Update 9/20/07: This CD special is no longer available.
Mutual Bank's new Houston branch is offering a grand opening special certificate yield of 5.65% APY for terms from 12 to 60 months. The minimum deposit is $5,000, and there is no maximum deposit. This rate is not listed on the bank's website. I reader emailed me news of this, and I called the Houston branch yesterday for further information. The banking rep said that you could open these 5.65% CDs by mail from any state, but you had to make sure you mailed the application to the Houston branch. Note, these policies can often change, so please check with Mutual Bank before sending in the application.
Mutual Bank's listed rates are still very competitive for the 12, 24 and 36 month CDs with yields from 5.35% to 5.47% APY. These special rates have been available since February. Their money market account also has maintained a competitive yield of 5.10% APY with a $5K minimum.
Mutual Bank has been FDIC insured since 1962 (FDIC Certificate # 18659). Their safe-and-sound star rating at Bankrate.com has fallen again since my February report. It's now 2 out of 5 stars (below peer group) based on 3/31/07 financial data. Last year it had been 4 stars. In February it had fallen to 3 stars.
Thanks to the reader who emailed me news of this special.