Home Loan Investment Bank (HLIB) ended last week by raising the rate on its 5-year CD (2.50% APY). The minimum opening deposit is $1k, with no stated balance cap.
|2.55%||$1k||-||Home Loan Investment Bank, F.S.B.||5 Year CD|
|2.55%||$1k||-||Home Loan Investment Bank, F.S.B.||5 Year IRA (Traditional, Roth, SEP)|
Added to the product line in November 2010, the 5-year CD is experiencing its highest rate in nearly six years.
The 5-year CD is also offered as an IRA (Traditional, Roth, SEP), earning the same APY with the same funding requirements.
According to CSR, the Early Withdrawal Penalty (EWP) is six months interest. As I’ve mentioned in recent blog posts, a mild EWP on a long-term CD can be advantageous in a climate of rising rates on shorter term investments. DA’s EWP Calculator shows the effective yields if the 5-year CD is closed before maturity.
- 1.27% APY – closed at 1 year
- 1.69% APY – closed at 18 months
- 1.90% APY – closed at 2 years
- 2.11% APY – closed at 3 years
- 2.21% APY – closed at 4 years
Headquartered in Warwick, Rhode Island, Home Loan Investment Bank offers its product line to residents of Rhode Island, Massachusetts, and Connecticut.
Opening a CD (or any other type of account) must be done in person at any of three Rhode Island branches located in Providence and Warwick (2).
HLIB’s online banking platform is currently limited to account management and bill payment services.
Home Loan Investment Bank has an overall health rating of "B+" at DepositAccounts.com, with a Texas Ratio of 11.74% (above average) based on March 31, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $20.68 million, an excellent annual growth rate of 14.85%. Please refer to our financial overview of Home Loan Investment Bank (FDIC Certificate # 27417) for more details.
Home Loan & Investment Association was established in 1959 operating under a Rhode Island state charter. Fifteen years later, John M. Murphy (Founder and Chairman) purchased the bank charter and began to build the bank, “reactivating the charter for mortgage lending purposes.” In 1995, the charter was converted to a federal charter and the Band rebranded as Home Loan Investment Bank, FSB. HLIB is currently the seventh largest bank in Rhode Island with assets in excess of $265 million and successful residential mortgage and automobile financing divisions.
How the CD Compares
When compared to the 228 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available to within the Bank’s market area, Home Loan Investment Bank’s 5-year CD APY currently shares top billing with Mountain America Credit Union’s 60-month Term Deposit..
*Note: Melrose Credit Union is currently operating under an NCUA conservatorship.
The above rates are accurate as of 6/19/2017.