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Update on National City's 5% CD Special - New Shorter Terms


National City Bank has again extended its 5% special CD. The latest expiration date is May 24, 2008. The promotional page is at

National City's new CD promotion was advertised today in several newspapers (Daytona, Fort Wayne). The one important change is that they are offering these CDs for shorter terms. The 5% APY is now available on terms from 30 to 48 months, and the 4% APY is now available for terms from 13 to 29 months. As before, these rates require that you have a current checking or savings account or you open a new checking or savings account with a minimum deposit of $1,500 (Free checking doesn't qualify).

National City's webpage only shows the rates that are available without the checking/savings account which are 25 basis points lower. It does show two shorter terms: 18-month term for 3.75% APY and a 36-month term for the 4.75% APY. However, it doesn't indicate that you have the option for a 13-month term or a 30-month term. You may want to call to see if you can qualify for the terms in the ads if you apply by phone/mail. The small print of the ads state that this offer is available for consumer accounts opened at locations in FL, IN, IL, KY, MMI, MO, OH, PA and WI.

A reader mentioned in my previous post that he was required to have the signature card notarized when he opened the CD by mail. Another reader mentioned being told by a dependable CSR that National City will soon be raising the yield on its money market account promotion from 3.05% to 3.25% APY.

Some of the details of the CDs include:
  • $10,000 minimum deposit
  • $250,000 maximum deposit per household (Daytona ad lists a $500K max)
  • $2,500 minimum deposit for rates that are 20 basis points lower
  • 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. The new shorter terms at least help reduce this risk.

National City in the News

I haven't seen any updates on National City in the news since my last post when I reported that National City had raised $7 billion through a capital investment transaction, and this had triggered a lawsuit from their major shareholder (see news article). As always, be sure to keep below the FDIC insurance limits. National City's financials can be reviewed at this FDIC page.

Thanks to the readers who have provided updates on these specials and have shared their experiences with National City.

  Tags: CD rates

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Comment #1 by Anonymous posted on
It doesn't look like 5% APY for 30 months is available in south Florida. The promotional page for my zip (Boca Raton) still indicates only a 48-month term for a 5% APY.

I'll check with my local branch later today. I may be interested in a 30-month term. I've passed on the 48-month term as too long.

Comment #2 by preferred stocks (anonymous) posted on
preferred stocks
National city preferred series C is yielding approx 10% at current price levels is rated investment grade BBB+ by S&P

Comment #3 by Anonymous posted on
As a current National City customer, I'd like to say that they have been a good bank for me for nearly 4 years now. There are branches all around me and I've always gotten good service.

Now, the rates I get on my basic checking and savings accounts are low, but the Work Perks benefits and branch accessibility more than make up for it. I leave a nominal sum in the accounts to handle rent, utilities, etc., while the online savings accounts get my large liquid balances.

That said, they recently upgraded their computer systems and ****ed up a big transaction on my checking account, which caused an overdraft and some bounces. They managed to fix everything within three days, but it was a huge hassle and I still have to get back some fees charged by other financial institutions for the bounces.

Overall, I'd say that 4 years of excellent service and great benefits makes up for the single ****up. I've had more trouble rate & bonus hunting.

Comment #4 by Anonymous posted on
This morning National City has updated its website. I can now get 5% APY for a 36-month term, but the flexibility of picking any term between 30-48 months at 5% APY advertised in Daytona doesn't seem to be available here in Boca Raton.

Comment #5 by Anonymous posted on
New terms are in effect in Indian River county in Florida. This morning at my local branch, I opened a 3.25% "guaranteed rate for 6 months" money market. CD rates are 4% for 13-29 months and 5% for over 30 months. Minimum balance and banking relationship (like checking account) required.

Comment #6 by princepro110 (anonymous) posted on
Nice article in yesterdays NYT that gave me this site.

National Citys 18 month rate is good but I locked one in last week at M & T NA at 3.78 APY.......they offer a 12 month rate at 3.59 APY. Most of these banks have a close to 4.0 rate but want 36 months .............too long with inflation going nuts the Fed has got to move.