Dedicated to Deposits: Deals, Data, and Discussion

4.00% 7-Month / 4.75% 30-Month CD at Regions Bank (Rates May Vary By State)

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Regions Bank
Regions Bank has a new CD promotion with some attractive rates: 4.00% APY 7-month, 4.25% APY 14-month and 4.75% APY 30-month. The minimum deposit is $10,000, with no maximum deposit. It also has a "second chance" option which allows you a one-time bump in the rate if interest rates rise. A checking account is required.

This special doesn't seem to be listed at Regions' website. A reader mentioned seeing the 4.75% APY 30-month CD being offered at a Florida branch. However, instead of the bump-up feature, the CD had an add-on feature which allowed additional deposits during the term.

When I called Regions for additional info, I was told this CD special will likely vary by state. The above rates and features are for Houston, Dallas and Austin, Texas. I wasn't able to confirm rates and features for other states. If you have checked with Regions for your state, please leave a comment about the special CD rates and features that are available.

According to the CSR, this promotion just started in August, and he expected it to last at least for a few weeks. The early withdrawal penalty is 6-months of interest for terms over one year and 3-months interest for terms under one year.

Branches are located in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas and Virginia.

Update 8/5/08: This new Regions CD promotion is being advertised in Memphis, TN with the same rates and features as in Texas (see ad). The ad provided more details on the Second Chance feature. Here's what was in the ad's small print:
Anytime during your original term you may adjust your rate one time to the current interest rate for the term you selected at account opening. On the date you adjust your rate, you will receive a new maturity date and new term equal to the term you selected at account opening.

Also in the ad's small print it states that "Interest on CDs longer than 12 months must be paid annually." and "the APYs are available for IRA's with $4,000 new funds."

Regions is the 15th largest US bank with $144 billion in assets. It seems like it hasn't been hit quite as hard as other regional banks in this housing slump. According to this Birmingham Business Journal article, Regions reported a profit for the second quarter. However, the profit was much lower than last year due to escalating loan losses and net charge-offs. Its financial ratings based on 3/31/08 data aren't too bad: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com.

As I recommend with any bank, it's always best to stay under the FDIC limits (Regions' FDIC Certificate # 1368).

  Tags: Tennessee, CD rates, Texas, Regions Bank, Florida

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Comments
3 Comments.
Comment #1 by Anonymous posted on
Anonymous
Just got a CD with Regions. Its a pretty good deal considering the rate at the higher end of the spectrum and the second chance offer that would let you upgrade to higher rates if they hike them during your CD term.

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Comment #2 by Duck (anonymous) posted on
Duck
still availble as of 09/25/08 opened a 30m this morning did not have to open any other accounts(ie checking/savings) as stipulated in post.

1
Comment #3 by Duck (anonymous) posted on
Duck
in addition post " Also in the ad's small print it states that "Interest on CDs longer than 12 months must be paid annually."
Intrest is compounded daily and credited quarterly not annually

1