Banc of California CD Review 2024
Headquartered in Los Angeles, Banc of California is the third-largest bank in the state. It offers various options for business and personal banking customers, including a tiered-rate CD that allows you to make the most of your money. This unique option can fit anyone’s financial needs.
Banc of California CD At-a-Glance
The CD offered by Banc of California might work well for you, but there isn’t much information available online about this product.
Consumers are urged to contact Banc of California directly to get in-depth information on the CD. Here’s what you need to know now:
Which Banks Have the Best CD Rates?
Hundreds of banks offer CDs, and there’s fierce competition among them to offer the best rates. We’ve compiled a list of some of the best CD accounts to help you find the ones that best fit your financial goals.
How It Works
Though you can begin the application to open a CD online, you must visit a bank branch to complete the transaction. This can be tough for those who enjoy mobile banking or have difficulty getting to a branch during regular business hours.
Terms are not set forth for the Banc of California CD, and there’s a reason for that: The CD allows you to choose your maturity date, with a minimum of 30 days investment.
That means you can collect and cash out that interest when you want to, not when an obligatory term ends. For instance, if you knew you would close on a house during a particular month, you could plan your maturity date for that month to make the most of the compounded interest and avoid the rollover.
When you choose the date to withdraw your money from the CD, you have ten days to do so. After that, the account rolls over with the same terms and length you initially chose. So if you change your mind about closing the CD, no problem – you don’t have to do anything.
It’s important to remember that this is a tiered CD, with the highest interest rates going to those with the highest balances. At a $1,000 minimum to open, getting to the highest tiers will certainly be pricey.
Pros & Cons of Banc of California
As with any other bank that offers CDs, there are pros and cons to this one offered by Banc of California. Here are the basics:
Pros
- Banc of California offers CDs with competitive interest rates.
- You can choose your maturity date if the investment has been in place for at least 30 days.
- There is a 10-day grace period to decide if you want to withdraw the money.
Cons
- The account must be opened in person in a branch or over the phone (though you can start the application online).
- The high minimum opening deposit of $1,000 might be out of reach for some.
- Tiered rates benefit the highest balances, so if you aren’t depositing large amounts of money, you will receive a lower rate than the posted rate.
Compare to Other CDs
The best way to determine if a particular banking product is right for you is to get all the information to make an informed choice.
Here’s how the Banc of California CD compares to those at other banks.
Synchrony Bank
Synchrony Bank offers the popular one-year and five-year CDs, both of which have penalties if you withdraw the money before the maturity date.
However, you can choose any term from three to 60 months, with a longer term leading to higher rates. The CDs often require a higher minimum balance, such as $2,000 or more.
The rates are pretty competitive, however, leading to a nice nest egg of interest at the end of the term. They are also tiered, so those who deposit the most will be awarded the best interest rates.
Bask Bank
This bank offers competitive-rate CDs with no monthly fees and the option to add a joint account holder.
By meeting the minimum deposit requirement of $1,000 per account, you can easily build a CD ladder with Bask Bank’s wide choice of terms, ranging from three months to 24 months.
Those who keep the money in their CD for a shorter period will earn the highest rates, encouraging customers to keep it in a CD for one year or less.
As with most other banks, CDs roll over at maturity, and early withdrawal will result in a penalty that is often equivalent to or even greater than the interest earned.
Marcus by Goldman Sachs
The 13-month no-penalty CD from Marcus by Goldman Sachs allows you to withdraw money from the account without penalty, which is a rare option among banks.
There is a $500 opening deposit requirement for terms of 7, 11, or 13 months. This works very well for those who want to dip their toe into the CD world but don’t want to invest too much money or time if they decide the CD is not for them.
There are no fees. The only rule is that you must wait seven days after opening the account before you can withdraw.
Who Is the Banc of California CD For?
This CD is best for those with at least $1,000 to invest, but it’s even better for those who can handle a higher balance, as the tiered interest rates are more advantageous to those with higher investments.
It’s also good for those who want the flexibility of choosing a maturity date that suits their financial needs rather than allowing the bank to dictate how long the CD will earn interest.
Rating the Features
The Banc of California keeps information private, and it does not offer much online, even through the mandated disclosure forms.
This encourages potential customers to speak to a bank agent to determine which options are right for them and if any other products might suit their financial needs.
To that end, we will consider Banc of California in general and not just as the CD for this feature review.
Fees
Banc of California’s fees tend to be comparable to those of most banks, but the fees for some products aren’t quite transparent.
Fees for the CD, for instance, aren’t made clear even in disclosures listed online. You must contact the bank directly to learn exactly what you might pay in fees and penalties.
Other Products
Banc of California is primarily a business bank. However, personal banking includes checking, savings, and money market accounts, as well as some perks, such as online banking and programs designed to teach kids how to handle money.
Of course, the CD is available, as is the potential for some personal lines of credit or loans.
Online and Mobile Access
While Banc of California offers some limited online banking, it isn’t as robust as you might expect from other banks.
This might be attributed to Banc of California’s more business-focused setup. The mobile app offers essential functions, but many users say it doesn’t work well and is not intuitive.
Minimum Deposits
The minimum deposit for checking and savings products is relatively low, typically $25 to $50, to open an account.
Some accounts do have minimum balance requirements to avoid a monthly fee. The CD, however, requires at least $1,000 to open and provides the best interest to those with the highest balances.
Customer Service
According to customer reviews, customer service at Banc of California is hit-or-miss.
It seems that those seeking personal banking might run into more trouble with customer service, especially if they can’t go into a branch to bank in person.
Those with a business account tend to have more luck with attentive service representatives. Expect to get in touch during extended banking hours and use the automated system at all other times.
Frequently Asked Questions
As the name suggests, the bank is located in California. However, there are branches in Colorado and North Carolina. Keep in mind that many of the more than 90 branches are there to serve business interests and don’t handle banking for individuals.
Unfortunately, no. For instance, you can start the application for a CD online, but you must finish the process in the bank. Sometimes, you can complete what you need to do over the phone. Either way, you must speak to a real person in real-time to create the accounts you need.
Q. What’s the history of Banc of California?
The bank was founded in 1941 as a credit union for employees of the Rohr Aircraft Plant in Chula Vista, California. The name and structure went through several iterations over the years. Today, Banc of California is not only going strong but is also actively acquiring other banks, such as their July 2023 acquisition of Pacific Western Bank.
