Palladian Private Bank, a division of The PrivateBank and Trust Co. is offering a very competitive 1.70% APY savings account rate. That's one of the best savings account rates according to the BestCashCow rate tables. The bank is also offering a competitive 1-year CD that pays 1.90% APY.

Details of the offer include:

• Available nationally
• Minimum deposit of $10,000
• Account can be opened online and funded via ACH from another online account
• CD APY is effective for 14 calendar days from the date on which the application is receiced.
• No POD beneficiaries

Palladian's parent, the PrivateBank was founded in 1989 and has approximately 800 employees. PrivateBank has $12.1 billion in assets and 3/12 out of 5 stars according to Bauer Financial for its safety and soundness.

As a note, Palladian Private Bank seems a bit well, private. There is no mention of it on the PrivateBank website. I did call PrivateBank to confirm that Palladian Private Bank is a legit subsidiary.

The Fed today released a statement saying that it was raising the Discount Rate, the rate it charges banks for overnight loans, from .50% to 0.75%. This change was expected and the Fed was careful to point out that it still expects to keep the more influential Fed Funds rate low for some time.

Here's the statement from the Fed on how the rate change will impact consumer interest rates:

"Like the closure of a number of extraordinary credit programs earlier this month, these changes are intended as a further normalization of the Federal Reserve's lending facilities. The modifications are not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or for monetary policy, which remains about as it was at the January meeting of the Federal Open Market Committee (FOMC). At that meeting, the Committee left its target range for the federal funds rate at 0 to 1/4 percent and said it anticipates that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period."

As this article points out, the discount rate is not as influential as the Fed Funds rate in impacting interest rates and monetary policy. Nevertheless, there was a reaction in financial markets today. The dollar spiked and stocks retreated while in bond markets, Treasury prices fell and yields moved higher. These are all typical responses to anticipated higher interest rates.

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.