Dedicated to Deposits: Deals, Data, and Discussion

4.00% 9-Month / 4.25% 12-Month CD at Sovereign Bank

POSTED ON BY

Santander Bank, N.A
Update 11/27/08: These CD rates have fallen. Please check the bank's website for the latest rates.

Sovereign Bank recently increased the rates on its CD specials. The rates are not the best, but they're competitive: 4.00% APY for a 9-month term and 4.25% APY for a 12-month term. The minimum deposit is $500, and the maximum is $499,999. There's also a money market account special with a 3.75% APY for a minimum balance of $75,000. I don't see any rate guarantee on this money market special so you would be better off with the many online banks which are offering 3.75% APY or higher.

I just called Sovereign Bank's number at 877-768-2265, and according to the CSR, these CDs can be opened from any state. You can apply online or by phone. The phone looks like a better option since they'll still need information by phone after you apply online. They can fund the CD with an ACH transfer which requires your current bank account, routing and check number. If you apply by phone with electronic funding, the CSR said they'll lock in the rate at the time of the application. If you mail in a check, it won't lock until they receive the check. According to the CSR, they don't do a hard credit inquiry. They use both ChexSystem and Lexus-Nexus.

In addition to the CD special, Sovereign Bank extended its $150 checking account bonus to 11/07/2008. Refer to my checking bonus review for more details. This may require a branch visit.

Branches are located in the Northeast in the states of Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania and Rhode Island. The bank is FDIC insured (Certificate # 29950).

Thanks to the reader who emailed me news of this new CD special.
  Tags: New York, Santander Bank, N.A, Rhode Island, Massachusetts, New Hampshire, Pennsylvania, CD rates, Maryland, New Jersey, Connecticut

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Comments
7 comments.
Comment #1 by Jesse W. (anonymous) posted on
Jesse W.
FREE money! Cannot beat that, that is for sure, plus a solid interest rate!

Jesse W.
http://www.subprimeblogger.com

1
Comment #2 by BloggingBanks (anonymous) posted on
BloggingBanks
This 1 year CD rate is still not as good as Corus Bank 1 year 4.51% deal however.

Anyways, thanks for posting it!
BloggingBanks

1
Comment #3 by Anonymous posted on
Anonymous
This is the hottest deal for me.

If I get $150 from its checking account and put $15000 in the 4.25% APY CD, that means I will get a 5.25% interest rate for one year.

I know I will have to use my Visa Check Card 6 times within 90 days. But I dont think it will be an issue.
I might just go to super market and buy eggs 6 times within a month and get all the money.

$15000*0.0425=$637.5
$637.5+$150 from checking=$787.5

$787.5/$15000=0.0525

If I did my math right, that means I will get a 5.25% APY for my $15,000.00

1
Comment #4 by Jesse (anonymous) posted on
Jesse
Security Savings Bank advertised a 4.25% APY on a 12 mo. CD in the Sunday Review Journal. It also stated tkat it would raise the rate to 4.30% APY if you open a checking account. All you have to do is mention the ad when you open the account. Their # is (888) 703-5414.

1
Comment #5 by Anonymous posted on
Anonymous
The one problem I have is that someone then calls you and asks for all sorts of private information--just the sort of information one is told to only provide when *you* call *them*. If they can't do it all on-line, then they should send something via USPS.

1
Comment #6 by scott (anonymous) posted on
scott
Went into branch this morning to open the 12 month and was told this will be ending next week. With another Fed cut expected next month we wont be seeing rates over 4% for awhile

1
Comment #7 by Banking Guy (anonymous) posted on
Banking Guy
Scott, thanks for the update. Glad to read these rates will last a little longer.

1