4.00% 5-Month Online CD and 3.50% Internet Money Market Savings at Hudson City Savings Bank - Nationally Available

Update 11/28/08: Rates have fallen: 5-month CD APY down to 3.75%, Savings account APY down to 3.25%. Please check the bank's website for the latest rates.

Hudson City Savings Bank is now offering online CDs and an savings account. The most competitive CD has a 5-month term and an APY of 4.00%. I had just posted on Hudson City last week, but I had not noticed this new online option. The minimum deposit is $5,000.

The online savings account is also competitive with a yield of 3.50% APY. However, there are minimums and fees. The minimum initial deposit is $2,500. Also, if the balance falls below this, the rate falls to 1.50% APY and there's a $10 monthly fee.

The online application is done through andera.com which provides online applications to many banks and credit unions. It appears available to people in any state. Funding can be done by an ACH transfer from your existing checking or savings account. The account documentation is provided early in the application.

The bank has some decent financial ratings for soundness: 5 stars (superior) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both are based on 6/30/08 data. It has been FDIC insured since 1934 (Certificate # 13074).

Thanks to the reader who emailed me news of this online application.

Tags: money market accounts, CD rates, Hudson City Savings Bank