bank rates

First Republic Bank Boosts CD Rates

three stacks of bundled moneyMaybe First Republic Bank was reacting to the recent spike in U.S. Treasury rates.

Or maybe, as my branch representative explained, the bank has increased its loan portfolio significantly and has been funding it by attracting additional deposits.

Or (this is my preferred theory) maybe First Republic’s management was responding to my recent post bemoaning its relatively lackluster CD rates.

Whatever the reason, First Republic has posted significantly higher CD rates – sufficiently elevated to motivate me to drive 15 miles to my branch in 100-degree-plus heat and open a CD.

The current rates include the following APYs ($5,000 minimum deposit, except for the 13-month CD, which has a $10,000 minimum):

  • 13 months — 1.00%
  • 18 months — 1.10%
  • 24 months — 1.15%
  • 36 months — 1.25%
  • 60 months — 2.00%
  • 72 months — 2.25%

All of these certificates of deposit are competitive, but the 60-month CD beats the top nationally available deal on our CD Rates Leaderboard, which pays 1.80% APY.

As described in my earlier post, I was entitled – as a former depositor who received a special offer in the mail – to add a 0.25% “reward” to those rates.

I ended up opening a 6-year CD at 2.50% APY.

The branch representative told me that, separate from the client “reward” promotion, the bank offers rate bump-ups for CDs tied to high balance checking accounts and the use of bill-pay and direct deposit features.

Apparently, the bump-up can be as much as 0.50% (although the client “reward” bonus would not be applied on top).

This doesn’t seem to be described on the bank’s website, so interested readers should phone or visit a branch to learn about specific terms and availability.

Anyway, with my new 2.50% 6-year CD in hand, I’m delighted the pessimism I expressed in my earlier post was dead wrong.

First Republic, which has about $27 billion in deposits and a 5-star Bankrate Safe & Sound rating, operates through branches in California, Florida, Oregon, Massachusetts, New York and Connecticut.

Its website posts rates by geographical regions, but the current CD rates are the same everywhere.

And a branch visit is required to establish a CD.

An additional piece of good news I received was that I’m entitled to use my 0.25% bonus again for other CDs I may open between now and July 7.

Which means that, if First Republic’s CD rates continue to be favorable, I’ll probably be visiting my branch again.

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Comments (3)
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3 Existing Comments
  1. Kathy at Bankaholic said:
    on July 19th at 05:25 am

    First Republic has lowered all of these rates (e.g., 72-month CD now pays 2.15% APY and 60-month pays 1.75% APY). The 13-month special is no longer available.

  2. Kathy at Bankaholic said:
    on August 2nd at 05:01 am

    After lowering these rates last month, First Republic has raised some of them again. Notably, the 72-month CD now pays 2.25% APY again.

  3. Kathy at Bankaholic said:
    on August 9th at 07:07 am

    Last week’s hike in the 72-month rate was short-lived: Now First Republic is paying 2.05% APY.