Dedicated to Deposits: Deals, Data, and Discussion

5.25% 43-Month and 4% Money Market for 6 Months at National City

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National City Bank has come out with new rates on its CD and money market promotions. Online (nationalcity.com/SaveNow) it's listing a 5.25% APY 48-month CD. However, I called yesterday and I was told that the following rates and terms are available if you call:
  • 4.25% APY 13 to 18 months
  • 4.75% APY 19 to 42 months
  • 5.25% APY 43 to 54 months
These have the typical National City CD requirements. 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. These are also available as an IRA CD. The special is scheduled to end on 8/09/2008.

The above CD specials may not be available in all states. One CSR made it sound like you could apply by phone and mail even if you didn't have a National City branch nearby. I recommend calling to verify for yourself (800-622-4036). A reader mentioned in my previous post that he was required to have the signature card notarized when he opened the CD by mail.

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.

6.00% 5-Year CD in Parts of Ohio and Missouri

There's also a 6.00% APY 5-year CD at National City. However, this seems to be limited to certain areas of Ohio and Missouri. In addition to the above checking account requirements, it also requires direct deposit according to the CSR. Credit for this find goes to The Savings Investor.

4.00% 180-Day Money Market Account Promotion

The MMA promotion is similar to previous ones, but the rate has been bumped up considerably. It now guarantees 4.00% APY for 180 days on balances of $25,000 or more. The yield is only 1.50% APY for balances under $25,000. The maximum deposit limit is $1 million. It has the same checking account requirement as the CDs.

Update 7/26/08: This money market promotion is no longer being listed at the above National City website. It has been advertised in Florida papers. The ad is available online here.

National City in the News

National City is another bank that has been hit hard by the housing slump and mortgage crisis. The bank just reported a $1.76 billion loss for the second quarter which was worse than expected (see Forbes article). However, thanks to the $7 billion it raised in the last quarter and other steps it has taken to offset loan losses, analysts think it should be able to pull through.

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.

POD Account Warning: (update)

A reader emailed me about what he has learned regarding POD accounts at National City. Apparently, National City does not include POD or similar wording in the account title due to the way their software works. The reader has received confirmation from the FDIC that such accounts do NOT qualify for increased FDIC insurance. For more details of using POD's to increase FDIC coverage, please refer to this post. Update 7/26/08: Another reader has reported receiving different info on this. If you are depending on PODs at National City to increase your FDIC coverage, I recommend confirming the insurance status with National City and the FDIC.
  Tags: money market accounts, CD rates

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Comments
16 comments.
Comment #1 by Anonymous posted on
Anonymous
i was on the page when it showed 5.25 then i refreshed and it dropped to 5%! ahhh - this bank seems shady

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Comment #2 by Anonymous posted on
Anonymous
I believe there is a 5K minimum on the MM Savings rather than 25K, at least in So.Indiana. Copied the following from the web page:

"Money Market Savings 4.00% APY†† Rate guaranteed for 180 days for balances of $5,000 or more"

1
Comment #3 by Vadim (anonymous) posted on
Vadim
I posted a comment on the WAMU 4.25% cd asking if anyone got them to title it correctly... because it appears their software is not able to do so also.

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Comment #4 by Anonymous posted on
Anonymous
is there a hard pull for opening the money market account?

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Comment #5 by Anonymous posted on
Anonymous
i put in my zip code and it goes from 5.25 to 5% for california...oh well i doubt this bank will be around in 48months anyway!

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Comment #6 by Anonymous posted on
Anonymous
I have never spoken personally with the FDIC re need for "POA" in the title of the account in order to garner extra insurance. So I do not question Banking Guy and other posters regarding this requirement. However, I have spoken personally with an NCUA representative regarding this same issue. I was told "POA" need not be in the title for the extra insurance to apply within credit unions. However, I have a qualm: The NCUA is split regionally and does not have the central point of control one finds with the FDIC in Washington, D.C.. Since the rules of these two organizations often are very nearly identical, I worry I might not have received the "straight stuff" in the answer I was given from the NCUA. If anyone has addressed this issue vis a vis the NCUA I would be interested, and grateful, to know the outcome.

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Comment #7 by Anonymous posted on
Anonymous
Apologize above post 7:33 posted to wrong thread. Please forgive and ignore.

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Comment #8 by Anonymous posted on
Anonymous
1) "I believe there is a 5K minimum on the MM Savings rather than 25K, at least in So.Indiana."
In Illinois I'm also seeing the 5K minimum, not 25K, on the MM Savings.

2) What concerns me more, however, is that I'm only seeing the 4% MM listed on the NatlCity website as a Business MM account - I'm not able to find it anywhere as what NatlCity calls a "Personal" accont. May not be a big deal, but is anyone else (including BankingGuy), seeing the 4% as a Personal MM rate?

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Comment #9 by Banking Guy (anonymous) posted on
Banking Guy
The MMA promo also has been advertised in Florida newspapers. I've included a link to the ad in the post. It may not be available in other states, but when I called on Thursday, the CSR made it sound it wasn't limited. I recommend calling National City to see if it's available for your location.

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Comment #10 by Anonymous posted on
Anonymous
BankingGuy - The info. you shared about National City Bank being unable to “include POD or similar wording in the account title” is somewhat disturbing, considering what the FDIC requires (and clearly STATES what it requires - and unless I’m mistaken this part of the requirements has not changed for years at FDIC). I am curious if you have heard whether or not, for joint accounts, National City can at least properly designate joint accounts as joint accounts in the account titling, to the FDIC’s satisfaction (because the concept of “to the FDIC’s satisfaction” is the only thing that really matters here - I don’t really care whether National City does the titling to their own employees’ satisfaction.

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Comment #11 by Anonymous posted on
Anonymous
Hmm ... 4.75% APY for 19 months sounds quite good. Thanks, BG I'm going to check with my local Boca Raton branch on Monday whether I can get that rate.

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Comment #12 by Anonymous posted on
Anonymous
know if the 1500 or some other min balance has to in maintained in the checking account?
can I open this online since I live in Montana?
This does NOT include Free Checking... so what fees are involved with their required checking account?

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Comment #13 by dbdaw (anonymous) posted on
dbdaw
anonymous - I received an email from NCUA in Washington confirming that POD, etc. does not need to appear in the acount title. I also confirmed this with an employee via phone in their Arizona office.

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Comment #14 by Anonymous posted on
Anonymous
"I received an email from NCUA in Washington confirming that POD, etc. does not need to appear in the acount title. I also confirmed this with an employee via phone in their Arizona office."

I agree, and I've seen that fact mentioned before; but how does that help with National City BANK's situation?

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Comment #15 by Anonymous posted on
Anonymous
"A reader emailed me about what he has learned regarding POD accounts at National City. Apparently, National City does not include POD or similar wording in the account title due to the way their software works. The reader has received confirmation from the FDIC that such accounts do NOT qualify for increased FDIC insurance."
I specifically quizzed a NatlCity CSR about this - she said that their softwate did not allow the POD bendficiares to appear in the mailing address, but they did appear in the account title.... I guese you pays your money and you takes your choice.

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Comment #16 by Anonymous posted on
Anonymous
$1500 MUST BE KEPT IN THE ~0% APY CHECKING ACCOUNT FOR 6MONTHS, BUT WHAT IS THE MIN THAT CAN BE LEFT IN THE MONEY MARKET FOR NO FEES? (IN CASE OTHER RATES GO UP)

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