Dedicated to Deposits: Deals, Data, and Discussion

High CD Rates at KeyDirect and KeyBank - 4.55% 12-Month, 5.50% 48-Month

POSTED ON BY

Update 6/27/2013: KeyDirect high cd rates are a thing of the past, as the bank ceased taking on new customers in October 2009. See more details at the KeyDirect Hub Page

Update 8/23/08: KeyDirect CD rates have changed. The 4.30% APY now only applies to the 13-month term. The 48-month CD yield has gone down to 4.75% APY.

KeyDirect has recently increased the yield on its 12-month CD to 4.30% APY. It continues to offer very competitive yields on its longer term CDs. The best ones include a 4.75% APY 23-month CD and a 5.25% APY 48-month CD. The minimum deposit is $5,000. An extra 2 basis points is added for minimum deposits of $50K.

You can get an additional 25 basis points on these CD rates if you have the Key Advantage Checking account. The checking acocunt has a $15 monthly fee, but this can be waived if you maintain a combined balance of $10,000. With this checking account the 12-month yield is 4.55% APY which is even higher than what WaMu is offering. Below is a summary of the CD yields available with this checking account:

KeyDirect CD Yields w/checking as of 8/20/08

Term APY
12-month 4.55%
23-month 5.00%
48-month 5.50%

For more details about KeyDirect CDs, please refer to my August 7th post.

KeyDirect products are not offered for those in the states that Key Bank has branches. These include the following states: AK, CO, ID, IN, KY, ME, MI, NY, OH, OR, UT, VT, or WA.

For those who live in the above states, you can only open accounts through KeyBank. The CD rates vary based on your location. They do offer some competitive rates. The highest rates require a minimum deposit of $25,000 and a checking relationship. The Relation Reward requires you to have either the Key Advantage, Key Privilege or Key Privilege Select checking accounts. The one with the smallest balance requirement is the Key Advantage which requires a combined balance of $10,000 to avoid a $15/month fee.

Update 8/22/08: Another perk with opening one of these checking accounts is that you can get a free iPod nano or iPod touch. This iPod promotion is still active. Refer to this post for more details.

Here's a sample of the CD rates from some of the states:

KeyBank Relationship Reward CD Rates as of 8/20/08:
Yields based on a minimum deposit of $25,000

Colorado (zip code 81052)
Term APY
13-month 4.30%
23-month 5.00%
48-month 5.25%

Oregon (zip code 97128):
Term APY
13-month 4.25%
23-month 5.00%
48-month 5.50%

Ohio (zip code 45202)/Indiana (zip code 46201)
Term APY
14-month 4.30%
23-month 5.00%
39-month 5.25%

Cleveland, Ohio (zip code 44101)
Term APY
14-month 4.60%
23-month 5.00%
36-month 5.50%

New York (zip code 10001):
Term APY
13-month 3.75%
23-month 4.75%
48-month 5.25%

These rates vary not only by state, but also by zip code. Also, the rates can change often. Note the high rates offered in Cleveland, Ohio. This just recently changed while I was working on this post. The 4.60% APY 14-month CD and the 5.50% APY 36-month CD are excellent deals. I tried a few other zip codes in Ohio, and received lower rates. I'm afraid some states have much lower rates such as New York. If you receive different rates for your area, please leave a comment.

The CD disclosure is avaialable at the bottom of KeyBank's Certificate of Deposit Page. A similar one is available at KeyDirect at the bottom of this page. According to this disclosures, the CDs with terms of 12 to 23 months have an early withdrawal penalty of 6 months of interest. The penalty jumps up to 9 months of interest for terms of 24 to 47 months and 12 months of interest for terms of 48 months or more.

Last month KeyCorp reported its largest ever quarterly loss (see article). However, most of this loss wasn't due to bad loans but due to a court decision. KeyBank's financial ratings based on 3/31/08 data remain fairly strong: 4 stars (sound) at Bankrate.com and 3.5 stars (good) at BauerFinancial.

KeyBank N.A. has been FDIC insured since 1956 (FDIC Certificate # 17534).

  Tags: KeyBank, KeyDirect, CD rates

Related Posts

Comments
13 Comments.
Comment #1 by Anonymous posted on
Anonymous
Thanks Banking Guy. Sure hope those rates hold until tomorrow. They will lock the interest rate with your postmark, and I plan to mail them my deposit tomorrow.

1
Comment #2 by Anonymous posted on
Anonymous
Why does this bank not offer the sames rates to everyone! Why are the rates lower according to your zipcode?? They are just ****ing people off in NY.

1
Comment #3 by Anonymous posted on
Anonymous
live in nyc send email to complain and they will respond go to their website

1
Comment #4 by Bozo (anonymous) posted on
Bozo
To: All
Re: KeyDirect v. Key Bank rates

I'm as confused as all why their rates and terms are different. Once, when Key Bank was actually HIGHER than KeyDirect, I was told I could drive to Oregon to avail myself of the higher rates offered at Key Bank. I declined.

This shall be one of those weird things we will never figure out.

Yours,

Bozo

1
Comment #5 by Anonymous posted on
Anonymous
Thanks Banking Guy. Just opened up at my local KeyBank a 23 mo. CD at 5.0% apy and a 48 mo. at 5.50% apy (under FDIC limits). Pretty darn good rates!

Plus, you get a free Apple IPOD Touch if you open up a checking account(I did w/Key Rewards), and use your debit card once and have two automated payments(will have my monthly medical insurance premiuns deducted) of $100 or more by. Fairly easy for me...

1
Comment #6 by Anonymous posted on
Anonymous
I also just opened a 23 month CD and a 48 month CD with Key Advantage checking; I had no idea about the free Ipod; I will call tomorrow! Thanks for the heads up!

1
Comment #7 by Anonymous posted on
Anonymous
I also opened a 23-month CD and a 48-month CD, these are the best deals around right now. Thanks, Banking Guy!

Thanks for others for posting about the free iPod, I'll certainly be calling Key about that. I declined the debit card because I really only opened the Key Advantage Checking account to get the extra 1/4% on the CD's.
I guess I'll just tell them I changed my mind!

1
Comment #8 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for noting the iPod promotion. I had forgotten to mention this in the post. I've added it to the post along with a link to my iPod promo post.

1
Comment #9 by sunny (anonymous) posted on
sunny
I just called their customer service about opening a Key Privilege account along with a $25K CD. I wanted to qualify for the ipod touch and also get the extra 25 basis points increase. But I was told that my APY would be 4.30% (13 month CD) and that I didnt qualify for the 25 basis point increase (or the ipod) because there is no local branch in Texas. This is not how I understood the promotion. Comments anyone ?

1
Comment #10 by Banking Guy (anonymous) posted on
Banking Guy
KeyDirect's products (including the checking accounts) should be available in Texas and other states which don't have KeyBank branches. I know there have been a few readers who live in these states and reported that they were able to qualify for the checking and the 25bp CD bonus.

However, the iPod bonus seems to be only a KeyBank promotion. KeyBank products are only available in states where they have branches. I have more info on this in my KeyBank iPod post.

1
Comment #11 by Anonymous posted on
Anonymous
I am so disgusted with Key Direct that I wish I never opened accounts with them. Not only did they mess up with all kinds of spelling errors but they messed up my drivers license number as well. I 've had to make numerous calls to get this fixed; they are slow as molasses to send corrected copies; they tell you to call one number and then they tell you you need to call another number; they sent an ATM card with the wrong spelling of my name and no instructions to get a pin # for it; when you phone and ask they tell you "oh, we're Key Bank" here, not Key Direct you'll have to call tomorrow when Key Direct is open...and come to find out, they don't tell you but you have to go to the KeyBank website to log in even though you're registered under KeyDirect. I had problems signing up and logging on to the site and now that I have I see they never gave me the 1/4 point extra for opening a Key Advantage Account, even though they said by phone that this was corrected! I could go on and on... I am so sorry I ever opened CD's with them...I've never ever had problems like this with any other bank account and I've dealt with many banks in my time! My advice -- stay away!! Its not worth the hassle to deal with these idiots!

1
Comment #12 by FR (anonymous) posted on
FR
man, my experience matches so much with the previous post.
I opened key bank account to get IPod nano promotion and learnt today that they charge you for talking to customer service over the phone. You are allowed to call 3 times in a month, also each call should be limited to some minutes. If your call goes long ( I don't know the limit) they charge you money. I found it on my statement today.

the reason i called customer service was, they misspelled my name on my debit card. I called 2 times. Someone then fixed it and sent me a new ATM debit card. Then surprise, a $5 fee for card replacement shows up on my transactions. Their mistake, I have to pay $5 fee. I called again, a lady talked nicely and reverted the fee. Now today surprise, I see $3 charge for talking too long in that customer support call. I called customer service today, and another lady explained, and asked me to go to Key bank branch.

man, Key Bank is pathetic or what? can't they find better way to make money? Based on my experience with 3 other banks, Key Bank customer service absolutely sucks.

1
Comment #13 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info on this fee. That's a good reason why fees for phone support is such a bad idea. Most calls are due to the bank's own mistakes.

1