6.00% 36-Month CD at a Florida and 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.

This is the same bank that I reported on last month. The bank just purchased Pelican National Bank of Naples, Florida. So this same PrimeCD is available at both its Iowa and Florida branches.

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. However, there's a good chance that 6% will hold for a while. If rates do fall, the early withdrawal feature should help reduce risk of being locked into low rates.

Florida branches are located in Naples, Bonita Springs, Ft. Myers Beach, Ft. Myers and Cape Coral.

The bank is FDIC insured.