Dime Direct Offers 5% APY 6-Month CD with Checking Account

Dime Direct, the online division of Dime Savings Bank of Williamsburgh is offering a 6 month CD with a 5% APY when opened with a checking account. The 5% APY is currently one of the best 6 month CD rates according to the BestCashCow rate tables.

There is a minimum deposit of $500 to open the CD. In order to get the 5% APY rate you must also open their Prime Dime Checking Account. You must keep $5,000 in the account to avoid a $15 per month maintenance fee. The checking account pays a 2% APY for balances under $2,000.

Is it worth it? I did a quick analysis and concluded that the extra yield on a $100,000 CD will pay out about $79 per month. If you then subtract the $15 per month you'll get $64 in profit. So, you'll earn an extra $385 over the course of the year. Of course, you have to invest up to the FDIC limit of $100,000 to get this return.

If you plan on opening a Dime account anyway, this seems like a given.

Application Process

The application can be filled out online and then must be printed and mailed back to Dime with a check, as well as a copy of a driver's license and a utility bill. Opening an account can take 7-10 days depending on mail speed.

The bank has a 4-star Bauer rating out of five stars.

• View the best 6-month CD rates