Ohio-based Nationwide Bank raised the rates on its 12-month CD (1.46% APY) and 24-month CD (1.66% APY) yesterday. The minimum opening deposit to earn these APYs is $100k, with no stated balance cap. Of the two, the 12-month CD is the more competitive.
Nationwide Bank CDs are also offered with APYs a uniform 5 basis points lower for deposits of less than $100k.
The 12-month CD was added to the product line in March 2010 and has had more than 25 rate changes since that time. Yesterday’s increase of 41 bps has resulted in the highest rate in nearly seven years.
The CDs are also offered as IRAs (Traditional, Roth, CESA, and SEP), earning the same tiered APYs with the same funding requirements.
As stated in the Terms and Conditions brochure, the Early Withdrawal Penalty reads as follows:
If your account has an original maturity of six months, but less than 24 months: The fee we may impose will equal 90 days’ interest on the amount withdrawn subject to penalty.
If your account has an original maturity of two years, but less than four years: The fee we may impose will equal 180 days’ interest on the amount withdrawn subject to penalty.
Headquartered in Columbus, Ohio, Nationwide Bank is an internet bank that has no brick-and-mortar branch locations. Its product line (including CDs) is available nationally, and must be opened using the Bank’s online application.
According to Nationwide Bank’s FAQ:
To open a certificate of deposit account with another person, you will need to have that person's ID and residence information, too.
You can use our online application to open an individual or joint account with Right of Survivorship and with up to three co-signers.
You'll need to fund your account with an initial deposit that you can electronically transfer from another personal bank account or send by check.
Nationwide Bank has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 1.61% (excellent) based on March 31, 2017 data. Nationwide Bank has an average capitalization level (8.43%), the result of holding $7.19 billion in assets with $505.49 million in equity. Please refer to our financial overview of Nationwide Bank (FDIC Certificate # 30470) for more details.
While Nationwide Bank was established 19 years ago as the Nationwide Trust Company, its roots can be traced back to Nationwide Corporation, an auto insurer for farmers in Ohio in the 1920s. The name was changed to Nationwide Bank in 2007 when the Bank began offering products to the public. Nationwide Bank is currently Ohio’s eighth largest bank with assets in excess of $7.1 billion and nearly 120,000 customer accounts throughout the country.
How the CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, Nationwide Bank’s 12-Month CD APY currently ranks fourth.
The above rates are accurate as of 6/28/2017.