First Republic Bank recently made some large increases on its CD rates. The largest increases were on the long-term CD rates. With the latest Treasury yield increases, you have to wonder if these CD rate increases may be the start of a trend. It will make it difficult for savers to decide when or if they should jump on a long-term CD.
First Republic Bank’s best CD deals are its 6-year, 5-year and 13-month CDs. The 6-year CD has a 2.25% APY, the 5-year CD has a 2.00% APY and the 13-month CD special has a 1.00% APY. The special CD has a $10,000 minimum deposit, and the others have a $5,000 minimum deposit. Below is the list of all of the competitive CD rates as listed at the bank's rates page as of 6/25/2013:
- 2.25% APY 6-year CD
- 2.00% APY 5-year CD
- 1.50% APY 4-year CD
- 1.25% APY 3-year CD
- 1.15% APY 2-year CD
- 1.10% APY 18-month CD
- 1.00% APY 13-month special CD
- 0.75% APY 7-month special CD
Rates may vary by location. You have to select your region to see the CD rates. The above rates were based on the Southern California region. In the past these rates have been the same for all of the areas where they have branches.
Update 6/28/13: An extra 0.25% will be added to the non-special CDs for a checking relationship. I was told ATM Rebate Checking is required. This has a minimum balance of $3,500 to avoid monthly fees. Hat tip to commenter who mentioned this relationship rate.
I wasn’t able to find the early withdrawal penalty in the current account disclosures. Past disclosures had specified an early withdrawal penalty of 3 months of interest for CDs with terms of 1 year or less and 6 months of interest for CDs with terms over 1 year.
Update 6/26/13: Thanks to commenters' tips, I was able to find the EWP details in the account disclosure. Here's an excerpt from page 54:
Account Termination/Early Withdrawal Penalty - If we allow you to terminate a CD or make a partial withdrawal of principal prior to its maturity date, we may impose the following penalty on the amount withdrawn: (1) six months' interest for those CDs with a term of one year or less; and, (2) one year plus three months' (15 months) interest for those CDs with a term of more than one year. The early withdrawal penalty may be deducted, if necessary, from the principal sum of the CD.
First Republic Bank branches are located in several major cities in California, Oregon, Massachusetts, Connecticut, Florida and New York. The cities include San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland, Boston, Greenwich and New York City. In February of this year, First Republic Branch opened a new branch in Palm Beach, Florida.
First Republic used to be a division of Merrill Lynch. After Merrill Lynch was acquired by Bank of America, First Republic was sold off to a group of private investors. It became a public company in December 2010.
The bank has an overall health score of 5 stars (out of 5) with a Texas Ratio of 1.53% (excellent) based on March 2013 data. Please refer to our financial overview of First Republic Bank for more details. The bank is an FDIC member (FDIC Certificate # 59017).
How These CD Rates Compare
The best 5-year CD rate that’s available nationwide without a checking requirement is 1.91% APY at Andrews Federal Credit Union. The best rate at a bank is 1.76% APY at EverBank. These rates are accurate as of 6/25/2013.