Dedicated to Deposits: Deals, Data, and Discussion

5.26% 12, 24 and 60-Month CDs at Apple Bank for Savings

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Apple Bank for Savings
Update: These CD rates have gone down. Please check with the bank for the latest rates.

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.

  Tags: New York, CD rates, Apple Bank for Savings

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Comments
5 Comments.
Comment #1 by Anonymous posted on
Anonymous
Thank you for posting this. There is an Apple Bank branch right on my block. I also have their Grand Yield savings, so opening an account with them in person should be easy and pleasant. Hey, I haven't visited a bank branch in years... except to use the ATM...

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Comment #2 by Anonymous posted on
Anonymous
Same poster as above. Just want to let you know my experience opening my CD. This was a brick and mort style process. Took about 20 minutes. Branch manager who opened my account said it can NOT be done online, but it can be done through the mail - though he admits this is cumbersome. Still, it showed up online next to my Grand Tier account, so at least you can look at it when you want. If you live near a branch, it's easy enough to go in and open an account. One thing though - the early withdrawl penalty is brutal. It's $150 Plus 270 days of interest. I'll keep mine there for the two years that I took...

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Comment #3 by Anonymous posted on
Anonymous
It is impossible to call Apple Bank. Can the people who posted tell me which branch ofice they went to - I cannot confirm they even have any - the only number that went through was the mortgage division on Park Ave and they requested you leave a message.

I have tried the 800 no which directs you to the 914 no. I googled mapped the banks all the locations came up and I called each on in Manhattan - Irving - 42nd, 5th avenue. NOT one person answered at any of them - and a few did not even ring.

I would walk there but need to make sure they are open first for personal reasons as its hard to get there - this is crazy -

Expecting Fed to cut rates on 11th so may just go with an online - but their rates are attractive for NY

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Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Is their line busy? I think I was able to get through in a reasonable amount of time when I did this post. I used the number 1-914-902-2775 from their contact page. With them being listed on Bankrate, I suppose they could be very busy.

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Comment #5 by ClickClack (anonymous) posted on
ClickClack
They are very busy because many people have been applying for their term deposit (i.e., CD) accounts this week in a rush to get the current rate. It took me many attempts before I got the information I wanted. Sometimes after I made it through their automated telephone system, either nobody ever picked up my incoming call or else I would get disconnected. The CSR that finally assisted me said that they are swamped with inquiries about CDs and they are having a new phone system installed, so that's why there are so many problems with phoning them.

I ended up using a form on their Web site to submit my request to open a one-year CD account. Click Retail Products & Services, then click Investment Accounts, and scroll to the Time Deposit Accounts section at the bottom, where you will find a link that points to the form for opening a new account.

Also, there is a toll-free phone number of 800-722-6888 in addition to the number cited by Banking Guy, plus an alternate number of 212-224-6400. Good luck!

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