Dedicated to Deposits: Deals, Data, and Discussion

Update on National City's Money Market and CD Promotions


Once again National City Bank has extended its latest CD and money market account promotions. The new scheduled end-date is 8/23/08. Only part of the promotion is listed online at, and what's listed may vary by your zip code that you enter. I did confirm from a chat session with the banking rep that the following special rates are still available:

Certificate of Deposit Specials for $10K minimum:
  • 4.25% APY 13 to 18 months
  • 4.75% APY 19 to 42 months
  • 5.25% APY 43 to 54 months
Money Market Savings Special:
  • 4.00% APY guaranteed for 180 days on $5,000 or more of new money
These have the typical National City requirement of an existing checking or savings account or a new checking (except Free checking) with a $1,500 minimum initial deposit. The maximum deposit limit is $500,000.

In my last post on this offer, there were a few questions about the checking and money market accounts. Here are some answers based on my chat with the CSR and from National City's website:
  • No credit checks for deposit account applications according to the CSR (I assume this means no hard credit pull).
  • Money market account must remain open for 180 days to avoid a $30 early closure fee. The checking account would need to remain open the full term of the promo account to receive the promo rate (per CSR).
  • $10/mo fee can be waived on the Interest Checking if you maintain a $1,500 minimum daily balance or $15,000 minimum daily balance in any combination of deposit accounts except checking and IRA (per per checking page).

These specials may not be available in all states. The 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.

Another important detail for those who might depend on PODs to extend FDIC coverage is that a reader has reported that National City does not include POD or similar wording in the account title due to the way their software works. The reader was told by the FDIC that this would impact the FDIC coverage. I would recommend checking with National City and the FDIC to verify coverage for your specific case. More details about using PODs to extend FDIC coverage is available in this post.

National City in the News

National City is another bank that has been hit hard by the housing slump and mortgage crisis. However, this MarketWatch article reports that National City has shown improvements based on second quarter results. Last week, it was reported that the SEC has opened an informal investigation into the company.

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: money market accounts, CD rates

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Comment #1 by Anonymous posted on
This is what FDIC has to say about (not) having "POD" in the title of the account:

Payable on death accounts must identify the beneficiaries by name in the account records of the institution (but not necessarily in the account title).

This gives me the impression that National City POD accounts shouldn't be a problem from FDIC insurance angle.

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Do you have the source for that FDIC statement?

There are more requirements according to this FDIC document.

Comment #3 by Anonymous posted on
Yes. Go to and click on the "Living Trust/ITF/POD" link. This information is shown in the popup.

Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
I think these two documents are consistent with each other. The names of the beneficiaries don't have to be in the account title as long as they are in the account records. However, I believe there is still a requirement that the term POD (or similar term) be present in the account title.

Comment #5 by Anonymous posted on
I opened an account with National City. I asked for a copy of the signature card. The consumer signature card has a place for POD/ITF beneficiaries. I actually blacked out SS numbers and the account number and faxed it to the FDIC today. It was a joint account with 2 beneficiaries. Asked them if this account was FDIC insured for $200,000 or $400,000. Gave them my phone number and said to leave the information in my answering machine if I was not home. Gave them my email address if they preferred to email. Hopefully they will reply and we can put this question to rest.

Comment #6 by Anonymous posted on
As of Sept. 12, National City's web site home page still has an item citing a 4-year, 5.25% CD. But when you click thru to the details page, it shows only 5%. And when I enter zip codes for Calif. and for Texas, the rates also show only a max of 5%....Can't find 5.25% on offer.
--John in Los Angeles

Comment #7 by Anonymous posted on
Is the money market savingsaccount fdic insured?