This is another sign that the recent rise in Treasury yields is carrying over to CD rates. iGObanking.com increased its 5-year CD rate to 2.05% APY. Minimum deposit is $1,000. The early withdrawal penalty is equal to 6 months simple interest on the amount withdrawn. This rate is listed in the bank’s rates page as of 7/18/2013.
Before this rate change, iGObanking.com was offering a 1.75% 7-year CD. That 7-year CD rate has fallen to 0.35%. Currently, only the 5-year CD is competitive. All other CD terms have very low rates. This is typical for iGObanking.com, and it shows that you have to make sure you don’t let your CDs automatically renew. If you don’t close it before the grace period ends, you could be stuck in a CD with a very low rate.
The early withdrawal penalty and other CD details are listed in the bank’s Terms and Conditions document.
Since the 5-year CD has an early withdrawal penalty of only 6 months of interest, this CD can be considered a good deal even if it’s closed early. You can see the effective yields when closed early using our CD Early Withdrawal Penalty Calculator.
One year ago iGObanking.com increased the early withdrawal penalty on CDs for terms over 5 years. The bank acted honorably and informed customers that this change would only affect new accounts and renewals. It would not affect existing CDs.
iGObanking.com is a division of Flushing Bank, a New York bank with $4.5 billion in assets. The bank's overall health score at DepositAccounts.com is 4 stars (out of 5) with a Texas Ratio of 19.40% (average) based on March 2013 data. Please refer to our financial overview of Flushing Bank for more details. It has been a FDIC member since 2007 (FDIC Certificate # 58564).
How This CD Rate Compares
This is the second internet bank which has recently raised its 5-year CD rate to around 2%. The last one to do this was Salem Five Direct which raised its 5-year CD rate to 2.00% APY. Hopefully, this will start a trend that will last. That’s nice to see, but it doesn’t make it easy for savers who will have to decide to either jump on these CDs or wait for even higher rates.
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.