Dedicated to Deposits: Deals, Data, and Discussion

5.05% 43-Month CD at National City Bank


National City Bank has come out with a new CD promotion. In Florida, they're advertising a 5.05% APY CD for terms of 43 to 54 months. The ad is available online here. The minimum deposit is $10,000, and it requires an existing checking or savings account or a new checking (except Free checking) or money market account with a $1,500 minimum initial deposit. The maximum deposit is $500,000 per household. It's also available as an IRA CD.

National City is listing online at a 4.80% APY 48-month CD for a $10,000 minimum deposit. A yield of 4.60% APY is available for a minimum deposit of $2,500. The page also lists a 3.75% APY 18-month CD. There's no checking account requirement with these rates. It's likely that you can get a rate that's 0.25% higher with the checking relationship.

One note about the promotional webpage, these special rates often change and in fact had changed in the hour that I was working on this post. It was originally showing the 5.05% 48-month CD.

One important detail regarding National City long-term CDs is that the early withdrawal penalty is 12 months of interest which is more severe than the average of 6-months interest. Another detail about the CD is related to the account opening process. A reader mentioned in my previous post that he was required to have the signature card notarized when he opened the CD by mail.

The newspaper ad also lists a money market account promotion with a 3.25% APY guaranteed for 180 days. This requires a minimum $25,000 balance. This has the same checking account requirement as the CD special.

National City in the News

National City is another bank that has been hit hard by the mortgage crisis. In April, National City raised $7 billion through a capital investment transaction, and as this Erie Times News article describes, National City officials claim this makes them the "best capitalized large bank in the nation." However, MarketWatch reports on a recent analyst downgrade of National City and the announcement of the CFO retirement.

It's always a good idea to stay below the FDIC insurance limits (see my FDIC post for more details). National City's financials can be reviewed at this FDIC page.

  Tags: CD rates, Florida

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Comment #1 by knappster (anonymous) posted on
knappster Shows 5.05% 48 month CD now.

Restrictions look the same.