Dedicated to Deposits: Deals, Data, and Discussion

4.45% 10-Month CD Continues at Century Bank Direct

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Update 12/08/08: The CD rates have gone down. Please check the bank's website for the latest rates.

Update 11/28/08: The 10-month CD APY has fallen to 4.27%. On the plus side, the longer-term CD yields have gone up a bit. Please check the bank's website for the latest rates.

Century Bank Direct continues to offer some very competitive CD rates. The most competitive is the 10-month term which has a yield of 4.45% APY. The 5-month CD is also competitive with a 4.01% APY. The longer-term ones are not quite as good: 4.16% APY 15-month and 4.21% APY 20-month.

My last post on this bank was in June. I've mentioned the 4.45% CD in the last few weekly summaries, but I thought it was a good time to highlight it in a post. Below are some of the details of the Online Certificate of Deposit:
  • $1,000 minimum to open
  • Maximum deposit of $100,000
  • ACH funding capability, but only up to $25,000
  • Terms from 5 to 20 months
  • Interest calculated daily and paid monthly
  • Automatic transfers to outside bank of monthly interest available
  • Online CD redemption form can be used to close CD
  • 10-day grace period when a CD matures
  • Early withdrawal penalties on the amount withdrawn: 90 days of interest for terms 12 months and under, 180 days for terms over 12 months
Readers in my last post have commented on their experience opening a CD from this bank. That's where I learned of the $25K ACH limit. According to the reader, if you want to deposit more than $25,000, you'll have to open multiple CDs. Another reader reported applying for the CD online on Sunday. In the application he specified ACH funding and supplied the routing and account number for his money market account. The following Wednesday the amount was deducted from the money market account.

Online Money Market and Checking Accounts

Century Bank Direct continues to offer very competitve rates on its online money market account, savings account and checking account. Please see my online bank review for more details.

Bank's Financials

Century Bank Direct is a division of Century Bank of Kentucky which is FDIC insured (Certificate # 35450). It's a small bank with only 37 employees, $132.8 million in assets and $108.9 million in deposits based on 6/30/08 data.

Century Bank of Kentucky's financial ratings for soundness have dropped substantially since my last post in June. It now has a 1-star rating (lowest) at Bankrate based on 6/30/08 data. In June Bankrate gave it a 3-star rating (performing) based on 12/31/07 data. The rating has remained at 3.5 stars (good) at BauerFinancial based on 6/30/08 data. I'm not sure why the ratings went down so much at Bankrate. As I recommend with any bank, it's best to stay below the FDIC limits.

Thanks to the reader who mentioned this new CD rate in the Finding the Best Deals post.

  Tags: CD rates

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Comments
4 comments.
Comment #1 by Anonymous posted on
Anonymous
I've noted that, if you fund using ACH, they appear to hold the funds three days before opening the CD. The process go like this:
Day 1 Apply
Day 2 Funds ACH out
Day 5 CD opened

After the close of business on day 5, the new CD will appear in your online account. I'd suggest opening one of their deposit accounts, so that you can direct maturing CDs there, and then use an ACH pull to get the money out.

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Comment #2 by Anonymous posted on
Anonymous
Do you offer bank-to-bank transfers?

Not at this time. We are diligently working with our online banking provider to offer bank-to-bank transfer in the near future. If you open a checking or money market account, you have both check writing and debit card access to the money in your account. Until we are able to implement bank-to-bank transfers, you can transfer money to Century Bank Direct from another bank by setting your account with us as a payee with your bank’s bill pay service. If another bank you deal with offers bank-to-bank transfers, you can draw money from your Century Bank Direct account using their transfer service. Or, if you request, we will send you a check.

1
Comment #3 by Anonymous posted on
Anonymous
The bank has not implemented the ability to do bank to bank transfers for their savings accounts that you open with them. Their website says that they are working to add this function (it has said that for quite a few months now). Given the small number of employees and the rating downgrade recently for this bank, I don't expect that they will become a major online bank.

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Comment #4 by Anonymous posted on
Anonymous
Century Bank Direct's 5-month CD dropped to 3.61% APY today (it was 4.01% before).

I posted this to your "Comment here on latest deals" link, but figured it's better to post it under this Century Bank Direct post.

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