Dedicated to Deposits: Deals, Data, and Discussion

5.55% to 5.90% on 5 to 10 Year CDs at KeyDirect


Update 1/22/08: The CD rates have changed. Please check the bank's website for the latest rates.

KeyDirect has some very competitive rates for long term regular and IRA CDs. The APY for 5, 7 and 10 year term are 5.55%, 5.75% and 5.85%. These require a minimum deposit of $5,000 ($2,000 for IRAs). An extra 0.05% is available for a minimum deposit of $50K for the 7 and 10 year terms. These rates apply to both regular and IRA CDs.

The early withdrawal penalty for CDs with terms of 48 months or more is 12 months of interest. If the CD is closed before 12 months, the penalty will eat into the principal. There's a 10 calendar grace period when the CD matures when you can withdraw funds without penalty. Full details of the CDs are contained in KeyDirect's disclosure document. There's no direct link to it, but you can access it if you go to the first page of the application and click the link on the bottom right under "Helpful Resources"

The CDs may be opened online at KeyDirect for people who live in 37 states and in DC which don't have KeyBank branches. In the other states, the same CD rates are available at the KeyBank branches. KeyBank is based in Cleveland, Ohio and has been FDIC insured since 1956 (FDIC Certificate # 17534).

Thanks to the reader who mentioned these CD rates in the finding deals post.

  Tags: KeyBank, KeyDirect, CD rates

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Comment #1 by Western New York CD Rates (anonymous) posted on
Western New York CD Rates
For New York the keydirect rates are different then those offered at the bank branch(at least the rates that are posted at

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
A reader left the following comment on 1/11/08 about KeyDirect:

To: Banking Guy and All
Re: Heads up on KeyDirect

I just got off the phone with "Adam", a CSR at KeyDirect. He said the response to the 10 year - 5.75% APY offer has been very good, and that the group that sets rates will be meeting very soon to adjust rates accordingly (read: look out below).

KeyDirect has a "postmark" rule for deposits, so if you mail a check, the rate and term in effect at the date of the postmark is the rate and term you will receive. This also applies to overnight or express mail (FedEx/UPS/USPS).

If you are funding a trustee-to-trustee transfer of an IRA, their New York IRA center will NOT accept an incoming wire transfer, so use overnight mail. I don't know about ACH, but be advised.



Comment #3 by ctgottapee (anonymous) posted on
disappointed in 'online' aspect:

attempted to open a CD online, and basically it is just a sales generator as it doesn't start an account.

received an email and had to call in and repeat all of my information, the same as if i would have just called in the first place.

then the account still is not started, nor can be funded by ACH, and one can not create an online account or have a valid account number; have to wait for paperwork - 7-10 days - fill it out, and once received then i get the option to fund it through ACH when it is received and processed or send an old school check in at that time.

of cousre all this delay is no good at this point in time. the online aspect appears to just be window dressing; don't bother and just call in as you will have to anyway.

Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. Sorry to see such a poor online application. I wish banks would provide a summary of the application process at the start of the application so you know what to expect.

Comment #5 by Bozo (anonymous) posted on
As I mentioned in another post, KeyDirect has lowered its rates. The rate on the 10 year is down 75 basis points, in line with the Fed move, I guess.



Comment #6 by Anonymous posted on
Any thoughts on a 4 year cd for 5.25% versus a 23 month for 4.75% The loss of yield for the two years would make it so that one would need to find a cd for 5.75% after the 2 years. How likely do you think that is, given that the feds may raise rates slowly and only after the economy strenthens a bit...and banks may have themselves straightened out in two years, and not be as desperate for funds.