5.80% 12-Month CD at American Partners Bank

American Partners Bank is offering a 5.80% APY 12-month and 18-month certificate of deposit. The minimum is $1K. The early withdrawal penalty for CDs with terms of 3 months to 18 months is 91 days of interest.

Account application must be printed and mailed or faxed. The accounts can be funded by mail or by wire transfer. ACH transfer doesn't seem to be an option.

American Partners Bank also offers a money market account that has fallen behind in the last few months in rates. The rate has remained at 4.71% APY since I reported on it in early April. The 4.71% rate was a nice rate back then. Only HSBC's promo 4.80% was higher. This money market account does have some nice features such as no monthly fees regardless of balance, the first order of checks is free, and ATM rebates are provided for up to 10 transactions per month. The only issue is that the opening balance must be $1K and you need a balance of $1K to earn interest.

Since I've been following this bank back in November, its rating at Bankrate.com has fallen from 4/5 stars (sound), to 3/5 stars in April (performing) and now 2/5 stars (below average). Note, it use to be named Assurance Partners Bank of Carmel, Indiana. It's a small bank with $84 million in total assets and 51 employees. It is FDIC insured.

Thanks to James who left a comment on this new CD rate.