Update 2/19/09: Rates have fallen. Please check the bank's website for the latest rates.
H&R Block Bank is offering some very competitive CD rates. Two of the most competitive rates are the 3.50% APY 24-month CD and the 4.00% APY 36-month CD. Below is the full list of yields (in APY) as listed at the bank's rate table as of 1/24/09:
- 2.50% 3-month
- 2.85% 6-month
- 3.25% 12-month
- 2.75% 18-month
- 3.50% 24-month
- 4.00% 36-month
- 3.50% 48-month
- 4.25% 60-month
Details of the CDs are listed in the bank's FAQ page. Some important details mentioned in this FAQ include:
- Early withdrawal penalty is 90 days of interest (in the past I've been told it's more for terms of over 24 months)
- 10 day grace period at maturity
- For applications mailed in, as long as the postmark is not after the rate was in effect, they will honor the rate/APY.
- Interest earned on a CD can be paid monthly, quarterly or upon maturity at the customer's option.
My last post on H&R Block Bank was in late 2007 when it was offering 5.50% CDs. Every once in a while, they seem to offer competitive CD rates.
H&R Bank is also offering some fairly competitive rates on its money market and checking accounts. Both are tiered accounts. The money market account yields range from 2% APY for a $1K balance to 3.25% APY for a $50K balance. The Interest Checking account yields range from 1.25% APY for a $500 balance to 2.25% APY for a $50K balance. These rates are listed in the rate table as of 1/24/2009.
When I posted on H&R Bank in 2007, there were concerns about its health due to H&R Block's subprime mortgage servicing unit. However, they were able sell this off last May (see press release).
The bank's ratings for soundness are a little weak: 2 stars (problematic) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 9/30/08 financial data. The bank has been FDIC insured since 2006 (Certificate # 58124). It's a small bank that's operated out of a Kansas City, Missouri office. From the FDIC database, as of 9/30/08, the bank has $1.06 billion in assets, $746 million in total deposits and 51 employees.