iGObanking is currently offering 4.75% APY on its 48-month iGOCD. The minimum opening deposit is $1k, with no stated balance cap. While 4.75% APY doesn’t seem competitive when compared to the 5%+ APYs offered on short-term CDs, 4.75% is actually a near rate-leading APY for nationally available 4-year CDs.
As stated on iGObanking’s FAQs page, the Early Withdrawal Penalty reads as follows:
If your account has an original maturity between three years and less than seven years:
The fee we may impose will equal one year simple interest on the amount withdrawn subject to penalty.
Penalty may reduce principal.
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 and dramatic rate changes over the past seven years, keeping track of your iGObanking investments should be a high priority. According to the Terms and Conditions 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 calendar days is at the low-end for grace periods, increasing the chance that customers won't/can’t close the iGOCD before it locks into another term. According to the FAQs,
You will be sent an email notification that your maturity notice is available for viewing via Online Banking.
According to CSR, closing an iGOCD during the grace period can be done using Online Banking or sending a secured message to Customer Service requesting the iGOCD be closed.
I’ve wondered how many iGObanking customers inadvertantly let their CDs automatically renew. Based on the rate history of iGOCDs, those customers could be in for a very unpleasant surprise when they see their renewed CDs with rates less than one-tenth of their original rates.
Availability and Account Opening
Headquartered in Flushing, New York, iGObanking is an online division of Flushing Bank, giving customers the opportunity to open and fund accounts directly through the internet.
As an internet based institution, all of iGObanking's products are available nationwide to all U.S. citizens and resident aliens, 18 years or older, who have a valid Social Security number.
iGOCDs can only be opened online. In the past, iGOCDs could be opened by mail, but that option ended a while back.
Funding and Other Details
The following information is from the iGObanking Terms and Conditions document and a conversation with CSR.
- Funding – ACH.
- Ownership – Individual or joint personal accounts can be opened online.
- Interest – Compounded daily/credited monthly; can be withdrawn penalty-free.
- Maturing Funds – ACH or transferred into any iGObanking account.
- Beneficiaries – Unlimited with equal shares; Social Security numbers are required for all beneficiaries.
- Grace Period – 7 calendar days.
- Credit Check – ChexSystems
iGObanking, along with BankPurely, is an online division of Flushing Bank and operates under Flushing Bank’s FDIC Certificate and shares its financial history. These are not three separately FDIC-insured banks: individual deposits held at Flushing Bank, iGObanking and BankPurely are combined for the purpose of FDIC insurance coverage.
Flushing Bank, the parent company of iGobanking, has an overall health rating of "A" on DepositAccounts.com, with a Texas Ratio of 2.19% (excellent), based on March 31, 2023 data. In the past year, the Bank has increased its total non-brokered deposits by $69.9 million, an above average annual growth rate of 1.2%. Please refer to our financial overview of iGObanking/Flushing Bank (FDIC Certificate # 58564) for more details.
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 $8.4 billion and more than 82,000 customer accounts, Flushing Bank is the 14th largest bank in New York State and the 171st largest bank in the nation.
How the 48-Month iGOCD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and have minimum deposit requirements of $10k or less, one credit union has a higher rate than currently offered on the iGObanking 48-Month iGOCD. The following table compares the 48-Month iGOCD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
The above information and rates are accurate as of 8/21/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.