Northpointe Bank is offering a special 3-year CD which has no early withdrawal penalty after the first 18 months. It also has a competitive yield of 2.10% APY. Minimum deposit is $5,000. This special CD is called the Northpointe Compass CD, and it's shown in a rotating banner on the bank's front page and in a banner at the top of the bank's CD page as of 10/21/2010.
If you make use of the penalty-free withdrawal at month 18, this becomes a very competitive 18-month CD. As a comparison, the best 18-month CD rate from an internet bank is currently 1.50% APY from Discover Bank. Even if you keep the CD to maturity, it's still competitive. The best 3-year CD rate from an internet bank is currently 2.25% APY at iGObanking (Note, iGObanking is also offering 2.25% APY on its 2-year CD as of 10/21/2010).
At the top of the bank's CD rate table, it states that "Rates listed are for MI residents only." However, I confirmed with the bank that they can open this Compass CD by mail without a branch visit. The downside is that the rate would only lock when they receive the funds for the new account. However, they accept funding by a wire transfer which can make the funding much quicker. The funds can also be mailed in by check.
The capability to open the CD by mail is important for Northpointe since they only have one banking office in Grand Rapids, Michigan.
The bank isn't in the best financial shape. It has an overall health score at DepositAccounts.com of 2 out of 5 with a Texas Ratio of 77.34% (below average) based on 6/30/2010 data. Please refer to our financial overview of Northpointe Bank for more details. The bank has been a FDIC member since 1999 (FDIC Certificate # 34953).
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