Dedicated to Deposits: Deals, Data, and Discussion

5.25% 29-Month CD with Key Advantage Checking at KeyDirect


KeyDirect has ended its 4.75% APY 23-month CD, but they have come out with a new 29-month CD with a yield of 5.00% APY. As I first mentioned in this August post, you can receive an extra 25 basis points on the CD rates if you have or open a Key Advantage Checking Account. So with this checking, the 29-month CD yield is 5.25% APY.

The minimum deposit for the CD is $5,000, but to avoid a $15 monthly fee on the Key Advantage Checking, a combined balance of $10,000 is required. The combined balance includes checking, savings and CD balances. A few other ways to avoid a monthly fee are described in the disclosure.

For more details about opening and closing a KeyDirect CD, please refer to my August post. One thing to note about this 29-month term is that the early withdrawal penalty is equal to 9 months of interest which is higher than the 6-month penalty for the 23-month term.

Accounts at KeyDirect may be opened by people who live in 37 states and in DC which don't have KeyBank branches (see bottom of their CD overview page). In the other states, you have to open CDs through Key Bank (which may have lower rates).

KeyBank is based in Cleveland, Ohio and has been FDIC insured since 1956 (FDIC Certificate # 17534).

Key Corp, the parent of Key Bank, has been hurt in this credit crisis, and this is starting to be reflected in Key Bank's financial ratings based on 6/30/08 data. gives the bank a 2-star rating (below peer group) and BauerFinancial gives it a 3.5-star rating (good).

Thanks to the reader who mentioned this new CD in the comments.

  Tags: KeyDirect, CD rates, IRA rates

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