36 month "step up" CD through Darby Direct

September 12, 2009 3 Comments »

Darby Direct is offering another noteworthy savings/deposit product this month.

A few months ago Darby Direct stepped on the online banking scene with a lucrative high yield savings account providing a 3.0% interest rate. Unfortunately that account carried a variable interest rate and has since lowered substantially. Today’s Darby Direct offer, however, comes with a series of fixed rates on a 36 month term.

Here is how the account works:

Upon opening your account you will receive a 3.0% APY. This account will then be “stepped up” on August 15 of 2010 to a whopping 4.0% APY, then again on August 15 of 2011 to an even more impressive 5.0% APY.

To put this unique offer in perspective the average 12 month CD is yielding only 1.60% APY and the average 36 month CD yields 2.20% APY.

Terms and Conditions:

(as seen on their promo page)

  • $500 minimum deposit requirement
  • Annual percentage rates will change ONLY on the dates specified
  • Substantial penalty will be imposed for early withdrawal
  • Fees will reduce earnings
  • Offer effective as of August 1, 2009
  • FDIC insured

About Darby Direct:

Darby Direct is an online bank but also operates 8 brick and mortar branches in Georgia. Despite being opening their online division in just 2009, they now control roughly $650 million in deposits and have almost $750 million in total assets with over 700 full time employees.

Why we like this account:

According to the FED, interest rates in general are going to fall sharply until they have reached a near zero level. The reason the FED is doing this is an attempt to stimulate borrowing amongst individuals and small businesses. Once rates do bottom out – likely within a year or two – they will remain extremely flat until we have climbed out of our current recession. With the FED printing money and loaning it to the banks at a near zero interest rate, this gives banks little incentive to raise capital from depositors – so locking in a long term deposit now with a favorable rate may turn out to be a very smart move to hedge against future falling savings rates.

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  • Jim Skinner

    At this time we are accepting only applications from Georgia residents only.

  • Rob Henshaw

    At this time we are accepting only applications from Georgia residents only.

  • President Obama

    Effective May 1, 2009 available to Georgia residents and existing Darby Direct customers only.