Fifth Third Bank is having a CD promotion with some competitive long-term rates. These include a 4.50% APY 37-month CD, a 4.15% APY 24-month CD and a 3.60% APY 13-month CD. The minimum deposit is $5,000.
This promotion is not available in all states. It's only available in states where Fifth Third has branches. Enter your zip code in the CD promotion page to see if these are available in your area. I tried a few zip codes and found that these were available in Florida, Pennsylvania and Illinois. There's also a 9-month CD special, but the rate is not quite as competitive. Also, it seems to vary based on location. The 9-month CD yield was 3.20% APY in Florida and 2.85% APY in Illinois.
The early withdrawal penalty for CDs with terms of one year and longer equals half of stated interest for remaining term or 6 months interest, whichever is greater. This is a little more severe than just a 6-month interest penalty. If interest rates shoot up early into the term, and you want to take advantage of the higher interest rates, this penalty could be costly.
Fifth Third Bank has branches in Ohio, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Missouri, North Carolina, Pennsylvania, Tennessee and West Virginia. The bank is FDIC insured under three different charters (FDIC Certificate # 32712, FDIC Certificate # 6672 and FDIC Certificate # 993). Each of these charters are separately rated by BauerFinancial. Two have a 3.5 star rating (good) and one has a 4 star rating (excellent) based on 3/31/08 data.
Update: Here's a recent news article from MarketWatch on Fifth Third Bancorp's recent problems and its bid to raise $2 billion.