Dedicated to Deposits: Deals, Data, and Discussion

4.11% 7-Month High Yield CD at Bank of America


Bank of America
Update 8/01/08: The website now shows a yield of only 3.30% APY for the 7-month term. I've also confirmed from BofA that their branch-only 4% 7-month CD special has also ended. That 7-month yield is now only 2.94% APY.

Bank of America has just increased the rate of its High Yield CD to 4.11% APY for a 7-month term. This is a special online-only rate. The minimum deposit is $5,000. This is not the risk-free CD that BofA has been advertising. An early withdrawal will cost you 90 days of interest.

They state in the small print they may limit the amount to a total of $500,000. Interest is compounded and credited monthly. In the application it appears they allow funding by ACH transfer from your checking or savings account at another bank.

This rate may not be available for all states. You have to select your state to see the offer. I've verified the 4.11% APY for California, Florida, Illinois, New York and Texas.

Credit for this find goes to FW member thong123 who posted it on this FW thread. He mentioned that he heard this is planned to last for one week starting today. Bank of America's official line is that these rates may change daily.

For other Bank of America promotions, please refer to my Bank of America Checking and Credit Card Deals post and my latest Bank of America posts page.

Update 12:14 pm: There was some concern about the following sentence in the small print:
We may change this promotional APY at any time without prior notice.

Using the online chat, I asked if this meant it can change anytime before the CD is opened but not after. Here is the CSR's response:
Right, the rate can change at anytime but once you open the CD the rate would not change.

So based on what I've been told, this is a fixed-rate CD. There is some additional CD documentation in the Personal Schedule of Fees. I've also found a 2006 version of the Deposit Agreement and Disclosures.

I also asked about a hard credit inquiry. Here was the response from the CSR:
Due to your existing relationship with us, federal regulations require us to verify your identity when opening a new account. If the data on the application matches your profile on our system, no inquiry will appear on your credit report.

Update 7/26/08: You can get a 4.00% APY 7-month CD at Bank of America branches. Please refer to this post for more details.

  Tags: CD rates, Bank of America

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