Incredible Bank is again offering internet certificates of deposit. The rates are fairly competitive: 1.50% APY for 19 months, 1.30% APY for 13 months and 1.10% APY for 9 months (Yes, these are competitive). Minimum deposit is $10,000, and the maximum is $90,000. These rates and several CD details are listed in the bank's Open An Account page as of 6/03/2011. Some of the important details include:
- Account funding through ACH only
- Funds from a CD withdrawal will be sent to the bank of origin for the original CD opening deposit or, to your IncredibleBank checking account
- Interest must be added back to the principal of the CD
- Penalty for early withdrawal may apply - 3 months interest (9 month CD) 6 months (13 and 19 month CD) on the amount withdrawn
Thanks to the reader Wil who mentioned these new CDs in the discussion forum.
It was about a year ago when Incredible Bank launched its first internet CD. Since that time, it has regularly offered CDs for a period of weeks to a couple of months. Then it stops offering them. It has gone through this cycle three or four times during the last year.
Incredible Bank continues to offer a competitive internet checking account. It has been over 18 months since my first review of this checking account, and during during this time, the rates have remained very competitive. As of 6/03/2011, the rate is 1.21% APY on balances up to $250K. Unlike reward checking accounts, it doesn't have any requirements to qualify for this yield. Last November, I did an updated review of Incredible Bank's checking account. You can get a little higher yield from Incredible Bank's money market account (1.25% APY). This was just launched in May (see my review).
Incredible Bank is a division of River Valley Bank which is based in Wisconsin. The bank has $952 million in assets. Its health scores are about the same as they were in the previous quarter: 3 stars (out of 5) at DepositAccounts.com with a Texas Ratio of 23.46% (average). These are based on March 2011 data. Please refer to our financial overview of Incredible Bank for more details. The bank has been a FDIC member since 1967 (FDIC Certificate # 19772).
How These Compare to the Best Nationally Available CD Rates
Incredible Bank's 9-month CD is higher any other nationally available 9-month CD rate. However, Ally Bank's 11-month No-Penalty CD is a better deal. Not only does it have a higher yield of 1.14% APY (just went up today from 1.10%), but it can be closed without a penalty at any time after the first 6 days of Ally receiving the funds. So this can be considered a CD with any maturity that the depositor wants from 1 week to 11 months.
For a 1-year term, two institutions offer higher rates. Melrose Credit Union still offers 1.41% APY and Doral Bank Direct still offers a 1.40% APY. If you are concerned about ease of opening and managing, I would give the edge to Incredible Bank over these two institutions.
For an 18-month term, Alliant Credit Union continues to have the best nationwide deal with a 1.55% APY ($25K minimum deposit).
Another alternative for CDs is Ally Bank's 5-year CD which currently has a 2.39% APY. As I described in this Ally Bank CD review, this can be a better deal than short-term CDs even if interest rates shoot up in the next year or two. In my CD rate strategy review I discussed this going-long strategy with some of the risks.
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.