Dedicated to Deposits: Deals, Data, and Discussion

5.50% 24 to 60-Month CDs at H&R Block Bank

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H&R Block Bank
Update: The CD rates have fallen. Please check the bank's website for the latest rates.

H&R Block Bank is offering very competitive CD rates. The yield for terms of 24, 36, 48 and 60 months is 5.50% APY. The 18-month CD has a yield of 5.35% APY, and the 12-month CD has a yield of 5.25% APY. The shorter term CDs are less competitive. Note, to see the CD rates, make sure you select the CD tab on the rate page.

I wasn't able to reach a customer service rep. It appears no one answers the phones after business hours. So the CD information below is based on what I read from H&R Block's website:
  • Minimum deposit $250
  • Interest earned on a CD can be paid monthly, quarterly or upon maturity at the customer's option
  • Interest automatically compounds in the account, unless you specifically request interest payments be disbursed
  • Grace period varies by account type
  • Available to personal or business customers
  • Must mail or fax in application
  • CD can be funded by check or electronic transfer from an existing account at another bank
  • Disbursements can be mailed to you, transferred into another H&R Block Bank account or electronically sent to another bank at your request

I can't find any details about what would happen if the rates change before they receive your application in the mail or before they receive the funds. Also, I can't find any details about early withdrawal penalties or grace period time. I'll provide updates once I hear from them.

[Update 10/18/07: I spoke with the customer service rep today. Here are some additional details:
  • Rate guaranteed at time of fax or the date of check
  • Grace period is 10 calendar day
  • Early withdrawal penalty is 90 days for the 24-month term and up to 6-months for the longer terms
  • POD beneficiaries can be specified
  • No hard credit inquiry is done

As a commenter noted, they're having problems with their mortgage subsidiary (see Reuters' article). So they seem to be in a similar situtation as Countrywide which explains the high rates.]

I did not know H&R Block had a banking unit so I don't know if they have a history of high CD rates. The bank is FDIC insured (Certificate # 58124). It was just established in 2006 so it's too new to have a rating at Bankrate.com. It's a small bank that's operated out of a Kansas City, Missouri office. From the FDIC database, as of June 30, 2007, the bank has $1.4 billion in assets, $1.1 billion in total deposits and 33 employees.

Thanks to the reader who emailed me info on this bank.

Update 10/29/07: Commenter reported that H&R Block cannot accept faxes since they are not able to initiate an ACH transfer. Checks must be mailed.

  Tags: H&R Block Bank , CD rates

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Comments
7 Comments.
Comment #1 by Fotuton (anonymous) posted on
Fotuton
This is to keep Option One Mortgage (H&R Block's subprime mortgage subsidiary) afloat while they get someone to buy them out. It has been on the selling block, unable to find a buyer since the beginning of the year.

1
Comment #2 by Anonymous posted on
Anonymous
This is something we should run for.

1
Comment #3 by Anonymous posted on
Anonymous
I spoke to a CSR there. They will hold the rate for you if you fax over the application while the rate is in effect. I didn't get specifics as for how long, but for me, and ACH transfer is being used, and that is good enough for them

2
Comment #4 by Anonymous posted on
Anonymous
H&R Block advised me today that they cannot accept CD applications via fax, because they cannot fund CD's via ACH.

They said they were going to update their deposit application to indicate this.

You have to mail in the application with a check. They guarantee you the rate that was in effect on the postmark date.

1
Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. I've updated the post. Sorry to see they can't do ACH funding.

1
Comment #6 by Anonymous posted on
Anonymous
I managed to get a 2-yr CD at 5.5% APY.

However, I've found customer service at this bank is really slow and indifferent, bordering on rude.

They sat on my application and check for several days, resulting in loss of interest.

They are also very slow at mailing out certificates. My CD has been open for more than a week already, and the CSR advised me they still hadn't even mailed the certificate.

OK, so 5.5% APY for 2 years was a pretty good deal ... but I'd be hesitant to give any more business to these guys.

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Comment #7 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info.

1