5.75% 3-Month / 5.75% 9-Month CD at a Missouri Bank (St. Louis)

Sep 24, 2006 - 4:09 PM by Ken Tumin

St. Louis Bank is offering a special certificate of deposit with an APY of 5.75% on terms between 3 and 9 months. The minimum is $10K, and the funds must not already be on deposit at the bank. The special CD is listed at the bank's rates page. It was also advertised in today's St Louis newspaper. The ad is available online here.

The bank seems to have these CD specials often. In July it had a similar special with a 5.75% APY but it was just for a 3-month term.

St. Louis Bank's main location is in Town and Country, Missouri.

The bank is FDIC insured. It's a new bank that was established on June 6, 2005 so it doesn't yet have a rating at Bankrate.com. It's also a small bank with 32 employees and $197 million in total assets.

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Anonymous - #1, Saturday, October 7, 2006 - 10:48 PM

Note this info box as snipped from the bank, as of 10-7-06 -
. . .

CERTIFICATE SPECIALS***

3-9 Month $10,000 5.63 5.75
12 Month $10,000 5.39 5.50

APY CALCULATION METHODS:
*ACTUAL/ACTUAL SIMPLE, COMPOUNDED MONTHLY
***366/366 SIMPLE, COMPOUNDED QUARTERLY

. . .

Shouldn't the heading for this bank offer be "5.63% 3-Month / 5.75% 9-Month Cd at . . . " as there will be no compounding for the 3 month certificate? Simple interest for the 3 month term.

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Banking Guy (anonymous) - #2, Sunday, October 8, 2006 - 2:14 PM

APY is a little confusing when it applies to terms of less than one year. At the end of 3 months, the total money in interest from $10K would be $140.75 (quarter of $563). If this CD were renewed at the same rate 3 more times, the total amount for the year would be $10,575.

5.75% 3-Month / 5.75% 9-Month CD at a Missouri Bank (St. Louis)

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