Availability:Residents of Arkansas, Arizona, California, Florida, Missouri, Nevada, New Hampshire, New York, Oklahoma, Texas, and Wyoming.
While I was working on the CD summary yesterday, I noticed that 3% CDs have once again become rare. Even the best brokered CD rates are no longer at 3%. Treasury yields are even worse with the 10-year Treasury note yielding less than 2%. Due to these low rates, I thought it was a good time to do another review of the long-term CDs at MidFirst Direct (internet division of MidFirst Bank, headquartered in Oklahoma). As of January 21, 2015, you can still get a 3% CD. MidFirst Direct’s 10-year CD has a 3.00% APY, and its 7-year CD has a 2.75% APY. Minimum deposit is $1,000, and the maximum deposit is $250,000.
|2.25%||$1k||-||MidFirst Direct||120 Month High Yield Online CD|
|2.00%||$1k||-||MidFirst Direct||84 Month High Yield Online CD|
One important thing to note regarding these long-term CDs is the harsh early withdrawal penalty. An early withdrawal from the 10-year CD can cost you 36 months of interest. For the 7-year CD, it’ll cost you 24 months of interest. Full details are listed in the bank’s Certificate of Deposit Disclosure. Another worrisome thing mentioned in the disclosure is that the bank reserves the right to refuse an early withdrawal request. Below is an excerpt from the disclosure:
Withdrawal prior to maturity. Depositor has contracted to keep the funds evidenced by this Certificate on deposit from the date the Certificate is funded until the Maturity Date of this Certificate. Acceptance of a request by Depositor for a withdrawal of some or all of the funds prior to the Maturity Date is at the discretion of the MidFirst Bank.
MidFirst Direct is the internet division of MidFirst Bank, which is headquartered in Oklahoma City. While most internet banks offer their services and products nationally, an account with MidFirst Direct is currently available only to individuals residing in certain states. If you live in a state that’s not eligible, you won’t be allowed to start the online application. The list of eligible states does include many states including the four largest states. The following is a list of the states that are eligible when I last checked:
Arkansas, Arizona, California, Florida, Missouri, Nevada, New Hampshire, New York, Oklahoma, Texas, and Wyoming.
In my last call with MidFirst Direct customer service, I was impressed by the CSR’s helpfulness. I was informed that opening an account with MidFirst Direct and funding the CD can be accomplished in one online transaction.
MidFirst (FDIC Certificate # 4063) has an overall health grade of an "A+" on DepositAccounts.com, with a Texas Ratio of 7.02% (excellent), as of September 30, 2014. MidFirst increased its total deposits by $244.67 Million in the past year, which represents an excellent growth rate of 4.38%. Please refer to our financial overview of MidFirst Direct for more details.
MidFirst Direct is the internet arm of MidFirst Bank, one of the largest privately owned banks in the United States. MidFirst Bank traces its roots to Midland Mortgage Company, which was founded in 1950 by a group of Oklahoma City area bankers. The name was changed to MidFirst Bank in 1982, following the purchase of a thrift charter. Through continued growth and market expansion, today’s MidFirst Bank has assets in excess of $9 Billion and 80 branch locations in Oklahoma and Arizona.
How the Rates Compare
These MidFirst Direct CDs have much higher rates than what’s nationally available. In fact, you can get a higher rate by going with a shorter-term. CIT Bank has a 2.40% APY on a Jumbo 5-year CD. Below is how MidFirst Direct’s High Yield Online CDs compare with CDs from competitors that are nationally available:
To search for nationwide CD rates and CD rates in your state, please refer to the CD rates section of DepositAccounts.com.