4.25% 10-Month Online Hybrid CD at 1st Mariner Bank - $25K Max

1st Mariner Bank is offering a Hybrid Savings/CD Account with a yield of 4.25% APY and a term of 10 months. The minimum initial deposit is $100, and the maximum is $25,000. It requires a checking account, and that you set up automatically monthly transfers from the checking into the Hybrid CD. The transfers must be at least $25, but cannot be more than $500 (according to the CSR).

The monthly automatic transfers are what makes this a hybrid of a CD and savings account. All other features are the same as a fixed-rate CD including the early withdrawal penalty (90 days of interest). Since the transfers are limited to only $500, I can see those with large savings preferring a plain old CD.

There's an online application for the accounts, and according to the CSR, people in any state can sign up online. The only thing not completed online is mailing in the signature cards.

The bank has a 2-star rating (problematic) at BauerFinancial based on 3/31/08 data. It is based in Maryland and has been FDIC insured since 1962 (FDIC Certificae # 31286).

Thanks to the reader who sent me email on this CD.

Tags: 1st Mariner Bank, Maryland, CD rates