Broadway Federal Bank has just started offering a very competitive 24-month online CD with a 3.05% APY. Minimum deposit is $1,000. This rate is listed on the bank's home page as of 7/01/09.
Last month I posted on their 12-month online CD which had a rate of 2.53% APY. It appears this 12-month CD is no longer an option. On their Open An Account Page, they now only list a 3-month, 6-month and this 24-month online CD. For some reason they only list the rate for the 24-month CD. I called for more info, but I wasn't able to reach customer service before they closed for the day (4:00pm PDT).
The online application has an option for ACH funding, but a reader in the previous post mentioned that they were having problems with ACH funding. He was told by the bank to mail a check instead, along with a copy of his driver's license. The account would open when they receive the check.
I first mentioned Broadway Federal in November 2008 when they were offering a very competitive savings account. They stopped offering this special savings account in April and began offering these online CDs. 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(assuming they fixed the ACH problems)
- You will receive the rate in effect on the date the application is submitted
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 CinFlorida who mentioned this new CD in the comments.
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