Dedicated to Deposits: Deals, Data, and Discussion

Update on National City CDs, Checking Account Bonus and News

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Update 11/28/08: The CD and money market account rates have gone down. Please check the bank's website for the latest rates.

National City Bank continues to offer some very attractive promotions. I described the CD promotion in this early November post. I've just confirmed that these rates apply to some shorter terms that are not listed at the CD promotion page. Below is a list of the rates and terms:

CD Specials for $10K minimum and w/Checking:
  • 4.00% APY 12 months
  • 4.50% APY 13 to 29 months
  • 5.00% APY 30 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. Also, the rates for a $2,500 minimum deposit are 20 basis points lower.

These CD rates are scheduled to last through 11/22/2008. National City has often been extending these promotions, but with the current rate environment and with PNC's acquisition of National City, there's less of a chance.

The small print for the rates that require a checking account stipulates that "offers available for consumer accounts opened at National City locations in IN, IL, KY, MI, MO, OH, PA and WI." A reader in my last post also commented that these rates are only available to those in these states where National City has branches. If you're interested in these CDs, 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.

3.75% Money Market Account with 6-Month Guarantee

In addition to the CD promotion, National City continues to offer a nice Money Market Savings promotion with a 3.75% APY guaranteed for 180 days for balance of $5,000 or more. 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.

National City News

The Pittsburgh Post-Gazette has an interesting article on PNC's takeover deal of National City. Here's an excerpt:
Three weeks after the announcement that National City Corp. was being sold, two things are apparent: PNC Financial Services Group got a really sweet deal to buy Ohio's largest bank. And National City was in far worse shape than the public knew.

The September 30th IRS tax decision dealing with the purchase of banks that had loan losses was the main reason this deal was so sweet for PNC. It appears National City would be in a very difficult situation without this deal. According to the article, PNC had determined that "National City's $113 billion loan portfolio could be expected to lose $20 billion over the life of the loans." The article mentioned a recent PNC regulatory filing which stated that "regulators told National City that it could be shut down as early as Oct. 24 if it didn't find a buyer."

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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