Last year I had mentioned the competitive IRA CD rates and the IRA cash bonuses at Columbia Bank in New Jersey. This promotion is still active. One thing that has changed is a higher 7-year IRA CD rate and a cash bonus for the 7-year IRA CD. The 7-year IRA CD rate is 2.30% APY, and the cash bonus is equal to 0.7% of a qualifying deposit of $10K or more. It’s a one-time bonus for funds that are rolled over into a new or existing IRA. For a $100K deposit, the bonus would equal $700. The promotion and IRA CD details are described in this Columbia Bank IRA page.
One thing I like about Columbia Bank is that it clearly lists the early withdrawal penalties in its rate table. For a 7-year CD or IRA CD, the early withdrawal penalty is 365 days of interest.
Thanks to the reader who emailed news of this promotion.
Other Bank Deals
In addition the competitive CD rates and the IRA bonus program, Columbia Bank offers a high-rate checking account with a $100 new-account bonus. I last reviewed this account and bonus in this March 2012 post. The rates have remained the same. It pays 1.00% APY for balances between $10K and $250K when a monthly requirement is met. That requirement is a qualifying direct deposit or an online bill payment transaction to post to your account each statement cycle.
New Jersey Only
There's an online application. However, the first page of the application states that "you must live or work in the State of New Jersey".
Columbia Bank branches are located in several New Jersey cities. Some of the cities include Edison, Fair Lawn, Paramus and Wayne.
The bank has an overall health grade at DepositAccounts.com of a B+ with a Texas Ratio of 15.98% (above average) based on December 2013 data. Please refer to our financial overview of Columbia Bank for more details. The bank has been a FDIC member since 1937 (FDIC Certificate # 28834).
How The CD Rates Compare
The highest nationally available 5-year IRA CD rate is 2.25% APY at GE Capital Retail Bank. It’s hard to get higher rates by going for a longer term. The highest 7-year IRA CD rate is 2.20% APY at Apple Federal Credit Union. Navy Federal Credit Union has a 2.80% APY 7-year IRA CD, but Navy Federal has membership limitations. Rates up to 2.65% are available with brokered CDs that are available at Fidelity.
These rates are accurate as of 3/10/2014.