"It's a special rate that should last at least until next Wednesday (5/18) when rates are updated. When you submit the online application, you'll need to print out the forms and mail it in with your check. The rate will lock based on the postmark date.
At the bottom of the rate table the bank provides a fair number of details about the CD. Some of the important things to note include:
•Applications should be mailed and postmarked on the date that you apply. The postmark date will lock in the rate shown on our website •Interest may be paid by check or credited to another 1st Source Bank deposit account for Certificates equal to or greater than $2,500.00 •This offer applies only to personal CDs with balances up to $100,000 •IRA/CDs are only available at 1st Source banking centers
The bank's CD Terms and Conditions provide some additional details
•Interest is compounded annually for terms longer than 12 months •Early withdrawal penalty equals 6 months of interest on amount withdrawn for terms over 1 year through 6 years •10 day grace period at maturity •No interest is earned during grace period if CD is redeemed"
I haven't seen anybody mention Ally Bank's CDs on this thread...at least not in the last few pages.
It's a big recognized bank offering 2.39% on their 5yr and their early withdrawal fee is only 60 days worth of interest!
Which means even if you withdraw after 12mos, your net effective rate is 1.99%. And of course the more time you keep it before withdrawing, the higher the effective interest rate, up til 2.39% if you keep it the full 5yrs.
Best I've found for now.
Even if I want to wait because interest rates might rise again soon, it doesn't hurt to put it in this CD. After just 2mos even if I switch to another CD I still would make money in this versus just keeping it in a near 0% bank account while waiting to put it in a higher-rate CD when rates rise.
There is a NCUA investigation going on now against Fort Know FCU's CD shenanigans. Hopefully, the NCUA will stop these outragious Fort Knox practices soon.
Insured to $250K Best rate out there Above doesn't bother me in the least.
qwertyaas said: Was considering Sovereign Bank 5 year CD until I saw early withdrawal penalty was a year of interest...Sovereign just dropped from 2.80 to 2.15.
Updated in Quick Summary... also added 7 and 10 year yields for iGObanking.com (3.10 and 3.50 respectively).
iLoveTahoe said: qwertyaas said: Was considering Sovereign Bank 5 year CD until I saw early withdrawal penalty was a year of interest...Sovereign just dropped from 2.80 to 2.15.
Updated in Quick Summary... also added 7 and 10 year yields for iGObanking.com (3.10 and 3.50 respectively).
Found a good CD, 5 year 3.33%, here yesterday. Very easy to join and here is my write up on it.
"I just joined and found it simple and quick. First thing I did was call to get CSR to work with and she gave me her direct line and fax. Then in less than 2 minutes I joined the Historical Capitol thing and they sent me an email back right away welcoming me. Then I faxed over to CSR, member app, along with copy of driving license and The welcoming letter. Within 10 minutes she called me back and gave my member and instructions how to make deposit at shared branch thats only about 10 minutes from. Went there and made the deposit and no phone calls or any other verification. Then per CSR I emailed her instructions to open the 60 month 3.33% CD. Did this from my phone in parking lot. 20 minutes later I got home and was able to log in and see the CD was opened correctly. Whole process from first call took less than 2 hours"
Would act quick on it since Credit Unions often change rates first of month, But as you can see from my write up account can be opened quickly
RS4Rings said: Found a good CD, 5 year 3.33%, here yesterday. Very easy to join and here is my write up on it.
"I just joined and found it simple and quick. First thing I did was call to get CSR to work with and she gave me her direct line and fax. Then in less than 2 minutes I joined the Historical Capitol thing and they sent me an email back right away welcoming me. Then I faxed over to CSR, member app, along with copy of driving license and The welcoming letter. Within 10 minutes she called me back and gave my member and instructions how to make deposit at shared branch thats only about 10 minutes from. Went there and made the deposit and no phone calls or any other verification. Then per CSR I emailed her instructions to open the 60 month 3.33% CD. Did this from my phone in parking lot. 20 minutes later I got home and was able to log in and see the CD was opened correctly. Whole process from first call took less than 2 hours"
Would act quick on it since Credit Unions often change rates first of month, But as you can see from my write up account can be opened quickly
"Gone baby gone, the love has gone awaaaay...." The rate is now 2.43% for 5 yrs.
TD Ameritrade has a 1.15% APY 3-month CD; minimum $25,000; maximum $250,000; FDIC-insured. (I don't know if anyone cares about 3-month CDs; I don't see any in the Quick Summary; this rate at least seems higher than any other nationwide 3-month CDs on depositaccounts).
You have to deposit the money into your TD Ameritrade account by 12/14/2011 and then "call a Fixed Income Specialist at 877-812-1428 to purchase your CD by 12/19/11. Representatives are available Monday – Friday, 8:00 a.m. to 6:30 p.m. ET."
"Offer valid for a limited time only for individuals who deposit $25,000 or more in new assets to their account by 12/14/11. Internal transfers will not be accepted as valid funding for this promotion. Once a qualifying deposit is made, clients must call a Fixed Income Specialist to purchase the CD. The CD must be purchased by 12/19/11. Offer not valid for TD Ameritrade Investing Accounts using the Amerivest service. Offer not valid for accounts managed by independent investment advisors and maintained by TD Ameritrade Institutional. Offer deposits to IRAs are subject to IRS contribution limits. Please consult your legal, tax or investment advisor for the most recent changes to the U.S. tax code and for Rollover eligibility rules as well as contribution limits. Limit one offer per promotion per client/account type. Offer is not transferable. Offer valid for U.S. residents only. TD Ameritrade reserves the right to restrict or revoke this offer at any time." "Number of CDs available through this offer is limited."
SeattleNative said: Alaska USA FCU certificate rates 5 year Certificate, $500 minimum, 2.50% APY 5 year Certificate, $10k minimum, 2.65% APY as of 12/08/11
Early withdrawal penalty? All I see is:
There is a penalty for early withdrawal from a certificate or tax deferred IRA certificate. In the event an early withdrawal lowers the certificate balance below the required minumum, the certificate must be canceled or closed, and the forfeiture amount will be calculated using the full balance of the certificate.
qwertyaas said: SeattleNative said: Alaska USA FCU certificate rates 5 year Certificate, $500 minimum, 2.50% APY 5 year Certificate, $10k minimum, 2.65% APY as of 12/08/11
Early withdrawal penalty? All I see is:
There is a penalty for early withdrawal from a certificate or tax deferred IRA certificate. In the event an early withdrawal lowers the certificate balance below the required minumum, the certificate must be canceled or closed, and the forfeiture amount will be calculated using the full balance of the certificate.
Doesn't state what the penalty is.It is in the fees disclosure. For 5 years term:
If the maturity period (term) of the Certificate is greater than one year, the Certificate owner shall forfeit an amount equal to the lesser of: 180 days of dividends on the amount withdrawn, or all dividends on the amount withdrawn since the date of issuance or renewal
"all dividends on the amount withdrawn since the date of issuance or renewal"
Doesn't that mean you only get your principle back? That's a pretty stiff penalty. Melrose CU reduces your rate to the share rate so you still get .50% or .25% even that puts them low on my list now.
Early withdrawal penalties are really changing fast and getting pretty severe. Some banks and CU's are using a lot of confusing terms to describe the penalty.
In fact early withdrawal penalties are almost as important as rates for me now. Given the fact that most places have the ability to change withdrawal penalties if they give you notice, I'm reading a lot fine print as I CD shop today.
boomp said: "all dividends on the amount withdrawn since the date of issuance or renewal"
Doesn't that mean you only get your principle back? That's a pretty stiff penalty. Melrose CU reduces your rate to the share rate so you still get .50% or .25% even that puts them low on my list now.
Early withdrawal penalties are really changing fast and getting pretty severe. Some banks and CU's are using a lot of confusing terms to describe the penalty.
In fact early withdrawal penalties are almost as important as rates for me now. Given the fact that most places have the ability to change withdrawal penalties if they give you notice, I'm reading a lot fine print as I CD shop today.
Does anyone know for sure how Melrose Credit Union 's penalty works?
Re: rate reduction, does the rate reduction occur at the time of withdrawal, or does it go all the way back to the start date? It's confusing to me and not clear.
I know as per the website the money is FDIC insured but does anybody have first hand experience with DCU ? I would feel more comfortable knowing somebody else also has invested with them. Thanks.
uvasag said: I know as per the website the money is FDIC insured but does anybody have first hand experience with DCU ? I would feel more comfortable knowing somebody else also has invested with them. Thanks.Their rates are down little bit since December 23rd. I have had numerous accounts with DCU (CDs, IRA CDs, Checking account). They are great. Checking Account also has PC Deposit. Btw, Alaska USA FCU has 2.65% for 5 yr with 6 months if you can get it.
Edit: I forgot to add that DCU also provides you with free Equifax FICO Score every month.
uvasag said: Thank you. Yes I did check the Alaska FCU but had the same concerns. DCU seemed more reliable.Alaska FCU is also great. They have branches here in the west coast that is open on Sundays too. Their mortgage rates are also good in general. You can't go wrong with either but DCU just has little bit more value. FWIW, I opened three 5 YR CDs with Alaska a week back since I had to wait for the relationship checking status @ DCU (DD to come through). And by that time, DCU had changed their rates.
oh ok. Well looks like Alaska FCU has also changed their rates. As per their website the new rates are 60 Months 2.250% so DCU is actually better. I'll have to mail the CD form and check to DCU and hopefully the rates stay the same till they receive my application. Thank you for your feedback. It has helped me a lot.
uvasag said: oh ok. Well looks like Alaska FCU has also changed their rates. As per their website the new rates are 60 Months 2.250% so DCU is actually better. I'll have to mail the CD form and check to DCU and hopefully the rates stay the same till they receive my application. Thank you for your feedback. It has helped me a lot.Good luck. If you are trying to get the relationship rate then I suggest that you pay for it the first month ($10 or something like that) and open the CD. You will also get $5 for 3 months with the checking account anyway to offset this fees. This will speed up the CD opening process since you don't have to wait for the DD to establish. I should have actually done this last month when the rate was at 2.86%. I procrastinated a bit and it was too late.
tajar96 said: Does PenFed do a hard pull ?Yes, for initial membership or CC or checking account (I think). If you open CDs after getting membership is generally without a hard pull. I think PenFed is also the same although someone who has opened CDs with them can confirm.
ucfzf10 said: tajar96 said: Does PenFed do a hard pull ?Yes, for initial membership or CC or checking account (I think). If you open CDs after getting membership is generally without a hard pull. I think PenFed is also the same although someone who has opened CDs with them can confirm. When you join Penfed they will do a hard pull, But they will use that same pull for getting a credit card also. I think you have something like 60 days to use it. Once you are a member there are no more hard pulls for opening different deposit accounts. Can even have your card upgraded without one
RS4Rings said: ucfzf10 said: tajar96 said: Does PenFed do a hard pull ?Yes, for initial membership or CC or checking account (I think). If you open CDs after getting membership is generally without a hard pull. I think PenFed is also the same although someone who has opened CDs with them can confirm. When you join Penfed they will do a hard pull, But they will use that same pull for getting a credit card also. I think you have something like 60 days to use it. Once you are a member there are no more hard pulls for opening different deposit accounts. Can even have your card upgraded without one
Thanks folks. I might just make the jump soon, tired of Ally/Alliant low rates. The only thing I am concerned about is 2 credit pulls as I am going to close/reopen my AARP shortly.
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