Dedicated to Deposits: Deals, Data, and Discussion

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


Bank of Internet USA
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 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

Related Pages: CD rates, Bank of Internet USA

Related Posts

Comment #1 by Anonymous posted on
This seems to be a local deal as per their front page application:

"To begin, please fill out the fields in the form below. One of our representatives will contact you within one business day to set up a convenient time for you to come in to a branch location to complete the application process."

I will call tomorrow to make sure it is a national deal.

Comment #2 by gaelicwench/Jo (anonymous) posted on
I have a money market account with BofI USA. It started out as a savings account, but when I saw the rate of the MM, I asked them to switch my account to this. It was smooth and very easy.

I've never had an issue with them, to include ACH's. Using my USAA checking account, I am able to transfer amounts regularly each month.

The fact that they are indeed slow about lowering their rates has been the biggest player why I stayed with them. Customer service, IMO, excels to the same level as one finds at USAA.

I HIGHLY recommend them.