Dedicated to Deposits: Deals, Data, and Discussion

5.00% 48-Month / 4.00% 24-Month CD at National City Bank


National City Bank has raised the yield on its 48-month CD promotion from 4.50% to 5.00% APY. It's listed at their promotional webpage at This had been 4.50% APY last month. The requirements seem to be the same as before: $10,000 minimum deposit and you must have an existing or open a new National City checking account with $1,500.

You can apply by phone (800-622-4036). The special CD is also available as an IRA or rollover IRA CD. Maximum deposit is $500,000 per household. The offer is good through 3/08/08.

I was surprised to see this rate increase since 4.50% was very competitive in today's rate environment. It seems too good to be true. I haven't contacted National City, but I've seen it advertised in several newspapers including those in Florida and Indiana. So I'll have to assume it's not a mistake.

National City is also listing a special 24-month CD with a 4.00% APY. It has the same terms as the 48-month CD.

The promo page requires that you enter a zip code to see the deal. I've only confirmed this special for Florida, Indiana and Illinois zip codes. If it's similar to the previous onces, the offer is available in states with National City branches (FL, IN, IL, KY, MI, MO, OH and PA).

In addition to the CDs, National City still has a money market promotion with a 3.40% APY guaranteed for 180 days for balances of $25,000 or more. For balances under $25,000, the current rate is only 1.50% APY. This also requires an interest checking account. Offer expires 3/08/08.

When I spoke to a National City CSR in January, I was told there's no hard credit inquiry for applying for either the checking or CD. Only a ChexSystem is done. But please note, CSRs are often incorrect on this issue. Some other details of the 48-month CD include: 12-month interest early withdrawal penalty on amount withdrawn and a 10 calendar day grace period at maturity.

National City Bank is FDIC insured (Certificate # 6557). The bank has a 2 out of 5 star rating (below peer group) at based on 9/30/07 data.

  Tags: Indiana, Illinois, Michigan, Pennsylvania, Kentucky, CD rates, Missouri, IRA rates, Ohio, Florida

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Comment #1 by Anonymous posted on
The CD promotional rate requires opening a checking account other than free checking with a $1500 opening deposit.

This means you have to go for one of the interest checking accounts which have $10 per month maintenance fees you want to avoid.

Looks like the best option is Interest Checking Plus ... no monthly maintenance fees if the account holder is age 50 or over.

With either Interest Checking or Interest Checking Plus, you can avoid monthly maintenance fees by maintaining a $15,000 minimum daily balance in any combination of deposit accounts except checking and IRA.

I expect this means no monthly maintenance fees during the term of your CD if you put at least $15,000 into the CD. This would also allow you to withdraw the $1500 deposit required to open the checking account.

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
You're right, the small print does state that it has to be a non-free checking account.

As you mentioned, Interest Checking Plus is the best choice for those 50 and over. Otherwise, you'll want a $15K minimum in the non-IRA CD so you don't have to maintain $1,500 in the checking.

Here's the link to their checking comparison page.

Comment #3 by Anonymous posted on
As a new depositor, I just finished opening an Interest Checking Plus Acct and a 48-Month CD with National City over the phone.

Very easy task and pleasant costumer service.

Comment #4 by Anonymous posted on
I just opened a 5% CD account today for my daughter and I used my wife's business account to qualify as having a "banking relationship" - I did not have to open a new personal account. I was impressed on the speed of opening the CD - under 5 minutes at the branch. NCC probably needs funding and therefore you need to act soon before the rate offer ends.

Comment #5 by PNS2CLT (anonymous) posted on
These rates are being offered via tomorrow. If there's a Flagstar bank branch in your county, they'll match the rate and beat it by 0.05 -- and you only need their free checking product (just make sure you're tagged "loyal," which means you have a re-occuring credit or debit). This is what I did -- only took about 5 minutes. Wish I would've done this when the rate was 0.25 points higher 5 weeks ago.

Comment #6 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. It's always a good idea to see if a bank will match or beat another bank's deal.

Comment #7 by Anonymous posted on
Flagstar is rated only 1 star on Bankrate.