Update 5/1/10: The IRA CD rates have been cut by 25 basis points and now match the regular CD rates.
NJM Bank is offering two very competitive IRA CD specials: a 3.75% APY 60-month IRA CD and a 3.35% APY 48-month IRA CD. Other competitive IRA CD rates include a 2.00% APY for 18 months and 3.05% APY for 36 months. The regular CD rates are 0.25% lower. These include a 3.50% APY 60-month CD and a 3.10% APY 48-month CD. Minimum deposit is $500. Business accounts are also available. The IRA rates are listed in the bank's IRA CD rates page and the regular rates are listed in the bank's CD rates page as of 4/30/2010.
You can apply for these CDs by mail, however, I called the bank today, and I was told they only accept deposits from New Jersey residents. The reader who emailed me these rates reported that he was told they were nationwide so your miles may vary. The CSR said they used to only allow policy holders who had insurance through their parent to apply, but this has been lifted. Now anyone in NJ can apply.
I received a few more details about these CDs. First, the rates are subject to change at anytime. The CSR didn't give me any hints about when they may change. The rate won't lock until they receive the check. However, the CSR said you could write a note instructing them to call if the rates fall while the check was in the mail.
The early withdrawal penalty for terms of 12 months and over is 6 months of interest. The grace period at maturity is 10 days. To close the CD, they require you to mail or fax in a signed letter or copy of the certificate.
The bank's main office is located in West Trenton, NJ. Another branch is located in Parsippany, NJ.
NJM Bank is a wholly owned subsidiary of New Jersey Manufacturers Insurance Company. The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 12/31/09 data) and 4 stars (sound) at Bankrate.com (based on 9/30/09 data). The bank has been a FDIC member since 1999 (FDIC Certificate # 35057).
Hat tip to the reader who emailed me news of these rates.
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