Dedicated to Deposits: Deals, Data, and Discussion

5% 48-Month / 4% 24-Month CD Special Extended Again at National City


National City Bank has again extended its 5% special CD. The latest expiration date is March 29, 2008. I had mentioned it in my weekly summary, but I thought it was worthwhile to mention again. The promotional page is located at The minimum deposit is $10,000. The CD requires that you have an existing National City checking or savings account or you must open a new checking account or money market savings account with a minimum opening balance of $1,500.

The promotional page also lists a 4.00% APY 24-month CD special and a 3.05% APY money market savings account with the rate guaranteed for 180 days. The 3.05% yield requires a minimum balance of $25,000.

Promotion Details

For more details about this promotion, please refer to my previous National City post.

One reader in last week's post commented that he had problems in the online application during the identity verification questions. Apparently others are also having this same issue. You can also apply by phone (800-622-4036).

Another reader mentioned some useful details regarding the checking account that's required to be opened with this promotion:
I'm told that you can open any checking account and (later) convert it into a free checking (with $0 balance) if you'd like... but NC reserves the right to charge a $12 "product conversion fee" (although the banker I spoke with seemed to indicate this wasn't likely to happen).

Another thing to watch out for are inactivity fees on the checking. For checking accounts with balances under $500, it's $10 after 6 months for the free checking and $5 after 12 months for all others. If you have a bank in which you can initiate ACH transfers, you should be able to set up small monthly transfers to this checking account to prevent inactivity.

National City in the News

National City did have one bit of good financial news last week (see Financial Week article). The bank is a major sharehold in Visa which did well in its IPO last week. National City has said it expects a pretax cash gain of about $450 million from the sale. However, as the article describes, National City has a history of subprime mortgages, and there are still rumors about a buyout deal

If National City is acquired, I believe the new bank would honor the terms of the CD. However, if it goes under, and the FDIC has another bank take over the deposits, the new bank may close the CD. You wouldn't be hit with any early withdrawal penalties. This did happen when NetBank went under and ING Direct took over its deposit accounts. I have more info on this at this NetBank post.

As I recommend with any bank, make sure to stay below the FDIC limits. National City Bank is FDIC insured (Certificate # 6557).

  Tags: CD rates, IRA rates

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Comment #1 by Anonymous posted on
this may be an ignorant question, but can someone explain to me what a soft and hard credit pull is??

Comment #2 by Lisurgic (anonymous) posted on
The only ignorant questions are the ones that are not asked.

A hard pull shows up on your credit report as a full inquiry. Get too many inquiries and one's FICO score can drop.

A soft pull does not show up on your credit report. The soft pull can divulge some basic information, such as social security number and addresses and date of birth, etc.

Comment #3 by Anonymous posted on
thank you, Lysurgic

Comment #4 by Anonymous posted on
Looks like Wells argo is interested in FED assisted acqusition of National City Bank.
something smells fisgy with this BAnk, beaware, stay below FDIC limit

Comment #5 by Anonymous posted on
Droped .25% while I was setting up. :( Now 4.75%