Dedicated to Deposits: Deals, Data, and Discussion

4.25% 12-Month CD at a California Bank - and 3.50% Savings Account (Security Pacific)

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Update 11/07/08: The bank has been closed. Please refer to this post for more details.

Security Pacific Bank has some competitive deals on savings accounts and CDs. Its Smarter Savings account has a 3.50% APY for a minimum balance of $1,000. The minimum balance to avoid a $5 monthly fee is also $1,000. The bank also has a competitive 12-month CD rate of 4.25% APY. The minimum deposit is $1,000.

A reader mentioned being told by the bank that they require a branch visit to open accounts. Branches are located in Southern California cities of Los Angeles, Ontario and Seal Beach.

This is another California bank that has been hit hard by the mortgage mess. Its financial ratings are low: 0 star at BauerFinancial and 1 star at Bankrate.com. Both are based on 3/31/08 data. One intersting thing to note is the bank's press room page which describes how they had earned a 5-star rating from BauerFinancial for 22 consecutive quarters. I guess this is an example of how history doesn't mean much in a bank's current financial situation.

As I recommend with any bank, it's best to keep below the FDIC limits. Security Pacific Bank has been FDIC insured since 1981 (FDIC Certificate # 23595).

Thanks to the reader who emailed me news of this savings account.

  Tags: California, CD rates, savings account

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Comments
2 Comments.
Comment #1 by Anonymous posted on
Anonymous
The FDIC recently issued a Cease and Desist order against Security Pacific Bank on 4/21/08. This information is available to the public to review in detail at http://www.fdic.gov/bank/individual/enforcement/begsrch.html

You would select the "year of action" drop down box and click 2008. This item about Security Pacific Bank (Los Angeles, CA) is listed on the last page (page 5).

It is always beneficial to check this FDIC enforcement actions website when thinking about investing in CD's at specific institutions.

The cease and desist orders list all the items the banks need to correct and are very detailed. Many news stories could result if more people knew about this website.

Enjoy!
Steve/OC

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Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. That FDIC page does seem like a good resource.

Here's the link (pdf) to the Cease and Desist order.

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