Nationwide Bank is the latest bank to increase its mid- and long-term CD rates. It’s another bank to join the 2% club. Its Jumbo 5-year CD has a 2.02% APY. This requires a $100,000 minimum deposit. For a $500 minimum deposit, the APY is 1.97%. Below is a list of Nationwide Bank's most competitive CD and IRA CD rates for a minimum $100,000 deposit as listed at the bank's rates page as of 10/21/2013. Rates are 5 basis points lower for deposits under $100,000.
- 2.02% APY 5-year Jumbo CD and IRA CD (was 1.97%)
- 1.72% APY 4-year Jumbo CD and IRA CD (was 1.70%)
- 1.31% APY 3-year Jumbo CD and IRA CD (was 1.26%)
- 1.25% APY 2-year Jumbo CD and IRA CD (was 1.20%)
- 1.09% APY 18-month Jumbo CD (no change)
- 1.06% APY 1-year Jumbo CD and IRA CD (no change)
In 2012 Nationwide Bank increased the early withdrawal penalty on its long-term CDs from 180 days of interest to 360 days. So these CDs are no longer good deals if you think you might want to withdraw the money early. However, the bank did not change the penalty on existing CDs. Two credit unions weren't so nice (see post). Below are excerpts from the Nationwide Bank’s account terms and conditions:
If your account has an original maturity of four years or greater and was opened after June 9, 2012:
The fee we may impose will equal 360 days interest on the amount withdrawn subject to penalty.
The penalty for shorter-term CDs is much less:
If your account has an original maturity of 12 months, but less than 24 months:
The fee we may impose will equal 90 days interest on the amount withdrawn subject to penalty.
If your account has an original maturity of two years or greater:
The fee we may impose will equal 180 days interest on the amount withdrawn subject to penalty.
Another thing to note about Nationwide Bank is that it specifically states that early withdrawal of principal is allowed (subject to the penalty). According to the terms and conditions document:
You may make withdrawals of principal from your account before maturity. Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty.
Some banks say in their disclosure that withdrawals of principal require their consent.
Certificate of Deposit Details
Some additional important CD details described in the bank's terms and conditions and from my past conversation with the CSR include:
- $500 minimum deposit
- 10 calendar-day grace period at maturity
- Interest is compounded daily and credited monthly
- You can withdraw interest any time during the term of crediting after it is credited to your account.
- Rate locks at the time you apply online or by phone. You have 30 days to fund the account. (CSR)
- You can fund the CD with an ACH transfer. Trial deposits are done to verify external account. Mailing a check and a wire transfer are also options (CSR)
- Beneficiaries can be added using this form (pdf)
- At maturity you can provide instructions by phone or secure message to close the CD (CSR)
- At maturity ACH transfer is not an option to receive the funds. In addition to a check and wire transfer ($25 fee for outgoing wire), they can transfer funds to your Nationwide Bank liquid account (CSR)
Another plus with Nationwide Bank is that they offer types of accounts that many online banks don't offer. These include:
- Trust accounts (opened by phone)
- Custodian (UGMA/UTMA) accounts
- Traditional IRA and Roth IRA accounts
Nationwide Bank Overview
Nationwide Bank is a sizable bank with $5.19 billion in assets. Its overall health grade at DepositAccounts.com is A+ with a Texas Ratio of 0.80% (excellent) based on June 2013 data. Please refer to our financial overview of Nationwide Bank for more details. The bank has been a FDIC member since 1998 (FDIC Certificate # 34710).
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.