1st Colonial Community Bank Again Increases 3-Year and 5-Year CDs


1st Colonial Community Bank (southern NJ/Philadelphia metro area) has again increased the rates on their 3-year and 5-year CDs. The rates on these two CDs (also available as IRAs) have consistently risen since early 2012. 1st Colonial's website currently lists the 3-year CD at 1.51% APY and the 5-year CD at 2.01% APY. Both can be opened with an initial deposit of $500, but there is a maximum deposit of $250K per Tax ID Number. 1st Colonial's website states there is a "substantial penalty for early withdrawal," which translates into the industry standard of 6-months' worth of earnings.


In keeping with 1st Colonial's philosophy and image of "small town banker," opening these CDs requires a visit to one of three New Jersey branches: Collingwood, Westville, or Cinnaminson.

Bank Overview

Headquartered in Collingwood, NJ, 1st Colonial has an overall health grade at DepositAccounts.com of B+, with a Texas Ratio of 11.98% (above average) based on March 2014 data. 1st Colonial's deposits have grown by $35.53M in the past year, a healthy increase of 13.25%. The bank has been a FDIC member since its establishment in 2000 (FDIC Certificate #35456). Please refer to our financial overview of 1st Colonial Community Bank for more details.

How the CD Rates Compare

While the 3-year CD's rate (1.51% APY) is near the bottom of those listed in DA's most recent weekly Summary of the Best CD Rates, the lack of restrictions and the low minimum deposit requirement makes it attractive and accessible to many investors. The 5-year CD's rate (2.01% APY) falls solidly in the middle of DA's most recent weekly Summary, and also has the $500 initial deposit requirement and no special restrictions.

The above rates are accurate as of 7/11/2014.

To search for nationwide CD rates and CD rates in your state, please refer to the CD rates section of DepositAccounts.com.

Anonymous   |     |   Comment #1
Sorry for having to say this but these "features" lately have seemed to be something of a bad joke...in the range of 2 percent for a long-term time deposit of approximately five years?  The best phrase I can come up to describe the game of bothering with these long-term cd rates is "Cruising for Crumbs"....Burning the candle for this game seems like pushing a rock uphill on a mossy mountain. Regardless of the fact there are some pluses of federally insured time deposits it seems better to me to opt with the short-term savings accounts and take their crumb-rates but look every few weeks at possibly shuffling the old savings deck.  
paoli2   |     |   Comment #2
Sorry to have to say this but it all depends on 2% of what??  2% of $200,000 is still going to  make one about $4,000.00 and that buys a decent bag of groceries these days. The more you have the more that 2% will get you.   Go for that measly .50% on the short term CDs and you're only going to get about $1,000.00 of groceries.  Don't know about you but I need more than the .50% that the short term will give me and I don't think interest rates are going up much for the next few years.  To each his own.
Anonymous   |     |   Comment #3
I just had lunch with a guy who has 700K in 10-year CD's at 3.3%. He said his wife preferred the safety of FDIC insured savings, they reinvest the interest (stocks, bonds, etc.) and might replace their automobile (16 year-old, 210K miles) sometime next year.   
Anonymous   |     |   Comment #4
Someone with 2.8 million could probably turn out okay with only earning 3.3%.  That would be about 92K per year in interest.

But the $700K will only earn at 23K per year.  I hope he can live on that.  If he ever acquires substantial health care costs, I rather doubt that he will. 
Anonymous   |     |   Comment #5
As I said, that 700K is earning interest that is reinvested each year. These people are retired with no mortgage, no debt, decent retirement incomes and a savings plan many would envy. I assume most posters on these boards have multiple sources of income, especially in retirement.
Anonymous   |     |   Comment #6
Your lunch partner isn't that unusual. I have over 700K in 10-year CDs at 5% (PenFed). I'm sure others here have more. The interest from all my CDs are reinvested. I'm single with no debt. 
Anonymous   |     |   Comment #7
#6, Good for you.  When does that 5% expire?
Anonymous   |     |   Comment #8
The PenFed 5% CDs mature in 2021.