Low rates are often the reason why banks fail to attract customers. However, there are those which provide flexibility and great promotions in order to help one reduce the risk of falling into a low-earning CD term. But if you find yourself wanting to withdraw your investment during the term, you may be faced with more penalty fees to pay for than your initial investment. Northpointe Bank is an exception.
Special CD Term
Northpointe Bank’s most current CD rates are listed as follows:
CD Term – (Fixed) Rates – APY
7-91 Days – 0.30% – 0.30%
92-182 Days – 0.30% – 0.30%
6-11 Months – 0.50% – 0.50%
12-17 Months – 0.65% – 0.65%
18-23 Months – 0.85% – 0.85%
24-29 Months – 1.00% – 1.00%
36-37 Months – 1.19% – 1.20%
48-59 Months – 1.59% – 1.60%
60+ Months – 1.78% – 1.80%
All these CD terms require an initial minimum deposit of $5,000. This deposit must not come from an existing Northpointe Bank account. Although these rates have a fixed APY during their period of maturity, terms ranging from 6 months up to 5 years and above can have flexible agreements if one wishes.
It is interesting to note that for the 1-year CD term, Northpointe’s 1.00% APY is much higher than the national average of 0.76%. This competitive rate already assures potential customers that their money will work just right for them.
What makes the rates even more competitive is their special early withdrawal penalty feature. This means you won’t have to pay any fee for early withdrawals after the first 30 months for terms higher than the 24-29 month maturity.
For example, a 60-month CD term can allow you to make an early withdrawal between the 30-60 month time period of the term’s maturity. This is good news when rates continue to rise. By then, you’ll end up better off with the said 60-month terms as compared to the 30-month term.
Although the bank is located in Michigan, it accepts deposits from other states. This can be done either through wire or check transfer.
All deposits made to the CD account are federally insured up to $25,000. Once maturity is reached, there is a ten-day period during which you can withdraw the total earnings or renew for another term of your choice.
In conclusion, CD rates of Northpointe Bank places very well on the national scale, although it’s overshadowed by rates from Ally Bank and CIT Bank. Despite this, Northpointe compensates for its amazing no early penalty promotion. This is something unique for banks offering different CD terms, and certainly a very desirable option in the long run.
Earlier in the week the Fed announced a plan to move short-term securities into long-term holdings, such as 50-year bonds. This move would ultimately affect mortgage rates and other consumer and business loans. As investors buy up U.S. treasuries, yields will drop in response, forcing interest rates on mortgages to also drop. Over the past week the 30-year mortgage has dropped from 4.18% to 4.00%, pushing further into record-breaking ground. Just how far will mortgage rates drop? As long as the US economy stays weak and the Fed keeps short-term rates near 0%, mortgage rates could stay close to where they are right now.
Whenever you place your money into a bank account, savings account or certificate of deposit, the bank uses that money to lend to its customers of credit cards, mortgages, car loans and any other type of loans. In turn the bank charges an interest rate for these loans and pays its customers its borrowing money from a part of that percentage. This is how the banking system makes its money. When rates are down, the banks have no reason to pay a higher rate to investors. Therefore, as long as interest rates are at or near 0%, investors will lose, while those buying long-term loans will win by the decreased cost of borrowing money.
