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- When the CD matures, you may elect to have those funds withdrawn by a mailed check, ACH transfer or wire transfer (CSR)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)
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).
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