Competitive CD Rates at JustBANKit.com

Allied Bank in Arkansas has an internet bank called JustBANKit.com, and they're offering some decent CD rates. The two most competitive are the 1.90% APY 12-month CD and the 2.00% APY 18-month CD. There's also a 1.50% APY 6-month CD and a 2.10% APY 30-month CD. These rates are listed on the bank's home page as of 1/23/2010. Minimum deposit is $1,000. Interest is compounded semi-annually.

Even though the bank's About page states that JustBankIt.com is an internet branch and the online applications currently have no geograhpic limitations listed, I asked the CSR yesterday if it's available nationwide just to make sure. I received an "it depends" answer. The CSR said they may reject your application if your credit report isn't top notch. He wasn't sure if this was a hard or soft pull. They also do a ChexSystems verification.

According to the CSR, the CD can be funded by mailing a check or a wire transfer ($15 fee). The CD rate won't lock until they receive the funds.

The CSR said the early withdrawal penalty is 3 months of interest. If you decide to not let the CD renew, you can instruct them to send a check or initiate a wire transfer ($15 fee). If you also open their free checking account, I would think they would be able to transfer it into the checking.

Branches are located in several cities of Arkansas including Little Rock.

The bank's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 9/30/09 data. The bank has been a FDIC member since 1934 (FDIC Certificate # 91).

Thanks to the reader who emailed me news about this bank and the CDs.