3.25% 49-Month IRA CD at Spencer Savings Bank in Northern NJ - Local Only

POSTED ON TUESDAY, FEBRUARY 16, 2010 BY Ken Tumin

Spencer Savings Bank is offering a competitive 3.25% APY 49-month IRA CD. Unfortunately, it's not available as a regular CD. Minimum deposit is $500. This rate is listed at the bank's IRA rates page as of 2/16/2010. This same rate is also listed in the Coverdell Education Savers rate table.

One flexible IRA CD feature mentioned in this bank's page includes:

One term change is allowed per year for customers over age 59 1/2 years of age without penalty.

I'm not sure exactly what this means. It sounds like you are allowed to change to a shorter or longer term CD. Changing to a short-term CD could come in handy if rates go up.

There's an online application but it states that you have to visit a branch with two forms of ID to complete the application. Branches are located in 18 Northern New Jersey cities.

The bank's ratings for safety and soundness are above average: 5 stars (superior) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 9/30/09 financial data. The bank has been a FDIC member since 1939 (FDIC Certificate # 30076).

Comments

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3 Comments.

Anonymous | Feb 16, 2010 | Comment #1

Hudson City Savings Bank which is also in North Jersey has a 4 year 3.15% CD.

Anonymous | Feb 18, 2010 | Comment #2

A branch manager told me you can switch once each year after the first year ends to a different term of 12 months or more.

Wil (anonymous) | Feb 25, 2010 | Comment #3

You can get a 48-month CD at 3.25% APY at Bogota Savings Bank (branches in Bogota and Teaneck, NJ), which serves the same North Jersey market as Spencer Savings, if interested in a regular (non-IRA) CD. By the way, Indus American Bank's 30-month CD at 3.00% APY is still available for New Jersey residents (according to Bankingmyway.com).