Arkansas Deposit Account Rates and Deals

Eastman Credit Union continues to offer competitive certificate rates. The two most competitive ones include a 1.75% APY 12-month CD and a 2.50% APY 3-year CD. The 6-month CD is also very competitive even though it may not seem that great with a 1.35% APY. Minimum deposit is $1,000. An extra 10 basis points are applied to Jumbo CDs with a $100,000 minimum deposit. These rates are listed in the credit union's deposit rates table as of 7/14/2010.

Membership is open to those who live, work or attend school in several counties in the northeast part of Tennessee. Counties in southwest Virginia and in Harrison and Gregg Counties in Texas are also included. In addition, there's a long list of Select Employer Groups. Please refer to the Who Can Join Page for the full details.

Branches are located in Tennessee, Virginia, Texas, South Carolina and Arkansas.

The credit union's ratings for safety and soundness remain strong: 4 stars (sound) at Bankrate.com, 5 stars (superior) at BauerFinancial and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview of Eastman Credit Union). These ratings are based on March 2010 data except for Bankrate which is based on 12/31/09 data. The credit union is federally insured by the NCUA (Charter # 68095). It's a large credit union with $2.33 billion in assets.

Searching for the Best CD Rates

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.

Air Force FCU has come out with a very competitive 18-month CD special. Rates range from 2.25% APY for a $100K minimum deposit to 2.00% APY for a $1,000 minimum. The following is a full list of the rates as listed in the credit union's savings rates page as of 7/5/2010:

• 2.25% APY 18-month CD min $100,000
• 2.20% APY 18-month CD min $25,000
• 2.15% APY 18-month CD min $12,500
• 2.10% APY 18-month CD min $2,500
• 2.00% APY 18-month CD min $1,000

These same rates are also available for IRA certificates. The credit union's early withdrawal penalty is a little convoluted:

The early withdrawal penalty will be equal to one half of the dividends that would accrue from the date of the withdrawal to the maturity date applying the contracted rate on the certificate based to the amount withdrawn over and above any dividends credited to the certificate to date of withdrawal.

It has been a while since I last reported on Air Force FCU. My last post was in January 2009. The credit used to offer many competitive CD rates back in 2007 and 2008.

One thing that has changed at Air Force FCU since my previous posts is the field of membership (FOM). The credit union has reduced the size of the FOM. It used to be open to all US Armed Forces. If you click on the credit union's "join us" link and then click on "become a member" link, you can see the full details of the credit union's FOM. In summary, it's now limited to those connected to the military who are working in Texas, Oklahoma, Arkansas, Louisiana, or Mississippi.

Membership application is available online. For those who prefer to visit an office, branches are located in San Antonio, Texas. The credit union is also part of the CU Service Centers which allows you to make several banking transactions at shared branch offices around the nation.

The credit union's ratings for safety and soundness are mixed: 5 stars (superior) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 3 out of 5 at DepositAccounts.com (see our Air Force FCU financial overview). These ratings are based on March 2010 data except for Bankrate which is based on 12/31/09 data. The credit union is federally insured by the NCUA (Charter # 8169).

Membership Eligibility Change and the NCUA

This change in the FOM has an interesting history that could be relevant to other credit unions. Last year the NCUA cited Air Force FCU for improper membership. According to the NCUA's letter of understanding and agreement

The Credit Union previously took an overly expansive view of their field of membership that was inconsistent with Section 5 of its charter. As a result, it has accepted share accounts, and extended loans to, individuals otherwise unqualified for membership, which has had a direct effect on the Credit Union's rapid growth and accounts for a significant percentage of its shares and its loan portfolio. These actions have led to our present supervisory concerns about operations and management.

For those who joined the credit union when they had a broad FOM, they may be at risk of losing their membership. Here's the last agreed upon action in the letter of understanding:

The Credit Union, if so directed by NCUA after reviewing the Firm's audit results, shall divest itself of all loans and shares attributable to "unqualified members."

I've seen cases in the past in which people were angered when they were not allowed to join a credit union. This shows why credit unions enforce their field of membership. Also, it shows how members could be affected by credit unions which don't follow their own charters. Based on this example, it appears that members with long-term CDs could find their CDs closed early (I would guess they would get all accrued interest) if the credit union ends their memberships.

Southern Bank is listing several competitive CD rates. The most competitive ones include a 3.50% APY 60-month CD, a 2.25% APY 24-month CD and a 2.00% APY 18-month CD. Minimum deposit is $500. These rates are listed in the bank's rates page as of 6/27/2010. Note, there's a March date at the top of this page. I've sent a message to the bank to confirm these rates are still valid.

In addition to top CD rates, the bank also offers a very competitive high-yield reward checking account called Kasasa Cash. It has been paying 5.01% APY on balances up to $25K since June 2009 (see my Southern Bank review).

There's an online application for both the CDs and the reward checking account. However, both applications state that only Arkansas and Missouri residents are eligible to open accounts. The apply button for the CDs is available here.

Branches are located in southeast Missouri and in northeast Arkansas.

In 2009, the bank added four branches in northeast Arkansas, and the bank's name changed from Southern Missouri Bank to Southern Bank.

The bank's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial, 4 stars (strong) at Bankrate.com and an overall health rating of 4 out of 5 at DepositAccounts (see our Southern Bank financial overview page). Ratings are based on 3/31/10 data except for Bankrate which is based on 12/31/09 data. The bank has been FDIC insured since 1951 (FDIC Certificate # 28332).

Searching for the Best CD and Reward Checking Rates

• Best CD Rates
• Best Reward Checking Rates

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!

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).

BancorpSouth Bank continues to offer a high-yield reward checking account called Performance Checking. I first reported on this account in May 2008. The rates have fallen a bit, but it remains competitive, and it has a higher-than-average balance cap of $30K. Another thing nice about this bank is that it's large with 289 offices throughout the Southeast. So if you're looking for a local reward checking account, a BancorpSouth branch may be nearby.

The rates are not easy to find at the bank's website. The only place I found the rate was at the start the online application (link to application located at this BancorpSouth page). You first have to select the state and the city of your home branch. The next page has links for each account, and you can click on the link for the Performance Checking to see the rate. It does vary based on your city. I've checked a few cities, and here are the two rates as of 3/11/2010:

• 3.25% APY up to $30K for Baton Rouge, LA & Tyler, TX
• 3.00% APY up to $30K for Destin, FL & Huntsville, AL

Please leave a comment about the rate if you check your city. The Performance Checking account has the typical reward checking features such as debit card usage (12 per month). Refer to this BancorpSouth page or my BancorpSouth checking review for more details.

Performance Savings Account

One thing that has been added since my 2008 post is a high-yield savings account. This also has the Performance name. The Performance Savings has a 1.50% APY (as of 3/11/2010) for all balances if the following two requirements are met:

• Transfer at least $50 into your Performance Savings account each interest cycle electronically via ACH or Internet Banking Transfer.
• Combine your Performance Savings statement with your BancorpSouth Checking account statement (you will no longer receive a separate statement for your Performance Savings account).

If these requirements are not met, the rate falls to the standard rate of 0.15%. This does require the Performance Checking account, but unlike other reward checking/savings combos, you don't have to meet the reward checking requirements to qualify for the bonus rate.

The Performance Checking and Savings accounts provide a nice alternative to savings accounts at internet banks, many of which now have rates of 1.25% or less.

Online Application and Branch Locations

As I mentioned above, there's an online application for both these accounts at this BancorpSouth page. The application makes it appear that you have to live near a branch to qualify. 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.

Financial Overview

BancorpSouth's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial (based on 12/31/09 data) and 4 stars (sound) at Bankrate.com (based on 9/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 11813).

Thanks to the reader who emailed me news of this reward checking account.

Other Reward Checking Accounts

As I mentioned above, BancorpSouth is a large bank with 289 branches, $13.2 billion in assets and $10.6 billion in deposits. There are not many other large banks offering reward checking accounts. I recently reviewed a few large banks offering reward checking, but I forgot about BancorpSouth which happens to be larger than the ones I mentioned in that post.

To find nationally available reward checking accounts and reward checking accounts in your local area, please refer to the reward checking section of DepositAccounts.com.

Eastman Credit Union continues to offer competitive certificate rates. The two most competitive ones include a 2.00% APY 12-month CD and a 2.30% APY 2-year CD. Minimum deposit is $1,000. An extra 10 basis points are applied to Jumbo CDs with a $100,000 minimum deposit. These rates are listed in the credit union's deposit rates table as of 2/2/2010.

Membership is open to those who live, work or attend school in several counties in the northeast part of Tennessee. Counties in southwest Virginia and in Harrison and Gregg Counties in Texas are also included. There's also a long list of Select Employer Groups. Please refer to the Who Can Join Page for the full details.

Branches are located in Tennessee, Virginia, Texas, South Carolina and Arkansas.

The credit union's ratings for safety and soundness are strong: 4 stars (sound) at Bankrate.com and 5 stars (superior) at BauerFinancial. Both ratings are based on 9/30/09 financial data. The Bankrate rating is one star higher than what I reported in August when it was based on 3/31/09 data.

The credit union is federally insured by the NCUA (Charter # 68095). It's a large credit union with $2.1 billion in assets and 109,770 members based on 11/17/09 NCUA data.

Allied Bank in Arkansas has an internet bank called JustBANKit.com, and they're offering some decent CD rates. The two most competitive are the 1.90% APY 12-month CD and the 2.00% APY 18-month CD. There's also a 1.50% APY 6-month CD and a 2.10% APY 30-month CD. These rates are listed on the bank's home page as of 1/23/2010. Minimum deposit is $1,000. Interest is compounded semi-annually.

Even though the bank's About page states that JustBankIt.com is an internet branch and the online applications currently have no geograhpic limitations listed, I asked the CSR yesterday if it's available nationwide just to make sure. I received an "it depends" answer. The CSR said they may reject your application if your credit report isn't top notch. He wasn't sure if this was a hard or soft pull. They also do a ChexSystems verification.

According to the CSR, the CD can be funded by mailing a check or a wire transfer ($15 fee). The CD rate won't lock until they receive the funds.

The CSR said the early withdrawal penalty is 3 months of interest. If you decide to not let the CD renew, you can instruct them to send a check or initiate a wire transfer ($15 fee). If you also open their free checking account, I would think they would be able to transfer it into the checking.

Branches are located in several cities of Arkansas including Little Rock.

The bank's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 9/30/09 data. The bank has been a FDIC member since 1934 (FDIC Certificate # 91).

Thanks to the reader who emailed me news about this bank and the CDs.

Update 4/17/10: I recently checked with the bank, and according to the CSR, this CD is now only available to local residents.

Bank of Fayetteville is offering a special 15-month CD with a 2.10% APY. Minimum deposit is $500. This rate is listed at the bank's rates page as of 12/22/09. The CD also has a step-up option.

According to the bank's service rep, you can open a CD online. The "Open an Account" link is on the left sidebar of the rates page under the "Quick Links" tab. I was told once you submit the application, a new-account rep will contact you.

The bank also offers a nationwide reward checking account that currently pays 3.20% APY for balances of up to $50K. It had recently been 3.50% APY, and when I first reported on this account in February 2008, it had a 5.01% APY (see my account review).

The bank has 9 offices in Fayetteville, Farmington, Prairie Grove and West Fork, Arkansas.

The bank's ratings for safety and soundness are a little weak: 2 stars (below peer group) at Bankrate.com (based on 6/30/09 data) and 3 stars (adequate) at BauerFinancial (based on 9/30/09 data). It has been a FDIC member since (FDIC Certificate # 26975).

Other Competitive Certificate of Deposit Rates

• CD rates at DepositAccounts.com
• My weekly list of hot nationwide and local CD deals