Dedicated to Deposits: Deals, Data, and Discussion

Competitive Long-Term CD Rates at Hudson City Savings Bank - Available Nationwide


Hudson City Savings Bank
Hudson City Savings Bank continues to offer competitive rates on its long-term internet CDs. The rates are down a bit since October but they remain competitive. The following are the rates as listed on its internet accounts page as of 12/09/09:
  • 2.30% APY 24 month
  • 2.80% APY 36 month
  • 3.15% APY 48 month
  • 3.40% APY 60 month
To see all of the rates, you have to go into the online application, and click on the rates link in the product selection page. Minimum deposit is $5,000.

I have many of the CD details in my October post. I called the bank again this morning, and there haven't been any changes to what I posted in October. Note, rates are typically changed on Fridays. Also, the CD rate locks at the time you apply online.

I asked about one feature that a reader mentioned in a comment. It's when you close an account. Interest on CDs is posted at the end of the month. If you close the account early, not only will you lose 6 months of interest (for terms over 1 year) but you will also lose the interest accrued during the month. The CSR advised that you close accounts near the start of the month.

To reach a CSR responsible for these internet accounts, I used the number 201-967-1900, Ext. 1887. After I called I noticed a toll-free number in the disclosure (866-881-4272).

Another issue that a commenter noted is the early withdrawal penalty. Like the disclosures of many banks, it gives them the right to refuse an early withdrawal request: "withdrawal prior to maturity may be permitted only with the consent of the Bank." In addition, "the bank reserves the right to impose a penalty greater than the minimum." If they comply with the stated early withdrawal penalties listed in the disclosure, it's not too bad compared to other banks: 3 months of interest for terms one year and under, 6 months of interest for terms over one year.

To see the early withdrawal penalties and other CD details, refer to the Truth in Savings document which is available in the online application.

In addition to CDs, they also offer an internet money market savings account with a 1.40% APY as of 12/09/09 on balances of at least $2,500. The rate for balances of $10 to $2,500 is 0.75% APY. A $2 monthly fee applies to balances below $100.

Hudson City Savings Bank is a large bank with over $58 billion in assets and with 121 offices in New Jersey, New York and Connecticut.

The bank's ratings for safety and soundness continue to be strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 13074).

Other Competitive Certificate of Deposit Rates

  Tags: New York, CD rates, New Jersey, Hudson City Savings Bank, savings account, Connecticut

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Comment #1 by Anonymous posted on
If you live near a branch you can open these CD's with $5oo.

Comment #2 by Anonymous posted on
They also say that if you have the Internet money market savings account, you can deposit and withdrawal at a branch.

Comment #3 by ??? ??????? ??????????? ???? (anonymous) posted on
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Comment #4 by Anonymous posted on
Banking Guy,

I already have a Online CD with Hudson City.

I was told by their Rep that if I wanted to add a new CD, I have to go through the whole process of A/C Opening all over again. Each CD is treated as a separate A/C.

This was not explicit in the review/comments section. Just wanted to post a clarification.

Comment #5 by KenBDG posted on
Thanks for the info. That does make opening multiple CDs a hassle.