Dedicated to Deposits: Deals, Data, and Discussion

4.00% 36-Month CD & Other High CD Rates at H&R Block Bank - Nationally Available


H&R Block Bank
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
Minimum deposit is $250. These rates are also available in an IRA.

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.
The bank has an online application which is provided by Andera (a popular provider of online bank applications). The application appears to allow funding using an ACH bank-to-bank transfer. There's an application FAQ with more details.

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 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.

Related Pages: H&R Block Bank , CD rates, Missouri, IRA rates

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Comment #1 by Anonymous posted on
I decided to open a savings account with H&R block bank and it was pretty easy. They use the CHEX system to verify identity. THey also use the ACH transfer to get the initial deposit into the account. Their highest tier rate is 3.25% for a deposit of at least $50,000. Hopefully, with the tax season going strong now, the rate can last for a while.

Comment #2 by Anonymous posted on
I have been trying to talk to a live person at this bank. The toll-free number just sends you in circles if you don't have an acct number. The local numbers I found for their Kansas City office were disconnected or bad. Does anyone have a phone no. where I can actually speak to someone? Thanks

Comment #3 by Anonymous posted on
Rates are down across the board.

Comment #4 by Anonymous posted on
Tried to open a 5-year CD and it was a nightmare...never was able to do it, never could reach a person who could help (after literally hours on hold), no response to urgent emails. Three weeks after completing the online application and receiving confirmation the funds were still not transferred. Finally gave up and opened a CD with Alliant CU which was incredibly easy and pleasant by comparison. Deal with H&R Block Bank at your peril.