Alabama Deposit Account Rates and Deals

I see BBVA Compass is making the most out of its new alliance with SmartyPig. I just noticed Compass is advertising this $150 checking account bonus on SmartyPig's home page. Here's the direct link to the promo, and here are the requirements for the $150:

• Open a new Build to Order Checking account online
• Set up payroll Direct Deposit and earn $75
• Sign up for Online Bill Pay and earn $25 per month by paying at least 5 bills per month for 3 months

Unlike SmartyPig which is available nationwide, Compass bank products are only available where they have branches which includes AL, AZ, CA, CO, FL, NM & TX. The offer is scheduled to last until 8/31/2010, and is only available to new consumer checking households.

Here is the small print which includes some details of the requirements:

To get $75 for a recurring payroll direct deposit, you must establish the recurring payroll direct deposit of at least $300 within 30 days following the date you open a new BBVA Compass consumer checking account. $75 bonus will be deposited, within 120 days of first recurring payroll direct deposit, into the new checking account that receives the direct deposit. Account must be open at time this bonus is paid in order for you to qualify for bonus. Bonuses are paid on the last business day of the month.

To get up to $75 for using Online Bill Pay, you must pay at least 5 eligible bills via Online Bill Pay every 30 days for the first 90 days after you open a new BBVA Compass checking account. To be eligible, each online payment must be for at least $25 and must be made to an unrelated third party. You'll receive $25 for each 30-day period in which you make the required online payments, up to $75. Each $25 bonus will be deposited into the new checking account from which online payments were made, within 60 days of the fifth eligible online payment for each 30-day period.

BBVA Compass Build-to-Order Free Checking

I completed a Compass checking promotion in 2006 and received the promised $50 gift card without any problems. One downside is that I did received two hard credit inquiries by Transunion.

The Build-to-Order Free Checking comes with some basic features. Two additional premium features are allowed without cost. The notable basic feature is no minimum balance or direct deposit requirement. Also, bill pay is free. The notable premium feature for those who want to make extra money is a $25 anniversary cash bonus. One feature that is lacking is free checks. A reader in a previous Compass post mentioned that the first order of checks is free.

The disclosure has some of the details of $25 anniversary cash bonus feature. I switched my Compass checking account to this Build-to-Order Free Checking in December 2007 and chose the $25 anniversary cash bonus as one of my premium features. Then I set up small monthly ACH debits from my online bank account to keep the checking active. I received the $25 bonus for both 2008 and 2009.

BBVA Compass Bank is a member FDIC (FDIC Certificate # 19048).

Other Bank Bonuses

To find other bonus deals at other banks, please refer to the bank bonus page which has all of my recent bank bonus blog posts. There are also additional bonuses listed in the checking account deals forum.

BB&T continues to offer a $100 cash bonus for opening its free checking account. However, they have made it a little harder to get the full $100. Here are the steps required:

• Open a Free BB&T checking account online by 8/31/2010
• Register online at bbt.com/welcome100
• Get $50 for making 10 online bill payments ($25 minimum payment) within 90 days of account opening
• Get $50 for receiving two direct deposits of at least $50 from the same source within 90 days of account opening

Here's the direct link to the promotions page. It's also mentioned at BB&T's home page.

The old promo in March made it easier to qualify for the $100 bonus. It could be done with only 3 online bill payments. No direct deposit was required.

In my March post, several readers have reported that BB&T makes it difficult to close accounts. If you can't make it into a branch, you may be required to mail in a notarized letter requesting that the account to be closed. One reader commented that he wasn't required to mail a notarized letter, but instead he was required to mail a copy of his ID with the letter.

The free checking account has a minimum opening deposit of $50. There are no minimum balance requirements or monthly fees. Online Bill Payment is free.

I asked the CSR in March about a hard credit inquiry. According to the CSR, "it would be a hard hit if you are primary on the application." The credit check is done through Equifax. They also use ChexSystem in the application process.

I was also told that BB&T accounts can only be opened in states with BB&T branches. That now includes Texas (BB&T took over Colonial Bank and its Texas branches when it failed in August 2009).

It's an online promotion only. However, in the small print it states that it's available at the branches in AL, FL and TX. BB&T branches are located in Florida, Georgia, Alabama, North Carolina, South Carolina, Tennessee, Kentucky, Indiana, Texas, Virginia, West Virginia, Maryland and Washington DC.

BB&T is a member FDIC (FDIC Certificate # 9846).

Other Bank Bonuses

To find other bonus deals, please refer to my bank bonus page which has all of my recent bank bonus posts. Some additional bonus deals are also in the checking account discussion forum.

BancorpSouth is advertising three fairly competitive special CD rates. These include a 3.00% APY 59-month CD, a 2.50% APY 39-month CD and a 2.00% APY 23-month CD. A checking account is required. Minimum deposit is $1,000. These specials don't appear to be listed at the bank's website. They were advertised in yesterday's (6/06/10) Tyler Morning Telegraph newspaper. The ad is available online here.

The small print of the ad includes important info regarding where these specials are available and how long they are scheduled to last. Excerpts of the small print are shown below:

CD offer good at BancorpSouth locations in Huntsville and Mobile/Baldwin County, AL; Fayetteville and Rogers, AR area, Destin, FL area, Baton Rouge area, Lafayette, Alexandria, LA; Springfield, O'Fallon and Clayton, MO, Lufkin, Longview and Tyler, TX only and for funds not currently on deposit at any BancorpSouth office. Minimum deposit $1,000. Maximum deposit $250,000. Not good with any other offers. [...] BancorpSouth checking account with Debit Card required. Offer good through June 30, 2010.

As noted in the small print, a checking account is required. This BancorpSouth table provides a good overview of its checking accounts. The bank does offer a free reward checking account called Performance Checking (my review).

Most of BancorpSouth branches are located in Mississippi, Alabama, Tennessee, Arkansas and Louisiana. There are also a few in East Texas, the Florida Panhandle and in the Springfield and St. Louis metro areas of Missouri.

BancorpSouth's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial (based on 3/31/10 data), 4 stars (sound) at Bankrate.com (based on 12/31/09 data) and an overall health score of 3 out of 5 at DepositAccounts (see our BancorpSouth Bank rates and reviews page). The bank has been a FDIC member since 1934 (FDIC Certificate # 11813).

There were reports that this 3.00% CD special at SunTrust was going to end Friday, but I'm happy to report that the special is still listed at SunTrust's website as of 5/15/2010. This promo started in February, and has continued to become a better deal as the interest rate environment has worsened. The unusual feature of this CD is that it's actually two CDs: one with a 26-month term and one with a 49-month term. You must open both CDs with a minimum deposit of $2K for each CD for a total of $4K. Each CD must be funded with an equal amount. The special also requires that you have a SunTrust checking account. This can be opened at the same time that you open the CDs.

I called SunTrust (800.279.4824) this afternoon with hopes that I could find out how long it's going to last. Unfortunately, the only thing the CSR could confirm is that it's available as of today (5/15/2010). The CSR said they'll be available today through 5:00pm EDT. The accounts can be opened by phone from any state, and they can fund it with an ACH transfer that will pull funds from your existing bank account. The CSR assured me that if the CD is opened this way today, you'll be locked into the 3.00% APY.

A reader in the Open Discussions Thread asked about the early withdrawal penalty. In my last call to SunTrust, I wasn't able to get a clear answer to this question. The reader reported that he wasn't able to get the answer either at the branch. In my call today, the CSR was able to explain it to me. It's not the typical straightforward penalty. However, it's not as bad as I had thought. Here are the details:

SunTrust's Special CD Early Withdrawal Penalty

According to the CSR, the penalty is based on the number of days before the CD matures. The closer to maturity, the smaller the penalty.

• If the CD has 91 days to under 1 year to maturity, the penalty is 3 months of interest
• If the CD has 1 year to under 3 years to maturity, the penalty is 8 months of interest
• If the CD has 3 years to under 7 years to maturity, the penalty is 12 months of interest

I was also told that each CD would be treated individually in terms of the early withdrawal penalty. If you have details of the penalty from the disclosure, please leave a comment. When details like this are communicated by phone, it's easy to make a mistake. I tried to use their online chat service, but the link didn't work for me. I always prefer using a chat service for detailed questions.

No Hard Credit Pull

According to the CSR (from a March call), there's no hard credit inquiry. It's only a soft pull. This is the same info that I received in 2008 and many have confirmed there's no hard pull in this FW thread. So you shouldn't have to worry about having this ding your credit score.

Bank Overview

SunTrust is a large regional bank with $125 billion in deposits. It has branches throughout the southeast in Alabama, Arkansas, Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia and Washington DC.

SunTrust reported its 1st quarter results in April. According to Reuters, they reported a much smaller first-quarter net loss that beat analysts' expectations. SunTrust's ratings for safety and soundness continue to be a little weak, but the rating went up at Bankrate.com from 1 star on 9/30/09 data to 2 stars on 12/31/09 data. It's still 3 stars (adequate) at BauerFinancial based on 12/31/09 data. We have an overall health score of 3 out of 5 at DepositAccounts.com (see our SunTrust rates and reviews page). SunTrust is a FDIC member (FDIC Certificate # 867).

Searching for the Best CD Rates

I'm afraid it's getting harder to find 3% CDs for terms under 60 months. A 3% 4-year CD is actually quite competitive these days. So this SunTrust CD is a good deal even though it does require half the money to be put into the 49-month CD.

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com. The tables now have a new & improved format!

BBVA Compass Bank is offering another checking account bonus for its Build-to-Order Free Checking Account. The bonus amount is $100, and direct deposit is required. It's down from the $150 they were offering earlier this year. Here's the promotion page link. It's scheduled to expire on May 31, 2010. Below is the important small print:

$100 minimum opening deposit required to qualify for offer. Offer available for consumers only. Accounts opened online between 04/30/2010 and 05/31/2010 that establish a recurring payroll direct deposit by 06/30/2010 will receive $100 bonus. Bonus deposit will occur within 120 days of account opening in the checking account that receives the recurring payroll direct deposit. Account must be open at time of reward. May be subject to income tax reporting.

Requirements for Opening Compass Bank Accounts:

• Must be a U.S. Citizen
• Have a permanent residence within a state where BBVA Compass has a banking center (Alabama, Arizona, California, Colorado, Florida, New Mexico, or Texas) and your permanent residence must be located in close proximity to a BBVA Compass banking center.

BBVA Compass now has branches in California after its acquisition of the failed Guaranty Bank last August.

BBVA Compass Checking Accounts

I completed a Compass checking promotion in 2006 and received the promised $50 gift card without any problems. One downside is that I did received two hard credit inquiries by Transunion.

The Build-to-Order Free Checking comes with some basic features. Two additional premium features are allowed without cost. The notable basic feature is no minimum balance or direct deposit requirement. Also, bill pay is free. The notable premium feature for those who want to make extra money is a $25 anniversary cash bonus. One feature that is lacking is free checks. A reader in a previous Compass post mentioned that the first order of checks is free.

New Build My Savings Program

BBVA Compass has a new savings program that's similar to Wachovia's Way2Save. I did a detailed review of Build My Savings on Saturday.

BBVA Compass Bank is a member FDIC (FDIC Certificate # 19048).

Other Bank Bonuses

To find other bonus deals, please refer to my best bank bonuses page which has all of my recent bank bonus posts.

BBVA Compass has a new savings program called Build My Savings that has similarities to Wachovia's Way2Save program. Like the Way2Save program, Build My Savings requires monthly transfers from your BBVA Compass checking account to the Build My Savings account. Unlike Way2Save, no transfers are done for any debit card usage or ACH transactions. There are only two ways to get money into the Build My Savings Account: 1) initial deposit and 2) monthly transfers.

As with any of these programs, it's not a great deal for those with large savings. However, the program is currently set up so that a depositor could make a very respectable yield on deposits over $40,000.

Here are the steps to open the Build My Savings account

1. Open a BBVA Compass consumer checking account if you don’t already have one
2. Open the Build My Savings Account with an initial deposit ($25 minimum)
3. Set term of the account (from 6 months to 3 years)
4. Set the amount of the reoccurring transfers ($25 minimum)
5. Set the frequency of the reoccurring transfers (at least once a month)

If your initial deposit and reoccurring transfers are large enough, you can receive a Match Bonus of $250 per year. The account also earns interest, but it's practically nothing (currently 0.10%). So your rate of return is primarily based on this Match Bonus which will be paid 30 days after maturity.

How Much Can You Earn?

How much does it take to earn the $250 Match Bonus? Compass provides a calculator which allows you to see how much it'll take. The lowest initial deposit and monthly transfers that I could find to qualify for $250 in one year is an initial deposit of $1,000 and 12 monthly transfers of $640. This would require a total deposit of $8,680.

If you have a lump sum to invest, you can make it simple and treat it like a CD. You would deposit $8,680 in your Compass checking, and open the Build My Savings account with a $1,000 initial deposit from the checking and set up $640/month transfers. This should allow you to qualify for the $250 Match Bonus. That would result in an annual rate of return of about 2.88% (250/8680). Below is the snapshop that I took of this tool:

According to the disclosure (TX), there's a limit of 5 Build My Savings accounts per customer. So if a customer opens 5 of these accounts as described above, the total deposit would be $43,400. A one-year rate of return of 2.88% on $43K is a good deal these days (It appears the $250 Match Bonus would apply to each of the 5 accounts).

Possible Gotchas

There are risks that you may never see the Match Bonus. These are described in the product disclosure (see the disclosure page). The following is from the Texas disclosure:

• You will not be eligible for the Match Bonus if the Transfer is cancelled, stopped or missed or if the Transfer amount is reduced during the term of the Savings Plan, and will result in cancellation of the Savings Plan.
• If the Transfer does not occur [due to an overdraft], any applicable NSF fees will be charged to your checking account and you will no longer be eligible for the Match Bonus and your Savings Plan shall be cancelled.
• The initial Savings Plan deposit amount must be received within 6 calendar days of account opening or you will not be eligible for the Match Bonus.

One thing that does not appear to put the Match Bonus at risk is an early withdrawal. However, they do charge you $10 for each early withdrawal. That is the only penalty I see. This may not be a bad deal. Since the account earns practically no interest, it may be worthwhile for the 2-year or 3-year terms to do yearly withdrawals.

Another thing that worries me a little is that you have to trust the Build My Savings calculator. The match percentages that the calculator displays don't seem to be consistent with the dollar amounts of the match. I called Compass yesterday for more explanations, but the CSR wasn't much help. I would recommend taking a snapshot of the calculator tool output for future reference.

Another risk is if BBVA Compass is closed by regulators. I'm not sure how the FDIC would handle a Match Bonus. When banks fail, the FDIC guarantees that you receive all accrued interest up to the day of closure. I doubt the Match Bonus would be handled this way.

Do you see any other possible gotchas?

Maximizing Your Rate of Return

One way to improve your returns is to avoid doing a lump sum deposit into the checking account. You can set up monthly transfers from a high-yield savings account into the Compass checking account before the automatic transfers into the Build My Savings Plan take place. That would allow you to earn a decent rate on around half of your money, and this would not affect the Match Bonus.

Do you have any other tips to receive a higher rate of return?

Account Opening Info

According to the CSR, you can fund the Build My Savings account with an ACH transfer from another bank. You can also fund it by check or from an existing Compass account. You do have to first open a Compass consumer checking account. Opening a Compass checking account does result in a hard credit inquiry (which can ding your credit score). However, according to the CSR, there's no hard pull for opening the Build My Savings account.

In addition to opening the accounts at a branch, you can also apply online. However, there are some restrictions:

• Must be a U.S. Citizen
• Have a permanent residence within a state where BBVA Compass has a banking center (Alabama, Arizona, California, Colorado, Florida, New Mexico, or Texas) and your permanent residence must be located in close proximity to a BBVA Compass banking center.

BBVA Compass now has branches in California after its acquisition of the failed Guaranty Bank last August.

New $100 BBVA Compass Checking Account Bonus

I just noticed a new BBVA Compass checking account bonus. It's not as good as the previous one, but it's a good deal if you're interested in this Build My Savings program. Here's the promotions link. This is scheduled to last until May 31, 2010. This does require direct deposit. Here's the important small print:

$100 minimum opening deposit required to qualify for offer. Offer available for consumers only. Accounts opened online between 04/30/2010 and 05/31/2010 that establish a recurring payroll direct deposit by 06/30/2010 will receive $100 bonus. Bonus deposit will occur within 120 days of account opening in the checking account

Tyndall Federal Credit Union continues to offer several competitive CD and IRA CD rates, and it appears they're going to continue into April. Below are the standard rates as listed in the credit union's rate page as of 4/01/2010:

• 1.75% APY 12 month
• 2.00% APY 18 month
• 2.25% APY 24 month
• 2.50% APY 36 month
• 3.00% APY 48 month
• 3.50% APY 60 month

They also offer a CD laddering program called Certificate Advantage which gives you an extra 0.25% APY on the above certificate rates. The certificates also apply to IRAs.

Tyndall FCU also offers a reward checking account called e-Checking Account. The rate is a little low for reward checking (currently 1.25% APY), but the cap is larger than average at $50K.

You may be eligible for membership if you live, work, worship, or go to school in Bay, Gulf, Walton, Jackson, Okaloosa, Franklin, Calhoun, Holmes, or Washington Counties in Florida, or in Houston County in Alabama. Please refer to the credit union's membership page for the full details. Membership requires a $1 membership fee and a minimum deposit of $5 into the share savings account.

Tyndall FCU's ratings for safety and soundness are strong: 4 stars (sound) at Bankrate.com (based on 9/30/09 data) and 5 stars (superior) at BauerFinancial (based on 12/31/09 data). Tyndall FCU is federally insured by the NCUA (Charter # 10754).

First United Security Bank is offering a high-yield reward checking account with the following rates and features if certain monthly requirements are met (as of 3/30/2010):

• 3.29% APY on balances up to $100,000
• 0.95% APY on portion of balance over $100,000
• 0.15% base rate if requirements are not met
• Unlimited ATM fee refunds

Monthly requirements include:

• 12 check card purchases
• 1 direct deposit or ACH auto debit
• Access online banking at least once
• Enroll and receive e-statements

Other features of the account include:

• $100 minimum initial deposit
• No minimum balance requirement
• No monthly service charge

It appears that a branch visit is required to open an account. Branches are located in several cities in Alabama some of which include Brent, Butler, Columbiana, Fulton, Grove Hill, Jackson, Tuscaloosa and Woodstock.

The bank's ratings for safety and soundness are a little above average: 3½ stars (good) at BauerFinancial (based on 12/31/09 data) and 3 stars (performing) at Bankrate.com (based on 9/30/09 data). The bank has been a FDIC member since 1952 (FDIC Certificate # 17077).

Other High-Yield Reward Checking Accounts

It's not easy to find reward checking accounts with large balance caps. Most limit the balance that qualifies for the top rate to $25K. Those that had large balance caps have either cut the rates, lowered the balance cap or reduced availability (or all three). One example is City National Bank which had been offering a 3.28% APY reward checking account with no cap. The rate has fallen, and it now pays only 1.68% APY. On the plus side, it still has no cap, and it's still available nationwide (account review).

Refer to the reward checking section of DepositAccounts.com to find reward checking accounts in your state or that are available nationwide.

Update 5/10/10: Bonus has been extended to 6/06/2010.

BB&T continues to offer a $100 cash bonus for opening its free checking account and for either setting up direct deposit OR making 3 online bill payments. The promotion page is at www.bbt.com/cashoffer, and the offer code is AFJAP. The promotion is scheduled to expire on 3/31/2010. I wouldn't be surprised is this gets extended. I first posted on this in September when it was originally set to expire on December.

Some important small print of the promotion includes:

• Must be a new client (no BB&T checking in last 6 months)
• Direct Deposit or 3 online bill payments must be completed within 60 days of account opening
• $100 bonus will be deposited directly into your account within 4 weeks of meeting requirements
• Bonus reported to IRS

It's an online promotion only. The online application allows ACH funding up to $1,500. You can also mail in a check or make a deposit at a branch. There's no credit card option.

The free checking account has a minimum opening deposit of $50. There are no minimum balance requirements or monthly fees. Online Bill Payment is free.

I used the bank's online chat system to ask about a hard credit inquiry. According to the CSR, "it would be a hard hit if you are primary on the application." The credit check is done through Equifax. They also use ChexSystem in the application process.

I was also told that this promotion is only for states with BB&T branches. However, they still have not completely integrated the former Colonial Bank branches, so residents of states like Texas still can't qualify (BB&T took over Colonial Bank when it failed in August 2009). According to the CSR, Colonial Bank branches will be completely merged into BB&T by the summer.

BB&T branches are located in Florida, Georgia, Alabama, North Carolina, South Carolina, Tennessee, Kentucky, Indiana, Virginia, West Virginia, Maryland and Washington DC.

BB&T is a member FDIC (FDIC Certificate # 9846).

Other Bank Bonuses

To find other bonus deals, please refer to my bank bonus page which has all of my recent bank bonus posts.

SunTrust Bank continues to offer a special CD package with a 3.00% APY. It's a bit unusual in that it requires that you open two CDs: one with a 26-month term and the other with a 49-month term. An equal amount must be deposited in each. Minimum deposit is $2,000 per CD. A checking account is required. I was told that the free checking qualifies. You can also open these special CDs in an IRA. This CD special is listed at the SunTrust CD page as of 3/12/2010.

I first reported on this CD special in February when it was only available in the Tampa metro area. I called SunTrust today (800.279.4824), and the CSR said it could be opened by phone from any state. The CSR said he could open it by phone and use ACH debits from your bank's checking or money market account to fund the CDs and checking account. Note, it would take 3 debits to fund the accounts which could cause you to go over your 6-per-month limit on savings and money market accounts. According to the CSR, the CD rate would lock on the day you apply by phone. The CD rate is subject to change on any day. The CSR didn't know how much longer it would last. I also asked the CSR about the early withdrawal penalty, but I didn't get a simple answer. It appears to be based on how close you are to maturity. If you have more details about this, please leave a comment.

$150 Checking Account Bonus

SunTrust's $150 checking account promotion is still available. I first mentioned this in my February bonus review. According to the CSR, one could open the checking account for this promotion and then open these CD specials at the same time by phone. Or if you don't want the CDs, you could just do this checking promotion. Make sure you register your SunTrust checking account in the promotion via suntrust.com/solid by April 30, 2010. Refer to my February bonus review for more promotion detailss.

No Hard Credit Pull

According to the CSR, there's no hard credit inquiry. It's only a soft pull. This is the same info that I received in 2008 and many have confirmed there's no hard pull in this FW thread. So you shouldn't have to worry about having this ding your credit score.

Bank Overview

SunTrust is a large regional bank with $125 billion in deposits. It has branches throughout the southeast in Alabama, Arkansas, Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia and Washington DC.

Dow Jones reported on SunTrust's downgrading by Standard & Poor's Ratings Services on February 1st:

SunTrust, which serves areas of the southeast U.S. hit hard by the real estate crash, including Florida, has suffered from exposure to local construction and commercial real estate, as well as effects of high unemployment. The lender posted a string of losses last year.

As you may expect, SunTrust's ratings for safety and soundness are a little weak: 3 stars (adequate) at BauerFinancial (based on 12/31/09 data) and 1 star (lowest) at Bankrate.com (based on 9/30/09 data). SunTrust is a FDIC member (FDIC Certificate # 867).