If you're looking for the best 5-year CD rate, you are more likely to find it at a credit union rather than at a bank. If you prefer a bank, you'll have to settle for a lower rate. I came across one bank with a 5-year CD rate that's at least close to the best 5-year CD rates from credit unions. It's Jacksonville Bank, and its accounts are available nationwide. There are two 5-year CD and IRA CD rates. The low rate is currently 1.90% APY for a minimum deposit of $1,000. The high rate is 2.15% APY. This higher rate requires a checking account with direct deposit. These rates are listed in the bank's rate sheet as of 4/19/2012.
CD and Account Opening Features
I called the bank yesterday at 1-877-7MY-JAXB to get more information on the CDs. Press 1 to connect to the CSRs who manage online account opening. The CSR who answered my call was very helpful. First, I confirmed that accounts can be opened online without a branch visit. That includes both the checking account and CD. If you want to get the 0.25% rate bump, you'll have to show them that direct deposit has been established to your checking account. Once they see the direct deposit, the CSR said they can add the rate bump and make it effective from the start date of the CD. They do offer a free checking account. Minimum initial deposit is $100.
About POD beneficiaries, I was told the online application doesn't have a field for these. However, you should be able to have beneficiaries added to the account after it's opened.
There's a link to an online application at the bank's personal savings accounts page. According to the CSR, CDs can be funded via an ACH transfer from a checking or savings account at another bank. You can also fund an account with a check or with a wire transfer. The maximum deposit is $250,000. In the online application, it states the following:
When funding a CD by ACH transfer, your rate and term will be determined on the day funds are received by The Jacksonville Bank. CDs funded by a successful internal transfer will have their rates locked in on the same day.
I was told by the CSR that at maturity you can request to receive the funds by check or wire transfer (with a fee). They do require a written request for closure instructions. This can be done by phone, fax or secure email. According to the CSR, the early withdrawal penalty for the 5-year CD is 6 months of interest. Note, CSRs often provide incorrect information on these details so make sure you verify with the bank. I was not able to find an account disclosure online.
It's a small bank with branches located in Jacksonville, Florida. Its total deposits are $475 million based on December 2011 data.
The bank doesn't have the best financial health. It has an overall health score at DepositAccounts.com of 2 stars (out of 5) with a Texas Ratio of 74.75% (below average) based on December 2011 data. Please refer to our financial overview of Jacksonville Bank for more details. The bank has been a FDIC member since 1999 (FDIC Certificate # 34941).
How These CD Rates Compare
The best 5-year CD rate that's nationally available is 2.36% APY at Michigan State University FCU. This requires a $100K minimum deposit. If you have a military connection, you may be able to qualify for Air Academy Federal Credit Union which has a 2.45% APY 5-year CD for a $10K minimum deposit. For only a $5K deposit, the best rate is 2.27% APY at Melrose Credit Union. These rates are accurate as of 4/19/2012.
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.