Update 1/19/09: The CD rates have dropped. The new CD rates for a $10K minimum are now 3.75% APY for 12 months and 3.50% APY for 6 months.
First Command Bank is offering two very competitive CD rates: 4.00% APY for 12 months and 3.75% for 6 months. Minimum deposit is $10,000. For a $1,000 minimum the APYs are 3.45% for 6 months and 3.95% for 12 months. These CDs are also available as Traditional IRAs. These rates are listed in the bank's rate table as of 1/16/09. I just called at 7:30am CST and confirmed these rates are still available. The banking rep did not know how much longer they would last.
According to the banking rep, CDs can be opened using their online application from any state. Details about the CDs are available at the bank's CD/IRA page and in the bank's depository agreement (pdf). Some important details include:
- 10-day grace period at maturity
- early withdrawal penalty: 30 days interest on amount withdrawn for terms less than one year, 90 days for one year or more
- Interest accrues daily and credited quarterly for balances under $10K and monthly for balances of $10K or more
- There is a credit check for new customer accounts. The CSR didn't know if it's a hard or soft pull
- CD rate locks when they receive the funds, not at time of application
- CD can be funded by either a check or free wire transfer (wire would help ensure they receive funds before the rate changes)
- At maturity, they require signed written instructions to close the CD. This can be faxed or mailed.
- At maturity, the bank can send you the funds by check or wire transfer (outgoing wire transfer fee is $12)
First Command Bank is a one-office bank located in Fort Worth, Texas. From the FDIC data, it has $544 million in assets, $459 million in deposits and 105 employees. The parent of First Command Bank is First Command Financial Services which was founded in 1958 to help members of the US military with financial planning. I found this article about the First Command Financial Services grand opening in North Carolina.
First Command Bank has been FDIC insured since 1997 (FDIC Certificate # 34415).
Thanks to Peter who mentioned these CDs in the Daily News & Deals post.