The ad lists three Dallas branches. It's likely that they'll require a branch visit to open the CD. There are also two other branches in the Texas cities of Jacksboro and Runaway Bay which operate under the name First National Bank. The Highlands Bank is actually FDIC insured under The First National Bank of Jacksboro (FDIC Certificate # 3274). The bank has a 3 out of 5 star rating (performing) at Bankrate.com.
Other High Certificate of Deposit Rates
The 4.25% APY is competitive for a 3-year term. There are a couple banks offering higher yields on nationally available CDs. National City just recently modified its CD promotion with shorter terms. It now has a 36-month CD with a yield of 5% APY with a qualifying checking or 4.75% APY without checking (see post). Countrywide also has a 36-month CD with a higher rate (currently 4.50% APY). There's much more competition for longer terms of 48 and 60 months. Several banks, including Wachovia, are offering 4.75% APY 60-month CDs. For more CD rates, please refer to my CD rate summary from last Saturday.