Update 2/12/10: The CD rates have fallen. Please check with the bank for the latest rates.
Goldwater Bank is offering two competitive long-term CD rates: 3.03% APY for a 3-year term and 3.55% APY for a 5-year term. Minimum deposit is $50,000. These rates are listed in the bank's rates page as of 11/27/09.
I called the bank on Wednesday using their toll-free number (866-656-4653). According to the CSR, people in any state can apply using their CD application form available at their application page. The application form doesn't allow you to select long-term CDs, but the CSR instructed me to select the term "1 year or more". They will contact you after you submit the form to find out which term you want. I was told that the rate will lock at the time you submit the form. They give you 7 days to fund the CD. You can fund the CD by mailing a check or by a wire transfer (incoming wires are free). At maturity, there's a 10-day grace period, and they can send you the money by check or a wire transfer out ($20 fee).
One important detail not mentioned on the website is the early withdrawal penalty. It's very severe. According to the CSR, the penalty is 1 year of interest for the 3-year CD and 2 years of interest for the 5-year CD.
Goldwater Bank also offers a reward checking account that is currently paying 5.02% APY on balances up to $20K. I posted on this checking account on November 12th, and at that time I was told that they do require a branch visit to open this checking account.
The bank has one office located in Scottsdale, AZ.
The bank's ratings for safety and soundness are a little weak: 2 stars (below peer group) at Bankrate.com and 3 stars (adequate) at BauerFinancial. Both ratings are based on 6/30/09 financial data. Goldwater Bank has been a FDIC member since 2007 (FDIC Certificate # 58405).
Other Competitive Certificate of Deposit Rates