs.
Current Bask Bank CD rates overview
If you’re in the market for a CD, you’re likely seeking a product with a competitive annual percentage yield (APY), which reflects the total annual earnings from interest, including the effects of compounding. Fortunately, Bask Bank CD rates fit the bill.
How Bask Bank CD rates compare to national averages
Due to its online presence and low overhead costs, Bask Bank is able to offer some of the best CD rates on the market. According to recent FDIC data, the national average for CD rates is much lower than what Bask Bank provides, making their offerings stand out. Bask Bank offers competitive interest rates and high yields compared to most CDs from other banks, especially traditional brick-and-mortar institutions. Customers can earn more interest with Bask Bank CDs than with many traditional options, making them an attractive choice for those seeking better returns. While rates vary by term, you’ll notice that most of them are above what you’d find at national banks and banks with brick-and-mortar locations.
Understanding Bask Bank certificate of deposit accounts
Certificates of deposit are not created equal. The subject of Bask Bank CDs centers on their competitive features, including how term length directly impacts the earning potential and flexibility of your investment. Longer term lengths often offer higher rates, but may come with stricter early withdrawal penalties, so choosing the right term is crucial for maximizing returns. Be sure to review the details of Bask Bank CDs to understand their specific rates, terms, and benefits, and see how they compare with other products you might be considering.
How Bask Bank CDs work
Bask Bank is a division of Texas Capital Bank, and its CDs are offered through Texas Capital Bank. Bask Bank CDs aren’t anything fancy; instead, they’re straightforward products with generous rates. You can opt for a short-term CD with a minimum three-month term or a long-term CD with a maximum 24-month term.
The minimum deposit required to open a Bask Bank CD is $1,000, which aligns with the bank’s minimum deposit requirements for these accounts. To start earning interest, your account must be funded promptly, and you should keep your funds deposited to allow daily compounding of interest. Early withdrawal penalties apply if you access your money before the CD matures. Like all reputable certificates of deposit, Bask Bank CDs are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per ownership category, providing added security for your investment.
Bask Bank CD account opening requirements
So, what is required to open a Bask Bank CD? Customers interested in a Bask Bank CD can open one online with $1,000 or more as long as they’re 18 or older. Be prepared to share your personal information, such as your:
- Name
- Date of birth
- Phone number and email
- Address
- Social Security number
Keep in mind that if you’re opening a joint account with someone else, you’ll need to provide their information as well.
Also, Bask Bank will ask you for the account and routing numbers of the bank account you want to connect to initiate your first deposit. The bank will make a few small micro-deposits into your account to confirm it.
Once your account is open, customers can conveniently manage their CD and other accounts using the Bask Bank app.
Lastly, if you open a Bask CD but don’t fund it with at least $1,000 within 10 days, the bank will automatically close your account.
Bask Bank CD terms and options
Bask Bank gives savers the option of short-term CDs for a down payment or vacation, or long-term CDs for a home renovation or wedding, for example. Savers can lock in a competitive rate for a specific term length, protecting their returns even if rates decline in the future. With expected changes in CD rates based on market trends and Federal Reserve policies, choosing the right term can help savers maximize their returns. It’s up to you to choose the CD that aligns with your particular goals and timelines.
Short-term Bask Bank CD options (6-12 months)
To help meet your short-term needs, Bask Bank advertises CDs with 3-month, 6-month, 9-month, and 12-month terms. These are simple products without the bells and whistles that offer above-average rates and require a $1,000 minimum deposit.
The term length you choose for a short-term CD can directly impact your earnings, as longer terms generally allow more time for interest to accrue, potentially increasing your total returns.
Long-term Bask Bank CD options (18-24 months)
When it comes to long-term CDs, Bask Bank only offers two terms: 18 months and 24 months. As with its short-term CDs, rates are competitive, and you’ll need to deposit at least $1,000 to open an account. Long-term CDs generally provide greater earning potential compared to shorter terms, especially when offered by online banks like Bask Bank. However, keep in mind that early withdrawal penalties can reduce earnings, so it’s important to plan ahead before locking in your funds. Since you’ll enjoy greater yields than you may get with a CD from a large, national bank, Bask Bank long-term CDs can help offset inflation.
Bask Bank CD vs. other Bask Bank accounts
Bask Bank’s product lineup goes beyond CDs and includes a few bank account options that might make sense for your particular situation. In addition to certificates of deposit, Bask Bank offers high-yield savings accounts and other savings accounts, which provide competitive APYs and flexible access to your funds. When comparing Bask Bank CD rates to high yield savings accounts and traditional savings accounts, CDs typically offer higher fixed rates for locking in your money, while high yield savings and other savings accounts provide more liquidity and no early withdrawal penalties.
Bask Bank CD vs. Bask Interest Savings account
The Bask Bank high-interest savings account is known as Bask Interest Savings. If you open one, you won’t have to worry about any fees or minimum balance requirements. There are no monthly account fees for the Bask Interest Savings Account. Plus, your funds will be insured by the FDIC.
While you might be able to land slightly higher rates with a Bask Bank CD, Bask Interest Savings makes it easier to access your funds. Unlike Bask’s CDs, the Interest Savings account doesn’t impose an early withdrawal penalty. Early withdrawal penalties are imposed on CDs, but not on the savings account. You can withdraw money at any time, making this savings account an ideal spot for your emergency fund.
Bask Bank CD vs. Bask Mileage Savings account
Designed for avid flyers, Bask Mileage Savings lets you earn airline miles. You’ll get American Airlines AAdvantage® miles for every $1 you save each year. There are no account fees or minimum balance requirements, and the account is FDIC-insured. In addition, you may pull out your funds whenever you’d like.
If you fly often for work or pleasure, the Bask Mileage Savings is likely a better fit than a Bask Bank CD, especially if you’re looking for somewhere flexible to park your cash. On the flipside, if you don’t fly or have longer-term savings goals, a CD from Bask is likely your best bet.
Competitive analysis: Bask Bank CD rates vs. other banks
Fortunately, there is no shortage of CD options available. Many online banks offer high-yield CDs with competitive rates. Before you commit to a Bask Bank CD, do your research and review the details of each bank’s CD offerings to determine how it compares to CDs at other banks.
Bask Bank CD rates vs. online banks
As you shop around for CDs, you’ll find that Bask Bank CD rates are similar to what you’d find at other online banks, such as Ally, Marcus, and Capital One. When comparing minimum deposit requirements, Bask Bank requires at least $1,000 to open a CD, while some other online banks may have lower minimum deposit requirements, such as $500, making their accounts more accessible. However, you may have more terms to choose from at another bank, as Bask CDs only range from three months to 24 months.
Bask Bank CD rates vs. traditional banks
Compared to traditional banks like Chase, Bank of America, and Wells Fargo, Bask Bank CD rates are more competitive. The potential downside, however, is that you’ll need to open and manage your CD online. Unlike traditional banks, which have physical branches and brick-and-mortar locations offering personalized attention, Bask Bank operates exclusively online. Traditional banks may also offer a wider selection of terms.
Early withdrawal considerations
Bask Bank is similar to other banks with CDs in that it imposes a fee for withdrawing money from a CD before it matures or outside of the 10-day grace period. The early withdrawal penalty is imposed based on the term you choose.
If your CD is between six months to 12 months, you’ll owe 90 days of simple interest on the principal you withdraw. For CDs longer than 12 months, you’ll be on the hook for 180 days of interest on the withdrawn principal.
It’s best to avoid pulling funds out of your account early unless you have no other option. Of course, if you have to cover an unexpected expense like a car repair or medical bill, for example, and don’t have an emergency fund and don’t want to go into debt, you may have to pay the early withdrawal penalty to retrieve the money.
Find the best rates
CD laddering strategy with Bask Bank CDs
Bask Bank gives you the opportunity to open multiple CDs with varying maturity dates spaced over time and build a ladder. Through this strategy, you can enjoy higher yields and easier access to your funds. Follow these steps to implement a CD ladder:
- Decide on a deposit amount: Look at your finances and goals to figure out how much you can comfortably deposit into a CD ladder. Remember that Bask Bank requires a minimum $1,000 deposit for each CD.
- Determine terms: Bask Bank CD terms range from three to 24 months. Ask yourself how long you can go without access to your funds, and use this information to decide on CD term lengths.
- Figure out how to divide your money: Lastly, determine how you’ll spread out your money across the CDs you chose. If you have $10,000 to deposit and five Bask Bank CDs, for example, you may put $2,000 increments in a 6-month, 9-month, 12-month, 18-month, and 24-month CD.
Frequently asked questions about Bask Bank CD rates
Is Bask Bank financially stable?
Yes, Bask Bank is the online division of Texas Capital Bank. Its products are also insured by the FDIC.
Is anyone offering a 6% CD rate?
It’s rare to find a CD with a 6% rate. However, many financial institutions, including Bask Bank, offer above-average rates on CDs.
Is there a 7% CD rate?
No, there are no CDs with a 7% interest rate. Seven percent is significantly higher than the rates most banks and financial institutions offer with their CD products.
What happens when my Bask Bank CD matures?
When your Bask Bank CD matures, you can withdraw the funds. Another option is to reinvest the funds in another CD or move them to a different account.
Can I add money to my Bask Bank CD after opening?
No, you will not be allowed to deposit funds into your Bask Bank CD after you open it. You must invest your money at the time of opening.
What is the minimum deposit for a Bask Bank CD?
Bask Bank CDs require a $1,000 minimum deposit.
Are Bask Bank CDs FDIC insured?
Yes, Bask Bank CDs are insured by the FDIC up to $250,000 per depositor, per account ownership type.
How is interest paid on Bask Bank CDs?
Bask Bank CD interest compounds daily, allowing you to grow your funds faster. It will be added to your account at the end of each statement cycle.
Is a Bask Bank CD right for you?
If you’re looking for a basic CD with terms between three months to 24 months, a Bask Bank CD may be a strong contender, especially if you have at least a $1,000 deposit and prefer a fully digital experience. It might also make sense if you’re interested in one of Bask Bank’s savings or checking accounts and prefer to stash your cash in one place.
