Dedicated to Deposits: Deals, Data, and Discussion

Netbank Raises CD Rates Again - 5.50% 1 Year, 5.45% 6-Month

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Update 9/28/07: NetBank closed by the FDIC. See post for more details.

Netbank raised CD rates again this week on its 12-month and 6-month terms. The yield of the 12-month CD is now 5.50% APY (up from 5.45%). The yield of the 6-month CD is now 5.45% APY (up from 5.40%). The rates on all other terms remain the same. Netbank's last rate increase was two weeks ago on January 30th.

Please refer to my previous post for more info on opening accounts at Netbank and their current $250 new account bonuses. With a $15K deposit on your first Netbank 1-year CD, you could receive a $100 bonus on top of the 5.50% APY. There are some downsides with Netbank. Refer to my previous post for a discussion on this.

Credit for this update goes to shrazzy who mentioned these new rates in the comments.

  Tags: CD rates

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Comments
12 Comments.
Comment #1 by shrazzy (anonymous) posted on
shrazzy
it's amazing how netbank in early 07 wants to stay #1 on 6M and 1YR CDs. They've increased it so much from the start. Maybe b/c they got that 1 star rating they need to raise it. Any actual customer want to comment on netbank?

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Comment #2 by Anonymous posted on
Anonymous
On the other hand, they're changing their netconnect money markets in favor of a tiered system (effective 3/6/07):

$0.01 - $9,999 3.05%
$10,000 - $24,999 3.75%
$25,000 - $74,999 4.05%
$75,000 + 4.50%

The $500 min balance is still in effect...

I'll pass on the cds...I hate locking money up there of all places

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Comment #3 by Anonymous posted on
Anonymous
Their mm and checking rates are not that good and the only reason that I still keep my accounts is their ATM. It does not charge any fees when I used it overseas.

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Comment #4 by Anonymous posted on
Anonymous
I opened a 1-year CD with them late last year (10K, 5.25 APY with with a $50 bonus). I also just opened a 6-month CD yesterday. Both applications for a new CD account were approved same business day.

CD funding terms said they will honor the higher rate and deposit the bonus if funding was completed within 5 business days after the account was first opened. I goofed last year and wasn't able to fund the CD until after 15 days, but they still gave me the higher rate and the bonus anyway.

Also, I closed my checking account with them mid-last year and asked through their BankMail interface that they not deduct the $7.50 closure fee. They complied with my request.

NetBank isn't my primary bank, but they haven't given me anything to complain about so far.

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Comment #5 by Anonymous posted on
Anonymous
It's good to see that Netbank raises their CD rate. But if you read the fine print(super small words) on the drugstore.com 's web page where it says the 1 year CD APY is still 5.4%.

It is not the 5.5% as shown on the netbank.com.

I am not sure if you will get the 5.5% APY and the $100 when u open the $15000 1 yr CD thro the drugstore page.

I am too sick of calling these Netbank CSRs. My experience was I called twice during the weekend. I had to wait for a 30 min waiting time. And when I finally got a chance to talk to someone. The both CSRs had no idea abbout these promo.

So, if anyone is nice to call Netbank and would like to tell us if one can get the 5.5% APY+$100 on the 1 yr $15000 CD, that will be great.

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Comment #6 by Anonymous posted on
Anonymous
The promo page is here:
http://www.netbank.com/pro383.htm

The footnote says that the one-year rate is 5.50%. Maybe you were looking at the 5-year rate.

I don't know why you need to talk to a CSR. The only way to open the CD and get the bonus is online. A CSR can't help you.

Don't worry, it will tell you what interest rate you are getting when you fill out the application. If you don't like it, you don't have to send the money.

I've gotten many bonuses from Netbank over the years, they have always come through for me. Hint: Make sure you aren't blocking cookies when going through the application process and make sure you start the application process by clicking on the link on the promo page.

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Comment #7 by ShraZZy (anonymous) posted on
ShraZZy
Does Netbank have a deposit ACH? How do you close a CD?

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Comment #8 by Anonymous posted on
Anonymous
You can fund the CD via ACH if you want. The option will be there when you finish the application. But in my experience they don't credit the CD account until about a week after the money has been withdrawn from your checking account. If you are transfering from a money market account, you might be better off sending them a check so you don't lose interest for a week.

You close the account by logging into your account and sending them a message telling them what you want them to do. Or you can call them or send them a letter. The online message has always worked well for me.

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Comment #9 by Pop's (anonymous) posted on
Pop's
IndyMac is also offering 5.45% for their 6-month CD. I've banked with both IndyMac and NetBank and I prefer IndyMac.

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Comment #10 by Anonymous posted on
Anonymous
Pop, is IndyMac also offering a $100 bonus when opening a CD with $15K?

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Comment #11 by Pop's (anonymous) posted on
Pop's
I was making the comparison as an existing customer, not as a first-time customer.

Quote from http://www.netbank.com/pro383.htm:
"This reward is available only to first-time NetBankĀ® customers."

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Comment #12 by Jonny C. (anonymous) posted on
Jonny C.
The rates for NetBank seems to have gone back to it's original rate. I just checked the website and 1 year is back to 5.45% and 6-months is back to 5.40%

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