Dedicated to Deposits: Deals, Data, and Discussion

Update on National City's 5% CD Special and Latest National City News


Update 5/10/08: A reader has reported that this CD promotion has been extended to 5/24/08.

National City Bank has again extended its 5% special CD. The latest expiration date is May 10, 2008. The promotional page at lists a 4.75% APY 48-month CD and a 4.00% APY 24-month CD. Both have a $10,000 minimum deposit. Lower yields are available for smaller deposits. You can get an extra 0.25% on these CDs if you have a current checking account or if you open a new checking or savings with a minimum of $1,500.

I've received conflicting reports from the bank about whether this CD special is available nationwide. I spoke with a CSR yesterday, and he said that it could be set up by phone for someone who doesn't live near a branch. You would need to fund the account through mail, and you would need to fax or mail in 2 forms of ID and a signature card prior to opening the account.

Some of the details of the CD include:
  • $10,000 minimum deposit
  • $250,000 maximum deposit per household
  • Availabe in an IRA
  • Early withdrawal penalty is 12 months of interest

Note, the early withdrawal penalty is more severe than the typical 6-month penalty for long-term CDs. That's something to consider when there's a chance that inflation may force interest rates to shoot up in the next year or two.

National City in the News

This 5% special has been going on for over 2 months. You have to wonder how this relates to their current loan troubles. Latest news reports that National City has raised $7 billion through a capital investment transaction. This should reduce the chance of National City going under or being acquired. But not everyone is happy about this deal. According to this news article, a major shareholding is trying to block this deal with a lawsuit.

National City has branches in FL, IN, IL, KY, MI, MO, OH, PA and WI. Their financials can be reviewed at this FDIC page.

[Update: Added lawsuit news link. Hat tip to reader who emailed me it.]

  Tags: CD rates, IRA rates

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Comment #1 by Anonymous posted on
I opened this CD by mail - signature card needs to be notarized.

Comment #2 by Anonymous posted on
As of 5/25 it looks like the APY has dropped on 3-year and 4-year to 4.75% (with checking) or 4.5% (without checking).

I guess National City is making some progress attracting deposits.

Comment #3 by silverbadger (anonymous) posted on
NCB now has a 5.25%APY for 10k or more with a term of 43-54 months email at for details or visit