Dedicated to Deposits: Deals, Data, and Discussion
DETAILSINSTITUTIONAPYMINMAXPRODUCT
Dime Savings Bank2.10%$500-7 Year CD
Accounts mentioned in this post. Rates as of April 19, 2014

Top 7-Year CD Rate at Dime Savings Bank - Available Nationwide

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Dime Savings Bank

Yesterday I reviewed one of the few banks that still offers a 2% CD that's available nationwide. A reader reminded me of another bank. It's Dime Savings Bank which is based in New York. The bank is offering a 2.05% APY 7-year CD. Minimum deposit is $500. The shorter terms are not quite as competitive. The 5-year CD has a 1.60% APY. These rates are listed in the bank's rates page as of 7/12/2012.

The big downside to Dime's long-term CDs is a harsh early withdrawal penalty. Here's what is stated in the disclosure:

Early Withdrawal Penalty – Principal may not be withdrawn from your Certificate before the account maturity date, unless the Bank consents to the withdrawal. If a withdrawal of principal is permitted, you may incur one of the following Bank penalties: [...] 5. Accounts with terms of 3 years or more will lose 24 month’s simple interest.

Interest is compounded daily and credited to the account monthly and at maturity. The grace period is 10 calendar days after maturity.

CD Application and Closing Procedures

Dime's CDs are available nationwide, but you'll probably find it much easier to open or close a CD if you can visit a branch. I called Dime Savings today to confirm some details of the application and closing process. Accounts can be opened online or by phone. If you don't open in a branch, they do require you to mail or fax copies of your driver's license and utility bill. They will mail you a new account package. I was told that the rate won't lock until they receive the copies of your IDs. The CD can be funded by check or with an ACH transfer. They only accept a check for funding an IRA.

If you don't want to renew the CD when it matures, I was told they require written instructions to be mailed or faxed. The only option to receive the funds is by check. ACH isn't an option, and wire transfers require a branch visit.

Bank Overview

Dime Savings Bank branches are located throughout the Greater New York metro area.

Dime Savings Bank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 5.10% (excellent) based on March 2012 data. Please refer to our financial overview of Dime Savings Bank for more details. The bank has been a FDIC member since 1943 (FDIC Certificate # 16012).

How This CD Rate Compares

This Dime Savings 7-year CD rate is currently the best nationally available 7-year CD rate that's available from a bank. The next best is 2.00% APY at Discover Bank. You can get much higher rates at an all-access credit union. The highest 7-year CD rate is 2.50% APY at Patelco Credit Union.

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.

  Tags: Dime Savings Bank, New York, CD rates, checking account

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Comments
14 comments.
Comment #1 by Anonymous posted on
Anonymous
Stay clear of Dime Savings Bank !!!!!  They are by far the worse bank I have dealt with in my entire life.  Every CSR basically does what ever they want and when they want with any paperwork that is required.  Once again I beg you do not deal with these people at all.  They are totally clueless about banking and in my opinion should be investigated by the FDIC.

12
Comment #2 by bbug (anonymous) posted on
bbug
Dime has historically permitted me to take one early withdrawal from my IRA without penalty since I am over 70 1/2, even in an amount more than the required minimum distribution, but held fast against a second withdrawal with no penalty, even for a very good reason (unexpected expenses due to my wife's death with only two months left on a fifteen month CD).

They also accepted a form from me (confirming in a phone call it had been received and was sufficient) initiating a Trustee to Trustee transfer in advance of the transfer and then told me on the maturity date the form had to come from the other institution, delaying the transfer a week. 

Something else that bothers me about Dime is they charge a $25 fee for a Trustee to Trustee IRA transfer from the bank. None of the other dozen or so banks or credit unions I have made such transfers from charged a fee.

7
Comment #3 by Bozo posted on
Bozo
I had no problems with Dime, but I do question their business sense. For Dime, "new money" gets a preferred rate. On the other hand, "old money" does not. OK, so I had a CD maturing at Dime. I asked if they could simply match the rate offered elsewhere, and I would be happy to leave the money with Dime. Nope, no way. So, adios, off the money went. But now, since I'd be "new money", I'd get the better rate? Does this make sense?

4
Comment #4 by Paoli2 posted on
Paoli2
Bozo:  I have your same concern about this "new" money issue.  If I take a CD which matures and put it in my checking account, I can go back to the bank it matured from a few days later and get the "new" money rate because it is purchased with my personal check.  If I try to do it on the day of maturity and roll it into a "New Money CD" they won't do it.  Must be something in the water they are drinking because it makes no sense to me.  However, we can always find a way to get around these things if we really want the "New Money" CD. 

1
Comment #5 by Bozo posted on
Bozo
Paoli, you guesed it. It's something in the water.

1
Comment #7 by Bozo posted on
Bozo
Paoli, my wife and i had a good chuckle about this. We got a 15 basis point rate reduction in a re-fi for "depositing" new money in the institution's checking account. Of course, the money had been there until a month before, in a different checking account, same bank. Then we moved it to a credit union. We moved it back from the credit union to the bank. Presto change-o, new money. And I pointed this out to the bankers, they said it was totally OK.

Weird.

3
Comment #8 by Anonymous/Paoli (anonymous) posted on
Anonymous/Paoli
Bozo, glad you and your wife got a chuckle out of this.  What is really weird is that these banks etc. think they can get the upper hand on us.  As long as we have groups like Ken's, we can keep each other on top of how to get around most of their so called "rules" and how to get the best rates.  We know how to make "new cash"  newer quicker than they can read their own rules! :)  Good for you!

1
Comment #9 by Bozo posted on
Bozo
It's all about "new money".

1
Comment #11 by Paoli (anonymous) posted on
Paoli
Bozo:  "New Money" is the same as "New Cash" to me.  Am I missing a point here??

1
Comment #12 by Anonymous posted on
Anonymous
When my local bank wants new money, all I need to do is add additional (new) money to my current account and they will apply the higher rate.  Sometimes they open a new account, sometimes they keep the same account.  What a joke!

2
Comment #13 by tightwad posted on
tightwad
My bank prefers "middle age" money

2