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First Republic Bank Raises Long-Term CD Rates in Several States

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First Republic Bank

First Republic Bank has recently increased its 5-year and 6-year CD rates, and they’re now competitive. You can get higher rates on the internet, but for those who prefer to open CDs at a branch, these might be appealing. The 6-year CD has a 2.25% APY, and the 5-year CD has a 2.00% APY. Minimum deposit is $5,000. These rates are listed at the bank's rates page as of 4/1/2014. Rates may vary by location. You have to select your region to see the CD rates. I have selected a few regions, and they all show these rates.

DETAILSINSTITUTIONAPYMINMAXPRODUCT
First Republic Bank2.00%$10k$1m6 Year CD
First Republic Bank1.90%$10k$1m5 Year CD
Accounts mentioned in this post. Rates as of July 29, 2014

The CD early withdrawal penalities are listed 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or make a partial withdrawal of principal prior to its maturity date, we may impose the following penalty on the amount withdrawn: (1) six months' interest for those CDs with a term of one year or less; and, (2) one year plus three months' (15 months) interest for those CDs with a term of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.

Last year the bank was offering a rate bonus for a checking relationship. I called the bank today, and I was told that they’re not currently offering that type of rate bonus. However, some branches may offer their own bonuses. So if you’re interested in these CDs, be sure to check with your local branch.

Availability

According to the bank CSR, new customers must visit a branch to open a 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, New York City and Palm Beach, Florida.

Bank Overview

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 grade of an A+ with a Texas Ratio of 1.34% (excellent) based on December 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

If you don’t mind banking online or by mail, you can get higher 5-year CD rates than First Republic’s 6-year CD rate. The highest 5-year CD rate that’s nationally available is 2.53% APY at Garden Savings Federal Credit Union. This credit union allows anyone to join via an association. The best 5-year CD rate that’s available from an internet bank is 2.30% APY at CIT Bank. This requires a $100K minimum deposit. The rate is 2.25% APY for a $1K minimum deposit. These rates are accurate as of 4/1/2014.

To search for the best nationwide rates and the best rates in your state, please refer to our CD rates tables and our IRA CD rates tables.


  Tags: Massachusetts, New York, California, Washington, Oregon, First Republic Bank, CD rates, Florida

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Comments
5 Comments.
Comment #1 by OldGuy posted on
OldGuy
Regarding local rate bump-ups: Yesterday, the Palm Desert, CA branch was offering a 30 basis-point bump on CD rates (except rates for "liquid" and "special" CDs) when linked with a checking account meeting direct deposit and bill pay requirements.  I don't know the full details, though.

3
Comment #2 by Anonymous posted on
Anonymous
Is Garden Savings still offering 2.53% APY for its 5 year CDs?  The promotions page says the rate is only available through March 31, 2014.

1
Comment #3 by Ken Tumin posted on
Ken Tumin
It was still showing on the website this morning, but it looks like they were just late in updating the website.

2
Comment #5 by Anonymous posted on
Anonymous
Thanks, Ken.  I see they've changed the website now.  5 year APY of 1.75% now.

1
Comment #4 by Shorebreak posted on
Shorebreak
I had a 5-year CD with First Republic Bank back in the days when Greenspan cut interest rates. At that time I thought the 4% APY that the product yielded was devastating.  Looking at where they are located, First Republic Bank branches primarily serve high net-worth individuals. The bank has a substantial private banking clientele and a real estate mortgage department that specializes in jumbo loans. Especially for property markets like Palo Alto, California. 

6