iGOBanking’s short-term CD beats the top savings account rates


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An online bank is offering a short-term CD that pays a bit more than the top savings accounts, but doesn’t lock savers into a long-term contract. It’s best suited for savers waiting for interest rates to rise who still want a guaranteed return.

iGObanking.com, an online division of New York-based Flushing Bank, pays 1.5 percent APY on its 18-month CD with a $1,000 minimum deposit.

This offer is a big improvement over what the average CD — of any maturity — pays, according to Bankrate’s latest national survey of banks and thrifts. It’s even better than the best nationally available savings accounts, a 1.30 percent APY offer available from both DollarSavingsDirect, the online division of New York-based Emigrant Bank, and BankPurely, a second online division of Flushing Bank.

Compare this offer with the best CD rates. Then calculate how much interest you’ll earn when your CD matures.

How to buy iGObanking CDs

Certificates of deposit can be opened online (but not through a mobile app). Opening an account will take about 10 minutes (according to the bank’s website), and account holders must: 

  • be at least 18 years old
  • be a U.S. citizen or U.S. resident alien
  • be a U.S. resident
  • have a Social Security number
  • provide a previous home address (if you’ve lived at your current address less than two years)
  • provide a driver’s license or other formal ID
  • provide a current U.S. bank account and routing number
  • have a U.S. checking or savings account to fund new account

Other iGobanking CD rates

iGObanking.com offers CD terms that last between 3 months and 10 years. You’ll find the highest rates on the 18-month, 24-month and 36-month CDs (the latter two offering 1.6 and 1.9 percent APY, respectively).

The penalty for early withdrawal for the 18-month CD is six months simple interest on the amount withdrawn.

About iGObanking.com

iGObanking.com is the online division of Flushing Bank, which has been serving New York state residents for more than 80 years and earned four out of five stars on Bankrate’s latest Safe & Sound Ratings, measuring the financial health of banks and credit unions throughout the United States.

iGObanking.com, which was opened in 2006, also has a history of offering solid savings rates for long stretches.

Flushing Bank and iGObanking.com are part of a single FDIC-insured bank. If you have multiple accounts with these banks, keep in mind the deposit insurance cap is shared across each account.