For those based in California, a CD rate that is a notch above the measly offerings from the big banks is worth paying attention to, at least for the next year or two. California First National Bank is making such an offer now with its current CD rate proposal of 1.2 percent for a three-year lock in and 1.1 percent for a 2-year CD agreement. Given that the average rate is less than 1 percent, earning a few more fractions of a percent can make a difference, especially with larger amounts.

California First National Bank is not a new institution. The Bank has been in existence since the late 1970s, with headquarters in Irvine, CA. Customers enjoy traditional banking both for individuals as well as businesses, and all banking products are insured by the federal government through FDIC protections.

The CD offerings don’t come without criteria, however. The three-year offering requires a minimum deposit of $5,000. That said, those with a bit less can opt for a retirement account CD instead, which only has a minimum deposit of $2,000. The same criteria applies to the two-year CD offering as well.

Like any other bank CD, if a customer pulls their money out before the two or three-year period ends, California First can charge a penalty, cutting into any interest earned on the CD during the period held. The CDs can also be renewed when their first time period expires, but the interest rate at the time will be whatever the market offering happens to be then in the future. All CDs provided by California First a guaranteed up to $250,000 per the federal government protections.

More information about this offering and California First in general can be obtained on the Internet at www.calfirst.com .