iGObanking.com has increased its 13-month and 18-month CD rates by about one percentage point. The new rates are 1.15% APY for the 13-month CD and 1.20% APY for the 18-month CD. Ten days ago it had increased its 5-year CD rate to 1.75% APY, and this rate continues. All of these rates are also available as IRA CDs. These rates are listed in the bank's rates page as of 7/17/2012.
If you have followed iGObanking.com, you know that iGObanking.com often makes big changes on some of its CD rates. Before the latest rate hikes, the 13-month and 18-month CD rates were only 0.15%, and before the 5-year CD rate hike, the 5-year CD rate was only 0.50%.
These big rate hikes will likely be followed with big rate cuts. So it's especially important not to let iGObanking CDs automatically renew. If you don't close the CD before the end of the grace period, you could be stuck with a very low rate.
When I last contacted iGObanking's customer service, I was told that the CD rate is locked at the time of the application date. Funding of the CD can be done via an ACH transfer from your current bank or by mailing a check. Several readers have complained about the online application. One commented that "signing up is a real pain -- endless questions and unforgiving software."
Early Withdrawal Penalty
The CD details are described in the bank's disclosure page. According to this disclosure:
If your account has an original maturity between one year and five years: The fee we may impose will equal six months simple interest on the amount withdrawn subject to penalty.
GiftsforBanking.com 5-year CD
GiftsforBanking.com is part of iGObanking.com which offers CDs that include gifts. The downside is that the rates are typically lower than iGObanking.com CDs. If the gift has a value high enough and the rate is high enough, the CD may be a reasonable deal. When iGObanking.com increased its 5-year CD yield to 1.75%, GiftsforBanking.com increased its 5-year CD yield to 1.50%. I reviewed the gift options for this 5-year CD in my GiftsforBanking.com CD review.
iGObanking.com Savings & Money Market Accounts
The savings account rate had remained competitive until last year when the rate plummeted. The rate is now only 0.25%. It's hard to believe the yield was 5.30% back in 2006.
I just noticed iGObanking's money market account has recently become competitive. It now has a top yield of 0.87% for balances of $75K+ and 0.70% for balances of $25K to $75K. Before July the top yield was only 0.25%. So I'm skeptical that this new rates will be maintained over the long run.
My previous iGObanking reviews:
iGObanking.com is a division of Flushing Savings Bank, FSB, a New York bank with $4.36 billion in assets and 15 branches. The bank's overall health score at DepositAccounts.com is 3 stars (out of 5) with a Texas Ratio of 26.82% (average) based on March 2012 data. It has been a FDIC member since 1943 (FDIC Certificate # 16049).
How These CD Rates Compare
iGObanking.com's new 18-month CD rate is now on top for 18-month CD rates that are nationally available. It just exceeds the 1.15% APY 18-month CD at Doral Bank Direct. A slightly higher rate is available at the all-access credit union, Xceed Financial, which is offering a 1.25% APY special 19-month CD. However, this special CD requires an active checking account.
For terms around 1-year, Doral Bank Direct is also on top with a 1.15% APY which matches the iGObanking.com's 13-month CD rate.
These rates are accurate as of 7/17/2012.
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.