Northpointe Bank Offers a Special CD Term with No Early Penalty Fee

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.

First National Bank of Pawnee Ups its APY Rates

Sometimes, small-town banks have it better. Take for example the First National Bank of Pawnee. Catering specifically to the needs of residents in its state of Oklahoma, the bank is able to offer much higher APR and APY rates. On the National Average, banks are only able to offer an APY of 0.65% – 0.99%. Any other bank that’s able to provide much higher rates is a sure winner, and in this case, it’s the FNB of Pawnee. Just take a look at their offerings:

Certificate of Deposit – APY

91 day single maturity CD – 0.50%
182 day single maturity CD – 1.000%
182 day auto-renewable CD – 1.000%
1 year single maturity CD – 1.21%
1 year auto-renewable CD – 1.21%
18 month single maturity CD – 1.31%
2 year single maturity CD – 1.51%
2 year auto-renewable CD – 1.51%
3 year single maturity CD – 2.02%
3 year auto-renewable CD – 2.02%
4 year single maturity CD – 2.17%
4 year auto-renewable CD – 2.17%

They offer flexibility in terms of managing how long you want to keep an account for. You can have it for as short as 91 days or for as long as 4 years. And because you can choose an account that’s auto-renewable, you can just leave your money to keep growing and growing for the many years to come.

One of the most important requirements for you to be able to open an account is that you have to be a resident of the state. Since they do not accept any form of out-of-state money, this can either be an advantage to you if you’re from the small county, or a disadvantage if you’re not.

They also require $1,000 minimum initial deposit if you’re applying for the 1-4 year CDs. However, if you’re only going for the 91 or 182 day CDs, you must meet the minimum requirement of $2,500.

How do you get the interest? The FNB can either issue you a check, or directly deposit it in your checking or savings account. Of course, you can just add it up to the CD so you can get more of it when it reaches maturity.

However, as with other CD accounts, there are penalty fees for early withdrawal. It might be prudent to carefully think over the type of CD plan you intend to go for so as to prevent unnecessary payments that will prove to be a big loss on an otherwise fruitful gain.

About FNB of Pawnee

Serving the small county of Pawnee in Oklahoma since 1893, the First National Bank of Pawnee has since evolved from a small bank into a full financial institution it is today. Even with its small staff of 25, and catering to a small number of people, it boasts of at least $50 million in assets. Since its foundation, the bank has experienced depressions, wars, and drought. But despite all these, its financial integrity remained strong, and that is why it has become one of the most trusted names in banking in the state of Oklahoma.

No Hope For Savers – Long Term Interest Rates Going Down

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.

How does this affect savers?

Anyone not buying a house, car or taking out long-term loans will be affected negatively by the current moves of the Fed. As long as banks and other financial institutions can get money at near 0% interest, they have no need to get it from investors. When the Fed increases rates, the cost to banks for borrowing money increases, this will in turn give the banks an incentive to pay its customers more to borrow their money.

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.

Will interest rates increase in 2011?

The U.S economy is projected to grow at an annual rate of 2%, not even keeping up with the rate of inflation. The current inflation rate for 2011 is 3.8% (US Inflation). When the Fed announced that it would keep interest rates near zero percent for ‘an extended period’, they said so because there was little prospect that the economy would recover within the next two years. This means that interest rates would stay low for this period of time, giving borrowers more time to make purchases or to borrow money at record low rates.

One of the dangerous causes of low interest rates is inflation. If inflation increases, interest rates would need to be increased to control the increase of inflation. The only hope for savers to see an increase on their savings accounts or CD rates in the near future would be to see an increase in inflation. Then it becomes a game of when, or if the Fed will renege on their original statement that interest rates would stay low until at least mid-2013. If the interest rate the Fed sets is not increased until 2013, then I do not see CD rates or Savings rates increasing until 2013 also.

Where are the best interest rates for savers?

If you are looking for the best interest rates on CDs or savings accounts, then stay away from major banks. Check your local credit union, as these financial institutions tend to have the best CD rates anyone can find. Melrose Credit Union is a great example of a Credit Union offering some of the highest rates on their certificate of deposits. Melrose is also a credit union open to anyone, while most credit unions are only open to specific groups of people.