Doral Bank Direct has a very competitive 1-year CD with a 1.90% APY. Minimum deposit is $1,000. This rate and the other CD rates are listed in the bank's CD page as of 2/2/2010.
In my last post on this bank a reader mentioned the following about this bank:
I was told I had to send my CD back. Are you serious? Who sends an actual CD form? Since there is no way in the world I have the CD form, they are sending me an affidavit to sign to say I lost it. And even if I had the CD, they send you a check in the mail upon closing.
I emailed Doral for more details about their CD closure process. They do in fact require you to mail back the certificate. Here are the details that I received:
In order to close out your CD you must send us the original Certificate that was sent to you with your Welcome Package. Please sign at the bottom where it indicates "Endorsements". You have a 10 day (calendar days) grace period in which to send in your documentation so that we can process your request to close out the account.
This is the first time I've seen an internet bank require you to mail back a paper certificate. On the plus side, they can transfer the funds using ACH back to the account that was used to fund the CD. Here are those details that I received:
If you opened the account online we can send the funds via ACH to the original funding account on file. If you wish to do a wire transfer you must let us know in advance so that we can send to you the form. You would have to return the form back to us via mail and there would be a $25.00 fee in which you would incur. We can also send out a check to you for the funds if you wish.
For opening the CD I was told last year that "Once you submit your online application, the rate is locked in for the next 30 days."
Doral Direct's Savings Account used to have a competitive rate. This "high-yield" savings account is currently only paying a pathetic 0.50%.
Doral's first FAQ gives an overview of the bank:
Doral Bank Direct is an online banking product provided by Doral Bank, FSB (Doral Bank). Doral Bank is a wholly owned subsidiary of Doral Financial Corporation (NYSE:DRL), a diversified financial holding company with banking operations in the United States and Puerto Rico.
Doral Bank initiated operations in New York in 1999 as a FDIC-insured, federal savings bank emphasizing on bringing financial services to underserved communities, including the growing Hispanic community, currently the nation's largest minority.
Doral Bank, FSB is a FDIC member (FDIC Certificate # 34905).
As I mentioned in a previous post, Doral Financial Corporation had some financial problems in the past. However, Doral Bank, FSB has some respectable ratings for safety and soundness: 4 stars (sound) at Bankrate.com and 3½ stars (good) at BauerFinancial. Both ratings are based on 9/30/09 data. It should be noted that the other bank subsidiary of Doral Financial (Doral Bank based in Puerto Rico) has the lowest ratings at both BauerFinancial and Bankrate.com. There was a case last year when the FDIC closed not only the troubled banks of a bank holding company but also the relatively healthy ones. Refer to this FDIC press release for the details.