Dedicated to Deposits: Deals, Data, and Discussion

Update on National City's CD Specials


Update 6/07/08: I was told by a National City rep that these specials will once again be extended. However, the long-term yield will be falling to 4.50% APY (with qualifying checking) after 6/07/08. The yield for the shorter terms will remain the same.

National City Bank once again extended the expiration date of its CD specials. However, it has reduced the top yield of its long term CDs. The top yield is now 4.75% APY with a checking account (down from 5%). The promotional page is at The page shows a yield of 4.50% APY for terms of 36 and 48 months, and a yield of 3.75% APY for terms of 18 and 24 months. The minimum deposit is $10,000. The yields for a $2,500 minimum are 20 basis points lower. The new expiration date is June 7, 2008.

Specials Advertised in the Newspapers

It's not mentioned at the promotional webpage, but you should be able to get an extra 25 basis points on the above rates if you have a National City checking or savings account or if you open checking (excluding the free checking) or money market account with a minimum $1,500 deposit. This is described in this Daytona Beach ad. In the ad, a 4% APY CD is available for terms from 13 to 29 months. I've also seen this advertised in Southeast Florida.

In addition to the 4% CD, the ads list a yield of 3.25% APY on the money market savings account for balances of at least $25,000. The yield is guaranteed for 180 days. This has the same checking account requirement as the CD special.

Note, these newspaper specials may not be available in all states.

Certificate of Deposit Details

A reader mentioned in my previous post that he was required to have the signature card notarized when he opened the CD by mail.

Some of the details of the CDs include:
  • $10,000 minimum deposit
  • $250,000 maximum deposit per household
  • $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.

National City in the News

This Bloomberg article reports on National City Corp. CEO's statement that flexibility from its capital increase may allow it to sell problem assets or put them in a separate entity as it winds down its mortgage operations. This capital increase was from the April 21st deal of $7 billion cash infusion from a syndicate of private-equity investors. Thanks to this, Citigroup has upgraded National City from a hold to a buy.

Even though things look better, it's always a good idea to stay below the FDIC insurance limits. National City's financials can be reviewed at this FDIC page.

Thanks to the reader who mentioned these new specials in the comments.

  Tags: money market accounts, CD rates, Florida

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