Bank 1440 is offering two add-on CDs with competitive rates. The rates are not great, but the add-on feature can make them a good deal. The two rates are 1.50% APY for a 2-year term and a 1.75% APY for a 3-year term. Minimum deposit is $1,000, and according to the rate table, "additional deposits can be made monthly, with a minimum deposit amount of $1,000." These rates are listed in the bank's rate table as of 7/13/2011.
Add-on CDs can be very useful when interest rates continue to fall. I'm sure many readers are happy with their add-on CDs that they opened in the last few years. The only problem is that if rates continue to fall, you'll have trouble finding a place for the add-on CD money when it matures. For the long run, a CD ladder using regular CDs may have been a better option.
Bank 1440 also offers a reward checking account. It used to pay 5.01% APY for balances up to $25K, but like many other reward checking accounts, the rate has fallen. It's now 2.01% APY for balances up to $25K (see review).
A branch visit is required to open an account. Bank 1440 is a small bank with two Arizona branches in Phoenix and Peoria.
For those wondering why 1440 is in the name, it's the number of minutes in a day (24 x 60).
The bank has an overall health score at DepositAccounts.com of 3 stars (out of 5) with a Texas Ratio of 63.09% (below average) based on March 2011 data. Please refer to our financial overview of Bank 1440 for more details. The bank has been a FDIC member since 2007 (FDIC Certificate # 58460).
How These Add-On CDs Compare
If you're looking for add-on CDs, you don't have many options. For nationally available add-on CDs, Northwest Federal Credit Union offers a 1-year and 2-year terms. These used to have competitive rates, but they have fallen considerably in the last couple of years. The 2-year rate is currently only 1.00%. Another one that is still available is a 1-year add-on CD called the eSavings CD at Amboy Direct. This also used to have competitive rates, but now it's a little low at 1.10% APY. Another downside is that they restrict additional deposits to only the first six months.
If you think rates will certainly be rising in the next few years, an add-on CD won't be useful. In that case, a regular CD with higher rates would be better. You can get a little higher rates in regular CDs that are nationally available. The best 2-year CD rate is 1.77% APY at Self-Help Credit Union and the best 3-year CD rate is 2.15% APY at Fort Knox Federal Credit Union.
Searching for Top CD Rates
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.