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UmbrellaBank Raises CD Rates


UmbrellaBank has increased its CD rates. It's now offering a 4.00% APY 12-month CD. The following shows all the terms with yields 4% or higher:

Term APY
1 year 4.00%
1.5 year 4.10%
2 year 4.25%
2.5 year 4.25%
3 year 4.35%

A description of the basic CD features is available at UmbrellaBank's CD overview page. More details are in their Truth in Savings Disclosure. Some of the important features include:
  • $1,000 minimum deposit
  • Monthly or quarterly interest checks available
  • Paper certificate issued and mailed to you upon activation of the account
  • Early withdrawal penalty for terms of one year or more is at least 180 days of interest on amount withdrawn (There's a long paragraph in the disclosure describing this)
  • 10 calendar-day grace period in which you can close a CD at maturity without penalty
  • If CD is not renewed at maturity, no interest will be paid on the account during the grace period
  • Funding can be done by mailing a check or wire transfer (see FAQ).
  • Incoming wire transfers are free. Domestic outgoing wire transfers cost $25 (see fee schedule

UmbrellaBank still has a competitive money market account. The yield is currently 3.40% APY for balances of over $1,000. Unlike most online savings accounts, this money market account has limited check writing. Please refer to this UmbrellaBank money market review for more details.

UmbrellaBank is the online banking division of New South Federal Savings Bank (which has since failed). You can find UmbrellaBank mentioned by the CEO in the 2005 annual profile (pdf). New South Federal is FDIC insured (FDIC certificate # 32276). It doesn't have a history of high ratings at Bankrate.com. Currently, it only has 1 star (lowest) based on 12/31/07 data. The rating at BauerFinancial is a little better with 3 stars (adequate) based on 3/31/08 data.

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