CNB Bank Direct today raised the rates on its 12,18, and 24 month certificates of deposit. It's a welcome change from the constant rate decreases we've seen over the past year. The new cd rates are very competitive according to the BestCashCow rate tables. This offer is not for everyone though and is not visible on the homepage. To see it, you must login to online banking. You do this by having an high yield online savings account. So, a prerequisite for opening a high yield CD is first having a high yield savings account. The savings account currently offers 1.5% APY which is amongst the best savings account rates. There is also a minimum deposit of $25,000 to receive these rates.
Available Terms and Rates*
12 Month Certificate of Deposit 1.65% APY**
18 Month Certificate of Deposit 1.85% APY
24 Month Certificate of Deposit 2.15% APY
*Rates effective as of February 9, 2010. **Annual Percentage Yield
So, here's how to open the savings account and the CD:
1. Open the savings account online and fund electronically.
2. It will take 3-4 business days to open the account and fund it.
3. CNB then puts a 10 day hold on the money so it can't be withdrawn or technically used to open a CD, even at the bank.
4. You would apply from within online banking for the CD during this period. Once you sign the account agreement, the rate locks, even if the funds are not yet available. The CD gets opened.
5. Once the hold expires, the funds become available to be deposited into the CD.
So, it looks like it will take 6-7 days for a CD to become opened and locked. Obviously, if you already have a savings account with CNB Direct this process is much easier and faster. You can skip right to step 4.
CNB Direct is a division of Citizens National Bank, based in Bluffton, OH. Citizens National Bank was founded in 1920 and as assets totaling more than $481 million with 7 physical locations in Ohio: Bluffton, Lima, Elida, Van Wert, Celina, Findlay and Springfield. The bank is FDIC insured.
Their high yield savings account has received generally positive reviews on BestCashCow.
Comments
Retiredat30
February 18, 2010
I received an email regarding this offer today. I was surprised as they just launched the cd a week or so ago and had emailed me lower rates then. I wonder how this cd product will fare for the savings account they offer. Seems like most banks that offer a savings and then a cd start reducing the savings rate over time to attract ppl to move. The $25,000 requirement seems a bit steep as there are other online cd offerings of comparable rates with much lower minimums.
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