HomeBanc has another CD special, but unlike most of its past specials, this one has a much longer term. The new one is a 39-month CD with a 1.75% APY. Minimum deposit is $10,000, and the maximum deposit is $75,000. Only one CD offer is allowed per household. Funds must be new money to HomeBanc, and the offer is not available to customers who have participated in CD promotions and closed their HomeBanc accounts within the previous 24 months. This special rate is listed at the bank's rates page as of 8/6/2014.
This bank has a history of offering short-term CD specials. In January it was offering a 1.50% 3-month CD. Rates were much higher several years ago. Back in 2008 (the good old days) it was offering a 6% 3-month CD.
HomeBanc offers a free checking account called Home Free Checking. It has no monthly fees and no minimum balance. The bank is also a member of Publix Presto! ATM network for surcharge-free ATM use.
According to the details listed in the rates page, only Florida deposits are accepted. HomeBanc branches are located in the Florida cities near Orlando in Winter Park and Lake Mary and on the Florida west coast in Tampa, Clearwater, Belleair Bluffs and Sarasota.
The bank's financial health has improved over the last year. It now has an overall health grade at DepositAccounts.com of an A with a Texas Ratio of 0.68% (excellent) based on March 2014 data. Please refer to our financial overview of HomeBanc for more details. The bank has been a FDIC member since 2007 (FDIC Certificate # 58194).
How This CD Rate Compares
I find this longer-term CD more attractive than HomeBanc’s past 3-month CD specials. In my opinion, three months is just too short of a time to make the CD worthwhile, even with the high rate.
This new 39-month CD special is quite competitive when compared to nationally available 3-year (36-month) CDs. The best 3-year CD rate that’s nationally available is 1.75% APY. That’s available at Connexus Credit Union. However, this requires an active checking account.
The best 3-year CD rate that’s available from an internet bank is 1.50% APY. This is available at CIT Bank, but a minimum deposit of $100K is required.
Another option is a 5-year CD with a mild early withdrawal penalty. Synchrony Bank is offering a 5-year CD with a 2.30% APY for a $25K minimum deposit. The early withdrawal penalty is only 6 months of interest, so if this CD is closed after 3 years, the effective yield will be 1.92% (see EWP calculator).
The above rates are accurate as of 8/6/2014.
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.