It has been about six months since Flushing Bank’s internet division, iGObanking, has had any new rate increases worth talking about. That changed yesterday when iGObanking raised the rate on the 24-month iGOCD (1.55% APY).
The minimum opening deposit is $1K and there is no maximum balance cap.
|1.25%||$1k||-||iGObanking||12 Month iGOCD|
|0.15%||$1k||-||iGObanking||24 Month iGOCD|
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may impose will equal six months simple interest on the amount withdrawn subject to penalty.
As long-time DA readers are aware, iGObanking has a reputation for quickly raising and lowering rates on CDs. Six months ago, iGObanking raised the rate on its 12-month iGOCD to 1.25% APY, and that rate is still in effect today. This extended rate hold represents the longest time frame for a competitive APY on the 12-month CD: in the past five years, the higher APYs have only lasted about ten 10 days.
While not as volatile as the 12-month iGOCD, the rate on the 24-month iGOCD has bounced up and down in the past two years, as illustrated by the chart below.
While iGObanking has offered good deals on an array of CDs in the past, there is always a risk of being stuck in a low-rate CD, if a high-rate CD automatically rolls over. As DA readers know, being vigilant about monitoring your investments is important, but in the case of iGObanking, it’s almost a necessity.
If your CD renews automatically at maturity, the interest rateiGOsavings Account
will be the prevailing renewal rate in effect at maturity.
In September 2014, iGObanking raised the rate on the iGOsavings account to 1.00% APY and that rate is still in effect. The previous rate (0.25% APY) had been in place for more than two years.
There is no minimum balance requirement to earn the 1.00% APY, which is good, considering iGObanking’s propensity for roller coaster rates. With no other stated restrictions or fees, closing this account should not be difficult, if the rate should drop to its earlier 0.25% APY.
According to iGObanking’s High Interest Savings Account page:
That’s right. No fees, no minimums, and a 1.00% APY.iGOmoneymarket Account
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.
Many thanks to DA reader, cumulus, for his Forum post about this new 24-month CD rate.
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.
iGobanking (FDIC Certificate # 58564) has an overall health rating of "A" on DepositAccounts.com, with a Texas Ratio of 5.89% (excellent), based on December 31, 2015 data. In the past year, iGobanking has increased its total deposits by $381.84 Million, an excellent 10.86% annual growth rate. Please refer to our financial overview of iGObanking for more details.
As mentioned earlier, iGObanking (established in 2007) is the online division of Flushing Bank, a New York financial institution founded in 1929. With assets in excess of $5.7 Billion, Flushing Bank is the 20th largest bank in New York State and the 179th largest bank in the nation.
How the CD Compares
When compared to the 130 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationally, the iGobanking's 23-month iGOCD currently ranks first.
The above rates are accurate as of 3/28/2016.