Dedicated to Deposits: Deals, Data, and Discussion

4.02% 10-Month / 4.11% 15-Month Online CD at Century Bank Direct

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Update 9/13/08: The CD rates have changed. Please check the bank's website for the latest rates.

Century Bank Direct just recently made some substantial increases on the rates of its online CDs. The new CD rates and terms include:
  • 3.76% APY 5-month
  • 4.02% APY 10-month
  • 4.11% APY 15-month
  • 4.20% APY 20-month
The minimum deposit is $1,000, and the maximum deposit is $100,000.

I first reported on Century Bank Direct in December 2007. In addition to CDs, the online bank offers high yield savings, checking and money market accounts. The yields are still very competitive.

When I first reported on the bank, it didn't have an ACH transfer system that allowed electronic transfers from other banks. However, the online application now allows funding by an ACH trnasfer. A reader in my previous post has also confirmed this.

When I had contacted the bank in March, I was told there's no hard credit inquiry when you apply. They only do a soft pull and a ChexSystem verification. A reader in my previous post commented that he did not receive a hard pull when he applied for the CD.

If you call their toll-free number (877-444-2259), you'll likely get an answering machine after waiting a dozen or so rings. I and many readers have experienced this. However, readers have reported that they do call you back if you leave your name and number.

Below are some of the details of the Online Certificate of Deposit:
  • $1,000 minimum to open
  • Maximum deposit of $100,000
  • Terms from 5 to 20 months
  • Interest calculated daily and paid monthly
  • Automatic transfers to outside bank of monthly interest available
  • Online CD redemption form can be used to close CD
  • 10-day grace period when a CD matures
  • Early withdrawal penalties on the amount withdrawn: 90 days of interest for terms 12 months and under, 180 days for terms over 12 months
Century Bank Direct is a division of Century Bank of Kentucky which is FDIC insured (Certificate # 35450). It's a small bank with only 37 employees, $134.2 million in assets and $109.4 million in deposits based on 3/31/08 data. This may explain the answering machine. It has a 3 star rating (performing) at Bankrate based on 12/31/07 data. This is down a bit from 6/30/07 when it had a 4 star rating (sound). It has a 3.5 star rating (good) at BauerFinancial based on 3/31/08 data.

Thanks to the reader who mentioned these new CD rates in the Finding the Best Deals post.
  Tags: CD rates

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Comments
5 comments.
Comment #1 by Anonymous posted on
Anonymous
Thanks for the info, Banking Guy!

Do you know whether the CD rate is determined by the date of receipt of funds or whether they lock it in for you for a certain period of time after completing the application?

Also, do you know what the options are for initial funding of the account -- wire, ACh transfer, and/or check?

1
Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Unfortunately I couldn't get through to a CSR today, and I just left a message. I think their hours end at 5:00pm EDT.

The application appears to allow ACH funding, and a reader has mentioned that he was able to ACH fund a CD in the previous post.

1
Comment #3 by Anonymous posted on
Anonymous
You can fund the CD by ACH.

I have a money market account with them, and I just opened two CDs. You have to go through the same application process as if you were a new customer (grrr), but it went very smoothly for me each time. With other banks, I've had to confirm my identity with copies of my driver's license, etc., but not with CBD.

When I filled out the app. on Sunday, for the initial deposit I just put the account/routing numbers for my money market account with them. Today (Wednesday) I see that the amount has been deducted from my money market account, although the CDs haven't shown up yet in my online banking page.

Patience is key, but I've been extremely happy with this bank so far. I just hope in the future they make it a bit easier for existing checking and savings customers to open CDs and other products. I guess I'm just spoiled by ING Direct.

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Comment #4 by Anonymous posted on
Anonymous
I'm following up from my post on July 8th - my CD accounts finally did show up on my online account, but I had to call first. The customer service rep called back to say that they had to manually add the CDs to my online account, and had forgotten to do so. Since they're just CDs, it's no big deal that I didn't have online access for ~20 days.

So, the moral of the story is with this bank, when in doubt call their CS. As usual, the CS reps were very friendly and competent.

1
Comment #5 by BradCo (anonymous) posted on
BradCo
Just opened a CD account with them yesterday. They will do ACH, however only in $25,000 increments. So if you have more, you have to open another account. Seems kind of silly as another poster said, but I had no issues. Once you open the account you are prompted for a signature card. I am no comfortable sending this type of sensitive info through the mail, so I took advantage of their secure mail. Made an electronic copy through a scanner and sent them a jpg and pdf, figuring they could do one or another or both. So far except for the 25K limit and having to open two accounts, I like this bank. And yes, they actually answer the phone......

1