A reader (Thanks Johns) just pointed out that World Savings Bank is offering a promotional 4.16% APY 7-month CD, with a minimum opening balance of $10,000 (max $100,000) [more discussion here]. Offer ends July 9th. This is a great rate, and I really doubt any online savings account such as ING (now 3%)or Emigrant-Direct (review) (now 3.25%) will be able to beat it over a 7 month period even with future rate hikes.
World Savings is a pretty good-sized bank, I’ve walked past their branches, but they are not everywhere (branch locator). However, there are no residency requirements to open an account. You can open an account right online. The 4.16% CD is the very first option to open. They have a 3-star “Performing” Safe & Sound Rating from BankRate.com.
Keep in mind that you’ll have to keep an eye on the maturity date of the CD as it automatically renews at the end of the CD term, at whatever rate is in effect at that time. There is a seven day grace period after maturity where you can withdraw your funds. There is also an early withdrawal penalty of 3-months interest. Funds must come from outside World Savings Bank. Interest is compounded daily, credited quarterly and at maturity.
I’m seriously seriously thinking about opening an account, although I’ve been trying to cut back on the amount of banks I’m using! 7-months is pretty short, and it’ll beat anything out there right now for the time frame…
By Jonathan Ping | Banking | 6/19/05, 7:27pm