Dedicated to Deposits: Deals, Data, and Discussion

5.06% 60-Month Jumbo CD at Huntington Bank - Nationally Available

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Huntington Bank is offering some high rates on its long term Jumbo CDs. The top rates are 5.06% APY and 4.79% APY for the 5 and 4 year CDs with a $250,000 minimum deposit. The yields for a $100,000 minimum deposit are 4.85% APY and 4.57% APY. The rates for some of the shorter terms are also competitive. The top rate for a 2-year CD is 4.06% APY.

These rates are up a little since my last report on these CDs in February. Last December these rates were as high as 5.64% APY. Before that December post I received the following CD details from an online chat session with the banking rep:
  • Can be opened by phone and funded by mailing a check
  • 12 months of interest penalty for early withdrawal
  • 10 day grace period
  • At maturity, you can instruct them by phone to close the CD and send you a check (CSR wasn't sure about wire transfer and electronic funds transfers)
  • Available in an IRA (IRAs are federally insured to at least $250K)
  • POD beneficiaries can be includedd (CSR didn't know how many could be listed)

The bank often has online CD promotions, but lately the rates have been low. Their current CD special is a 3.35% APY 12-month CD. These online promotions are not available to those in California.

Huntington started an online savings account early last year (see post) which like this CD is available nationally except for those in CA. The rate on the savings account was as high as 5.30% APY, but now it's only 3.00% APY for balances of 100K (2.70% APY for balances over $10K).

Huntington Bank is FDIC insured (Certificate # 6560). Bankrate still gives it a rating of 3 out of 5 stars (performing) based on 12/31/07 data. For those who have accounts at UFB Direct, please note that your deposits may be FDIC insured through Huntington Bank. So keep this in mind if you're planning a large deposit at Huntington (see post).

Other CD Rates

This is the first 5-percent-plus CD that I've seen for a 60-month term in the last few weeks. Please see my latest weekly CD rate summary for other CD options.

  Tags: CD rates

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Comments
4 Comments.
Comment #1 by Anonymous posted on
Anonymous
They will give you more interest if you deposit 2.5 times the FDIC insurance level? Sounds like they are trying to avoid paying enough premium money into the FDIC insurance fund to cover all of their deposits.

Not good. Not a good idea to go over $100K anywhere.

1
Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
I should have noted that there are ways you can be FDIC insured above $100K per bank. I have more info at this post with links to the FDIC website.

1
Comment #3 by Anonymous posted on
Anonymous
Oops. Good point.

However, to get the rate, it has to be a single $250K CD; but the insurance is for total deposits per person per institution.

I guess that the trick would be to set up the single CD to be jointly owned by yourself, spouse, and child to get $300K coverage.

Rate bumps to reduce admin and paperwork make sense to reward customers who buy a $50K or $100K jumbo CD instead of just $2K. A big bump for $250K doesn't make sense except as a marketing stunt.

Still sounds to me like they are trying to avoid paying enough premium money into the FDIC insurance fund to cover all of their deposits, which to me is suspicious.

Cute the way they give the jumbo CD terms in days instead of months

1
Comment #4 by Anonymous posted on
Anonymous
Just called them.

Penalty for early withdrawal for CDs over 18 months is 12 months!

Most institutions have a 6-month penalty on a 60-month CD.

That's why the "Truth in Savings" info is not posted on their site like most institutions do.

1