Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts
Back to Rate Changes, Deals and Promotions

Inter National Bank Dropping Their Add-On Cds After Current Ones Expire

Saturday, August 4, 2012 - 2:25 AMInter National Bank
Inter National Bank (of Texas) offered some great Add-On CDs, that allowed Unlimited Add-Ons for the term of the CDs. Back in 2010, they were paying 3.25% for 5-year terms, with unlimited deposits allowed to it. Though the branches are in Texas, as long as you travelled to open up the account in person, they didn't mind where you lived.

In speaking to someone from Inter National Bank on the phone just 2-3 weeks ago, I found out they were still offering Add-On CDs -- but at a much lower rate (I forget now, but it was pretty bad... something along the lines of .90% for 4-year term, or along those lines).

But then today I just received a form letter from Inter National Bank. It reads:

"Deal Valued Customer: We appreciate the opportunity you've given Inter National Bank to maintain your Certificate of Deposit. We know there are different investment options available to you in the marketplace and we are grateful that you have chosen INB for one or more of your investments."

"Since the original opening date, this investment(s) has included an "add on" feature allowing you to make unlimited deposits to the account throughout the term of the CD. Please be advised that upon the next term renewal your CD will no longer contain the "add on" feature (effective Sept 1, 2012)."

"Should you have any questions, please call... (etc)"

SO... I'm not sure if this means that they have now eliminated ALL their Add-On CDs (as of Sept 1st) -- even the low rate ones -- or just won't have any in the 5-year term range (the range that these 3.25% Add-On CDs are at). At least they're not trying to pull a "Darby" (where that bank tried to change the terms mid-stream and tried to stop allowing Add-Ons for current customers/terms -- they had to legally change back to allowing Add-Ons again). But it's yet another sad sign that the once not-so-hard-to-find Add-On CDs are virtually non-existent now. Even credit unions that once offered them, no longer do. But I guess Inter National was seeing that for ONCE the terms favored the savers (still getting a guaranteed 3.25% rate, and allowing unlimited add-ons for 5 years, while interest rates are terrible elsewhere) and they aren't going to make that "mistake" again once these CDs have matured.

So, as of Sept 1st, anyone that has one of these CDs that matures, if you don't close them at renewal, the renewals will no longer allow Add-Ons. At least mine has another 3 years left...
4
sg99sg991 posts since
Aug 4, 2012
Rep Points: 4
1. Saturday, August 4, 2012 - 4:42 AM
Thanks for posting. Sorry to see the end of another add-on CD.

Add-on CDs have become an endangered species. That's especially the case for long terms. One credit union that used to offer add-on CDs for all terms changed its policy so that the add-on feature can only be applied to terms up to 1 year. CIT Bank's Achiever CDs have an add-on feature, but the longest term is only 2 years.
2
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
2. Sunday, August 5, 2012 - 1:44 AM
I remember this deal. I have always regretted not taking advantage of it. Sg99, did you travel to Texas to get this CD? It has got to be nice to know that you will receive 3.25% for the next 3 years for new money. Wish I had made that trip. If I remember correctly the EWP is only 3 months.
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
3. Sunday, August 5, 2012 - 12:26 PM
I did indeed travel to Texas to get that rate. I called the bank to make sure it would be okay first (talked to two different branches, both said it would be ok as long as I opened it up in person), booked a really cheap flight, and made the trip. Total cost of the trip was something like $380, and that included making a mini vacation out of it (cheap Motel 6 room for 1 night, car rental, and gas driving through some beautiful parts of nearby New Mexico. I even brought my own food for the 2-day trip). I was done with the bank before lunch that 1st day, and had all the rest of that day as well as the next day until the evening to see sights like White Sands and the Caverns in New Mexico, as well as a nice 2-hour hike at a park in Texas. Definitely worth it. I can only hope rates will be on the rebound in 3 years, and that add-ons will hopefully come back. As you said, they used to be much more common. A local credit union here used to offer them (they no longer do), a local bank here did (they no longer do)... hopefully they will come back at some point.
1
sg99xsg99x2 posts since
Aug 5, 2012
Rep Points: 3
4. Sunday, August 5, 2012 - 12:41 PM
Have you been using the add-on feature? I guess the only limiting factor is not exceeding the FDIC insurance thresholds.
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
5. Sunday, August 5, 2012 - 7:45 PM
Yes, I've been making deposits. Unlimited deposits are allowed, but as you mentioned, it's only smart to go up to the insured amount (though I made sure to have multiple beneficiaries on the account, both because I want them there, and also because it increases the FDIC insurance amount quite a bit). The only "down" side to the CD is that you cannot withdraw even just the interest without having it count as a "withdrawl" with the attached penalties (some banks allow you to take out the interest only and not get dinged). But as this is an account meant only for savings, it's worked out nicely. I'm just thankful I decided to go and open the account, though in 3 years I'll be stuck again like eveyrone else. It's such a shame, because add-on CDs (esp the ones that allowed unlimited deposits, rather than ones that allowed only deposits up to the initial opening amounts) were great to just get your "foot in the door". If you knew you were going to have funds maturing elsewhere, or to use as holding place for steady or occasional deposits... they're great. I really hope when things get back to normal (as I think they will within a couple years regardless of who is in charge), that some institutions will start bringing back the Add-Ons...
2
sg99xsg99x2 posts since
Aug 5, 2012
Rep Points: 3
Reply