It looks like the money market is on a steady ride. CD rates have been holding it out at rates of 1.18% on five-year jumbos, and 0.21% at six-month CD terms. The national average for 1-year CDs has remained unchanged at 0.34% APY.

With this stability, one might start to think that it’s high time to open a CD account. CNB Bank Direct offers a competitive rate of 1.00% on an annual CD.

The Rates

CNB Banks offers almost three times as much as the national average of 0.34% per 1-year term. As for other Cd terms, they can offer 1.05% APY on an 18-month CD, and a 1.20% APY for a 24-month CD. When you take things into perspective, any deal doesn’t get any greater than this.

In order to open a CD account, you must first have a CNB Bank Direct high yield savings account. This makes you eligible to open the certificate of deposit. As previously stated, you can choose any of the three terms they offer – the 12-month, 18-month, and 24-month. Once you’ve chosen the term that best suits your needs, you can get the initial deposit funding from your previous savings account. The bank requires $25,000 initial deposit, which is taken from that primary account. Once you start receiving monthly interest, you can either credit it to your savings account, or directly to your CD account.

As with other CD accounts, there is a penalty for early withdrawals. An exception is made when there is an eventual death of the depositor. Should there be any legal incompetence, a no-penalty withdrawal is issued as well.

To open your initial CNB Bank Direct high yield savings account, you must pass an application online. An email bearing the confirmation of your application will be sent. There will also be additional emails to guide you through the process.

The amount of time wherein you have to wait to get your CD account will vary. Multiple factors account for this, but you are assured that interest will start to come in once the transfer will be completed.

Insurance policies have been re-adjusted as well. An FDIC insurance can get you up to $250,000, which takes effect up until the 31st of December 2013. This is partly due to the current economic trends and concerns.

Although CNB Bank Direct only launched in 2008, it has proved its worth and credibility over the past few years. And with a good interest rate offering like this, who would even think twice of opening an account with them?

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