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5.50% 25-Month / 5.30% 7-Month CD at Key Bank in Some States


Update 1/12/08: These CD rates have gone down. Please check the website for the latest rates.

KeyBank has a promotion called Great CD Rates for '08 with some very competitive rates. It does require a money market relationship. The rates only seem to be available in 12 of the 13 states where they have branches (excludes Florida). You can see if they're available in your area by clicking on the Great Rates banner on KeyBank's homepage and entering in your zip code. The rates vary by state. Five states have a top yield of 5.50% APY. The other 7 states have a top yield of 5.30% APY. Below is the full list of rates by tiers and states.

Minimum APY for APY for
Balance 25-35mo 7mo

$2,500 5.35% 5.15%
$10,000 5.40% 5.20%
$25,000 5.50% 5.30%

The above rates apply to the following states:
New York

Minimum APY for APY for
Balance 25-35mo 7mo

$2,500 5.15% 4.85%
$10,000 5.20% 4.90%
$25,000 5.30% 5.00%

The above rates apply to the following states:

Note, not all areas of the above states may qualify. I just entered at least one zip code from each of the states. The maximum deposit for these CDs is $100,000. These rates are also available in an IRA CD.

You must open a Key Privilege Select, Key Privilege or Key Advantage Money Market checking account. The Key Advantage Money Market has the smallest minimum combined balance requirement ($10,000) to avoid a monthly fee.

Thanks to the reader who emailed me info on this promotion.

KeyDirect CD Rates

For those not in the above states, you can open a CD online at KeyDirect. The best rates at KeyDirect include a 5.20% APY 6-month CD, a 5.25% APY CD with terms from 30 to 47 months and 60 to 72 months, 5.50% APY CD with terms from 7 to 9 years, and 5.70% APY 10-year CD. The minimum deposit is $5,000. Rates are a little higher for a minimum deposit of $50,000.

KeyDirect also has a competitive online money market account with a yield currently at 4.75% APY. Please see this post for more details.

KeyBank's Safety

KeyBank is FDIC insured (Certificate # 17534). It's a large bank with $93 billion in assets and $65 billion in deposits based on 9/30/07 data. It has a 3 out of 5 star rating (performing) at Bankrate and 4 out of 5 stars (excellent) at BauerFinancial.

Related Pages: KeyBank, CD rates

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Anonymous   |     |   Comment #1
Dear Banking Guy:

FYI, the Bank of Illinois in Normal, IL has a 'VIP Elite Checking Account' which pays 5.5 APY and compounds monthly.

great site, and keep up the good work.

Kate (anonymous)   |     |   Comment #2
Sounds good, and I intend to open an account when another CD I have matures in a few days. Does anyone know what the funding options are, i.e., if we can do ACH transfer from another institution?
Kate (anonymous)   |     |   Comment #3
Well, I called to open a CD and a a Key Privilege checking account (which can't be opened online) last night and am awaiting receipt of the paperwork. Unfortunately they don't allow funding of CDs by ACH transfers and require you to send in a check with the paperwork. It looks like I was just in time (I hope!) as I just checked right now and found that the rate for 25-35 month CDs, at least in NY state, has gone down to 5.15% APY! :-(
Banking Guy
Banking Guy (anonymous)   |     |   Comment #4
Thanks for the info and update. Sorry to see the rates go down. Hope they honor the higher rate for you.
Kate (anonymous)   |     |   Comment #5
The person I spoke with over the phone Friday night did say that they will honor the 5.50% APY rate as long as they receive my funding check within 10 days. I was trying to convince them to let me do an ACH transfer to fund the CD to ensure the CD is funded as soon as possible, but they wouldn't budge. Well, I just hope the postal service will deliver in time and Key won't give me trouble about getting the higher rate.
Kate (anonymous)   |     |   Comment #6
Update: finally my CD got opened all right and I am getting the higher 5.50% APY rate. Quite a relief. But the opening process was slow and glitchy. I did not receive all the paperwork until last weekend, and I also got errors when I tried to enroll in online banking and had to call them and wait a long time before my online access got set up all right. My checking account is still not showing up in their system, and the customer service people said that the department that handles it is open only Monday through Friday. I opened up the checking account only because it was required to get this CD, so I wouldn't mind that much if the checking account never gets opened if the CD has no problems. But the account opening process has been annoyingly slow and cumbersome so far.
Banking Guy
Banking Guy (anonymous)   |     |   Comment #7
Thanks for the new update. Glad to read you got the 5.50% APY. After last Tuesday's massive Fed rate cut, I don't think we'll see another 5.50% CD deal for a long time.