KeyBank has a promotion called Great CD Rates for '08 with some very competitive rates. It does require a money market relationship. The rates only seem to be available in 12 of the 13 states where they have branches (excludes Florida). You can see if they're available in your area by clicking on the Great Rates banner on KeyBank's homepage and entering in your zip code. The rates vary by state. Five states have a top yield of 5.50% APY. The other 7 states have a top yield of 5.30% APY. Below is the full list of rates by tiers and states.
Minimum APY for APY for
Balance 25-35mo 7mo
$2,500 5.35% 5.15%
$10,000 5.40% 5.20%
$25,000 5.50% 5.30%
The above rates apply to the following states:
Colorado
Idaho
Maine
New York
Utah
Vermont
Minimum APY for APY for
Balance 25-35mo 7mo
$2,500 5.15% 4.85%
$10,000 5.20% 4.90%
$25,000 5.30% 5.00%
The above rates apply to the following states:
Alaska
Indiana
Kentucky
Michigan
Ohio
Oregon
Washington
Note, not all areas of the above states may qualify. I just entered at least one zip code from each of the states. The maximum deposit for these CDs is $100,000. These rates are also available in an IRA CD.
You must open a Key Privilege Select, Key Privilege or Key Advantage Money Market checking account. The Key Advantage Money Market has the smallest minimum combined balance requirement ($10,000) to avoid a monthly fee.
Thanks to the reader who emailed me info on this promotion.
KeyDirect CD Rates
For those not in the above states, you can open a CD online at KeyDirect. The best rates at KeyDirect include a 5.20% APY 6-month CD, a 5.25% APY CD with terms from 30 to 47 months and 60 to 72 months, 5.50% APY CD with terms from 7 to 9 years, and 5.70% APY 10-year CD. The minimum deposit is $5,000. Rates are a little higher for a minimum deposit of $50,000.
KeyDirect also has a competitive online money market account with a yield currently at 4.75% APY. Please see this post for more details.
KeyBank's Safety
KeyBank is FDIC insured (Certificate # 17534). It's a large bank with $93 billion in assets and $65 billion in deposits based on 9/30/07 data. It has a 3 out of 5 star rating (performing) at Bankrate and 4 out of 5 stars (excellent) at BauerFinancial.
