iGObanking is ending the week by raising the rates on its 12-month iGOCD (2.20% APY) and 60-month iGOCD (2.87% APY). The minimum opening deposit for either is $1k, with no stated balance cap.
|2.87%||$1k||-||iGObanking||60 Month iGOCD|
|2.20%||$1k||-||iGObanking||12 Month iGOCD|
In the past ten weeks, the 12-month iGOCD has had three rate increases, adding a total of 205 bps. Prior to these recent increases, the APY (0.15%) had been static for more than two years. The 60-month iGOCD has been stuck in CD oblivion since January 2015, with a 0.35% APY.
Note: iGObanking’s sister bank, BankPurely, is offering the same 2.20% APY on its 12-month CD. BankPurely does not currently offer a 60-month CD.
iGObanking has a well-deserved reputation for quickly raising and lowering rates. In the past five years, newly increased CD APYs have only lasted about ten days. In the current climate of rapidly rising rates, it’s uncertain if iGObanking will continue its practice of rate flip-flopping.
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The fee we may impose will equal six months simple interest on the amount withdrawn subject to penalty.
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The fee we may impose will equal one year simple interest on the amount withdrawn subject to penalty.
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 a high priority. 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 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,
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).
It would be interesting to know how many iGObanking customers 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.
iGObanking is an online division of Flushing Bank (New York), 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.
An iGOira is the only account that can be opened by mail.
We do not accept applications via email at this time.
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 3.68% (excellent), based on December 31, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $198.67 million, an excellent annual growth rate of 6.4%. 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 $6.3 billion, Flushing Bank is the 18th largest bank in New York State and the 170th largest bank in the nation.
How the iGOCDs Compare
When compared to the 207 similar length-of-term CDs tracked by DepositAccounts.com that are nationally available and require a minimum deposit of $10k or less, iGobanking's 12-month iGOCD APY currently shares the top spot with EBSB Direct’s 14-month CD Special APY.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.20% APY||12-Month iGOCD||iGObanking|
|2.17% APY||12-Month CD||First Internet Bank|
|2.15% APY||1-Year CD||Live Oak Bank|
When compared to the 188 similar length-of-term CDs tracked by DepositAccounts.com that are nationally available and require a minimum deposit of $10k or less, iGobanking's 60-month iGOCD APY currently ranks third. When compared to internet banks, the 60-month iGOCD has the top rate; only credit unions have higher 5-year CD rates.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|3.00% APY||5-Year Term Deposit||Mountain America Credit Union|
|2.89% APY||60-Month Smart Certificate||United States Senate Federal Credit Union|
|2.87% APY||60-Month iGOCD||iGObanking|
To search for the best CD rates, both nationwide and in your state, please refer to our CD Rates Table page.
The above rates are accurate as of 3/23/2018.