First Republic Bank has again increased its long-term CD rates, and now they are even more competitive. The 6-year CD rate increased 10 basis points to 2.35% APY. The 5-, 4- and 3-year CD rates increased by 25 basis points. The new rates are 2.25% APY for the 5-year CD, 2.00% APY for the 4-year CD and 1.50% APY for the 3-year CD. Minimum deposit is $10,000. These rates are listed at the bank's rates page as of 6/17/2014. 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.
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or make a partial withdrawal of principal prior to its maturity date, we may impose the following penalty on the amount withdrawn: (1) six months' interest for those CDs with a term of one year or less; and, (2) one year plus three months' (15 months) interest for those CDs with a term of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 in April, and I was told that they’re not 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.
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.
DA member Shorebreak was a customer of First Republic Bank many years ago, and he described its background in the comments:
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.
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 1.19% (excellent) based on March 2014 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 a slightly higher 5-year CD rate at three internet banks: Synchrony Bank, CIT Bank and EverBank. All three are offering 2.30% APY. This rate is accurate as of 6/17/2014.