Dedicated to Deposits: Deals, Data, and Discussion

2.53% 12-Month Online CD at Broadway Federal Bank in CA - Nationally Available

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Broadway Federal Bank
Broadway Federal Bank is offering an online 12-month CD with a 2.53% APY. Minimum deposit is $1,000. This rate is listed on the bank's home page as of the morning of 6/22/09.

My last post on Broadway was in November 2008 when they were offering a very competitive savings account. They stopped offering this special savings account in April and began offering the online CD. A few readers who had opened the savings account reported poor customer service and a hard credit inquiry.

The Open An Account page has the link to the online application. The first page of the application lists some important requirements and features:
  • You must be a U.S. Citizen or resident alien, have a U.S. address and be 18 years or older
  • Required that you send a copy of your driver’s license or ID
  • You can fund the CD by check or by an ACH transfer
  • You will receive the rate in effect on the date the application is submitted
The bank continues to have strong financial ratings for soundness: 4 stars (excellent) at BauerFinancial (based on 3/31/09 data) and 4 stars (sound) at Bankrate.com (based on 12/31/08 data).

It's a small bank with 5 offices in Los Angeles and Inglewood, California. It has been a FDIC member since 1947 (FDIC Certificate # 30306).

Thanks to the reader Mike who mentioned this CD in the comments.

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  Tags: California, Broadway Federal Bank, CD rates

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Comments
3 comments.
Comment #1 by Anonymous posted on
Anonymous
The CD cannot be funded via ACH. I tried this and I got an email the next day saying their ACH system wouldn't allow it. I called their online banking department and the lady said that it worked in 'beta', but they just realized it doesn't work for real. She said mail a check instead, along with a copy of my driver's license, and the account would open when they get the check.

1
Comment #2 by Anonymous posted on
Anonymous
It's probably a good thing you can't use ACH given some bad ACH problems/delays people reported when opening an Anniversary Savings Account with Broadway Federal (still paying 2.53% APY today but closed to new applicants). I opened the Savings with a check, sent along with the required i.d info *at the same time as the application copy*, and all went smoothly. Of course there's always a greater chance of getting stung by a CD rate drop that way, but their history is pretty good for keeping an advertised rate awhile even as rates are dropping elsewhere. But no guarantees, of course...

1
Comment #3 by CinFlorida (anonymous) posted on
CinFlorida
Banking Guy: Please check out Broadway Federal Bank's 24-month online CD, 3.05% APY. I just opened one and am attempting an ACH transfer. Seems easy enough, I'll post again if it isn't.

1