Dedicated to Deposits: Deals, Data, and Discussion

Competitive 5-Year CD at - Available Nationwide



iGObanking recently made a major bump in the rate of its 5-year CD. It's currently 3.55% APY. Minimum deposit is $1,000, and it's also available in an IRA. This rate is listed in iGObanking's CD rates page and IRA rates page as of 2/03/2010.

Long-term CDs may seem unwise when there's a risk that we may see high inflation and much higher interest rates in the near future. But it's not easy to predict when interest rates will rise. It could be in 6 months or in 3 years. For those looking for a top 5-year CD for their CD ladder, this is a good deal.

Every now and then comes out with a good CD deal, but you have to be careful when the CD matures. Many of the CD rates are not competitive. So if you let your CD automatically renew, you may get stuck with a low-rate CD. A current example is the 1-year CD which has a yield of only 1.00% APY.

There's an online application that allows electronic funding via ACH. However, when you close the CD, they don't seem to provide a way to transfer it out via ACH. When I spoke with a CSR in 2008, I was told that you can request for them to send you a check via their secure email. You also have the option to transfer the money into your iGObanking savings or checking account.

The certificate of deposit details are described in their disclosure page. The early withdrawal penalty for CDs with terms of one year or over is 180 days of interest. The disclosure does give them the right to refuse an early withdrawal of principal:

You may make withdrawals of principal from your account before maturity only if we agree at the time you request the withdrawal.

The grace period after maturity in which you can close the CD without penalty is 7 calendar days.

My previous iGObanking reviews: is a division of Flushing Savings Bank, FSB, a New York bank with $4.1 billion in assets and 16 branches. Its ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Both ratings are based on 9/30/09 data. It has been a FDIC member since 1943 (FDIC Certificate # 16049).

  Tags: CD rates, IRA rates, iGObanking

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Comment #1 by Anonymous posted on
Wound up closing 2 igobanking accounts.  The Igobanking Checking Savings accounts are not competitive and the 3 day hold time on all transactions is rediculous to say the least.  ATM funds get only .50% APY.  They had no ability to deposit at the local branches with the account as well.

Igobanking plays tricky games with their APY rates such as marketting a high end teaser rate on a checking account which got me to use the product then sharply reducing the rate.   I then tried to move over to a savings account during that time and they didn't make the process easy for me to open the account.  Customer service was abysmal at best.  It is not a firm I wish to do business with ever again but I will give them credit in that they did close my account upon request and I got 2 notices from them in the mail for each account showing it was closed with 0.00 charge.

I learned a lesson here:  Only stick with local banks and institutions which one can deposit locally and withdraw to which have the highest rates.  Igobanking is one of those banks where restrictions on the accounts and customer service levels just don't rise to the level of being acceptable.

A bank is just a mechanism of depositing and withdrawing cash and paying bills, not a place to earn any significant money or rate of return from the institutions themselves.

Glad to get out of the bank for good.

Comment #2 by Anonymous posted on
After a week of three phone calls and two faxes to Igobanking just to open up a CD I finally had success with these people.  Instead of doing an ACH transfer it would have been quicker by physically driving there through our recent blizzard.  Their customer service is slower than slow and clueless to any answers to questions about a new account opening.  I have no idea what is so difficult about opening up and funding a CD for a new customer.  Igobanking is a fine example of why so many banks in this country are in dire straits.  

Comment #3 by Anonymous posted on
This bank's monthly interest payment option for the CDs appears to be absurd. They will ACH your interest to an external account only after it has been deposited first into an IGO checking account (from which you can write no checks!)  The minimum amount of $$ to open the IGO checking account depends upon which CSR you reach by phone. It all seems too idiotic to bother with..........    

Comment #4 by Scott (anonymous) posted on
I have two CD's with this bank, and the first one was opened fairly easy - The second, being funded with $10,000 at a 3.15% rate took over 2 weeks for them to open and then they opened it at 2.75% - They say the rate is at the time they fund the account.   They ignored ALL requests for a status until they lowered the rate and now I am stuck losing .5% for 5 years.   Their customer service can really suck.