It’s been more than six months since I had a reason to write about an iGObanking product. That changed at the end of last week, when iGObanking added 40 bps to its 24-month iGOCD (2.10% APY). This new rate is the highest rate for the 24-month iGOCD since 2010. The minimum opening deposit is $1k, with no stated balance cap.
As stated on iGObanking’s FAQs page, the Early Withdrawal Penalty reads as follows:
If your account has an original maturity between one year and less than three years:
The fee we may impose will equal six months simple interest on the amount withdrawn subject to penalty.
At this point, I usually caution DA readers about iGObanking’s proclivity for quickly raising and lowering CD rates. When I checked the rate history for the 24-month iGOCD, I was surprised to see that following a rate hike to 1.60% APY in April, another 10 bps were added in late June. That 1.70% APY was in effect until last week's rate increase. Having said all that, there is no way of knowing how long the 2.10% APY may last, but my best guess is the APY will end sooner, rather than later.
As DA readers know, there is always a risk of being stuck in a low-rate iGOCD, if a high-rate iGOCD automatically rolls over. Something I don’t often discuss is the “grace period” – that window of opportunity following CD maturity when a penalty-free withdrawal can be made. According to the Disclosure document,
The interest rate will be the prevailing renewal rate on the maturity date which has the same term and minimum balance (if any) as the original time deposit.
You will have seven calendar days after maturity to withdraw the funds without a penalty.
Seven days – that’s all. Seven calendar days is definitely on the low-end for grace periods, increasing the chances that customers won't close the iGOCD before it locks into another term. According to the FAQs,
Yes, you will be sent an email notification that your maturity
notice is available for viewing in the online services section.
To close your iGOcd account during the grace period either complete and
return via postal mail the CD maturity instructions form (provided as part of
your CD maturity notice) or send your request by using the contact us
form (email address submitted must be the email Address of Record).
That’s a lot to accomplish in seven days. Caveat emptor.
iGObanking is the online division of Flushing Bank (New York) that allows customers to open and fund accounts directly through the internet. As an internet based institution, all of iGObanking's products are available nationwide.
An iGOira is the only account that can be opened by mail.
We do not accept applications via email at this time.
Flushing Bank is also offering an in-branch version of the 24-month CD, but it requires a $5k minimum opening deposit. If you live in the New York City metropolitan area and prefer a brick-and-mortar experience, Flushing Bank has 20 branches, located in Brooklyn (5), Long Island (3), Manhattan (2), and Queens (10).
Flushing Bank, the parent company of iGobanking, has an overall health rating of "A" on DepositAccounts.com, with a Texas Ratio of 2.91% (excellent), based on June 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $114.08 million, an excellent annual growth rate of 3.66%. Please refer to our financial overview of iGObanking/Flushing Bank (FDIC Certificate # 58564) for more details.
As mentioned earlier, iGObanking was established in 2007 as the online division of Flushing Bank, a New York financial institution that was founded in 1929. With assets in excess of $6.2 billion, Flushing Bank is the 17th largest bank in New York State and the 169th largest bank in the nation.
How the iGOCD Compares
When compared to the 196 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, iGobanking's 24-month iGOCD APY currently tops the list.
The above rates are accurate as of 12/4/2017.
To review top CD rates, both nationwide and state specific, please refer to our CD rates table.