A reader just informed me of these CD specials at Valley National Bank. The rates are very competitive, but there's a catch. The two specials are a 2.30% APY 5-year CD and a 1.60% APY 30-month CD. Minimum deposit is $5,000, and the maximum deposit is $100,000. The specials are listed in the bank's promotions page as of 5/11/2012.
The catch is that these CD specials require an active checking account. The details are described in the offer's small print. Below is an excerpt of the important details:
To qualify for promotional CD rates, a Perfect Promo Checking account must be maintained for the term of the CD. A $100 minimum deposit is required to open the checking account. To obtain the promotional rate, the checking account must be maintained with one of the following requirements: 1 Direct Deposit per month, 3 recurring VBankWorks® online bill pays per month, or 5 POS Debit Card transactions per month. There will be a 60 day grace period at account opening. The interest rate and APY will revert to the standard product CD rate, if you close your checking account prior to CD maturity or fail to meet the checking account requirements. Offers are good for 1 per customer, 2 per household and may only be opened in Long Island, Brooklyn and Queens branch locations. A penalty will be imposed for early withdrawal and fees will reduce interest. Annual Percentage Yield (APY) is accurate as of 04/20/12. Funds deposited must be from another financial institution.
Another downside to consider is a large early withdrawal penalty. According to the CD overview page, the EWP for the 30-month CD is 365 days of interest, and the EWP for the 5-year CD is 540 days interest.
I'm not sure how close Perfect Promo Checking is to Perfect Checking. I can only find the details of the Perfect Checking account on the bank's website. The Perfect Checking has a $15 monthly fee only if the daily ledger balance falls below $99.
According to the offer's small print, this CD special is only available at the bank's Long Island, Brooklyn and Queens branches.
$150 Checking Account Promotion Continues
If you're opening this CD and checking account, you may want to see if you can get the $150 bonus for the checking account. My last review of this bonus was in August 2011.
The bank has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas ratio of 10.35% (above average) based on December 2011 data. Please refer to our financial overview of Valley National Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 9396).
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