Webster Bank, based out of Stamford, Connecticut, is the 44th largest bank in the U.S. by assets with roughly $67 billion.
They are FDIC-insured and offer a number of deposit accounts including variable rate products like money market accounts, savings accounts and checking accounts as well as fixed rate CDs (Certificates of Deposit) and IRAs (Individual Retirement Accounts).
Webster Bank has 150+ branches and 300+ ATMs located throughout Southern New England and Westchester County in New York state.
For the purpose of this review, we will focus on Webster Bank’s CD rates which now offer APY (annual percentage yields) up to 4.25%.
Unfortunately for many, these accounts may be out of reach as Webster Bank only accepts consumers who live in their regional footprint which includes the following states:
- New York and
- Rhode Island.
Webster Bank is member FDIC. All deposit accounts held at Webster are federally insured by the FDIC up to the applicable limits. To see if a Webster Bank CD is right for you, continue reading below.
Webster Bank CD Rates + Account Details
Webster Bank only offers 4 CDs with terms ranging from 6 months to 5 years, however, only one of them is competitive at this time (highlighted below). All of Webster Bank CDs require a minimum deposit of $1,000.
To put the yields above into perspective the current national average for a 12 month CD and a 60 month CD sit at just 1.28% and 1.21% APY, respectively, according to FDIC data.
That said, the top rates offered from FDIC-insured online banks and some nationally available credit unions are now inching over the 4.60% APY mark for both respective terms.
Compounding and Crediting Interest
Interest is both credited and compounded monthly. This is a lower compounding frequency than many competing online banks offer which typically come with daily compounding interest.
Grace Period and Early Withdrawal Fees
The grace period is the brief window of time upon your CD’s maturity in which you may modify your CD (either by term or by deposit size) or close the CD out entirely without facing any early withdrawal fees. You are generally notified by your bank prior to your grace period letting you know of its arrival. Standard grace periods are either 7 or 10 calendar days.
Webster Bank does not mention the grace period anywhere on their website, however, their online sub-brand BrioDirect allows for a 7 day grace period for their online CDs. In the fine print BrioDirect stipulates that “Webster Bank will allow a 7 day grace period” for their CDs, so this may be the case for Webster Bank as the parent company but we would recommend giving them a call at 203-271-8738 if you’d like further clarification on this matter.
If you need access to the funds in your Webster Bank CD prior to its maturity you will face an early withdrawal fee.
Early withdrawal fees are as follows:
|CD Term||Early Withdrawal Fee|
|1 year or less||1% of the amount withdrawn plus $25|
|more than 1 year||3% of the amount withdrawn plus $25|
How to Open and Fund Your CD
If you live in their geographical footprint you can create a profile and open a CD online (start here) or stop by a local branch (locate them here). You can also give them a call if you need assistance here (203) 271-8738.
Opening a CD online with Webster Bank takes about 10 minutes. You’ll need the following information to complete the process. These are:
- Driver’s license number
- Social Security number
- Employment information
- Identifying information – previous addresses, employers, loans, etc.
Once your profile is created and you’ve selected the CD you’d like to open, you’ll need to fund it. Funding your CD can be done with a physical check or via transfer. If you’re transferring funds from another bank or credit union you’ll need the following:
- bank or credit union routing number
- account number where funds are coming from
📌 Please Note: Webster Bank will authenticate your identity information through Equifax Secure, Inc. and reserves the right to validate your banking history through ChexSystems, Inc.
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