There's an online application, and according to this FAQ page, people from any state can apply. Some of the important CD details listed in the FAQ pages and in the disclosure include:
- Interest will be compounded every day. Interest will be credited to your account every month
- Early withdrawal penalty is 90 days of interest for terms under 12 months
- 10 calendar grace period at maturity
- CD can be funded by check or wire transfer (can't be done by ACH)
- Incoming wire transfers are free. Outbound domestic wire transfers cost $20
- The CD rate locks only when they receive the funds
- They require written instructions if you want to close the CD at maturity
- At maturity, they can mail you a check or they can wire transfer the funds ($20 fee)
Their Interest Checking is also a decent deal. The interest rate is only 0.65%, but it requires only a $100 opening deposit and it has no minimum balance requirements. Another perk is that the first 50 checks free.
These liquid accounts can be handy to use when you choose to close the CD. You should be able to instruct them to close the CD and transfer the money into your liquid account. Then you can just write a check or pull the money from another bank's ACH service.
Stonebridge Bank's financial ratings seem to be a little better than many other banks offering high CD rates. Bankrate.com gives the bank 3 stars (performing) and BauerFinancial gives the bank 4 stars (excellent). Both are based on 3/31/08 data.
Stonebridge Bank is based in Pennsylvania with branches in Blue Bell, Warminster, Exton and West Chester. The bank has been FDIC insured since 1999 (FDIC Certificate # 35077).
Other High Certificate of Deposit Rates
The best 9-month CD on my nationwide CD list is at IndyMac Federal Bank which is offering a yield of 4.15% APY. Note, this is now being run by the FDIC which is planning to sell the bank in the next few months (see post). Another good deal that's not quite a 9-month CD is at WaMu which is still offering a 4.25% APY on its online 8-month CD.
