Anybody had CD with Columbia Bank, NJ

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walker414
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Anybody had CD with Columbia Bank, NJ

Post by walker414 » Thu May 24, 2018 10:34 am

My first post. After delaying for 3 years finally getting around to opening a CD. Using depositaccounts as well as bankrate website, found that Columbia Bank, NJ has rate of 2.96% (3.00% APY) for 36 month with premature penalty loss of 1 yr. We live in NJ.

Does anybody have experience with the CD from this bank? It does not have a familiar brand like say Barclays bank or Goldman Sachs or Ally.

Chicago60
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Re: Anybody had CD with Columbia Bank, NJ

Post by Chicago60 » Thu May 24, 2018 12:49 pm

No experience at all, but, I assume you noticed that depositaccounts.com has 12 reviews.....

sport
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Re: Anybody had CD with Columbia Bank, NJ

Post by sport » Thu May 24, 2018 12:49 pm

I cannot comment on that bank. However, Vanguard now has brokered CDs at 3% for 3 years and 2.8% for 2 years.

moshe
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Re: Anybody had CD with Columbia Bank, NJ

Post by moshe » Thu May 24, 2018 12:58 pm

Why buy a CD rather than a 2 year T-Bill? Easy to buy or sell via vanguard, no early withdrawal penalty, state tax free. Why take the risk (FDIC i know) but how long will you wait to be made whole if the bank fails?

Someone please enlighten me. My effective tax yield for a 2 year is currently ~2.63% or is 0.17 of vig worth it? I would rather take the additional risk on the equity side of my asset allocation.

Thank you,
~Moshe
My money has no emotions. ~Moshe | | I'm the world's greatest expert on my own opinion. ~Bruce Williams

Grt2bOutdoors
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Re: Anybody had CD with Columbia Bank, NJ

Post by Grt2bOutdoors » Thu May 24, 2018 1:17 pm

moshe wrote:
Thu May 24, 2018 12:58 pm
Why buy a CD rather than a 2 year T-Bill? Easy to buy or sell via vanguard, no early withdrawal penalty, state tax free. Why take the risk (FDIC i know) but how long will you wait to be made whole if the bank fails?

Someone please enlighten me. My effective tax yield for a 2 year is currently ~2.63% or is 0.17 of vig worth it? I would rather take the additional risk on the equity side of my asset allocation.

Thank you,
~Moshe
Before a bank fails, FDIC would be looking to arrange a sale, long before. In past instances where a bank was going into receivership, those who held deposits that were fully covered by FDIC (meaning within the limit) were made whole almost immediately, no one was left waiting to "collect".

OP - Please feel free to purchase the CD, so long as the bank is covered by FDIC insurance and you are within the limit coverage for your deposit.
https://www.bankbranchlocator.com/colum ... ersey.html - As you can see, if they are operating in 46 different locations, they are not that "small". A "small" institution would be a 1 or 3 branch bank with low assets. Columbia Bank has been insured continuously since 1937.
Their certificate number is 28834. Look it up on FDIC.gov The bank has been in business since 1926. Seeing that many banks actually failed during the Great Depression and they did not, says plenty.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

bsteiner
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Re: Anybody had CD with Columbia Bank, NJ

Post by bsteiner » Thu May 24, 2018 4:10 pm

walker414 wrote:
Thu May 24, 2018 10:34 am
... found that Columbia Bank, NJ has rate of 2.96% (3.00% APY) for 36 month with premature penalty loss of 1 yr. We live in NJ.

Does anybody have experience with the CD from this bank? It does not have a familiar brand like say Barclays bank or Goldman Sachs or Ally.
It may not be as large as Barclays, but it has 48 branches and assets of over $5 billion, and is pretty well known in Northern NJ.

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Pajamas
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Re: Anybody had CD with Columbia Bank, NJ

Post by Pajamas » Thu May 24, 2018 4:18 pm

Grt2bOutdoors wrote:
Thu May 24, 2018 1:17 pm
The bank has been in business since 1926. Seeing that many banks actually failed during the Great Depression and they did not, says plenty.
Not saying the bank isn't fine for CDs, but what does that really have to do with anything? What does it "say"?

Barings Bank had been around since 1762 and failed in a spectacular manner in 1995, arguably because of one employee.

Past performance is no guarantee of future results.

Doctor Rhythm
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Re: Anybody had CD with Columbia Bank, NJ

Post by Doctor Rhythm » Thu May 24, 2018 5:03 pm

Barings Bank had been around since 1762 and failed in a spectacular manner in 1995, arguably because of one employee.
I think the OP was concerned that the bank might be a dodgy, fly-by-night institution without standing or history - and the knowledge that it has been around for many decades with dozens of branches is meant to reassure the OP. Could still fail spectacularly, but that's what FDIC is for. Personally, I was deliberately putting money into CDs and money markets at collapsing banks in 2008 desperate for a cash infusion (Washington Mutual and Countrywide). I think one of them was offering 5% for a 1-year certificate.

Grt2bOutdoors
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Re: Anybody had CD with Columbia Bank, NJ

Post by Grt2bOutdoors » Thu May 24, 2018 8:10 pm

Pajamas wrote:
Thu May 24, 2018 4:18 pm
Grt2bOutdoors wrote:
Thu May 24, 2018 1:17 pm
The bank has been in business since 1926. Seeing that many banks actually failed during the Great Depression and they did not, says plenty.
Not saying the bank isn't fine for CDs, but what does that really have to do with anything? What does it "say"?

Barings Bank had been around since 1762 and failed in a spectacular manner in 1995, arguably because of one employee.

Past performance is no guarantee of future results.
Barings Bank? You mean the United Kingdom entity that was never ever ever insured by the Federal Deposit Insurance Corporation? The same entity that was not a federally regulated banking institution, rather it was regulated by the British? Further, Barings was an " merchant investment bank" as opposed to a retail banking entity. Retail bankers aren't out there placing trades for copper, although on occasion they are known to place "large orders" in the marketplace, looking to make a real splash and move the market.
.
.
.
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Why those trades could amount to $1,000!! ( one thousand dollars) or up to $5,000!!! in a week for those hard to find, in demand Abe Lincolns as they are trying to cash in on all those nickels. Especially since a dime isn't worth a nickel anymore. Gosh, those greedy bankers, imagine that, trying to lose money on purpose!
Last edited by Grt2bOutdoors on Thu May 24, 2018 8:22 pm, edited 2 times in total.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Grt2bOutdoors
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Re: Anybody had CD with Columbia Bank, NJ

Post by Grt2bOutdoors » Thu May 24, 2018 8:20 pm

bsteiner wrote:
Thu May 24, 2018 4:10 pm
walker414 wrote:
Thu May 24, 2018 10:34 am
... found that Columbia Bank, NJ has rate of 2.96% (3.00% APY) for 36 month with premature penalty loss of 1 yr. We live in NJ.

Does anybody have experience with the CD from this bank? It does not have a familiar brand like say Barclays bank or Goldman Sachs or Ally.
It may not be as large as Barclays, but it has 48 branches and assets of over $5 billion, and is pretty well known in Northern NJ.
And aren't they glad they are not Barclay's, a bank which in 2008 was teetering along with that of RBS as the British banking system nearly came crashing down.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

MikeG62
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Re: Anybody had CD with Columbia Bank, NJ

Post by MikeG62 » Fri May 25, 2018 7:04 am

walker414 wrote:
Thu May 24, 2018 10:34 am
My first post. After delaying for 3 years finally getting around to opening a CD. Using depositaccounts as well as bankrate website, found that Columbia Bank, NJ has rate of 2.96% (3.00% APY) for 36 month with premature penalty loss of 1 yr. We live in NJ.

Does anybody have experience with the CD from this bank? It does not have a familiar brand like say Barclays bank or Goldman Sachs or Ally.
I do not have personal experience with Columbia Bank, but living in NJ I am familiar with them. Given amounts on deposit with them (including CD's) are FDIC insured (up to the FDIC insurance limits) I would not worry about those funds being at risk.

However, I don't like the 12 month EWP and as others have pointed out, there are other options with similar (+/-) yields (potentially without such an onerous EWP) and may not require your funds to be tied up quite as long.

Grt2bOutdoors
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Re: Anybody had CD with Columbia Bank, NJ

Post by Grt2bOutdoors » Fri May 25, 2018 8:22 am

MikeG62 wrote:
Fri May 25, 2018 7:04 am
walker414 wrote:
Thu May 24, 2018 10:34 am
My first post. After delaying for 3 years finally getting around to opening a CD. Using depositaccounts as well as bankrate website, found that Columbia Bank, NJ has rate of 2.96% (3.00% APY) for 36 month with premature penalty loss of 1 yr. We live in NJ.

Does anybody have experience with the CD from this bank? It does not have a familiar brand like say Barclays bank or Goldman Sachs or Ally.
I do not have personal experience with Columbia Bank, but living in NJ I am familiar with them. Given amounts on deposit with them (including CD's) are FDIC insured (up to the FDIC insurance limits) I would not worry about those funds being at risk.

However, I don't like the 12 month EWP and as others have pointed out, there are other options with similar (+/-) yields (potentially without such an onerous EWP) and may not require your funds to be tied up quite as long.
The 12 month EWP is by design, they are hedging increased borrowing cost by licking in lower cost of funds today (no free lunch). I’d go with a 2 year T note instead.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

gizo123
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Re: Anybody had CD with Columbia Bank, NJ

Post by gizo123 » Fri May 25, 2018 10:30 am

walker414 wrote:
Thu May 24, 2018 10:34 am
My first post. After delaying for 3 years finally getting around to opening a CD. Using depositaccounts as well as bankrate website, found that Columbia Bank, NJ has rate of 2.96% (3.00% APY) for 36 month with premature penalty loss of 1 yr. We live in NJ.

Does anybody have experience with the CD from this bank? It does not have a familiar brand like say Barclays bank or Goldman Sachs or Ally.
You can get 2.69% for 20 month with ESBS

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