Update 3/20/13: The 5-year and 3-year CD rates have fallen.
The 2 percent CD has become an endangered species. It's even hard to find these for terms of 7 years. This is why I was pleasantly surprised to see the rate hike at The National Republic Bank of Chicago. It just increased its 5-year CD rate from 1.61% to 2.02% APY. Its 3-year CD rate also had a big jump. That went up from 1.11% to 1.51% APY. Minimum deposit is $1,000. These rates are listed in the bank's rates page as of 3/14/2013.
Thanks to DA member cumulus who mentioned this new rate in this forum thread.
The bank has an online application, and on its first page it states "We welcome all residents of the United States to apply."
CD and Application Details
The early withdrawal penalty is 180 days of interest. This is described in the bank's Truth in Savings document. Below is an excerpt:
Limitations: You must deposit $1,000.00 to open this account. You may not make additional deposits into this account. You may not make withdrawals from your account until the maturity date.
Time Account Information: Your account will mature in 5 years. If you withdraw any of the principal before the maturity date, we may impose a penalty of 180 days interest of the principal withdrawn with possible invasion of principal. We will use the rate in effect on the date the account is opened. This account will automatically renew. You will have 10 days after the maturity date to withdraw funds without penalty. If you do not withdraw the funds, each renewal term will be for an identical period of time as the original term.
The bank has several CD details in its CD FAQ page. According to the FAQs, you can fund the CD with an ACH transfer, by mailing a check or by a wire transfer. Instructions for each are provided in the FAQ. There were a few things not mentioned in the FAQs. To get the answers to these, I used the bank's online chat service last year. Here are some details I learned from the CSR via online chat:
- Rates are usually changed weekly on Tuesdays
- CD rate locks when you open the account as long as the bank receives the funds within 5 days
- At CD maturity if you decide not to renew, you receive the funds based on how you funded the CD (i.e. if an ACH transfer was used, the funds will be sent to the originating bank)
The bank has two branches in Chicago, but it's not a small bank with $1.08 billion in deposits as of September 2012.
The bank has an overall health score at DepositAccounts.com of 3 stars (out of 5) with a Texas ratio of 37.36% (below average) based on December 2012 data. This is a slight improvement from the Texas ratio that was based on September 2012 data (40.37%). Please refer to our financial overview of The National Republic Bank of Chicago for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 916).
How This 5-Year CD Rates Compare
This 2.02% APY is now the highest 5-year CD rate that's nationally available. You can get 2.02% APY at State Department FCU, but this is only for an IRA CD. You can also get 2.02% APY on a regular 5-year CD at Stanford FCU, but this requires a checking relationship and a $100K minimum deposit. The second best 5-year CD rate is 2.00% APY at Mountain America Credit Union. This is also available as an IRA CD. The second best 5-year CD rate at a bank continues to be 1.85% APY at Barclays. These rates are accurate as of 3/14/2013.
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.