Dedicated to Deposits: Deals, Data, and Discussion

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


Update 3/21/08: The expiration date for these CD specials have been extended once again by another week. The new expiration date is 3/29/08.

National City Bank has again extended its 5% special CD. The latest expiration date is March 22, 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.

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

As I mentioned in my weekly summary, this news article may explain why National City is offering this competitive rate. 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
BEWARE: They have some kind of 'verification software' and it is faulty. I tried to open a CD last week & the verification software could not generate identity 'questions' due to 'inufficient information'.
I am a respected long time member of my community & homeowner with A+ credit but they still would not let me open a CD. After numerous phone calls, including to the makers of the software I learned that I am 'not the only one' this has happened to.

Comment #2 by Anonymous posted on
Also, since a checking or money market is required for the CD, be aware that National City charges inactivity fees after 90 days ($8per month on a supposedly "free" checking account).

Comment #3 by PNS2CLT (anonymous) posted on
The two branches I go to have this promotion listed through the 29th. 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).
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The inactivity fee applies to checking accounts with balances less than $500 - it's $10 after six months for free checking, and $5 after twelve months for all others. Neither uncommon nor unreasonable.
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I assume that if NC's bought out the acquiring bank will (likely?) honor the rate, but what happens if NC becomes insolvent and its assets are assigned to another bank? I assume that bank wouldn't be obligated to honor the rate & you could re-claim your money. Anyone know for sure?

Comment #4 by Anonymous posted on
The web page now lists a 3/29 expiration date.

Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the update. Glad to see it extended once again.

About what may happen if NC happens to be bought out, I believe the new bank would honor the original CD terms.

However, if NC goes under and the FDIC has another bank take over the NC 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.

Comment #6 by Anonymous posted on
Be cautious banking with National City. They are in the process of being bought out by Fifth Third I have heard.