Update 1/31/09: The 16-mo promo CD rate has fallen to 2.75% APY.
Mutual Bank continues to offer a promotional 16-month CD with an APY of 3.50%. Minimum deposit is $2,500. It's available as both a regular and IRA CD. The promotion is listed in the bank's CD rate table as of the morning of 1/27/09.
DollarSavingsDirect had also been offering a special 3.50% 16-month CD, but last Friday it cut the rate to 3.25% APY at the same time it cut its savings account rate to 3.50% (see post).
In 2007 I had received the following information about the CDs from a Mutual Bank's banking rep. Please check with the bank for the offical and latest information.
- compounded and credited monthly
- available as a regular or IRA CD
- can be opened by mail from any state
- rate will be guaranteed from date of postmark
- No hard credit pull for CDs
- 10 grace period after the CD matures in which you can withdraw without penalty
- 90 day early withdrawal penalty for all terms
- If you decide not to renew at maturity, you need to request in writing by mail or fax
- At maturity, funds can be sent by cashier's check at no charge or by wire transfer for a $25 fee or transfered into your Mutual Bank money market or checking account.
- Online banking can be setup at the Mutual Bank website after the account is opened.
- Application info available at this Mutual Bank page
In addition to opening the CD by mail, you can also open at one of Mutual Bank's branches which are located in Illinois, Texas, New York and New Jersey.
Mutual Bank's ratings for soundness are weak: 0 star (lowest) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both ratings are based on 9/30/08 data. As I recommend with any bank, it's best to keep below the FDIC limits. The bank is FDIC insured (FDIC Certificate # 18659).
Weak banks may soon not be able to offer high rates. The FDIC is discussing interest rate restrictions on banks that are not well capitalized. Bloomberg has more details on this. Note, I've been posting links to the latest banking-related news at my Daily News and Deals Post. Also, use this post to submit any bank deals or banking news you find.