If you are looking for the highest interest rate regardless of the CD term, you may be interested in First Federal Savings Bank. It's offering a 10-year CD and IRA CD with a 3.67% APY. That's the highest CD rate that I can find for any bank or credit union in the nation. The bank also offers some other competitive long-term CD rates. These include a 2.67% APY 5-year CD, a 2.46% APY 4-year CD and a 2.00% APY 3-year CD. Minimum deposit is $500. These rates are listed in the bank's rate table for zip codes in the Louisville area as of 2/16/2011. They require you to provide your zip code to see the rate table. If your zip code is outside their market area, a box will pop up with the message "No Rates Available".
The bank has its CD disclosure on its website. The early withdrawal penalties listed vary by term. The 5-year CD has a 9-month interest penalty, and the shorter terms listed above have a 6-month penalty. I can't find any mention of the 10-year CD early withdrawal penalty. However, in my last post on this bank, a reader who is a customer said the early withdrawal penalty for the 10-year CD is 12 months of interest.
It appears that a branch visit is required to open an account. Branches are located in Kentucky and in Southern Indiana. Most of the branches are in Kentucky. Some of the Kentucky cities include Louisville, Elizabethtown, Shepherdsville, Radcliff, Brandenburg and Bardstown. The Indiana cities include Georgetown, Corydon, Elizabeth and Lanesville.
The bank has an overall health score at DepositAccounts.com of 3 out of 5 with a Texas Ratio of 57.77% (average) based on September 2010 data. It's a sizable bank with $1.09 billion in deposits. Please refer to our financial overview of First Federal Savings Bank for more details. The bank has been a FDIC member since 1936 (FDIC Certificate # 28610).
Searching for the Best CD and IRA CD Rates
To search for the best nationwide rates and the best rates in your state, please refer to the following sections of DepositAccounts.com: