Flagstar Direct is now offering a 3.00% APY on its 3 year CD Certificate of Deposit with just $500 minimum.

This 2009 CD rate is the highest we have recently seen on a 3 year CD. But be aware of the CD terms and conditions for early withdrawal.

Conditions for Flagstar Direct’s certificates of deposit CDs:

Minimum opening balance is $500.
Fixed interest rate will remain the same for the entire CD term.
You may not make any additional deposits into your account before the CD matures.
You may make withdrawals of principal from your account, with penalty and before maturity, with Flagstar’s agreement.
You may withdraw interest any time during the term after the interest is credited to your account.

A penalty may be imposed on Certificate of Deposit amounts withdrawn before maturity. On amounts withdrawn before maturity, certain expenses may be applied:

36 Month CD – 180 days of interest, whether the interest is earned or unearned, or the mark to market penalty, whichever is greater.
12 Month CD – 180 days of interest, whether the interest is earned or unearned.

Your certificate of deposit will automatically renew at the date of maturity. The CD interest rate will be the same as the rate offered on new certificates of deposit on the maturity date, for the same term, minimum balance (if any) and other features as the original certificate of deposit. Check to see if this CD makes sense for your CD ladder accounts.