6.00% 72-Month CD at a Georgia Bank (Monroe County).


Update 8/2/08: The special CD is no longer listed at the bank's website.

Monroe County Bank is offering a special 6.00% APY 6-year CD. The minimum deposit is $25,000.

This special is listed at the top of the bank's rates page, but there aren't any details. So I called this afternoon and was told of the $25K minimum deposit. Interest can be paid monthly or quarterly. Unfortunately, the early withdrawal penalty is kind of strange. I was told it's equal to 3/10'th of the interest of the remaining term. So if you decide to close it with 5 years to go, you'll lose 1.5 years of interest. I didn't spend too much time confirming this penalty, so you may want to verify this yourself.

The other downside is that they require a branch visit to open accounts. Branches are located in Forsyth and Bolingbroke, Georgia which are just northwest of Macon. Update 7/26/08: A reader also reported being told by the bank that you must live in their market area which they define as middle Georgia. If you're considering driving a long distance to one of these branches, I recommend calling the branch first.

The bank has a 3-star rating (performing) at Bankrate and a 4-star rating (excellent) at BauerFinancial. Both are based on 3/31/08 data. The bank has been FDIC insured since 1934 (FDIC Certificate # 156).

Thanks to the reader who mentioned this CD special in the Finding the Best Deals post.

Other High Certificate of Deposit Yields

It's nice to see 6% CD rates again. For nationwide deals, the best long-term rate that I have in my latest weekly rate summary is around 5.25% APY from Wachovia, KeyDirect and Capital One. I just noticed that Capital One just increased the rate on its 7-year CD to 5.40% APY.

Of course with rates going up and the possibility that inflation could force rates much higher, locking into a long-term CD is a bit worrisome. That's why the early withdrawal penalty is important to consider.
Anonymous   |     |   Comment #1
I just called and spoke with a bank rep, and she told me that this CD special is only available to residents in their market area, which they consider to be middle Georgia.