Transportation Alliance Bank just changed rates for its CD and IRA CDs with the 36-month term being the most competitive of the rates.

Although based in Utah, Transportation Alliance Bank operates as an online institution with accounts available nationwide. Most of the updated CD rates are currently not up to par with the top yielding CDs, except for the 36-Month CD, which appears to be the most attractive of the bunch.

Transportation Alliance Bank does rank higher among the top IRA CD rates.

Updated CD and IRA CD Rates

CD ProductAPY (as of 3/7/11)Minimum balance to earn interest
3-Month CD/IRA CD0.20%$1,000
6-Month CD/IRA CD0.40%$1,000
12-Month CD/IRA CD1.26%$1,000
24-Month CD/IRA CD1.36%$1,000
36-Month CD/IRA CD1.92%$1,000
48-Month CD/IRA CD2.22%$1,000
60-Month CD/IRA CD2.28%$1,000

The early withdrawal penalty for CDs with a term of one year or less is 90 days of interest. The early withdrawal penalty for CDs with a term of more than one year is 180 days of interest. Note that Transportation Alliance Bank must give consent to a withdrawal prior to maturity and reserves the right to reject the withdrawal request.

What may scare many modern-age banking customers is the rather primitive account opening process for an online bank. Transportation Alliance Bank requires new customers to print out and mail in a paper application.

Competitive 36-Month CD and IRA CD

For terms other than 36 months, the rates are not as appealing when compared to the other CD rates currently available. According to the banks tracked here on MyBankTracker.com, the bank that is currently offering the highest 36-Month CD rate is OneWest Bank, which is paying 2.00% APY.

But, OneWest Bank has a heftier early withdrawal penalty than Transportation Alliance Bank.

CD ProductAPY (as of 3/7/11)Minimum balance to earn interestBankAPY (as of 3/8/11)Minimum opening depositEarly withdrawal penalty
3-Month CD/IRA CD0.20%$1,000OneWest Bank2.00%$1,000Greater of 2% of amount withdrawn/Market Adjustment
6-Month CD/IRA CD0.40%$1,000Transportation Alliance Bank1.92%$1,000180 days of interest
12-Month CD/IRA CD1.26%$1,000Bank of Internet1.86%$1,00018 months of interest
24-Month CD/IRA CD1.36%$1,000Ally Bank1.85%$060 days of interest
36-Month CD/IRA CD1.92%$1,000
48-Month CD/IRA CD2.22%$1,000
60-Month CD/IRA CD2.28%$1,000

For more information for about Transportation Alliance Bank CDs or to open an account, visit the their certificates of deposit page.

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