Doral Bank Direct continues to offer competitive CD rates. The best ones are its short-term CDs which are currently rate leaders for CDs available nationwide. These are a 0.92% APY 6-month CD and a 0.97% APY 9-month CD. Its 18-month CD is also near the top with a 1.10% APY. Minimum deposit is $1,000. These rates are accurate as of 9/10/2012.
The "Open an Account" link at this Doral Bank Direct page will take you to an application in which you can open and fund the CD. Funding can be done with an ACH transfer from an existing checking account. When I last checked with Doral Bank Direct, I was told that the rate locks at the time you submit the application.
The online application allows you to specify up to 3 beneficiaries. One nice thing about this beneficiary section is that it doesn't require the beneficiaries' social security numbers. The only required fields are the beneficiary name, relationship and percentage amount.
If you have experience with internet CDs, you know it's important to learn the details for not only opening the CD, but also the details for closing the CD at maturity and receiving the funds. Below are the details I received from Doral Bank Direct for closing a CD at maturity:
Upon maturity of the CD, you will receive a maturity notice. If you choose to move the funds at that time, we would ask that we receive written notification from you. We welcome notification by fax, mail, or an attachment to an email.
Upon maturity, we will be happy to ACH funds into an account we received by online application. However, if the application was received by mail, we would use a check to distribute funds.
Early Withdrawal Penalty & Interest Payments
A link to the disclosure is located at Doral Bank Direct's Products & Rates page. This disclosure has all of the CD details. Here's an excerpt of the early withdrawal penalty section:
The penalty will be accessed based on the term of the deposit - 90 days simple interest for terms less than 1 year; 180 days simple interest for terms of 1 year or longer. Early withdrawal penalty is calculated on the amount of the amount withdrawn.
Unfortunately, the disclosure gives the bank the right to refuse an early withdrawal. The following is stated in the transaction limitations section of the disclosure:
You cannot withdraw principal from this account without our consent except on or after maturity.
If you plan to use interest from the CD as income, you can have it paid monthly, semi annually or annually. Here's an excerpt from the withdrawals of interest section of the disclosure:
You may withdraw interest from your account at any time during the term after it has been credited without any penalty. You may request to have credited interest deposited to another account you have with us, transferred to your initial account opening funding account with another financial institution or sent to you in the form of a check.
Doral Bank Overview
Doral Bank Direct is an online division of Doral Bank, which has been a FDIC member since 1981 (FDIC Certificate # 32102). Doral Bank isn't in the best financial shape. It has an overall health score of 2 stars (out of 5) with a Texas ratio of 95.51% (poor) based on June 2012 data. Please refer to our financial overview of Doral Bank for more details.
How These CD Rates Compare
If you're looking for CD with maturities under 1 year, you will have a hard time finding rates higher than these Doral Bank Direct 6-month and 9-month CD rates.
The highest 6-month CD rate that's available nationwide is 1.00% APY at Connexus Credit Union. However, this CD requires an active checking account. Without a checking account requirement, the highest 6-month CD rate outside of Doral Bank Direct is 0.80% APY at Colorado Federal Savings Bank.
Doral Bank Direct has the highest 9-month CD rate for nationally available CDs. The second highest is only 0.80% APY at Discover Bank.
Another option for a short-term CD is Ally Bank's 11-month No Penalty CD which has a 0.94% APY.
These rates are accurate as of 9/10/2012.
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.