iGObanking ended the week by boosting the rate on its 18-month iGOCD (1.50% APY) by 135 bps. The minimum opening deposit is $1k, with no stated balance cap.
This is the first rate increase for the 18-month iGOCD in nearly five years. The previous rate was 0.15% APY, a truly unfortunate rate. The last time the 18-month’ iGOCD's APY was this high was in late July 2010, when the 1.50% APY lasted for about four months.
iGObanking has a well-deserved reputation for quickly raising and lowering rates on CDs. In the past four years, the newly increased APYs have only lasted about ten days.
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. Given iGObanking’s history of sudden rate changes, keeping track of your iGObanking investments should be given a high priority.
If your CD renews automatically at maturity, the interest
rate will be the prevailing renewal rate in effect at maturity.
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The fee we may impose will equal six months simple interest on the amount withdrawn subject to penalty.
The iGOmoneymarket has been earning 1.10% APY since May 2015. Like the various other products iGObanking offers, the iGOmoneymarket has had several rates changes (16) since its addition to the product line in November 2009, but the vast majority of those changes (12) occurred within the first three years.
The iGOmoneymarket requires a minimum $25k of new money to open, with a balance cap of $500k. There is a low balance fee of $15 that will be imposed unless a minimum daily balance of $25k is maintained.
iGObanking is the online division of Flushing Bank (New York) that enables 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, the parent company of iGobanking, has an overall health rating of "A" on DepositAccounts.com, with a Texas Ratio of 3.26% (excellent), based on December 31, 2016 data. In the past year, the Bank has increased its total non-brokered deposits by $189.17 million, an excellent annual growth rate of 6.49%. 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 founded in 1929. With assets in excess of $6 billion, Flushing Bank is the 19th largest bank in New York State and the 182nd largest bank in the nation.
How the CD Compares
When compared to the 154 similar length-of-term CDs tracked by DepositAccounts.com which require a similar minimum deposit and are available nationally, iGobanking's 18-month iGOCD APY currently ranks fourth.
The above rates are accurate as of 5/13/2017.