bank rates

First Republic Boosts Long-Term CD Rates

three stacks of bundled moneyFirst Republic Bank has delivered a June surprise for those interested in putting their money into longer-term CDs.

It’s posted significantly higher rates for its 3-, 4-, 5- and 6-year offerings, just in time for summer.

It posted similar rate hikes last June.

With a $10,000 minimum deposit, First Republic pays:

  • 1.50% APY on 3-year CDs.
  • 2.00% APY on 4-year CDs.
  • 2.25% APY on 5-year CDs.
  • 2.35% APY on 6-year CDs.

All of these rates are competitive, but the 3-year maturity beats the top nationally available deal on our CD Rates Leaderboard. Three banks each pay 1.45% APY.

Being a long-standing customer of First Republic’s Los Angeles and Palm Desert, Calif., branches, I’ve discovered that, by opening a $5,000 minimum balance checking account and making one bill payment from it a month, I qualify for a 0.30% rate bump-up on a new CD, plus a $250 cash bonus.

I usually spurn these types of relationship rate/cash bonus deals, but the economics of this appear compelling to me, so I’m going for it.

(The rate bonus deal, by the way, seems to be based on unpublished indicia of customer deposit size and/or loyalty, and may very well vary by branch – so don’t assume anything, but check with your local branch representative.)

First Republic, which has about $32 billion in deposits and a 4-Star Bankrate Safe & Sound rating, operates through branches in California, Florida, Oregon, Massachusetts, New York and Connecticut.

Its website (www.firstrepublic.com) posts rates by geographical region, but the current posted CD rates are the same everywhere.

The general pattern I’ve noticed is that the bank posts new rates on Monday nights or Tuesday mornings, and CD rate deals sometimes don’t last very long.

Opening a new CD does require a visit to a branch.

Which is exactly where I’m headed.

UPDATE 7/1/2014: First Republic has just lowered these rates: 6-year now pays 2.25% APY; 5-year, 2.15% APY; 4-year, 1.90% APY; 3-year, 1.40% APY.

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