Bank of America has been in the news quite a bit lately. With the bad PR for wanting to raise fees on ATM/Debit type cards, bank transfer day, and more news about bad loans, I’m sure their PR folks are looking for something with a positive spin. Personally, the accounts they lost from the increased fees (they later changed their mind), has problem helped them. After all, I suspect they lost quite a few accounts that actually lost them money. So it was probably helpful. BofA isn’t really known for great CD rates, but they do have a competitive 7-year rate.

FDIC#	3510
Stats Updated:	09/11
Star Rating:	4 (****)
Assets:	$1.4TT
Equity:	$180.0BB
Capital Ratio:	12.25%
Profits(loss):	$7.12BB
Phone#:	(800) 242-2632
Address:	101 South Tryon St. Charlotte,NC 28202
Website:	https://www.bankofamerica.com/

Bank of America CD Rates

1-Year:	0.45%
18-Months:	0.55%
2-Year:	0.40%
3-Year:	0.60%
4-Year:	0.85%
5-Year:	1.20%
7-Year:	2.30%

We recently added a couple of calculators to our site. One is an interest and APY calculator and the other is an Early Withdrawal Penalty calculator. Check them out and let me know what you think. Jumbo CD Investments Calculators
cd :O)

AloStar Bank of Commerce provides some insight on the name on their website. It reads:

The Latin term, Alo, means to nourish, cherish, support, sustain, maintain and keep. These are words that say a lot about what we want to do for our customers as well as our employees. The word “Star” denotes many positives as well: a guiding light, a sign of destiny or a preeminent figure.

Man, that is some heavy stuff. The bank was created to take over the failed Nexity Bank. The bank’s site indicates $160MM was raised to seemingly purchase $750MM in assets. That seems like a pretty good deal.

FDIC#	59060
Stats Updated:	06/11
Star Rating:	NA (Start-up)
Assets:	$851.5MM
Equity:	$168.48MM
Capital Ratio:	19.8%
Profits(loss):	11.6M 6-months
Phone#:	(877) 738-6391
Contact:
Address:	3680 Grandview Parkway, Suite 200 Birmingham, AL 35243
Website:	http://alostarbank.com/investment/cds.asp

AloStar Bank of Commerce has an online process to open up new accounts. The biggest draw back is account has to be manually approved by them. If they approve the account they send you an email with a reference# that you can use as the account# to wire in the funds and complete the transaction. Our experience hasn’t been too bad.

1-Year:	1.12%
2-Year:	1.30%

Happy Rate Searching!!!

cd :O)

F & M Bank and Trust Company has a very basic banking site. There is a login which in theory would provide more access to other tools, but without an account, I can’t review it. They were established in 1948 and have been FDIC insured since 1950.

FDIC#	16916
Stats Updated:	06/11
Star Rating:	1 (*)
Assets:	$101.8MM
Equity:	$8.8MM
Capital Ratio:	8.57%
Profits(loss):	(420K) 6-months
Phone#:	(706) 846-8415
Contact:
Address:	142 W. Main Street Manchester, GA 31816
Website:	http://www.fmbankandtrust.com/

F & M Bank and Trust Company has five options on their main site: 1) Security 2) Contact us 3) Privacy 4) Questions and 5) Begin Banking. No rates or account type information is available on the public site. They aren’t a very large bank so probably have some very loyal depositors that don’t need all the flash, etc. On the other hand, they do have an operating loss and lost money the last couple of years as well. It may be time for an upgrade to their on-line offerings. I did send a request for their rates and stuff. If I get a response I will post them.

1-Year:	—-%
18-Months:	—-%
2-Year:	—-%
3-Year:	—-%
4-Year:	—-%
5-Year:	—-%

Happy Rate Searching!!!

I did post a new IRA FAQ, check it out.

cd :O)

Ally Bank (formerly GMAC) has some very competitive rates. They have tried to steer clear of the GMAC badge and re-create themselves as a no-nonsense bank. They opened in August of 2004 and changed the name in May 2009. They have grown quite rapidly and now are one of the larger banks in the country with over $77 Billion in assets.

Current Rates:
Updated:	11/17/11
6-Months:	0.74%
9-Months:	0.75%
1-Year:	1.01%
18-Months:	1.09%
2-Year:	1.19%*
3-Year:	1.40%
4-Year:	1.60%*
5-Year:	1.89%

FDIC#	57803
Stats Updated:	06/11
Star Rating:	5 (*****)
Assets:	$77.4BB
Equity:	$11.9BB
Capital Ratio:	15.40%
Profits(loss):	$495.98MM
Address:	6985 Union Park Center Suite 435 Midvale, UT 84047
Penalty:	60-days of lost interest (5-year CD)
Website:	www.ally.com

Ally Bank has strong financials. They and Aurora Bank, have been running almost neck and neck.

Their early withdrawal penalty has been popular and caused somewhat of a stir. It is only 60-days of interest and most banks have language to the effect of "if we consent" which means they could technically not honor a request to close a CD early. Ally Bank does not. Any body have experience with this bank, please leave a comment.

cd :O)

*The 2-year and 4-year CD offer a bump-up feature. You can adjust the rate during the term if rates move higher. Your original CD term remains intact.

Agriculture Federal Credit Union often has competitive rates. Especially on the longer-term CD rates. They have been around a long time and it doesn’t look like they are going away, anytime soon.

1-Year:	0.90%
2-Year:	1.20%
3-Year:	1.50%
4-Year:	1.90%
5-Year:	2.25%

Let me know if you have any experience with this Credit Union. cd :O)

BNC Bank‘s vision statement: “Delivering financial solutions business people demand”. Their logo gives the impression of trying to chart a path through turbulent waters. These days I think that is what everyone is hoping for. However, so many banks have shaken our trust, it will take more than a fancy logo to win us over.

FDIC#	57197
Stats Updated:	03/11
Star Rating:	2 (**)
Assets:	$681MM
Equity:	$58.4MM
Capital Ratio:	8.57%
Profits(loss):	$961K
Phone#:	1-800-BNC-BANK (1-800-262-2265)
Contact:	Customer Service
Address:	20175 North 67th Avenue Glendale, AZ, 85308
Website:	http://www.bncbank.com/

BNC Bank has mixed reviews. Some focus on their mortgage business. You can read them here: http://kansascity.citysearch.com/profile/41232589/leawood_ks/bnc_national_bank_mortgage_div.html. I always take reviews with a grain of salt. But these seemed to be more honest then most. As always, ask lots of questions and just make sure you are comfortable. If that inner voice continues to be telling you, “No!”, it is probably best to move on. They do have an A+ rating from the BBB. A large bank such as theirs is bound to have difficulty pleasing everyone. They only have their savings rate posted online. It is a paltry 0.10%.

1-Year:	%
18-Months:	%
2-Year:	%
3-Year:	%
4-Year:	%
5-Year:	%

They have branches in Arizona, Minnesota, and North Dakota. They are a relatively new bank, being established in 2001. They have grown pretty impressively, but currently with a 2-star rating seems like they might be making some costly sacrifices.

Dime Bank was established way back in 1869. They weren’t FDIC insured until 1960. That is pretty remarkable. I read an article where someone theorized that increased FDIC insurance entices banks to take more risk? What do you think? I’ll leave some comments below. Here is the data you came for. :O)

FDIC#	18200
Stats Updated:	12/10
Star Rating:	4 (****)
Assets:	$679.8MM
Equity:	$65.8MM
Capital Ratio:	9.68%
Profits(loss):	$4.3MM
Phone#:	(860) 859-4300
Contact:	Customer Service
Address:	290 Salem Turnpike Norwich, CT 06360
Website:	https://dime-bank.com/deposit-rates.php

Dime Bank prior to 2004 was Dime Savings Bank. They are classified as a savings and loan which really doesn’t make much difference these days. Ask for the disclosures if you are considering a long-term CD. It is wise to check the early withdrawal penalty clause. The short-term rates aren’t anything to write home about, but the 5-year is pretty good. They also offer a 5-year Bump=up CD that has a higher rate than their normal 5-year Term.

1-Year:	0.65%
18-Months:	1.00%
2-Year:	1.00%
3-Year:	1.65%
4-Year:	1.75%
5-Year:	2.00%
5-year: Bump-up-1x	2.25%

Okay, back to my initial question. Does increased FDIC insurance allow a bank to take more risks? Although, the FDIC is backed by the full faith and credit of the US Gov’t, the insurance fund is funded by the banks themselves. The FDIC has begun to make some of the assessments risk based and depending on various factors that have an extra assessment for brokered deposits. So if a bank took more risk or turned a blind eye to their brothers-in-arms (other banks) they would be opening themselves up for higher insurance premiums.

Secondly, as many, many banks and their stockholders have discovered, taking undue risk puts their money at risk. When a bank is closed by the FDIC, the stockholder capital is wiped out. If you were one of the investors and had maybe $25,000 (or more) in their stock, that money is gone.

In my opinion increased FDIC insurance is really a convenience for you and me. It allows us to keep larger sums at the bank and makes our money management easier. This is especially true for institutional investors. Institutions often have over that amount and it makes their CD management much easier and more efficient. Instead of needing five banks for every $500,000, they only need two now.

It could also help with rates as demand increases. Since not as many banks are needed for large portfolios, they will need to offer higher rates than their competitors. So overall, I believe the increase in FDIC insurance is a positive development. What do you think?

We do offer CD placement services. Check us out. CD Rate Service

cd :O)

Credit Union of Texas seems to be one of the few credit unions that can take nationwide deposits. However, they did indicate that you have to send over your application and then they let you know if it is approved or not. The general membership requirements are:

• Persons who live or work in Dallas, Collin, or Rockwall Counties, regardless of their employer. Check our Field of Membership Map for more information.
• Persons who live or work in the Lewisville, Red Oak, and Midlothian Independent School Districts, regardless of their employer.

The other method is if you are an employee or member of a variety of organizations. However, the following are the most likely in order to be able to access membership from anywhere in the US.

• AAA Auto Club
• American Heart Association
• Dallas Association for the Education of Young Children (DAEYC)
• Vietnamese Eucharistic Youth Society
• Volunteer Center of Dallas
• Young Audiences of Greater Dallas

Often times the community type organizations are looking for a small donation, similar to the Getting Ahead Association of GA (which grants access to membership for many CUs based in Georgia).

So if the rate seems worth it, give it a whirl. If it doesn’t work out, you can still feel good about helping out an association and usually the gift is tax deductible.

NCUA#	66327
Stats Updated:	012/10
Star Rating:	3 (***)
Assets:	$996.4MM
Equity:	$63.4MM
Capital Ratio:	6.4%
Profits(loss):	$7.4MM
Phone#:	(800) 314-3828
Contact:	Customer Service
Address:	8131 LBJ Freeway, Suite 550 Dallas, TX 75251
Website:	http://www.cuoftexas.org/

Credit Union of Texas doesn’t have very strong rates at this point. They do offer a step-up CD on their longer-term certificates, but the start rate is low. If the initial rates or current rates were more attractive, the step-up might make more sense.

1-Year:	0.20%
18-Months:	0.70%
2-Year:	0.95%
2-Year (Bump-up):	0.80%
3-Year:	1.35%
3-Year (Bump-up):	1.20%
4-Year:	1.75%
4-Year (Bump-up):	1.30%
5-Year:	1.85%
5-Year (Bump-up):	1.15%

If you are interested in some higher rate offerings, shoot us a note. We have a fee-based service. Contact US.
cd :O)

California First National Bank has very competitive rates. The 1-year is in the top 5 of the nation that I’m aware of. They were established in 2001 and appear to have weathered the financial storm quite well.

FDIC#	35331
Stats Updated:	12/10
Star Rating:	5 (*****)
Assets:	$322.7MM
Equity:	$76.2MM
Capital Ratio:	23.62%
Profits(loss):	$6.1MM
Phone#:	(800) 735-2465
Address:	18201 Von Karman Avenue, Suite 420 Irvine, CA 92612
Penalty:	3-months for CDs less than or equal to 1-year. 6-months for CDs greater than 1-year.
Website:	http://www.calfirst.com/

Besides having strong Certificate of Deposit rates, California First National Bank also has a strong Money Market and Savings Account. In addition they offer IRAs which can be hard to come by. Their current CD rates are:

3-Months	0.80%
6-Months	1.00%
1-Year:	1.33%
2-Year:	1.48%
3-Year:	1.80%

cd :O)

CD Rates are still incrementally creeping up. 5-year treasury yields have been holding in the 2.30% range which is definitely adding pressure on the longer-term CD Rates. I thought Ben was supposed to be holding down rates to save the housing market?!?

Salem Five Cents Savings Bank appears to be quite a healthy bank. The various rating sites give them between 3-stars to 5-stars. We gave them a 4. They certainly have competitive CD Rates with their 5-year tied for the highest that I’ve seen.

FDIC#	23296
Stats Updated:	09/10
Star Rating:	4 (****)
Assets:	$2.80BB
Equity:	$264.4MM
Capital Ratio:	9.43%
Profits(loss):	$13.2MM
Phone#:	(978)745-5555
Contact:	Customer Service
Address:	71 Washington St. Salem, MA 01970
Website:	www.salemfive.com

Salem Five Cents Savings Bank takes personal funds, trusts, and IRAs. They appear to have a pretty straightforward process. The rates below are for a $10,000 minimum balance

12-Months:	0.50%
24-Months:	0.80%
5-Year:	1.65%

Let us know what kind of deals you are finding.
cd :O)