Dedicated to Deposits: Deals, Data, and Discussion

5.35% 9-Month and 5.30% 15-Month CD at Academy Bank

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Academy Bank is offering a special 5.35% APY 9-month CD and a 5.30% APY 15-month CD. The minimum deposit is $500.

I had reported on this bank last February. When I contacted the bank at that time, I was told that accounts were only available to those in Colorado. But now this seems to have changed. I called the bank yesterday and was told that CDs are available to people outside of Colorado. However, you first must have a checking or savings account before opening a CD. Funds from the checking or savings account can then be used to fund the CD. That checking/savings requirement seemed a little odd to me since it's a bank and not a credit union. I then emailed the bank and received a little different reply. The customer service rep who replied to my email stated that the CD application can be done online. To fund it requires mailing a check or initiating a wire transfer. You need to make sure to note the funding method in the application.

The good news is that both service reps indicated that accounts are available to people from outside of Colorado. However, the inconsistency in their replies makes me think that purchasing a CD through their online application may not be a smooth process. If you have gone through this process, please comment on your experience.

Some additional information I received in the email relates to closing a CD. The easiest method would be if you have an Academy Bank checking or savings account, you could request a transfer of the CD into that account. Otherwise, the bank can mail you a cashier's check or initiate a wire transfer. They did not provide details on the early withdrawal penalties. The service rep stated in the email that penalties for early withdrawal are calculated at the time the CD is closed and will vary depending on how early you close it. At maturity you have a 10 day grace period to close the CD without penalty.

Academy Bank has branches in Wal-Mart Supercenters in several areas of Colorado including Denver, Aurora, Avon, Colorado Springs and Fort Collins. Academy Bank is part of a banking group owned and operated by Dickinson Financial Corporation (DFC) which includes the Armed Forces Bank. Academy Bank has been FDIC insured since 1966. It has the highest rating for financial strength at both BauerFinancial and Bankrate based on 6/30/07 data.

  Tags: Colorado, CD rates

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Comments
Comment #1 by Anonymous posted on
Anonymous
looks like the rates dropped .2% for both cds today :(

1