BankVibe reader Glenn tipped us off on a fantastic certificate of deposit product being offered through the Bank of Granite in North Carolina. Currently, they are paying out 2.45% APY on 12 month CDs with a minimum deposit of $5,000 required. To put this offer in perspective, the national average for 1 year CD’s sits at roughly 1.55% APY.
Bank of Granite is member FDIC and imposes a fee for early withdrawal on their deposit products. (Penalty is six months of the accumulated interest)
After digging through the rest of Bank of Granite’s savings rate promotions, we found two additional products which definitely deserve mentioning…
- They have a 6 month CD yielding 1.75% APY with a minimum deposit of $5,000 required. The current national average for six month CD’s sits at roughly 1.05% APY.
- They also have a “premium money market account” which is yielding 1.50% APY on balances of $15,000 or greater. The national average for money market rates sits at 1.03% APY
Bank of Granite serves Western North Carolina has 20 branch/office locations in 8 counties in North Carolina (Catawba County, Caldwell County, Burke County, Mecklenburg County, Watauga County, Wilkes County, Forsyth County, and Iredell County).
A couple months ago we made note of the best CD rates in North Carolina and BankVibe reader Glenn left a comment noting that he has called the bank and confirmed this deal.
Anytime a banking institution offers a CD – whether standard or promotional – featuring rates nearly doubling the current national average for that specific term, we recommend consumers jump on the opportunity. However, we also want to stress searching for the right maturity so that it fits within the current interest rate cycle. So for example, in our current rate environment, rates are dropping rather quickly and are expected to stay low until we’ve recovered from the recession (and depending on who you talk to this could be quite a long time). This would be a good time to lock in a decent rate now with a long maturity (5 years or more would be ideal) so that you still have this fixed rate even when rates as a whole nose dive and flat line. If you do decide for a 1 year CD with a fantastic interest rate such as this one, then at least be sure to set up reminders of your maturity so that you aren’t automatically locked into anther 12 month deposit once this one matures.