4.00% 7-Month CD at Webster Bank in the Northeast - Nationally Available

Webster Bank is offering a special 4.00% APY 7-month CD. The minimum deposit is $1,000, and it must be new money. A Webster checking account is required. The offer is scheduled to last until 11/30/2008.

The bank does offer a free checking account with a minimum opening deposit of $50. I was told by the CSR that this does satisfy the promotion requirements.

According the CSR, people in any state can open the account online or by phone. It can also be opened at a branch for those who live nearby. For those who apply online or by phone, they'll send you the new account package. You'll need to mail the signature card with a check and a photo copy of your driver's license. There is no hard credit inquiry. Readers who had applied for the checking earlier in the year when the bank was offering a sign-up bonus verified the lack of a hard pull.

I last reported on this bank in June when it was offering a 5% 5-year CD.

Branches are located in Connecticut, Massachusetts, Rhode Island and in Westchester County, New York.

The bank has some fair financial ratings for soundness: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both are based on 6/30/08 data.

Webster Bank has been FDIC insured since 1960 (FDIC Certificate # 18221). It's a fairly large bank with $17.4 billion in assets.

Tags: Massachusetts, New York, CD rates, Rhode Island, Webster Bank, Connecticut