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Financial Rates:
5.0
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Customer Service:
3.5
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Variety of Terms:
5.0
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Opening Required Amount:
3.0
Pros:
- Competitive interest rates on CDs
- Good variety of CD terms available
- Encourages CD laddering
- Options for how to receive interest
Cons:
- High opening required amounts
- CDs are personal deposit accounts only
- Does not offer interest rate guarantee
- Early withdrawal fee effects principal
What You Need to Know
VirtualBank offers online CD accounts. Each term offers competitive interest rates. The rates are competitive with other online CDs. VirtualBank interest rates are much higher than typical bank rates.
Even the shorter-term CDs offer competitive interest rates. These rates are very competitive compared to other short-term CDs.
There are a good variety of CD terms offered through VirtualBank. They offer CD terms from one month to 60-months. There are a total of 11 CD terms. All the CD terms are online accounts. You can apply online or send your application through the mail.
VirtualBank encourages CD laddering. They have a CD laddering calculator on their website. With the calculator, you can see how much interest you would earn by CD laddering. CD laddering is opening different CD terms, so your CDs mature at a variety of times. This allows you to open longer-term CDs to earn higher interest rates, but still, have access to your money.
There are options for how to receive the interest you earn on VirtualBank CDs. When you open the account, you can choose to have the interest credited monthly or quarterly. Credited the money back to the CD or you can transfer the money into another VirtualBank account. You can also choose to have the interest mailed to you in a check.
VirtualBank has a high required amount to open their CDs. Each CD requires $10,000 to open. That amount is high compared to other online CDs. If you have the $10,000 required opening amount, you can open any of VirtualBank CDs.
The CDs offered through VirtualBank are only for personal deposit accounts. At this time, these CDs are not available for business accounts. There are no specific business accounts available through VirtualBank. Only personal deposit accounts are currently offered.
VirtualBank CDs do not offer an interest rate guarantee. The interest rate you earn for the life of your CD term is the rate on the day you open your account. They do not offer an interest rate guarantee. If the interest rates increase shortly after you open your CD, your rate will not increase. VirtualBank CDs offer fixed interest based on the day you open your CD.
Early withdrawal fees for VirtualBank CDs are high. The fees may affect your principal amount. For CDs under one year, the fee is 100 percent of the interest earned on the withdrawn amount. For terms from one year to two years, the fee is one percent of the principal amount withdrawn. For CDs longer than two years, the fee is two percent of the principal amount withdrawn.
Cool Things
CD Calculator
The VirtualBank website offers a CD Calculator. You can easily see how much interest you will earn from your VirtualBank CD. Input the amount of money you are planning to invest. Choose the CD term you plan to open. The calculator will show how much interest the CD will earn. The website offers a variety of other financial calculators. Those include one for CD laddering and different savings goals.
History
VirtualBank is an online division of IberiaBank. IberiaBank started in 1887 in New Iberia, Louisiana. They offer personal and business accounts. They offer retail and private banking. You can also apply for a mortgage through IberiaBank. They have over $30 billion in assets.
VirtualBank started in 2000. VirtualBank is an online bank. They offer customers the ability to easily access their accounts at home.
All VirtualBank money market accounts and CDs are entirely online. You apply for your accounts either online or by mailing in your application. Once you open an account, everything for your account is online.
Giving Back
VirtualBank is an online division of IberiaBank, which started in 1887. They serve the communities around the Southeast. IberiaBank partners with Junior Achievement and Habitat for Humanity. They partner with United Way, the Birmingham Zoo, and St. Paul Medical Foundation. IberiaBank employees recently participated in 345 service activities. They volunteered over 10,000 hours. IberiaBank provided 591 grants. Those grants totaled $2.5 million. The money went to organizations in the Southeast part of the United States.
Frequently Asked Questions
Yes. VirtualBank is FDIC insured. The FDIC is an agency of the United States government that protects funds deposited in banks, up to $250,000 per customer, per bank. The money deposited in FDIC insured banks means money is backed by the full faith and credit of the United States government.
VirtualBank offers 11 CD terms. The terms range from 1-month to 60-month CDs.
Each CD requires $10,000 to open.
Deposit money into your VirtualBank CD by mailing in a check. You can transfer money from another VirtualBank account into your VirtualBank CD. You cannot transfer money from an external bank account into your VirtualBank CD.
You can transfer the money into another VirtualBank account or request a check. You cannot transfer money from your VirtualBank CD into an external bank account. To avoid a fee, only access your CD during the grace period after the CD reaches maturity.
No. You can open a VirtualBank CD without opening any other VirtualBank accounts.
Yes. Each of the CD terms offer interest rates that are competitive with other online CDs. The rates are much higher than typical bank interest rates.
You can choose to have Interest credited to your CD monthly or every three months. You can have the interest credited to the CD or another VirtualBank account. You can also have the interest earned mailed to you by check.
? For terms from 30-days but less than 1-year, the penalty is 100 percent of interest on the withdrawn amount. From CDs from one to two years, the fee is one percent of the principal amount withdrawn. The fee for CDs over two years is two percent of the principal amount withdrawn.
Contact customer service to make changes. If you do not make changes, your CD will automatically renew for the same term.
Contact customer service to know when your CD reaches maturity.
The grace period is ten days after the CD reaches maturity.
Yes. VirtualBank CDs offer fixed interest rates for the life of the CD term. They determine the rate based on the rate the day you open your VirtualBank account.
Yes. With the app, you can see account balances and view activity. You can personalize the VirtualBank app.
The interest rates are competitive with other online accounts. They offer a good variety of CD terms. Each of the CDs requires $10,000 to open the account. Some early withdrawal fees apply to the principal amount withdrawn. These CDs are only for personal deposit accounts.
VirtualBank offers security measures that comply with federal law. They offer layered security systems, and their buildings and files are secure. They restrict the personal information employees see about customers.
The shortest term is a one-month CD term.
The longest term is the 60-month CD term.
VirtualBank offers online money market accounts and CDs. These accounts are only for personal deposit accounts.
No. VirtualBank only offers personal deposit accounts.
Reach customer service by phone, online chat, email, or mail. They are available Monday through Friday from 8:30 a.m. to 5:30 p.m. ET. Customer service is not open on Saturdays or Sundays. You can send a secure email once you are a customer by logging into your online banking account.
Bank Contact Information
VirtualBankATTN: DEPOSIT SERVICES
P.O. Box 109638
Palm Beach Gardens, FL 33410
1-877-998-2265
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