Dedicated to Deposits: Deals, Data, and Discussion

4.80% 7-Month CD at a Chicago Bank (Pan American)

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Update 9/13/08: A commenter has reported that the bank has lowered the yield from 4.80% to 4.30% APY.

Update 8/30/08: A commenter has reported that the bank has increased the yield from 4.70% to 4.80% APY.

Pan American Bank is offering a special 4.80% APY 7-month CD. The minimum deposit is $500, and there's no maximum deposit. This special CD doesn't seem to be listed at the bank's website. A reader emailed me info on this, and I called the bank this afternoon. According to the CSR, there's no checking account requirement for this CD. The CSR said this promotion just came out last week, and he expected it to last for at least another 2 weeks. But there's no guarantee.

A branch visit is required to open a new account. Branches are located in Chicago and in Bellwood, Illinois (see bottom of this page).

Pan American Bank has a 3.5 star rating (good) at BauerFinancial and a 2 star rating (below peer group) at Bankrate.com. Both are based on 3/31/08 data. As I recommend with any bank, it's best to stay under the FDIC limits. The bank has been FDIC insured since 1995 (FDIC Certificate # 34108).

Thanks to the reader who emailed me info on this special CD.
  Tags: Illinois, CD rates, Pan American Bank

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Comments
11 comments.
Comment #1 by trinidon2k (anonymous) posted on
trinidon2k
Good one. Thanks. I'm debating between this and the WAMU 12 month CD. I'll report back on my experience if I decide to open one.

1
Comment #2 by Anonymous posted on
Anonymous
The rate is now 4.80% APY. I believe the change occurred Wednesday or Thursday. I opened this CD yesterday and was pleasantly surprised.

According to the rep who helped me, the bank recently changed ownership to one that is more aggressive about attracting customers. The reason why promotion is not on web site is because they've been behind in upgrading web capabilities.

-1
Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. I've updated the post. It's not too often that I get a report of a special CD rate being increased.

1
Comment #4 by trinidon2k (anonymous) posted on
trinidon2k
I can also confirm that the new rate is 4.80% APY. I just opened an account with the branch manager Jose and it was a very pleasant experience.

The topic of this blog came up and he actually remembered speaking to Banking Guy.

I don't think they did a hard pull. Maybe just Chexsystems. I'll check my credit report on Monday to double check.

I think the maximum on the CD might be $200,000.

The main branch has a parking lot, it's only about a 15 minute drive from the Chicago Loop area and this offer is in-branch ONLY.

I don't think the deal is going to last much longer because he said that they are going to offer this deal until they meet a certain cap and the cap is pretty low.

1
Comment #5 by Anonymous posted on
Anonymous
I commented on 4.80% initially. Knowing interest of Banking Guy's audience, I did ask about hard credit pull and was told they do not do one. Sorry for earlier omission.

1
Comment #6 by trinidon2k (anonymous) posted on
trinidon2k
Just another FYI: If you want to view the CD online, you must have a checking or savings account. You can't get online access with just a CD account. The Pan American Free Checking account has no monthly service charge and no minimum balance (after $50 minimum opening deposit). That seems to be the best option.

1
Comment #7 by Sean (anonymous) posted on
Sean
stopped by the bank today to open a checking account and learned that the rate dropped to 4.30%. Still decent for a short term CD.

1
Comment #8 by Banking Guy (anonymous) posted on
Banking Guy
Thanks Sean for the update. Sorry to see the drop, but like you said, the 4.30% APY is still a good deal for a 7-month term.

1
Comment #9 by banking deal community (anonymous) posted on
banking deal community
HSBC Direct is now paying 4.80% APY on their OnlineSavings accounts. It’s not updated on their front page, but it is shown on their Rates page

1
Comment #10 by Sean (anonymous) posted on
Sean
I closed my checking and cd account on Saturday. Their service was remarkable. The branch manager offered the best customer service i've seen at a bank. I've opened over 15 accounts the past year and this was by far the best experience.

If I didn't need the money, I would have renewed my CD.

They will def. be my first choice next time I'm opening a CD.

1
Comment #11 by Davie (anonymous) posted on
Davie
I concur with Tiburon Hiker. Corus is fast, efficient and fair when opening or closing out of state CDs. I also appraeciate the fact that CD interest can be paid monthly via ACH to a non-Corus bank account at no charge. Not all banks do that.replica watch

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