Citizens Bank is offering some competitive CD rates. The best short-term rates include a 1.50% APY 1-year CD and a 1.36% APY 9-month CD. The best long-term CD is a 2.30% APY 3-year CD and IRA CD. There's also a 30-month CD special with a 2.12% APY. However, this has a minimum deposit of $50K. The other regular CDs only require a $500 minimum ($2,500 for the 9-month CD). These rates are listed in the bank's current rates page as of 11/07/2010.
As a comparison to the internet banks, the best 1-year CD rate as of 11/07/2010 is 1.50% APY at CNB Bank Direct. The best 3-year CD rate is 2.25% APY at iGObanking.com.
There are links in the rate table to Citizens Bank's CD disclosure. The disclosure has some contradictory information. It states that the early withdrawal penalty for one year or less is 30 days of interest. Over one year, the penalty is 90 days of interest. However, it also states in the withdrawal limitations that "You may not make withdrawals of principal from your account before maturity."
It appears a branch visit is required to open an account. Branches are located in Nashville and Memphis, Tennessee.
The bank's overall health score at DepositAccounts.com is 4 out of 5 with a Texas Ratio of 12.02% (excellent) based on 6/30/2010 data. Please refer to our financial overview of Citizens Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 10319).
Thanks to the reader who emailed me news of this bank.
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