Dedicated to Deposits: Deals, Data, and Discussion

3.25% 24-Month CD at iGObanking.com - Nationally Available

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iGObanking
Update 7/26/09: Rates have fallen. Please check the bank's website for the latest rates.

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 The early withdrawal penalty for CDs with terms of one year or more is 6 months of interest on the amount withdrawn.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:
iGObanking.com is a division of Flushing Savings Bank, FSB which is 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.
  Tags: iGObanking, CD rates, IRA rates

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Comments
9 comments.
Comment #1 by Anonymous posted on
Anonymous
Just curious if you guys had 300,000 cash which online account would you invest in to get the best return and convenience. I want he cash available in case I need it but don't plan on using it for daily funding. Just keeping it safe. Any help???

1
Comment #2 by Anonymous posted on
Anonymous
I'll take it...

1
Comment #3 by Anonymous posted on
Anonymous
Right now I would recommend dollarsavingsdirect.com. Just make sure to create a joint account which will give you $500K of FDIC coverage, or slit the money between two+ banks.

1
Comment #4 by Anonymous posted on
Anonymous
igobanking is better than dollarsavingsdirect and heres why:

Can transfer from savings to checking at flushing savings ATM (not sure if it can be done at allpoint ATMs), can use ATM Card at over 30,000 locations with allpoint. The bank is more stable than DollarSavingsDirect which is in poor financial shape right now. Interest rate is the highest of the local banks right now at 3.08% for savings.

3 Day hold time does not affect anything negetively to get the interest since its akin to a 3 day cd as interest is accrued from date of deposit.

So as a 3 day or longer term savings account, Flushing Savings Bank's igobanking does the trick then you push funds from savings to checking to pay the bills. You need to have savings to use to pay the bills.

For those with Flushing savings bank locally, this is the best bank bar none to use.

1
Comment #5 by Anonymous posted on
Anonymous
Remember, with banks the key is to maximize interest accrued. Not to open an account with a big name local non online account for them to give you high fees or little interest.

Remember by using online banking even if you were a frugal millionaire, you would also be doing better at igobanking.

1
Comment #6 by Anonymous posted on
Anonymous
Thanks for the input (except the first post). I was hoping for a little better interest rate from IGO banking as 3.08 is not the best.

1
Comment #7 by Lobel (anonymous) posted on
Lobel
I'd say Alliant Credit Union.

Rock solid.

Anyone can join (just join your local PTA or the National PTA).

You don't have to do joint account to get more than the $250K insurance. You can list two or more beneficiaries, and they can be anyone you like, not just immediate family.

1
Comment #8 by Anonymous posted on
Anonymous
I have several hundred thousand dollars split between several banks. Rates have been dropping recently so my yield range is currently between 2.4 to 3.25% for all of the accounts. I sort of don't chase the top yielding account because the placement of each bank can easily change. Several banks that were at the top over 5 years ago are no longer in that position now. Some people don't mind chasing yields which is OK. But I don't want too many bank statements every month by doing that. I don't subscribe to "completely online" banking. If the entire WWW was hacked someday in the future from a cyberattack, then you are SOL.

1
Comment #9 by Anonymous posted on
Anonymous
I just opened a money market account at H&R Block bank that has a 3.25% rate for amounts over $50,000. Many banks are lowering their rates so the interest rate difference between banks is going to shrink. It is sort of a guessing game as to who can stay on top at this point.

1