A no-penalty CD can be especially useful in today's environment when there's fear that interest rates may shoot up in the next year or two. Unfortunately, no-penalty CDs are rare. The best known one is the No-Penalty CD from Ally Bank. Occasionally, you see a better local deal, and that's the case at First Virginia Community Bank. It's offering an 18-month no penalty CD with a 1.40% APY. Minimum deposit is $1,000. It allows one no-penalty early withdrawal after the first 7 business days. The special CD is listed on the bank's front page. However, there's no mention of the rate. I called the bank, and I was told the rate is 1.40% APY as of 2/18/2011. The rate is subject to change at any time.
The bank also has some competitive rates on its other CDs including a 2.00% APY for a 3-year term and a 1.70% APY for a 2-year step-up CD. These rates are listed in the bank's rate page as of 2/18/2011.
According to the bank rep, a branch visit is required for new customers to open an account. I was told they do accept customers throughout the Washington DC metro area. Branches are located in Fairfax and Manassas, Virginia.
The bank has an overall health score at DepositAccounts.com of 4 out of 5 with a Texas Ratio of 11.44% (excellent) based on September 2010 data. Please refer to our financial overview of First Virginia Community Bank for more details. The bank has been a FDIC member since 2007 (FDIC Certificate # 58696).
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