Cardinal Bank Offering Special 3-Year CD - 1.67% APY

Cardinal Bank Offering Special 3-Year CD - 1.67% APY

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Cardinal Bank is offering a special 3-year CD that pays 1.67% APY. That's higher than any of the online CDs and one of the highest CD rates for that term anywhere in the country.

 

Cardinal Bank is offering a special 3-year CD that pays 1.67% APY. That's higher than any of the online CDs and one of the highest CD rates for that term anywhere in the country. You can view online rates here to compare.

The minimum balance on the CD is $1,000 and the maximum is $1,000,000.

Now the major limitation. You must live close to a Cardinal Branch in order to open the CD. Their branches are located close to Washington D.C. in Maryland, Northern Virginia, and the District itself.

Don't Live Near a Cardinal Branch?

If you don't live near a Cardinal Branch, there are still many competitive online and local rates that you can take advantage of. Search our database of millions of bank rates to find one close to you. By taking a few minutes to search, you can potentially increase your return by 10X and that can add up, as shown by our Savings Booster Calculator.

 

 

 


CIT Launches New RampUp Flexible CD Products

CIT Launches New RampUp Flexible CD Products

Rate information contained on this page may have changed. Please find latest cd rates.

CIT Bank today launched a new RampUp line of flexible CD products. Three and four year RampUp CDs provide holders with a one-time opportunity to lock into a higher CD, if CD rates rise, during the term of the product. One and two year CD products are called RampUp Plus. In addition to the one-time rate increase, depositors can also do a one-time added deposit during the life of these terms.

CIT Bank today launched a new RampUp™ line of flexible CD products. Three and four year RampUp CDs provide holders with a one-time opportunity to lock into a higher CD, if CD rates rise, during the term of the product. One and two year CD products are called RampUp Plus. In addition to the one-time rate increase, depositors can also do a one-time added deposit during the life of these terms.

CIT had previously had an adjustable 2-year CD called the Achiever CD. The RampUp products replace this and expands the product to the other terms.

In the table below, I have done a comparison of a 2-year RampUp Plus CD and a regular CD as well as a 4-year RampUp CD and a regular 4-year CD.

Product

APY

Minimum Balance

Ability to increase APY

Ability to add funds to CD

CIT 2-Year RampUp Plus

1.20%

$25,000

Yes

Yes

CIT 2-Year Regular CD

1.25%

$100,000

No

No

CIT 4-Year RampUp CD

1.70%

$50,000

Yes

No

CIT 4-Year Regular CD

1.80%

$100,000

No

No

Looking at the chart, the difference between the 2-year RampUp and a regular jumbo CIT CD is 5 basis points, the difference between the 1.25% and the 1.20% APY. To put a dollar cost to this, on a $100,000 deposit, you will be paying about $25 per year for the RampUp flexibility and $71 over the 2-year term if the rate doesn't reset.

The difference for the 4- year CD is 10 basis points. On a $100,000 deposit you will be paying about $70 per year for the RampUp flexibility and over the life of the CD about $295 if the rate never resets higher.

How do these RampUp rates compare to other banks' regular CDs. CIT generally has amongst the highest CD rates for any given term and even with the RampUp option, still remains at the top of the rate tables. You can see this by viewing the 2-year cd rate table and the 4-year cd rate table.

Is the ramp up option something you would use? Will CD rates go higher? These types of CD options have been around for several years and in the past they weren't of much value because rates were falling, not rising. But the interest rate environment has changed, and rates on longer term CDs (3 years and over) have been going up (see my 2014 savings rate outlook). If the economy continues to strengthen, as many predict, then rates will go up across all terms and the ramp up option will have some value. At this point, it's probably a good idea to have this type of flexibility, especially at such a relatively low cost.

Conclusion

With competitive base rates and an option to adjust upward, CIT's RoundUp CDs are a compelling addition to what is already a pretty competitive CD offering from the bank. Depositors should take a look at them when considering putting money into a CD product.

For the sake of disclosure, CIT is an advertiser on BestCashCow although they did not pay for this article to be written.

Learn more about CITs RampUp CDs


First Choice Bank of NJ Offering Five Year CD at 2.5% APY

First Choice Bank of NJ Offering Five Year CD at 2.5% APY

Rate information contained on this page may have changed. Please find latest cd rates.

First Choice Bank of NJ is offering a 5-year CD that pays 2.5% APY if it is opened with a Platinum Checking account.

First Choice Bank of NJ is offering a 5-year CD that pays 2.5% APY if it is opened with a Platinum Checking account. That's one of the highest rates in the country for a five year CD.  The rate is not listed on their website but I did call and confirm that the offer is valid. Others on BestCashCow have called and stated that the customer service rep did not confirm the offer. Be sure you ask for the one that requires a Platinum Checking account.

The CSR also told me that the Platinum Checking account requires a daily minimum balance of $500 in order to waive fees but this differs from the website which says that there is only a $1 minimum balance but a holder needs $25,000 in aggregated loan and/or CD and Savings balances to qualify. Based on this, if you opened a CD with at least $25,000 and put only $1 in the Platinum Checking account you could quality for the higher rate and avoid fees. I'd clarify this before opening the account.

First Choice Bank of NJ has $930 million in assets according to recent FDIC data. Its branches are located Northeast of Philadelphia near the NJ/PA border.

If you do open an account or speak to someone at the bank, please share your experience with the community.

Image: Stuart Miles at FreeDigitalPhotos.net