5.26% 12, 24 and 60-Month CDs at Apple Bank for Savings
Apple Bank for Savings is offering a 5.26% APY certificate of deposit on terms of 12, 24 and 60 months. The minimum deposit is $500. The rates are listed at the bank's rate table. Their CD page has a few more details.
I was hoping these CDs would be new products for Grand Yield Direct customers and could easily be opened online. But that does not seem to be the case. There is no mention of CDs at the Grand Yield Direct page. Grand Yield Direct is the online savings account that Apple Bank started last year. That savings account continues to offer high rates (currently 5% APY), but they haven't added any new online products since it began. Please refer to this post for more details on this savings account.
I also saw these CDs advertised at Bankrate, so that does lead me to believe that the bank will allow people from any state to open these CDs by mail. I'll have to check with the bank tomorrow.
[Update 11/23/07: I was able to contact the bank today, and the CSR confirmed that these CDs are available to people in any state. It does require that you mail in the application. You have to contact them for the application. They can email it to you. Once they email it, you have 14 calendar days for them to receive the application to guarantee the rate. New accounts require a copy of a photo ID.
In addition to sending a check with the application, I was told you can fund the CD from money in your Grand Yield Direct savings account. I was told that this requires two additional steps: 1) including a signed letter with instructions for this transfer, and 2) sending them an email to authorize the transfer from with email address on record in your Grand Yield Direct account. When the CD matures, you can have them transfer the money back into the savings account or you can request a check. They give you 5 calendar day grace period to close the CD without a penalty.
As a reader mentioned in the comments, they have a severe early withdrawal penalty. For terms of 1 year to less than 5 years the penalty is $150 plus 270 days of interest. The penalty for the 5-year is $150 plus 360 days of interest.]
Apple Bank for Savings has branches in Manhattan, Bronx, Brooklyn, Queens, Westchester, Suffolk, Nassau and Staten Island, New York.
The bank is FDIC insured (Certificate # 16068) and has $8.2 billion in assets. Bankrate gives the bank 4 out of 5 stars (sound) as of 6/30/07 data.
Thanks to the commenter mrthnman who mentioned these CDs in the finding-deals post.
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