Dedicated to Deposits: Deals, Data, and Discussion

5.25% 48-Month / 4.55% 23-Month CD at KeyBank


KeyBank has some very competitive long-term CD rates. The best rates are for the Key Tiered CD with Relationship Reward. The two best rates are a 5.25% APY 48-month CD and a 4.55% APY 23-month CD. The minimum deposit is $25,000. Without the relationship reward, the rates are 25 basis points lower.

The Relation Reward requires you to have either the Key Advantage, Key Privilege or Key Privilege Select checking accounts. The one with the smallest balance requirement is the Key Advantage which requires a combined balance of $10,000 to avoid a $15/month fee.

You can apply at a KeyBank branch or online. However, based on the online application, it appears you have to live in a state where they have branches. This includes the following states: AK, CO, ID, IN, KY, ME, MI, NY, OH, OR, UT, VT, or WA.

Update 6/30/08: KeyBank doesn't seem to be offering these high rates in all of the above states. You'll have to enter your zip code to see if they're available in your area. I've verified the 4.55% and 5.25% rates for zip codes in Colorado and New York. In Ohio, the top 48-month yield is only 5.00% APY. Lower rates have been reported in Maine and Vermont.

For those who live in other states, similar CD rates are available at Key Bank's online bank, KeyDirect. The current rates are a little lower, but these don't require any checking relationship. The best rates include a 4.50% APY 23-month CD and a 5.00% APY 48-month and 60-month CD. Last week they had been offering a 5.50% 60-month CD, but now this yield is only available for the very long 10 year term.

KeyBank N.A. has been FDIC insured since 1956 (FDIC Certificate # 17534). The bank has a 4 star rating (excellent) at BauerFinancial based on 3/31/08 data.

KeyCorp News

This Akron Beacon Journal article from last week reports on the latest problems of KeyCorp (the parent of KeyBank). It announced that it'll be cutting its dividend in half and will need to raise about $1.5 billion in capital. It has been hurt by subprime mortgages, but according to the CEO, they've limited their exposure to the subprime problems, and other areas of the business such as commercial loans are holding up well.

  Tags: KeyBank, New York, Indiana, Washington, Oregon, Michigan, Colorado, CD rates, Ohio

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Comment #1 by Bozo (anonymous) posted on
5.5% is not bad for ten years. It's a tad below the 5.75% for ten years I got last January, but, still, not too shabby. On balance, though, I'd go with Wachovia's 5 year CD at 5.25%.

Just my $.02.



Comment #2 by Anonymous posted on
I can't find the 25K 5.25 APY 48 mo. relationship for any of the Key Bank states ??, in Maine and Vermont it is just 4%

Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
Thanks. You're right, not all of these states have these high rates. I checked zip codes of New York, Colorado and Ohio. The 5.25% 48-mo is available in NY and CO, but Ohio only has 5%. I've updated the post with this note.

For those who have entered their zip codes at KeyBank, please leave a comment about what rates are available in your state.

Comment #4 by Anonymous posted on
I used the link and went to Key's bank's site and started clicking on the various checking/money market accounts that would have to be maintained in order to get the 5.25% CD rate for 48 months --- when as I scrolled down in bold letters were the words NOT FDIC insured. This was for the Key Privilege Checking Account. I copied down the link and it is this:

On the previous page where they had the CD rates it said at the bottom Member FDIC.

Any ideas about what's going on here?

Comment #5 by Anonymous posted on
I would like to know how safe key bank is with respect to CD securities (I am familiar with their chartered FDIC #, and the
100K FDIC coverage per CD)((I have also have verified with the FDIC the name/number of accounts that are covered)).

What I have searched for is an FDIC rating on the bank, or to see if they are listed on the FDIC's now, top 90 banks at risk.

The FDIC does not "post/share their list, and ratings I find are on a Key Bank web line.

Anything independent out there?

Also; FYI; the rep at Key informed me that Key Direct (for those of us not living in the 13 states that have brick and mortar buildings), offers 4.5% (23 month) and 5% (48 month). IF the amount is $500K or over, they will add 5 basis points. If $1 million or over, I have been able to get 7.5 additional basis points from them.

That's 5% for a 23 month, and 5.75%
for a 48 month.

On their 10 year, I was informed that they would pay 6.6% over the
$1 million mark.

These are great rates (if you have the money); CAVEAT - I'm unable to obtain independent ratings on the bank in order to go ahead with my negotiated call to them.

help! help!

Comment #6 by Banking Guy (anonymous) posted on
Banking Guy
There's definitely some risk if you go over the FDIC insured amounts. In addition to BauerFinancial and Bankrate ratings, another private rating service is available at Weiss Ratings offers CDARS with FDIC insurance of up to $5M. The downside as compared to KeyDirect is the lower rates which are about 1% lower.