2.02% 12-Month CD at Bank of Internet USA - Available Nationwide

This is one of those cases in which a bank becomes a rate leader because it has been slower than others in cutting rates. Hopefully, Bank of Internet won't be in a hurry to cut its 12-month CD rate which is currently one of the few nationwide 1-year CD rates above 2%. The 12-month rate as listed as of the morning of 11/11/09 at Bank of Internet's CD page is 2.02% APY. Some of the important CD details from the CD page and from their disclosure page include:

• $1,000 minimum to open
• Compounds daily
• In the application you can select to have interest added back into the CD or paid out monthly to an outside bank via ACH
• Interest rate is based on the day BofI receives the application. This rate is reserved for 10 calendar days to allow time for your deposit to be received by BofI
• Multiple beneficiaries can be included in the application, and you can select ownership designation as POD, ITF or ATF.
• You can select the following types of accounts in the application: Joint, Trust, Non-Profit Corp. and UTMA
• No IRA accounts available
• Early withdrawal penalty is 6 months of interest for terms of 12 to 23 months
• Grace period is 10 days
• Forfeit interest earned during grace period if you close the CD

BofI still has some competitive rates on its savings account and money market account. As of 11/11/09, the Advantage Savings Account has a 1.65% APY and the Money Market Savings Account has a 1.70% APY (see account review). The main issue with BofI continues to be the lack of an ACH bank-to-bank transfer service. You would think one of the first internet-only banks would have had such a service a long time ago.

One positive thing to note about BofI is that it has a long history of top ratings for safety and soundness, and these top ratings continue: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The bank has been a FDIC member since 2000 (FDIC Certificate # 35546).

Other Competitive Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
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Tags: CD rates, Bank of Internet USA