3.50% 5-Year CD & 4.00% 7-Year CD at First National Community Bank in PA - YMMV Nationally Available

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Update 12/01/09: The CD rates have fallen by 25 basis points. Please check the bank's website for the latest rates.

First National Community Bank is offering some competitive long-term CD rates. The following rates are listed as of 11/18/09 at the bank's rates center page:
  • 4.00% APY 7-year
  • 3.50% APY 5-year
  • 3.25% APY 4-year
Minimum deposit is $1,000, and these are available as regular and IRA CDs. The bank used to have competitive short-term Maximum Earnings CDs, but these rates are now under 2%.

One thing to note about these CDs is that the early withdrawal penalty according to the bank's disclosure is 6-months of interest for terms of 2 years and above. This appears to even include the 7-year CD. Most 7-year CDs have a 12-month early withdrawal penalty. However, like many disclosures, the bank states that it has the right to refuse a withdrawal of principal before maturity. This is under the "Transaction limitations" section:
You may make withdrawals of principal from your account before maturity only if we agree at the time you request the withdrawal.

FNCB also has good deals on a reward checking account (ME checking) and an online savings account (ME savings). The ME checking is currently paying 4.01% APY on balances up to $25K (see post). The ME savings is paying 1.75% APY on all balances (see post). These rates are as of 11/18/09.

I'm considering this a your-miles-may-vary (YMMV) nationally available deal. I've contacted customer service by email and by phone. According to both CSRs, people in any state can apply online for the accounts. However, commenters in my review of the savings account have mentioned issues. Two have reported being told that it's nationally available by the CSRs, but their applications were rejected due to not being a PA resident. However, there is one commenter from California who was accepted. So your miles may vary.

The online application has a field for funding the CD by check or by transfer from another FNCB account. However, according to both CSRs, you need to first open a ME checking account. Once that's funded, you can open the CD online using funds from the checking account. At first I was told this applied to the ME CDs, but the phone CSR said this should also apply to the regular fixed rate CDs. Unfortunately, having to open the checking account first may cause you to miss out on these CD rates. The CSR didn't know how much longer the CD rates would last.

The online application has no field for beneficiaries. However, the CSR said that after the CD is opened, you can request a beneficiary to be added as ITF. She said that beneficiaries could not be added to the ME CDs, but only to the regular fixed-rate CDs. If you do want to include beneficiaries, it would be advisable to call first.

The bank is based in Dunmore, Pennsylvania with several branches in the northeast part of the state.

The bank's ratings for safety and soundness are fair: 3 stars (performing) at Bankrate.com and 3 stars (adequate) at BauerFinancial. Both ratings are based on 6/30/09 financial data. The bank has been a FDIC member since 1934 (FDIC Certificate # 7472).

Other Competitive Certificate of Deposit Rates
Comments
2.25% 11-Month CD at First National Community Bank
First National Community Bank continues to offer competitive rates on its Maximum Earning CDs. The current Bonus APY is 2.25% for terms of 11, 15 and 18 months. Minimum deposit is $5,000. The CDs require a new or existing Maximum Earnings Checking Account which is a free reward checking account that I first reported on in March. The 2.25% APY is listed in the bank's promotions page as of 7/31/09.

There's an online application, and according to the CSR, people from any state can apply. However, a few readers who tried...

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Reward Checking Account at First National Community Bank in PA

Update 9/20/10: The top rate has fallen to 0.75% APY. Refer to the bottom of the post for the rate history.

First National Community Bank is offering a reward checking account called Maximum Earnings (ME) Account. It pays 0.75% APY on balances up to $25,000 (0.20% for above) and refunds ATM fees if the following monthly requirements are met:

  • 10 debit card purchases
  • one direct deposit or automatic payment
  • receive electronic statements

If these are not met, the rate falls to 0.05%. Minimum initial deposit is $100. There are no monthly service fees and no...



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Online Savings Account and High Yield CDs at First National Community Bank in PA

Update 9/20/10: The rate has fallen to 0.90% APY

Update 1/20/10: The rate has fallen to 1.25% APY
Update 6/25/09: The rate has fallen to 1.75% APY
Update 4/07/09: The rate has fallen to 2.25% APY.

First National Community Bank is offering an online savings account called Maximum Earnings Online Savings Account. As of 3/05/09, its rate is 2.75% APY on all balances. Minimum initial deposit is $100. There are no monthly service fees and no minimum balance requirements.

There's an online application that's provided by Andera which allows electronic funding. The application makes...





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6.25% 60-Month CD at a Pennsylvania Bank - Variable (First National Community)
First National Community Bank is offering a 6.25% APY 5-year variable rate certificate of deposit. It's based on the Prime Rate and is guaranteed not to drop below 4%. The 6.25% yield requires a checking account. Without the checking, the yield is 6% APY. The minimum deposit is $1,000 and the maximum is $100K. The early withdrawal penalty is 6 months of interest.

According to the service rep. they require a branch visit to open accounts. Branches are located in several Pennsylvania cities including Shavertown, Scranton, Plains and Pittston.

The bank has...



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