Dedicated to Deposits: Deals, Data, and Discussion

5.75% 60-Month CD at a California Bank (Spectrum)

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Spectrum Bank is offering a 5.75% APY 60-month certificate of deposit. The minimum is $1K. It's available as both a regular CD and an IRA CD. The 3-year CD is also competitive at 5.50% APY.

The bank has branches at Irvine and Montebello, California. The website doesn't specify if CDs can be opened by mail and if they accept out-of-state deposits. I've sent them a message asking about this.

The bank has been federally insured by the FDIC since 1955. It has a 4 out of 5 star safe-and-sound rating at Bankrate.com.


Comments
6 Comments.
Comment #1 by Bozo (anonymous) posted on
Bozo
Just my humble opinion, but if you can get 5.75% for five years, run, don't walk.

Any financial institution offering 5.75% APY for five years is being quite generous.

Yours,

Bozo

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Comment #2 by Bozo (anonymous) posted on
Bozo
I sent them an e-mail inquiring whether one might open a CD by mail. This is not a bad rate, so we'll see. La Jolla Bank did everything by mail for me, so I can't understand why folks require branch visits.

If they don't respond, well, I stick with La Jolla Bank, even with their lower rate.

Have a nice week,

Yours,

Bozo

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Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
Bozo, Thanks for your inputs.

Yes, with long-term CD rates dropping like a brick at so many banks, these few 5.75%+ long-term CD rates may not last long.

Sometimes a small bank wants to concentrate on its local area and not deal with long distance customers. Hopefully, Spectrum Bank won't be like this.

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Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
I just received a reply. They do not accept CDs from out of state.

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Comment #5 by Bozo (anonymous) posted on
Bozo
I just received an e-mail reply (that's a plus). However, they do require one to open the CD in a branch (that's a minus).

Query: if they are so hot for our retiree money, why do they require an in-branch visit?

Oh, well, the good news is at least they responded to my e-mail.


Yours,

Bozo

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Comment #6 by Banking Guy (anonymous) posted on
Banking Guy
Yup, they were quick in their response to my email message too. However, I had several questions, and they only responded with "no out of state deposits accepted".

Many small banks don't seem interested in opening CDs by mail. Another issue may be that they feel local customers are more likely to be profitable (have a low-interest checking account, savings account, loans, etc.)

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