Cardinal Bank has two good deposit deals. The first is a CD special. It has a 3-year term and a 1.67% APY. Minimum deposit is $1,000, and the maximum is $1 million per household or business. New money is required (money not currently on deposit with Cardinal Bank). This special is also available in an IRA. Full details are listed in this bank’s promotions page as of 8/22/2014.
The other good deposit deal is a reward checking account. It’s called First Choice Checking. You can earn 1.01% APY on balances up to $100,000 when monthly requirements are met (as of 8/22/2014). This rate is lower than most reward checking accounts, but the balance cap is much higher than most. The rate has fallen in the last few years. I first reported on this account in January 2012 when the top yield was 2.01% for up to $100K. At least the balance cap has held.
First Choice Checking requirements are a little easier than the typical reward checking account. Cardinal Bank allows either one direct deposit OR 10 check card purchases per statement cycle. One downside with this account is that it has a potential monthly service charge. A $5,000 minimum daily balance must be maintained to avoid $15 monthly fee. Full details are listed in the bank’s First Choice Checking page.
Availability - Washington DC Metro Area Only
There's an online application for accounts. However, the first page of the application lists the following restriction:
Accounts opened online through cardinalbank.com are available to customers who reside in the Cardinal Bank market which includes the Washington DC metropolitan area of Virginia, Maryland and the District of Columbia.
Most of their branches are in Northern Virginia. Four branches are located in Washington D.C. and in Maryland.
Cardinal Bank has grown quite a bit. In the last year, it has increased its total deposits by $246 million (11%). The bank has an overall health grade at DepositAccounts.com of an A+ with a Texas Ratio of 1.32% (excellent) based on March 2014 data. Please refer to our financial overview of Cardinal Bank for more details. The bank has been a FDIC member since 1998 (FDIC Certificate # 34733).
How These Accounts Compare
For the 3-year CD, there are only a couple of nationally available 3-year CDs that have higher rates. One is a 3-year CD at Connexus Credit Union which has a 1.75% APY. However, this requires an active checking account. The other one is a special 35-month CD at USAlliance Credit Union which has a 1.71% APY. The highest 3-year CD rate at an internet bank is 1.50% APY. This is available with a $100K minimum deposit at CIT Bank.
For the First Choice Checking account, the only nationally available reward checking account with a comparable balance cap is the Rewards Checking account at Bank of Internet USA. This offers a 1.25% APY for balances up to $150K. This requires both direct deposit and debit card purchases.
The above rates are accurate as of 8/22/2014.