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4.25% 9-Month CD at Dime Savings Bank - Nationally Available


Update 11/20/08: The 9-month CD yield has fallen again. It's now 4.05% APY.
Update 11/19/08: The yield on the special 9-month CD has fallen from 4.25% to 4.15% APY.

Dime Savings Bank has started offering a competitive 9-month CD with a yield of 4.25% APY. The minimum deposit is $500. Unlike Dime's 5% 6-month promotional CD (see post), this one does not require a checking account. Also, this CD is available to people in any state according to the banking rep.

The 4.25% CD is advertised at the bank's home page. This links to an online application. I was told that it can be funded by either an ACH transfer or by check. At maturity, you have 10 calendar days of grace period to close the CD without penalty. If you can't make it into a branch, they require signed written instructions (mail or fax) to close the CD. The early withdrawal penalty is one month of simple interest.

For those who don't want to hassle with that promotional 5% 6-month CD deal that requires a checking account with a high minimum balance requirement, this is a good deal. The 4.25% APY is one of the highest yields for this term available from a bank.

Branches are located throughout the Greater New York metro area.

Dime Savings Bank has some solid financial ratings for soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 6/30/08 data. It has been FDIC insured since 1943 (FDIC Certificate # 16012). It's based in Brooklyn, New York, and it has $3.7 billion in assets.
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Anonymous   |     |   Comment #1
According to the Account Disclosure, "Principal may not be withdrawn from your Certificate before the account maturity date, [sic] unless the Bank consents to the withdrawal."
Anonymous   |     |   Comment #2
What kind of credit pull they do?
Banking Guy
Banking Guy (anonymous)   |     |   Comment #3
I've been told in the past that they only do a ChexSystem check with no hard credit pull during the application.
Anonymous   |     |   Comment #4
Have you noticed that the GE Interest Plus corporate bonds are now FDIC insured?
Anonymous   |     |   Comment #5
Quote: "Have you noticed that the GE Interest Plus corporate bonds are now FDIC insured?"

Where can I find more information on this?
Anonymous   |     |   Comment #6

The bonds are still unsecured corporate debt insturments. Also, the insurance coverage is temporary and is probably an attempt to prevent a "panic mob mentality" withdrawal incident with the fund. I had investments in the GMAC Demand Notes and Ford Interest Advantage programs last year and got all of my money out from them.
Bozo (anonymous)   |     |   Comment #7
"Dime Savings Bank", ah, the name itself brings back . . . images of the Great Depression. But then, I also remember (as a schoolchild) the dime-saver folders passed out in school. There was room for fifty dimes. The concept was to save a dime a week, and at the end of the year you would have $5.00. Prudently invested, the $5.00 would grow to . . . $5.50! We're talking Ozzie & Harriett here, or Leave it to Beaver.
Bozo (anonymous)   |     |   Comment #8
The more I think about it, that's also the concept behind the "March of Dimes", where kids (like your old Bozo) would contribute $.10/week (i.e., a dime) from their allowances to fight polio. People have somewhat forgotten about polio (thank goodness, I guess). But I still remember when my best friend across the street woke up one morning, tried to get out of bed, and his legs collapsed. We were both eight years old. He got it, I didn't.

I got the vaccine a few months later.

Anonymous   |     |   Comment #9
APY dropped to 4.05% as of 11/20/08.