Home Savings Bank 6-Month Internet CD Continues To Be Competitive
Utah-based Home Savings Bank is currently offering 5.50% APY on its 6-month Internet CD. The minimum opening deposit is $5k, with each individual “limited to “$250,000 in any one or combination of Online Certificate Accounts.”
The 6-month Internet CD is also available as Internet IRA CD (Traditional and Roth), earning the same APY with the same deposit requirements.
The fine print on the Internet Rates page reads, “Additional disclosure applies to accounts opened online.” Some of the more important conditions include,
- If your account does not fund within 30 days of the application date, your account will receive the current posted interest rate for the term selected on the original application.
- Online applications will expire 45 days from the date of the application if the account has not completed all steps, including funding of the account.
- All activity for accounts opened online is intended to be managed via the Online Banking system (e.g. Opening, inquiries, and closing). Activity conducted in-branch on this account type is not allowed without an additional $10 fee per transaction.
Early Withdrawal Penalty
As stated in the Truth-In-Savings disclosure (page 7), the Early Withdrawal Penalty reads as follows:
If your account has an original maturity of six months to 15 months: The fee we may
impose will equal three months interest on the amount withdrawn subject to penalty.
According to CSR, partial withdrawals are allowed, but any withdrawal made within three months of account opening will reduce the principal.
Availability and Account Opening
Headquartered in Salt Lake City, Utah, Home Savings Bank offers a portion of its product line through an online application to U.S. citizens or resident aliens, 18 years or older, who have a U.S. address and a valid Social Security number or Tax ID number.
As the name indicates, the 6-month Internet CD can be only be opened online. Home Savings Bank’s product line includes a 6-month “non-internet” CD and IRA CD (earning the same 5.50% APY) that can be opened at the single Utah branch located on South Main Street in Salt Lake City.
Note: Even though a bank may state its products are available nationwide, smaller banks occasionally find that demand may outpace their online banking platform’s ability. Caveat emptor.
Funding and Other Details
The following information is from the Home Savings Bank Truth-in-Savings disclosure and a conversation with CSR.
- Funding – ACH or internal transfer.
- Ownership – Individual or joint.
- Interest – Compounded daily and credited at maturity (no interest will be disbursed during the term of the account).
- Maturing Funds – “Disbursed to an account of your choosing, which must be identified and confirmed in advance, using your online banking credentials.”
- Grace Period – 7 business days before automatic renewal.
- Beneficiaries – Unlimited with equal shares. Social Security numbers are required for beneficiaries.
- Credit Check – ChexSystems.
Bank Overview
Home Savings Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 0.00% (excellent, and not a typo) as of December 31, 2023 data. In the past year, Home Savings’ total non-brokered deposits decreased by -$5.12 million, a below average annual growth rate of -7.79%. Please refer to our financial overview of Home Savings Bank (FDIC Certificate # 26798) for more details.
Home Savings Bank was originally a finance company that serviced furniture sales contracts for about 18 years. In 1979, the finance company became Home Credit Thrift and Loan and began accepting savings deposits from the public. There were three names changes in the following 15 years before it became Home Savings Bank. (Interesting fact – there are currently six different companies in the country that operate as “Home Savings Bank.”) Home Savings Bank is currently Utah’s 37th largest bank, with assets in excess of $118.5 million.
How the 6-Month Internet CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are nationally available and have minimum deposit requirements of $10k or less, one bank and one credit union have higher rates than currently offered on the Home Savings Bank 6-month Internet CD. The following table compares the 6-month Internet CD to the four highest-rate similar length-of-term CDs from other banks/credit unions.
The above rates are accurate as of 3/16/2024.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
