5.40% 12-Month CD at Netbank and $100 Bonus
Oct 1, 2007 - 3:33 PM by Ken Tumin
Update 9/28/07: NetBank closed by the FDIC. See post for more details.
Netbank raised rates on all of its CDs with terms of 1-year and longer. All of its CD rates are very competitive. Terms of 1 year to 2 years have an APY of 5.40%. Longer terms have an APY of 5.35%. The minimum deposit is $1,000.
A few months ago, this 5.40% yield wouldn't have been worth mentioning. But now it's near the top for 12-month and longer terms. What makes this even better is that Netbank still has a $100 bonus available for new customers who open a CD with a minimum $15K deposit. This bonus makes the effective rate over 6%. Smaller bonuses are available for smaller deposits. You can also get up to $150 for opening a checking account and a money market account. Please refer to my Netbank bonus post for more info.
NetBank has been FDIC insured since 1988. NetBank currently has a low safe and sound rating at Bankrate.com of 1 out of 5 stars (weak).
Netbank raised rates on all of its CDs with terms of 1-year and longer. All of its CD rates are very competitive. Terms of 1 year to 2 years have an APY of 5.40%. Longer terms have an APY of 5.35%. The minimum deposit is $1,000.
A few months ago, this 5.40% yield wouldn't have been worth mentioning. But now it's near the top for 12-month and longer terms. What makes this even better is that Netbank still has a $100 bonus available for new customers who open a CD with a minimum $15K deposit. This bonus makes the effective rate over 6%. Smaller bonuses are available for smaller deposits. You can also get up to $150 for opening a checking account and a money market account. Please refer to my Netbank bonus post for more info.
NetBank has been FDIC insured since 1988. NetBank currently has a low safe and sound rating at Bankrate.com of 1 out of 5 stars (weak).
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Anonymous - #1, Tuesday, January 23, 2007 - 11:21 AM
I just talked to the CSR at the Netbank and then to someone who introduced himself as a manager.
Not one of them was aware of any promotions.
This is probably the worst place to put your money in. The customer service is the worst!!!
The guy told me to go to the CNN's web page and look for their promotions on that website!
Don't open an account with them!
Anonymous - #2, Tuesday, January 23, 2007 - 12:13 PM
I have to agree. I opened a MM Savings account last year for a $75 bonus (slow to recieve), and they had no ACH ability out of the bank which they really obfuscate in their online material as they talk up the ability to move funds around, but it's just between their own accounts (not sure if this is still the case), fee charged for closing accounts (though can be avoided by just writing a check zeroing your account and not closing, which I did but they keep sending me emails about overdrafts now, which I ignore). Lots of fees too, including inactivity. http://www.netbank.com/terms_fees.htm This offer might be worth putting up with the bad stuff, though as it is a nice rate, if you can get it.
Anonymous - #3, Tuesday, January 23, 2007 - 10:49 PM
Good to know that they suck?
I have a MMA with them now. I opened it to get the $75 and I got it.
I use E-Trade's ACH system to xfer everything that I have. Netbank is the MMA that I use to replace E-Trade's MMA. So far it's working fine now. Nothing is wrong. Not sure how good/bad Netbank's CSR is. I only called them once to ask about the incoming international wire xfer fee. The CSR told me it was free, so I decide to keep the MMA with Netbank. I think I will still open the 1yr $10k CD with them. 5.4% +$100 for a $10000 fund = 6.4% APY? Did I do the math right? The deal looks hot. I'll call the CSR to be sure about the deal.
Anonymous - #4, Wednesday, January 24, 2007 - 9:43 AM
I, too, opened a checking account (the basic one with no minimum balance) with Netbank and got the $75 bonus with no problem. I also had a CD with them (no promotion) but when that CD was about to mature, they actually offered a special rate to me (+0.5% above current APR) for being a "Preferred Customer." So I can't complain too much about them. The only caveats to my checking account is that I have to use Bill Pay (they'll send me reminders via email) or else I'll be charged a fee. Also, to close the account, there is a $7.50 fee. Guess the $75 bonus makes up for that.
Anonymous - #5, Thursday, January 25, 2007 - 7:58 AM
I have a checking account with NetBank since 2004. I have never had a problem with them. Their CD rates are usually good, although compared to ING, they are slow to open. Their customer service has always been fine for me. Not the worst bank by any means.
Anonymous - #6, Friday, January 26, 2007 - 7:49 PM
while i won't claim they are awesome, i too have not had problems with netbank as a real customer - although people in for a quick buck off a special may see different service.
i use the money market account for check writing without issue. the rates are not very high, and you need multiple accounts to get the best rate. like many smaller banks, they seem to outsource nearly everything, including lending, which is probably what leads to problems. i've never had a problem with any fees; never paid any fee myself.
one issue i encountered was a problem using my account with paypal, and the service reps noted it was a known issue for some without a resolution. i'm not a high roller so i don't expect much there. i was able to create a new paypal account that linked ok.
i did the 1 year $1000 CD for a $20 giftcard and received it timely.
been a member since 2002
Anonymous - #7, Sunday, February 18, 2007 - 6:02 AM
I opened a checking account with NetBank in 1999. I converted it to a regular checking account (kept the same account number) once the APY went down too far and I moved my money to Emigrant Direct. I've never had a problem with NetBank. ATM fee reimbursement would be nice. My account is still open and I opened CDs with them last summer for the $50 gift card bonus.
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