At the end of last week, I received an email from Capitol Federal Savings Bank (CapFed) announcing its three Traditions CD Specials: 10-month CD (0.75% APY), 21-month CD (1.20% APY), and 35-month CD (1.65% APY). This promotion is available September 12 through September 17, 2016.
The Traditions CD Specials might be becoming a tradition, as these CDs were offered during second week of September last year. CapFed usually includes three different length-of-term products in its CD Specials, with only one being competitive. The latest Traditions CD Specials seems to be following that pattern, with the 35-month CD the most viable of the three.
All the Traditions CD Specials require a minimum opening deposit of $1k and there is no stated balance cap. They are also available as IRAs (Traditional, Roth, and CESA) earning the same APYs, with the same funding requirements.
The fine print on the promotion page states,
Personal, retirement and personal trust account deposits only.
Account requests accepted in person beginning 09-12-16 through 09-17-16 only.
Requests by fax, email, phone or other transmission will not be accepted.
As stated on the Important Information page, the Early Withdrawal Penalty reads as follows:
For certificates with an original or renewal term of one year or less, the penalty
shall be equal to 90 days interest at the contract rate, non-compounded. For
certificates with an original or renewal term greater than one year, the penalty
shall be equal to 180 days interest at the contract rate, non-compounded.
Headquartered in Topeka, Kansas, Capitol Federal Savings Bank’s market area covers all of Kansas and the Kansas City, Missouri area.
Opening a Traditions CD Special requires an in-person visit this week (September 12-17, 2016) at any of 43 Kansas branches located in Andover, Derby, Emporia, Gardner, Kansas City, Lawrence (4), Leawood, Lenexa, Manhattan (2), Mission, Olathe (3), Overland Park (7), Prairie Village (2), Salina, Shawnee (3), Topeka (7), and Wichita (6) and four Missouri branches located in Liberty and Kansas City (3).
Capitol Federal Savings Bank (FDIC Certificate #27981) has an overall health grade of "A+" at DepositAccounts.com, with an excellent Texas ratio of 2.57%, based on June 30, 2016 data. In the past year, CapFed has increased its total deposits by $256.12 million, an excellent annual growth rate of 5.14%. Please refer to our financial overview of Capitol Federal Savings Bank for more details.
Originally chartered in 1893 as the Savings and Loan Association of Topeka, Capitol Federal Savings Bank is the largest bank in Kansas, with assets in excess of $9.2 billion. Last year, the Bank’s website featured a chronicle, Our Amazing Century, of its 122-year history. While the in-depth history of the Bank is no longer available, one of the memorable anecdotes concerned Henry A. Bubb, who was hired in 1926 as an office boy, and at the time of his death in 1989, was Bank Chairman.
How the Traditions Special CD Compares
When compared to the 296 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available within the market area, Capitol Federal Savings Bank’s 35-month Traditions CD Special currently ranks fourth.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|1.71% APY||35-Month CD Special||USALLIANCE Financial|
|1.68% APY||3-Year CD||State Bank of India|
|1.65% APY||35-Month Traditions CD Special||Capitol Federal Savings Bank|
The above rates are accurate as of 9/12/2016.