6.00% 36-Month CD at an Iowa Bank (Prime-Based)

First American Bank is offering a 6.00% APY 36-month certificate of deposit with an APY that equals the Prime Rate minus 2.25%. It's called the Prime CD. The minimum deposit is $5K. It allows unlimited additional deposits of amounts of at least $1K. Also, you can withdraw without penalties up to 20% each year.

Note, the Prime Rate tends to follow the fed funds rate and remain 3% above it. With the latest fed rate pause, it might not go past 6% any time soon. But rates aren't likely to fall any time soon. So the 6% should hold for a while.

First American Bank has branches in several cities of Iowa include Des Moines, Iowa City and Sioux City. According the bank's service representative, they do accept out-of-state deposits, but require customers to visit a branch to open a CD.

This is similar to a CD from another Iowa bank that I posted on 10 days ago. First American's CD rate is a little lower but it does have more branches around Iowa State.

The bank has been FDIC insured since 1934.