Mutual Bank has some very competitive rates for its 24 and 36 month promotional CDs. The 36-month CD has a yield of 5.30% APY, and the 24-month CD has a yield of 5.20% APY. The minimum deposit is $5,000. The 12-month special CD has a yield of 5.00% APY and a minimum of $2,500. These rates are much lower than what Mutual Bank was offering last month with a 5.75% 12-month CD. Nevertheless, these 24 and 36 month CD yields are the highest that are available from a bank without local restrictions.
In that post from last month, I listed many of the features of Mutual Bank's CDs.
- compounded and credited monthly
- available as a regular or IRA CD
- can be opened by mail from any state
- rate will be guaranteed from date of postmark
- No hard credit pull for CDs
- 10 grace period after the CD matures in which you can withdraw without penalty
- 90 day early withdrawal penalty for all terms
- If you decide not to renew at maturity, you need to request in writing by mail or fax
- At maturity, funds can be sent by cashier's check at no charge or by wire transfer for a $25 fee or transfered into your Mutual Bank money market or checking account.
- Online banking can be setup at the Mutual Bank website after the account is opened.
- Application info available at this Mutual Bank page
I was told of one useful feature of this CD regarding early withdrawals which gives you more flexibility for the cases when you need some of the money that's locked into the CD. Mutual Bank allows interest to be withdrawn any time after it's posted without penalty. In addition, the penalty is only assessed on the amount of principal withdrawn. So if you have a principal of $30K in a CD and you need $10K, you're allowed to withdraw only the $10K, and the penalty would apply only to that $10K. The rest of the $20K principal would continue to earn the same interest in the CD. I've seen this at other banks also, but some banks do not allow this kind of partial withdrawals.
One note regarding early withdrawals that was mentioned by a reader in previous posts is that the terms give them the right to impose further withdrawal restrictions on CDs.
In addition to opening the CD by mail, you can also open at one of Mutual Bank's branches. They've recently expanded outside of the Chicago metro area in Staten Island, New York; Edison, New Jersey; and Houston, Texas.
Mutual Bank's rating at Bankrate.com has fallen this year. It's currently at 2 out of 5 stars (below peer group). I'm not sure of the reason. Last year they had a rating of 3 and 4 stars. The bank is FDIC insured (Certificate # 18659). As always it's a good idea to keep below the FDIC limits. Please see this post to see ways to be FDIC insured for balances over $100K.