Kaiser Federal Bank is offering a 2.60% APY 24-month CD special. There's also a 60-month CD special, but it's less competitive with a rate of 3.00% APY. Minimum deposit is $10,000. These rates are listed in the bank's CD rate table as of the morning of 7/29/09. The rates are subject to change at anytime.
I called the bank yesterday, and I confirmed that people in any state can open Kaiser Federal Bank's CDs, savings account and money market accounts. Checking accounts and IRAs are limited to California residents. You can do an initial application online or by phone (1-800-524-CASH). However, the CSR said they're still mail you forms to sign that must be returned with copies of your IDs and with your check. Unfortunately, the CD rates doesn't lock until they receive the check. However, the CSR said you can include a note with the check instructing them not to open the CD if the rate has fallen. The CSR also said they don't accept wire transfers to fund CDs. Wire transfers can be used to add to your savings or money market account.
According to the disclosure, the early withdrawal penalty is 180 days of interest for terms of over one year. There's a 7-day grace period when the CD matures.
The bank also has some decent rates on their savings and money market accounts. There's currently a money market account special with a 1.50% APY for balances of at least $20K. This is listed in the bank's savings rate sheet as of 7/29/09. These accounts can make it easy to open a CD.
Branches are located in the California cities of Bellflower, Covina, Fontana, Harbor City, Los Angeles, Panorama City, Pasadena and Santa Clara.
The bank has strong ratings for safety and soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 3/31/09 financial data. The bank was established in 1953, but has been a FDIC member since 1999 (FDIC Certificate # 35448).
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