HomeBanc has brought back its 3-month CD special, and it has bumped up the rate. The new yield is now 1.50% APY which puts it near the rates of 5-year CDs. Minimum deposit is $10,000, and the maximum deposit is $75,000. Only one CD offer is allowed per household. Funds must be new money to HomeBanc, and the offer is not available to customers who have participated in CD promotions and closed their HomeBanc accounts within the previous 24 months. This special rate is listed at the bank's rates page as of 9/10/2012.
This bank has a history of offering these competitive 3-month CD specials. Rates have been much higher. Back in 2008 (the good old days) it was offering a 6% 3-month CD.
Homebanc offers a free checking account with no monthly fees and no minimum balance. The bank is also a member of Publix Presto! ATM network for surcharge-free ATM use.
According to the details listed in the rates page, only Florida deposits are accepted. HomeBanc branches are located in the Florida cities of Lake Mary (north of Orlando), Tampa, Clearwater, Belleair Bluffs and Sarasota.
The bank's financial health has improved over the last year. It now has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 3.78% (above average) based on June 2012 data. Please refer to our financial overview of HomeBanc for more details. The bank has been a FDIC member since 2007 (FDIC Certificate # 58194).
Is a 3-Month CD Worthwhile?
One thing to keep in mind is that a high rate has less value for short-term CDs, especially for terms of only 3 months. For example, if you open this special CD with a maximum deposit of $75,000, the total interest that you would earn for those 3 months would be about $281. If you kept that money in a savings account that pays 1.05% APY (like at CIT Bank) and the bank maintains that rate for 3 months, the total interest would be about $197. So the advantage of this 3-month CD special over the savings account would be about $84.
After the special CD matures, you'll most likely have to move your money to another bank if you want to keep earning competitive rates. HomeBanc's standard 3-month CD rate is only 0.15%, and its standard 5-year CD rate is only 1.00%.
This type of promo CD rate is like a checking account bonus. The bank is willing to take a small loss to gain a customer. They hope most customers will choose to remain a customer after the CD matures. That may explain why we don't these kinds CD specials at internet banks where it's easier for customers to move their money and avoid being sold other bank products.
How This CD Rate Compares
Any rates over 1.00% are very competitive for terms under 1 year in today's environment. As a comparison, the best sub-year CD rate that's available nationwide is 1.00% APY at Connexus Credit Union as of 9/10/2012. This requires an active checking account.
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.