Dedicated to Deposits: Deals, Data, and Discussion

Update on National City CDs and Money Market Promotions


National City Bank ended its 5% promotional CDs, but it's still offering a 4.50% APY CD for terms of 19 to 29 months. Other rates listed at the CD Promotions page include a 4.00% APY 12-month CD and a 4.25% APY 18-month CD. Minimum deposit is $10,000. 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. Also, the rates for a $2,500 minimum deposit are 20 basis points lower. These CD rates are scheduled to last through 12/13/2008.

If you're interested in these CDs, I recommend calling to verify for yourself (800-622-4036) or contacting the CSR using the online chat. In an online chat, a CSR told me that accounts can be opened via chat, by phone or at a branch. 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.

3.25% Money Market Account with 6-Month Guarantee

In addition to the CD promotion, National City continues to offer a nice Money Market Savings promotion. But like the CDs, the rate has gone down. It's now only 3.25% APY (was 3.75%). But this is still a good deal since the yield is guaranteed for 180 days for a balance of $5,000 or more ($25,000 in Florida). Like the CD promotions, it has the checking account requirement.

$150 Checking Account Promotion

National City Bank continues to offer a $150 Visa Gift Card for opening a personal checking account, setting up a $250 direct deposit using their Switch Service and for making 10 purchases using their Visa CheckCard. The promotion page is located at promotional webpage. It's scheduled to last through 12/31/08. I have more details about this promotion in this bonus review.

A reader mentioned an additional way to earn more from National City by enrolling in their points program. As described in this SlickDeals thread, some easy ways to earn points include:
  • 5,000 for setting up direct deposit
  • 5,000 after using your check card for the first time
  • 5,000 for using online bill pay for the first time
According to the post, 15,000 points can be exchanged for two $15 Visa gift cards.

PNC and Existing National City CDs

For those who have opened National City CDs, PNC should continue to honor these rates to maturity. I found a news article at in which a reporter asked a PNC spokesman about this. He's an excerpt on the spokesman's reply:
"CD rates remain the same for the term of the CD," he said. "The simple fact that PNC becomes the assignee of National City on the CDs does not change their rates."

The PNC acquisition announcement should reduce the chance we'll see a bank failure. The PNC transaction is not anticipated to close until the end of the year. National City Bank is a member FDIC (FDIC Certificate # 6557).

  Tags: PNC Bank, CD rates, IRA rates

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