6.20% 60-Month / 6.01% 45-Month CD at an Iowa Bank (plus 6.35% Flex CD)
Jul 30, 2006 - 2:58 PM by Ken Tumin
First Bank is offering a special 6.20% APY 60-month certificate of deposit. There's also a special 6.01% APY 45-month CD. Both have a minimum deposit of $5K. In addition, the bank offers a 30-month Flex CD with a rate that equals the Prime Rate minus 2%. Currently, the APY is 6.35%. This Flex CD allows additions to the principal of $1K minimum. It also has a $5K minimum initial deposit. The penalties for early withdrawal of the long-term CDs are 180 days of interest.
The Flex CD may be the best deal. The Prime Rate tends to follow the fed funds rate and remain 3% above it. This could be a good deal if rates continue to rise or if they don't drop over the next couple of years. It's starting to look like we'll soon be seeing some pauses in the rate hikes. But there's still a chance of one or two more rate hikes this year.
Branches are located in the Iowa cities of Des Moines and Johnston. At the top of the CD rates page, it is stated that the bank reserves the right to offer CD rates to Iowa residents only.
First Bank has been FDIC insured since 1934.
The Flex CD may be the best deal. The Prime Rate tends to follow the fed funds rate and remain 3% above it. This could be a good deal if rates continue to rise or if they don't drop over the next couple of years. It's starting to look like we'll soon be seeing some pauses in the rate hikes. But there's still a chance of one or two more rate hikes this year.
Branches are located in the Iowa cities of Des Moines and Johnston. At the top of the CD rates page, it is stated that the bank reserves the right to offer CD rates to Iowa residents only.
First Bank has been FDIC insured since 1934.
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Anonymous - #1, Sunday, July 30, 2006 - 10:18 PM
I wanted to point out that while they do reserve the right to serve only Iowa residents they place more emphasis on how much they will allow a non-Iowa resident to place in a CD at their stated rates, ie, not up to the FDIC limit exceeding it etc.
It's a family controlled bank with good regulatory capital but the moral hazard that is FDIC insurance is about all I care about.
Anonymous - #2, Monday, July 31, 2006 - 9:19 AM
I just called this bank (on July 31) and was emphatically told that they do not accept CD money from out of state.
Anonymous - #3, Monday, July 31, 2006 - 1:18 PM
Yes, I posted the first comment as there was some ambiguity to begin with...that is no more.
I was also told that only Iowa residents qualify for the product. It's not much of a surprise - they want to cross sell products.
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