Dedicated to Deposits: Deals, Data, and Discussion

4.18% 6-Month CD at ISN Bank - Nationally Available


ISN Bank
ISN Bank has once again come out with an attractive rate on its 6-month CD. The yield is 4.18% APY. The minimum deposit is $1,000.

My last report of this bank was in July when it was offering a 4.10% 6-month CD. In June, I called the bank and confirmed that accounts are available to people in any state. If you do apply, I would recommend calling first. They will take your name and give you 7 days to fund the CD at the current rate. They don't charge for incoming wire transfers. There's an application page which describes how you can mail or fax in the application and fund it with a wire transfer.

Outbound wire transfers that you might use when the CD matures is $15. Another thing to note about CD maturity is that the grace period is 7 days and they don't pay interest during the grace period if you close the CD (see disclosure).

In my July post a reader commented that the CSRs were very responsive, and the bank allows monthly payment of interest via ACH or check even for the 6-month term.

It's a small bank located in New Jersey. One thing to note is that its financial ratings are very low: 0 star at BauerFinancial based on 3/31/08 data and 1 star at Bankrate based on 6/30/08 data. As I recommend with any bank, make sure to keep below the FDIC limits (FDIC Certificate # 57107).

  Tags: CD rates, ISN Bank

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Comment #1 by Anonymous posted on
Why ACH transfer is not an option for funding the CD while interest payable has such option? I don't think this bank has ACH system in place.

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
I'm not sure why more banks don't use ACH for account funding. I have seen other banks that allow ACH payment of CD interest but not ACH funding. Corus Bank is one example.