Bank of Internet Offers Competitive Rates, Including 2.540% APY on a 60-Month CD

Everyone has noticed that good CD rates are getting harder and harder to find. Many of the best rates out there that are offered by Internet-only banks, generally because they are able to keep their overhead costs down easier since they only operate on the Internet. One bank prides itself so much on being an Internet-only bank even has the name Internet in its title: Bank of Internet.

Bank of Internet is headquartered in San Diego, California, and it has been FDIC insured since 2000. Their CD rates rival some of the best offered today: 1.110% APY on a 6-month CD, 1.410% APY on a 12-month CD, and even 2.540% APY on a 60-month CD. Interest is compounded daily, it offers free electronic transfer of interest, and gives an auto renewal with a 10 day grace period. Of course, there are fees for early withdrawal of principle before the maturity date. A $1,000 minimum balance is required for all CD products. This bank also offers free online checking and ATM refunds as long as your balance is $5,000 or more with a 0.71% APY (with a $500 minimum opening deposit) and it has an online savings account that pays 0.75% APY with the $100 minimum opening deposit.

Of course, not everyone is comfortable with the idea of having an account at a bank with no physical offices that they could visit. Bank of Internet does offer telephone customer service, so you would be able to speak with somebody over the phone. However, if you like doing business the face-to-face the old-fashioned way, this could be a poor substitution. Before you pick the right banking account for you, you should consider not only the bank’s rates, but also consider how comfortable you would be with the bank’s format.

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