2.51% 13-Month CD with a Limited Add-On Feature at Choice Financial - Nationally Available

Update 7/24/09: The RateBuilder CD rate has fallen to 2.21% APY.

Choice Financial continues to offer a very competitive 13-month CD as part of its RateBuilder Accounts. When I first posted on Choice Financial in May, they were offering hot deals on both the savings account and this CD. In less than a week after the post, they made substantial rate cuts. The CD rate fell from 3.01% to 2.51% APY. As of 7/13/09, the CD rate is still 2.51% APY which is now a very competitive rate for a 13-month maturity. In addition, it has a limited add-on feature which allows you to make additional deposits to the CD up to the original deposit amount. Below is a summary of the CD features based on their disclosure (pdf) and based on what I was told by the CSR in May:

• 13-month term
• $5,000 minimum deposit
• Interest will be compounded and credited annually
• Early withdrawal penalty equals 6 months of interest on the amount withdrawan
• Grace period at maturity of 10 calendar days
• Add-on feature: You will be able to make additional deposits to the CD up to the original deposit amount without extending the term of the CD
• CD starts earning interest on the business day that they receive the initial deposit (CSR)
• CD rate that you will receive is the rate as of the date that they receive the application (CSR)
• When the CD matures, you may elect to have those funds withdrawn by a mailed check, ACH transfer or wire transfer (CSR)
• You can close the CD over the phone. They'll use security questions to verify your identity (CSR)

For more details of this CD and the savings account and to read comments of those who applied, please refer to my May account review.

Choice Financial is a small bank with 11 branches in North Dakota. You can review the details about their financials at this FDIC page. They have some solid ratings for safety and soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 3/31/09 financial data. The bank has been a FDIC member since 1934 (FDIC Certificate # 9423).

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
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• Index of state CD and bank deals

Tags: Minnesota, Choice Financial, South Dakota, Montana, CD rates, checking account, savings account, North Dakota