5.50% 6-Month / 5.65% 12-Month CD at Crestmark Bank

Crestmark Bank is offering very high rates on short term CDs. These range from 5.05% APR for a 30-day CD to 5.65% APR for a 1-year CD. The minimum deposit is $25K. The maximum deposit is $200K. They do not compound interest so the APY and APR are equivalent. The full list of rates are below:

Certificate of Deposit Rates
Term                Rate (APR)
30 days             5.05%
60 days             5.15%
90 days             5.30%
180 days            5.50%
270 days            5.50%
365 days            5.65%
545 days (18 mos.)  5.65%
730 days (2 yrs.)   5.65%
910 days (30 mos.)  5.30%
1095 days (3 yrs.)  5.30%
1275 days (42 mos.) 5.30%
1460 days (4 yrs.)  5.30%
1825 days (5 yrs.)  5.30%

The 90 day CD has a 2 month interest penalty for early withdrawals. The 180 day CD has a 3-month penalty and the 365 day CD has a 6-month penalty.

I had reported on Crestmark and their high yield CDs back on March 29th. I had been uncertain about Crestmark since the website made it appear the CDs were only for businesses. When I contacted Crestmark, I was told that they do accept personal accounts. CDs can only be opened through the Troy, Michigan office. However, they can be opened by mail with no apparent state restriction.

Shortly after the March post, Crestmark stop listing the rates. I was told that this meant that they were not accepting new funds. They must have just recently changed.

The bank is FDIC insured (FDIC certificate #34353). Bankrate rates Crestmark as 3 out of 5 stars (performing). As of December 31, 2005, the bank had 143 million in total assets.