Dedicated to Deposits: Deals, Data, and Discussion

5.65% 12-Month / 5.65% 60-Month at Mutual Bank in Houston


Mutual Bank
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 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.

  Tags: Mutual Bank, CD rates, Texas

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Comment #1 by Anonymous posted on
Is it accurate to say that I should not be concerned about the safe and sound rating of a bank as long as they have FDIC insurance and I stay within the limits?

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
According to the FDIC (see FDIC page), you will not lose any principal or interest if a FDIC-insured bank should happen to fail and you have below the FDIC limits. Also, there should be no significant delay in accessing your money. For cases where you're using POD accounts to go above the $100K limits, I've read an incident where the FDIC had to spend time investigating those deposits over $100K to ensure they were covered. I don't have the details, but I would assume they would have to make sure the beneficiaries were alive and qualified. So for those cases, there might be some delay in accessing those funds.

Comment #3 by Dan The Man (anonymous) posted on
Dan The Man
I e-mail the Houston branch and got a reply from the branch manager (Mr. Patel). He stated to send an Application, W-9 Form, 2 Forms of ID, and a Letter of Direction. The rate is 5.65% and he expects the rate will last till at least the end of September. And of course a check to fund the CD

Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the additional info. Glad to see they haven't changed thier minds on applications by mail. I hope this can continue through September.

Comment #5 by Anonymous posted on
Also spoke with Mr. Patel. This promo rate is available on 1, 2, 3, 4, and 5-year CDs. It doesn't seem to be offered on an 18-month. Was told that I could set up online banking once CD was established. Don't know if you can add links to external accounts. Patel did say that upon maturity, they can just mail a check for the balance for no fee. Just moved a bunch of money out of AmTrust to apply for one of these CDs from out-of-state.