Doral Bank Direct continues to offer competitive CD rates on it's short term CDs, particuarly the 6 month and 9 month certificates. The current rates on these CDs are 0.92% APY 6-month CD and a 0.97% APY 9-month CD. Its 18-month CD is also near the top of the rate charts with a 1.10% APY. Minimum deposit is $1,000.
The "Open an Account" link at this Doral Bank Direct page will take you to an application in which you can open and fund the CD. Funding can be done with an ACH transfer from an existing checking account. The CD rate locks when you submit the application.
The online application allows you to specify up to 3 beneficiaries. One nice thing about this beneficiary section is that it doesn't require the beneficiaries' social security numbers. The only required fields are the beneficiary name, relationship and percentage amount.
If you have experience with internet CDs, you know it's important to learn the details for not only opening the CD, but also the details for closing the CD at maturity and receiving the funds. Below are the details I received from Doral Bank Direct for closing a CD at maturity:
Upon maturity of the CD, you will receive a maturity notice. If you choose to move the funds at that time, we would ask that we receive written notification from you. We welcome notification by fax, mail, or an attachment to an email.
Upon maturity, we will be happy to ACH funds into an account we received by online application. However, if the application was received by mail, we would use a check to distribute funds.
The early withdrawal penalty will be accessed based on the term of the deposit - 90 days simple interest for terms less than 1 year; 180 days simple interest for terms of 1 year or longer. Early withdrawal penalty is calculated on the amount of the amount withdrawn. The disclosure gives the bank the right to refuse an early withdrawal.
If you plan to use interest from the CD as income, you can have it paid monthly, semi annually or annually.