Bank of Internet USA- CD Rates

November 4th, 2010

Bank of Internet USA is often a strong player in the online certificate of deposit and savings account world. I actually remember the day they opened, July 4, 2000. We referred our first deposit there at the end of July. These days they don’t really like wholesale funds and prefer retail deposits. Which is good for you.

FDIC# 35546

Stats Updated: 09/10

Star Rating: 5(*****)

Assets: $1.5BB

Equity: $131.2MM

Capital Ratio: 8.64%

Profits(loss): $13.9MM


Contact: Customer Service
Address: 12777 High Bluff Dr. #100
San Diego, CA 92130
Penalty:24-months (5-year CD)

Credit Inquiry: Soft-Pull

Bank of Internet USA is quite healthy and pretty much always has been. They finished their first six months with about $60MM in assets, now look at them. Of course with opening on the day we celebrate our Independence and a name like they have, who wouldn’t want to help them with their American dream of having a successful business.

You really don’t hear many complaints about them except for their lack of an ACH system. I think that is a little odd given their online focus, but also quite a money savings for them. They seem to be happy with letting other banks push and pull funds from the accounts.

They do actually take funds from corporations, banks, and credit unions as well as individuals, but they have separate rates. They do not accept IRAs. One nice feature is their CD terms are flexible so if you don’t want a straight 6-month term, you can take the rate out to 8-months. I would not do a long term CD with them at this point, unless it is really a term you need. Their early withdrawal penalty is 24-months of interest. That is pretty steep.

Retail Rates:
Updated: 01/12/11

Corp. Rates:

They do have an online application and even banks and credit unions have to provide CIP information on their signers. One other thing to watch out for, their signature card needs to be returned within 30-days or they will close the CD and send the funds back.

Happy CD Investing!
cd :O)

-- By +Chris Duncan

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