Every now and then Doral Bank Direct offers competitive CD rates. Its latest deal is a 1-year CD with a 1.40% APY. Minimum deposit is $1,000. This is the only rate that's competitive. All the other CD rates are low. These rates are listed in the bank's CD page as of 3/29/2011.
My last report on this bank was about a year ago when they were offering a 1-year CD special. One odd thing is their requirement to close out a CD. You have to send them the original Certificate that was sent to you with your Welcome Package. Please refer to my last year's Doral Bank Direct CD review for more details.
One thing that has changed since last year is that they don't offer the CDs in all states. According to the small print:
At this time, we are unable to offer this product to the following States: Alabama, Arkansas, Connecticut, Georgia, Kentucky, Louisiana, Maine, Mississippi, Missouri, Nebraska, New Hampshire, North Carolina, Ohio, Pennsylvania, Tennessee, Vermont, Virginia and West Virginia.
Update 5/21/2011: Doral Bank now states "We are currently offering this deposit product to all 50 States". However, please note the comments below relating to their customer service.
Another change is that they switched the bank that holds the Doral Bank Direct deposits. Here is what described on the bank's front page:
On Wednesday, March 23, 2011 this site was transferred to our affiliate, Doral Bank, a state chartered non-member bank regulated by the Federal Deposit Insurance Corporation and the Commissioner of Financial Institutions of Puerto Rico. Both Doral Bank and Doral Bank, FSB are wholly owned subsidiaries of Doral Financial Corporation.
Doral Bank is a commercial bank with 34 branch offices in Puerto Rico. Doral Bank s total assets and deposits as of December 31, 2010 were $7.7 billion and $4.5 billion, respectively.
New Customers (Accounts opened on or after March 23, 2011)
If you open an internet bank account through this site, your account will be domiciled in and serviced by Doral Bank.
Existing Customers (Accounts opened prior to March 23, 2011)
Your account will continue to be domiciled in and serviced by Doral Bank, FSB. You can access your account on-line through www.doralbankny.com
Doral Bank is financially weaker than Doral Bank, FSB. Doral Bank has a Texas Ratio of 78.22% (below average) while Doral Bank, FSB has a Texas Ratio of 26.31% (average). These are based on December 2010 data.
How It Compares?
For a nationally available CD, the best 1-year CD rate from a bank is currently 1.25% APY at Ascencia Bank. From a credit union, the best 1-year CD rate is 1.55% APY at RTN Federal Credit Union ($50K minimum) and 1.75% APY at Connexus Credit Union (with an active checking account).
Searching for the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.