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3.71% 12-Month CD and Other High-Yield Internet CDs at City Bank


Update 2/12/09: The CD rates have fallen, but they remain competitive. Refer to the bank's website for the latest rates.

City Bank is having a grand opening special for its eBranch. The bank is offering several very competitive CD rates. The most competitive include a 3.51% APY for 6 months, a 3.71% APY for one year and a 4.06% APY for 2 years. Minimum deposit is $500. Higher rates are available for Jumbo CDs with a $100,000 minimum. The most competitive Jumbo CD rates include a 3% APY 3-month CD and a 3.91% APY 12-month CD. One very nice feature for CDs with terms under 24 months is the option to add to the balance twice during the term. This makes the one-year CD an especially hot deal.

Below is the full list of the online CD rates:

Online Personal CD rates as of 1/31/09:

90 days 2.23% 2.25%
6 months 3.45% 3.51%
1 year 3.64% 3.71%
2 years 3.98% 4.06%
3 years 3.69% 3.76%
4 years 4.17% 4.26%
5 years 4.41% 4.51%

Online Jumbo Personal CD rates as of 1/31/09:

90 days 3.00%
120 days 3.00%
150 days 3.25%
180 days 3.50%
270 days 3.40%
1 year 3.91%

These rates are listed in the bank's rate table (pdf) as of 1/31/2009. The rate table has an effective date of 1/21/2009. This Grand Opening special is advertised on the lower left of the bank's home page.

Customer service for account opening questions is only available during normal business hours, so I wasn't able to get additional details of these CDs and the account opening process.

The "Open an Account" link is on the upper right of the bank's home page. The application appears to allow ACH funding from another bank account. Update: A reader who completed the application was notified by the bank that accounts are only available to Washington State residents.

City Bank is based in Lynnwood, Washington. It's a moderate size bank with 8 branches and $1.3 billion in assets. Its ratings for safety and soundness are weak: 2 stars (problematic) at BauerFinancial and 1 stars (lowest) at Bankrate.com. These ratings are based on 9/30/08 data. The bank has been FDIC insured since 1974 (FDIC Certificate # 21521).

Credit for the find goes to FW member hackwork who posted this in the FW CD thread.

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Anonymous   |     |   Comment #1
The website says FDIC but I couldn't find CityBank listed on FDIC institution list.
Anonymous   |     |   Comment #2
You have to put a space between City and Bank. It's there. And getting my money very soon.
Banking Guy
Banking Guy (anonymous)   |     |   Comment #3
Regarding the FDIC info, the link to the FDIC page is at the bottom of the post with the text: FDIC Certificate # 21521. This page is useful to verify the bank's URL. You can also use the FDIC Certificate # to search for the bank. It's often hard to find a bank in the FDIC database using the bank name when name is too common.
Anonymous   |     |   Comment #4
The CD is available to Washington State residents only.

You have to finish filling the online application completely before you are notified that it is not available outside washington state.
Anonymous   |     |   Comment #5
Would not accept my application from NY.
Anonymous   |     |   Comment #6
Ticker symbol CTBK. Will get one early next week when my BOA CD matures. 6 monther! Thanks!
Banking Guy
Banking Guy (anonymous)   |     |   Comment #7
Thanks for the reporting the out-of-state restriction. You would think they would more clearly state this restriction at the start of the application.
Anonymous   |     |   Comment #8
Finaly received an email saying thanks for applying and the trial deposits will occur the next few days. Noticed the rates dropped today. Will call before verification to see if the app locked in the rate or if it is funding date.