Dedicated to Deposits: Deals, Data, and Discussion

Update on National City's CD Promotion: 4.50% 13-Month CD


Update 10/18/08: The 13-18 month CD yield seems to have gone down by 25 basis points. But the other CD yields seem to have remained the same. The new end-date listed on the promo page is 11/01/2008.

National City Bank continues to offer an attractive CD promotion. The CD yield for the shorter terms has gone up from 4.25% to 4.50% APY. This is available for terms of 13 to 18 months. More details are provided at this National City CD promotion page, but this doesn't list all of the terms. I just called for the full details:

Certificate of Deposit Specials for $10K minimum:
  • 4.50% APY 13 to 18 months
  • 5.00% APY 19 to 35 months
  • 5.25% APY 36 to 54 months
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. Without the checking account, the CD rates are 25 basis points lower (50 basis points lower for the short term). Also, the rates for a $2,500 minimum deposit are 20 basis points lower. According to the CSR, these special CDs are scheduled to end on 10/18/2008.

These CDs may not be available in all states and can vary by state. 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. It's definitely easier if you live near a branch. Branches are located in FL, IN, IL, KY, MI, MO, OH, PA and WI.

One important detail regarding National City's 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.

National City is another bank that has been hit hard by the housing slump and mortgage crisis (see article). As I recommend with any bank, it's best to stay under the FDIC limits. The short-term CDs above would work out well with the new FDIC limits (see post). National City Bank is a member FDIC (FDIC Certificate # 6557).

  Tags: CD rates, IRA rates

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Comment #1 by Anonymous posted on
contacted national city today. the 4.50% rate for 13 mo is still being offered. in addition, if you don't live near one of their branches they will hold the rate for 5 business days to fund the accounts. either a savings or checking accounts are required to get the rate.