Dedicated to Deposits: Deals, Data, and Discussion

3.05% 24-Month CD at Broadway Federal Bank in CA - Nationally Available

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Broadway Federal Bank
Update 7/22/09: The 24-month CD rate has fallen to 2.53% APY.

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
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 CinFlorida who mentioned this new CD in the comments.

Other High Certificate of Deposit Rates

Related Pages: California, Broadway Federal Bank, CD rates

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Comments
7 Comments.
Comment #1 by Anonymous posted on
Anonymous
i just opened a 12 mon cd with them at 2.53APY. ACH did not work due to "system limitations" and I was asked to mail in a check payable to self along with a copy of my driver's license.

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Comment #2 by Anonymous posted on
Anonymous
I had a similar experience, plus some erroneous correspondence from them. I have no faith in this group so I withdrew my application.

1
Comment #3 by Anonymous posted on
Anonymous
My 3.05 APY CD openend yesterday. It appears that their web based process is new and only minimally automated, there are slight wrinkles, which I am sure will get ironed out. That said, I found the communications from them friendly, professional and accurate. Note that their online branch address is in Inglewood, so wait until they send you instructions by email with the address before mailing your check to them. The application process progressed only on business days. I was asked to mail in a copy of my social security card and drivers license.

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Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info.

1
Comment #5 by Anonymous posted on
Anonymous
I applied late yesterday for the 3.05 CD after business hours and haven't heard back yet (it's after business hours today). How long does Broadway usually take to contact you, either by email or phone?

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Comment #6 by Anonymous posted on
Anonymous
I applied 7/12. On 7/13 I received an E-Mail confirming the application and indicating that it was being processed. On 7/15 I received a 2nd E-Mail requesting that I mail a check and copy of my drivers license (ACH still not available). I mailed the check, etal on 7/16 and am waiting for confirmation that they have received the check and opened the account. They did indicate that the 3.00/3.05% APY rate would be good for 30 days.

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Comment #7 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. Please keep us updated on how it goes.

1