Another large regional bank has come out with new CD specials. Fifth Third Bank has improved the CD specials that it started to offer in January. Its two best CD specials are a 2.00% APY 5-year CD and a 1.50% APY 44-month CD. There’s also a 28-month CD with a 1.00% APY. Minimum deposit is $5,000, and a new or existing checking account is required. These rates are listed in Fifth Third’s CD promotional page as of 7/8/2014.
It’s important to note that the early withdrawal penalty for CD terms of one year or longer is "1/2 stated interest for the remaining term or 6 months interest, whichever is greater." That can be a large penalty if the CD is closed early into the term. The bank lists the penalties on its certificates of deposit page.
Checking Account Required
The checking account requirement is common for these promotional CDs. You’ll have to watch out for monthly fees. All but one of the Fifth Third checking accounts have potential monthly fees. Fifth Third says its eAccess Account has no monthly service charge or minimum balance requirements. However, it requires monthly direct deposits totaling $500 or more. If the customer doesn’t have direct deposits, the account will be automatically converted to Fifth Third Essential Checking, which requires a minimum balance to avoid a monthly service charge. The eAccess Account also requires e-statements, and check writing isn’t allowed (you’ll have to use online bill pay instead of checks).
A branch visit is required to open these CDs.
Fifth Third Bank has over 1,300 full-service locations in the following eastern and midwestern states: Ohio, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Missouri, North Carolina, Pennsylvania, Tennessee and West Virginia. Most of the branches are located in Ohio and Michigan.
Fifth Third is a large regional bank with $127 billion in assets. It has an overall health grade at DepositAccounts.com of an A+ with a Texas ratio of 6.36% (excellent) based on March 2014 data. Please refer to our financial overview of Fifth Third Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 6672).
How The CD Rate Compares
The 2% 5-year CD is competitive when compared to what most brick-and-mortar banks are offering. It’s not as competitive if you compare it to what internet banks are offering. Several internet banks are offering 5-year CDs with higher rates. The best is currently 2.30% APY at CIT Bank, Synchrony Bank and EverBank.
If you prefer to bank at a brick-and-mortar bank, BBVA Compass is another large regional bank that’s offering a 2% CD. Its promotional CD has a 5-year term, and you can get an extra 10 basis points with the necessary checking relationship.
Another large regional bank, Regions, is offering a CD special with a 2.00% APY for a 70-month term.
The above rates are accurate as of 7/8/2014.
To search for nationwide CD rates and CD rates in your state, please refer to the CD rates table of DepositAccounts.com.