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Fed Meeting Preview and Deposit Rate Forecast - March 15, 2023IRA CD Specials at Dime Savings Bank in New York - Available Nationwide
Dime Savings Bank is again offering IRA CD specials. Like last year, there's a 15-month IRA CD. Of course, the rate is much lower, but it's competitive in today's environment. Unlike last year, there's also a 5-year IRA CD special. The 15-month IRA CD has a 1.25% APY, and the 5-year IRA CD has a 2.25% APY. New money is required. Minimum deposit is $500, and the maximum deposit is $250,000. These rates are listed in Dime's 15-month promo page and the 60-month promo page as of 3/1/2012.
I was told these specials are scheduled to last until April 17th (the last day to make a 2011 IRA contribution). However, last year they pulled the IRA special about 3 weeks early. So these could also end early.
According to the customer service representative, these IRA CD specials are available nationwide. Accounts can be opened by phone. If you don't open the account at a branch, they do require you to mail or fax copies of your driver's license and utility bill. Additional forms may be required depending on if the IRA will be opened as a trustee-to-trustee transfer or a rollover.
The bank also has a competitive 7-year CD rate of 2.05% APY (competitive as compared to other banks). This rate is listed in the bank's rates page as of 3/1/2012.
According to the CD disclosure, the early withdrawal penalty is harsh (2 years of interest) for terms of 3 years or more.
Dime Savings Bank branches are located throughout the Greater New York metro area.
Dime Savings Bank has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 7.89% (excellent) based on December 2011 data. Please refer to our financial overview of Dime Savings Bank for more details. The bank has been a FDIC member since 1943 (FDIC Certificate # 16012).
How These CD Rates Compare
Dime's 15-month IRA CD special tops the best nationally available 1-year and 18-month IRA CD rates. For 1-year, the best rate is 1.10% APY at Melrose Credit Union. For 18-months, the best rate is 1.15% APY. That's available at Alliant Credit Union.
Dime's 5-year IRA CD special is close to the best nationally available 5-year IRA CD. That rate is 2.27% APY at Melrose Credit Union.
These rates are accurate as of 3/1/2012.
Searching for the Best IRA CD Rates
To search for the best nationwide IRA CD rates and the best IRA CD rates in your state, please refer to the IRA CD rates section of DepositAccounts.com.
a form must be mailed (not faxed) to you by them, and mailed back after signing. Thus, if you live in an outlying part of the country and wait until your maturity date to phone them regarding closing the account, it will certainly be at least a week, maybe longer, before you see your funds. You won't earn interest during that time, and there is the possibility that your paperwork will arrive back in Brooklyn after the ten-day grace period, thereby causing your CD automatically to renew at an unfavorable rate.
The maturity notice that they mail a month ahead of time makes absolutely no mention of this paperwork process, and gives no warning that one should contact them well in advance of maturity if one wants to close the account on the maturity date.
you have to be especially careful to make sure the bank completes the paperwork properly if you are taking your money out as a standard (or normal) distribution with the intention of rolling it over elsewhere within 60 days. I've had banks inadvertently check the "Minimum Required Distribution" box on account closing forms. If not not caught, this could cause serious issues with the IRS at tax time as the withdrawal would have to be declared as income.
So, make sure you start early with DIME. This is one of few banks that MUST have original documents/forms, not faxes, no wires, no ACH.