December 1st, 2010
If you have been reading the recent posts and comments you may have noticed a representative from this bank has been visiting. I thought it would be good to go ahead and feature the bank.
Aurora Bank FSB was formerly known as Lehman Brothers Bank, Fsb. Most people can understand the desire for a fresh start. After all, Ally Bank (formerly GMAC) did the same thing. This bank does have quite a history. They first opened in 1921, before the FDIC existed as Delaware Savings And Loan Association. Interestingly they didn't add FDIC insurance until 1958. They became Lehman Brothers in 1999 and Aurora in 2009.
|Star Rating:||4 (****)|
|Address:||1000 N. West Street, Suite 200|
Wilmington, DE 19801
|Penalty:||6-months of lost interest (5-year CD)|
Aurora Bank FSB has had a positive change since I last reviewed them and posted. They have a long history, but 2008 and 2009 were not stellar for them. Of course, those weren't good years for many banks. They have had two additional quarters of positive financials and did achieve a 4-star rating. They also made their rates page more friendly and added a button for easy access to open accounts. Aurora Bank does take IRA CDs, but the rates are pretty low. I wonder if this will change since Ally Bank is now offering competitive IRA rates.
An interesting side note on their early withdrawal penalty. Most banks have language the effect of "if we consent" which means they could technically not honor a request to close a CD early. In our history, that has happened once. Aurora Bank does not have that language, at least in the disclosure info they have posted on-line. As to their rates, the 1-year is the most competitive. They do have a tiered rate structure, but it only varies by a few basis points from their $1,000 minimum to their jumbo CD offering. Any body have experience with this bank, please leave a comment.
-- By +Chris Duncan