3.55% 5-Year CD & 3.03% 3-Year CD at Goldwater Bank - Available Nationwide

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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

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Frank L. Parker Jr.
Frank L. Parker Jr. (anonymous)   |     |   Comment #1
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5.02% Reward Checking Account at Goldwater Bank in Arizona - Local Only

Update 2/12/10: It has been reported that Goldwater Bank is no longer offering the reward checking accounts to new customers. The account still pays 5.02% APY for existing customers as of 2/12/10

Goldwater Bank is offering a rewards checking account with the following rates if certain monthly requirements are met:

  • 5.02% APY on balances from $100 to $20,000
  • 0.10% on portion of balance over $20,000
  • No interest if requirements are not met

The monthly requirements include:

  • 10 debit card purchases
  • one direct deposit
  • 3 bill pay transactions
  • Receive e-statements

Additional features of the account regardless of the monthly requirements include:

  • $1,000...
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4.00% Savings Account at Goldwater Bank
Update 10/03/08: The yield has dropped to 3.00% APY.

Update 9/15/08: The yield for new customers has dropped to 3.50% APY. The savings account yield should remain 4% APY through 2008 for those who got in before today.

Goldwater Bank is offering a 4.00% APY savings account. According to the bank's rate table, the minimum opening deposit is $1,500, and the minimum balance to obtain the APY is $100.

This savings account is listed at Bankrate.com , and it appeared to be available nationwide. I just called the bank at 480-281-8200 and confirmed...





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