Through Bank of Internet’s online banking services you can open a  high yield CD account completely online. The possible terms range from three months to five years. If you are looking for month cd rates you will have to look else where. An advantage offered by Bank of Internet when it comes to selecting a term, is that you can be very specific about what you want for a maturity time line. Your options are not limited to the standard 3 months, 6 months, 12 months, and so forth. At Bank of Internet, you can select high rate cd accounts with the specific term of 4 months or 7 months or whatever fits your particular financial plan.

Advantages of Certificates of Deposit

The advantage of a high interest certificate of deposit is that your rate of return is fixed. That means that when you open your account you are offered a rate that remains the same throughout the term you agree to. The disadvantage of  CD accounts is that once you have agreed to a rate and a term, in most instanced you cannot remove funds until the maturity date with out paying fees or penalties. If you are not sure whether a CD account is the best deposit account considering your financial goals, take a look at our informative page on CD accounts.

Bank of Internet does quote cd terms and their corresponding APY rate on their website www.bankofinternet.com, which they update daily. Currently, Bank of Internet offers an APY of  .35% on certificates of deposit with a 3 to 5 month term. The 6 to 11 month CD offers a guaranteed rate of .75% APY. The best cd rate corresponds to the longest term offered which is 60 months or five years. Your reward for being able to agree to the longest term is an APY of 2.49%. Are you curious as to how this rate of return compares to other banks offerings? You can quickly compare rates by looking through our reviews of the best cd rates.

Bank of Internet CD Specifics

Now lets look at specifics. In order to open a cd account at Bank of Internet you need to have a deposit of at least $1,000. Interest is compounded daily and you do have the option to have the interest that you earn transfered to a linked Bank of Internet checking account. Beaware that if you do choose to withdraw the interest you earn it will affect your overal APY. The rates that are quoted online assume that you will leave the interest on deposit until the maturity date. All high interest CD accounts do renew automatically, but you have a ten day grace period to let Bank of Internet know what you would like to do. You can notify Bank of Internet USA over the internet, by mail, or over the phone.

What if the unthinkable happens and you have to withdraw funds before the maturity date that you agreed to in the begining? As with almost all high yeild cd accounts, there are penalties for taking out money early. The penalty changes depending on what the origional term was for. For instance, a three month certificate of deposit will carry a penalty of one and a half months of interest. A twelve month Certificate of Deposit will have a 6 month of interest penalty if you do not allow it to mature. When you look at the fees it really makes sence to make sure you stick with your cd term all the way to maturity. Some of our best banks are much more forgiving in their cd penalties. Our Ally Bank CD review points out that their penalty, even on a 5 year cd is only two months interest.

Summary of Bank of Internet Certificate of Deposit

Bank of Internet does have a lot of flexibility when it comes to selecting terms that fit with your financial plan. They do not offer the highest APY rates so shop around and find out if what they have to offer makes it worth the lower rate. All their certificate of deposit accounts are FDIC insured. Certificates of deposit are a great way to go if you can leave your money in there for the specified cd term. If you would like to kearn more about the other products and services offered by Bank of Internet USA please see our Bank of Internet review. We also have a video review of Bank of Internet that gives you a virtual tour of their savings, cds, and mma.