When you think of H&R Block, chances are you think of the company that will do your taxes – but they’re also a bank that offers interest checking accounts, money market accounts, CDs and IRAs. H&R Block bank has been FDIC insured since 2006. It’s considered a small bank, with $1.06 billion in assets according to the FDIC database as of 9/30/08, $746 million in total deposits and 51 employees. The bank is operated out of a Kansas City, Missouri office.
The rates on 24 and 36 month certificate of deposits are competitive, with 3.50% APY on the 24-month CD and 4.00% APY on the 36-month CD. All certificate of deposits at H&R Block bank require a $250 minimum deposit. The rates on other certificate of deposit products according to the H&R Block bank rate table on 1/25/09 are as follows:

• 2.50% 3-month
• 2.85% 6-month
• 3.25% 12-month
• 2.75% 18-month
• 3.50% 24-month
• 4.00% 36-month
• 3.50% 48-month
• 4.25% 60-month

When investing in CD’s at H&R Block bank, there is an early withdrawal penalty equal to 90 days of interest earned. You can choose how you want the interest earned on your CD to be paid – either monthly, quarterly or when the CD reaches maturity. When the certificate of deposit matures, you have a 10 day grace period during which you can remove your money or reinvest in another CD.

The same rates apply to IRAs.

You can open your accounts with H&R Block bank through an online application, and fund the account using ACH bank to bank transfers.

In addition to certificate of deposits and IRAs, H&R Block bank offers reasonably competitive rates on interest checking and money market accounts. Both types of savings feature tiered rates, with higher interest given to higher balances. A money market account yields between 2% APY for a balance of $1,000; and 3.25% APY for a balance of $50,000. Interest checking account yields range between 1.25% APY for balances above $500 and 2.25% APY for $50,000 balances.

In 2007, H&R bank had a subprime mortgage servicing division, but they sold it in May of 2008. According to Bankrate.com’s rating, H&R Block bank received 3 stars, which is the “performing” level; while BauerFinancial gave the bank 2 stars, and considered it problematic, based on September 2008 financial data.

Tags: cd, h&R block, interest checking accounts, iras, money market accounts

This entry was posted on Sunday, January 25th, 2009 at 1:24 pm and is filed under reviews. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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