Dedicated to Deposits: Deals, Data, and Discussion

6.00% 72-Month CD at a Texas Bank (Commercial Bank of Texas).

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Update 11/09/07: It appears this CD special has ended. It's no longer listed on the bank's website.

Commercial Bank of Texas, N.A. is offering a promotional CD with a yield of 6.00% APY. The minimum deposit is $5,000. It's also available as an IRA certificate. It requires that you have or open a Star or Premium checking account. The Star Checking has a monthly fee, but it can be waived with a $700 checking balance or a $10,000 balance in a linked CD. The early withdrawal penalty is 12 months of interest. There's a 7 day grace period when the CD matures, and I was told that instructions to close the CD must be in writing.

There are "apply online" buttons for both the CDs and the checking account. However, when I tried to enter the online application, I got "Your Application Timed Out", so I don't know if this would be possible. The banking rep at first said that a branch visit would be required to open the accounts, but when I noted the online application, she said you could apply online if it allowed you to. So I'm not sure if these can be opened without a branch visit. If you receive other information, please leave a comment.

Update 10/26/07: The bank's website now states that the CD special is available to Texas residents only. Also, a $50,000 deposit cap has been added.

Branches are located in the Texas cities of Nacogdoches, Lufkin, Wells, Kennard, and Diboll. The bank has FDIC insured since 1934 (Certificate # 1209). It has $306.7 million in assets and 139 employees. Bankrate gives the bank a 4 out of 5 star rating (sound) based on 6/30/07 data.

  Tags: CD rates, IRA rates, Texas

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Comments
8 Comments.
Comment #1 by Anonymous posted on
Anonymous
I had no problem with the online service enrolling Star account, which timed out often...hit back or refresh and stick with it...when the warning
about time out surfaces, click it to keep going. Online aps are accepted, with funding and required docs accepted by mail (or ACH for funding?) Staff are very helpful and friendly. I went through recordings at 4 branches before I had a live person answer the phone. So don't give up! With 72 mos term and 12 mos of penalty for early withdrawal, this is a good place to park "set it and forget it" money, which compounds quarterly, can be monitored online.

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Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. Glad to read you were able to open it okay online and by mail.

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Comment #3 by Anonymous posted on
Anonymous
Now, they are only accepting money from Texas. I just talked to Commercial Bank of Texas and finally found someone who supposedly knows something. The website states that the maxium is $50,000 for the CD.

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Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Thanks. Looks like anything with 6% these days creates a lot of demand which must have caused the bank to make these changes. I've updated the post with this info.

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Comment #5 by Anonymous posted on
Anonymous
Just saw the new posting from the Bank dated 10/26/07 and wish I had been told this on 10/25 by their representatives before I invested a good 4 hours! Don't waste your time trying to get this 6% 72-Month CD for an IRA account. First there is no online capability to open an IRA CD and second it is now limited to Texas residents who must visit the bank in person only. It took me a number hours, emails, phone calls and lost effort to discover this. I contacted the representatives to ensure I (CA resident) was eligible for the IRA CD promotion before I began the process and they assured me I was. After opening the STAR account online (criteria to be eligible to open the promotional IRA CD) and initiating the transfer of the money to fund the STAR account, that is when everything fell apart.

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Comment #6 by Harry (anonymous) posted on
Harry
Thanks for your great blog!
I too was trying to take advantage of this good long term rate. When I spoke to their representative on Wed, the 24th I was assurred that I could have this done by remote (I am in Illinois). So I tried, to no avail. When I sent email to another person -Christy Muirhead, she did reply that only TX residents, in person, were eligible. Too bad - what's the difference where the funds come from?
Keep up the great blog!

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Comment #7 by Anonymous posted on
Anonymous
I see nothing on their website about a 6% promotional CD rate. Texas resident or not.

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Comment #8 by Banking Guy (anonymous) posted on
Banking Guy
Yes, it looks like it might be over. I've updated the post. Thanks.

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