iGObanking.com continues to offer a competitive rate of 3.25% APY for its 2-year CD that's top among online banks. Minimum deposit is $1,000, and it's also available in an IRA. This rate is listed in the bank's rate table as of the morning of 1/30/2009.
iGObanking.com often has some good deals on CDs, but you have to be careful when the CD matures. Many of the CD rates are not competitive. So if you let your CD automatically renew, you may get stuck with a low-rate CD. A current example is the 12-month CD which has a yield of only 2.25% APY.
There's an online application that allows electronic funding via ACH. However, to close the CD, they don't seem to provide a way to transfer it out via ACH. According to the CSR, you can request for them to send you a check via their secure email. You also have the option to transfer the money into your iGObanking savings or checking account. They still have competitive yields on their no-fee savings account (3.08% APY as of 1/30/09) and checking account (1.75% APY as of 1/30/09).
The certificate of deposit details are described in their disclosure page. The early withdrawal penalty for CDs with terms of one year or more is 6 months of interest on the amount withdrawn. The grace period at maturity in which you can close the CD without penalty is 7 calendar days.
My previous iGObanking reviews:
FDIC insured. Flushing Savings Bank has solid financial ratings for soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 9/30/08 data.