Quaint Oak Bank used to accept out-of-state deposits, but that ended last year. They still accept applications by mail for Pennsylvania residents. That allows PA residents to get a good deal for a 5-year CD. Quaint Oak is offering a 2.05% APY 5-year CD and IRA CD. Minimum deposit is $500. This rate is listed in the bank's rates page as of 6/12/2012.
Early Withdrawal Penalty
The early withdrawal penalty is listed in the bank's CD application form. Here's an excerpt:
If we consent to a request for a withdrawal that is otherwise not permitted you may have to pay a penalty. The penalty we may impose will equal interest for fifty percent (50%) of the term plus any accrued interest. Example: six (6) month certificate, penalty equals interest for fifty percent (50%) of six (6) months or 3 months. If we consent to a withdrawal the entire principal balance must be withdrawn.
Unfortunately, it's a harsh penalty, and they maintain the right to refuse an early withdrawal request. For a 60-month CD, the penalty would equal 30 months of interest.
Competitive Savings Account
Quaint Oak Bank is also offering a competitive savings account. It's called eSavings, and it has a 1.00% APY for balances of $25 to $250,000. This rate is also listed in the bank's rates page as of 6/12/2012. It's designed as an internet savings account with deposits and withdrawals done via ACH bank-to-bank transfers.
As I mentioned above, Quaint Oak Bank only accepts deposits from Pennsylvania residents. If you don't live near a branch, you can download the forms for account opening in the bank's forms page. At the bottom of this page they provide instructions for completing and submitting the forms. An Application and check for the opening deposit can be mailed. If you choose to fax or e-mail a deposit account application, a customer service representative will contact you to coordinate the opening deposit.
This is a small bank with two branches in Pennsylvania. The bank has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 21.91% (average) based on March 2012 data. Please refer to our financial overview of Quaint Oak Bank for more details. The bank has been a FDIC member since 2000 (FDIC Certificate # 35497). It's interesting to note that the bank was established in 1926 even though it didn't become a FDIC member until 2000.
How These CD Rates Compare
Finding a 2% 5-year CDs is becoming difficult. Another option for PA residents is Police and Fire FCU which has a 2.00% APY 5-year CD. The rate may be lower than Quaint Oak's CD, but it has a smaller early withdrawal penalty of 360 days of interest. Anyone in PA can qualify for membership in this credit union (see review).
For those who live in Philadelphia, you may be able get much higher 5-year CD rates. Ukrainian Selfreliance Credit Union is offering a 2.50% APY 5-year CD and Eagle One Credit Union is offering a 2.27% APY 5-year CD. Both have limitations to their membership so not everyone in Philly will be able to qualify.
There are two banks in Philly which offer 2.10% APY 5-year CDs. These are Asian Bank and Port Richmond Savings. Both are small banks which just once office. However, as a bank, you don't have to worry about limited membership requirements.
These rates are accurate as of 6/12/2012.
Searching for the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.