Quaint Oak Bank continues to offer competitive long-term CD and IRA CD rates. The three best rates are 2.20% APY for 5 years, 1.75% APY for 4 years and 1.50% APY for 3 years. Minimum deposit is $500. These rates are listed at the bank's rates page as of 12/15/2011.
A reader sent me information he received from Quaint Oak Bank regarding the early withdrawal penalty. Unfortunately, it's a harsh penalty, and they maintain the right to refuse an early withdrawal request:
"If we consent to a request for a withdrawal that is otherwise not permitted you may have to pay a penalty. The penalty will be an amount equal to 730 days of interest on the amount withdrawn plus any accrued interest. If we consent to a withdrawal the entire principal balance must be withdrawn."
Update 1/9/2012: The bank has changed its policy. It now only accepts deposits from Pennsylvania residents.
This is a small bank with two branches in Pennsylvania. However, I was told in June by the branch manager that they do accept out-of-state CD applications by mail. The CD application form is available in the bank's forms page. I was told this should be mailed along with your check and a copy of your driver's license. Make sure to check with the bank for the latest qualifications and application details.
According to the bank's news section, they have recently expanded their mortgage and real estate business so that may explain why they're looking for deposits.
The bank has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 23.98% (average) based on September 2011 data. Please refer to our financial overview of Quaint Oak Bank for more details. The bank has been a FDIC member since 2000 (FDIC Certificate # 35497). It's interesting to note that the bank was established in 1926 even though it didn't become a FDIC member until 2000.
How These CD Rates Compare
Quaint Oak Bank's 5-year CD rate is just below US Bank's special 59-month CD rate of 2.25% APY. US Bank's CDs are also available nationwide. The best nationally available 5-year CD rates are from all-access credit unions. Melrose Credit Union offers a 2.68% APY 5-year CD. Digital Credit Union offers a 2.86% APY 5-year CD with a checking & loan relationship or 2.61% APY without a relationship.
These rates are accurate as of 12/15/2011.
Searching for the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.