Dedicated to Deposits: Deals, Data, and Discussion

Update on the 5.00% 7-Month CD at Guaranty Bank in California


Update 10/20/08: This CD special has expired. Please check the bank's website for the latest rates and specials.

Guaranty Bank continues to offer a special 5.00% APY 7-month CD. The minimum deposit is $1,000, and there's no maximum deposit limit. When I first posted on this on September 16th, I was told by the banking rep that the special was scheduled to last through September. I just called their special number (877-656-8435), and I was told that it has been extended through this Friday (October 3, 2008). The banking rep also said that they've extended the offer to include all of California. Originally, it was intended for just Los Angeles County.

Note, a reader recently commented that he was told that this special was scheduled to last through October 4th, and that it continues to be limited to the LA County. So your miles may vary based on the customer service rep. Commenters in my last post mentioned that they were able to open this CD even though they didn't reside in LA County. Here are excerpts from a recent comment about the account opening process:
Opening an account by phone with them went very smoothly.

I also note, if you choose to fund via the ACH, they credit your account and interest starts accruing on the day they send the debit through the ACH, as opposed to the day they receive the funds from your bank, which could easily be two days later.

When I called before my last post I was told they can take your info by phone, initiate the ACH from your existing checking account, and mail you the signature card. You can also choose to mail a check. They need to receive the funds within 7 days and the signature card within 14 days to guarantee the rate. The signature card does not need to be notarized.

At maturity, I was told they require written instructions if you choose not to renew. This can be faxed or mailed. I was told they can send you the funds by ACH or by check. Both are free. According to the CSR, wire transfer was not an option.

The bank has some weak financial ratings: 2 stars (problematic) at BauerFinancial and 1 star (lowest) at Both are based on 6/30/08 data.

Guaranty Bank's headquarters is in Austin, Texas. It has $15.9 billion in assets. The bank has been FDIC insured since 1988 (FDIC Certificate # 32618). Note, this is different than the Guaranty Bank at that's based in Wisconsin. A reader also noted a different Guaranty Bank in Colorado.

Note: I continue to update my Best Deals & News of the Day post. This post is intended to point out the best recent deals (like this 5% 7-month CD) so you don't miss any. I have a link to this post at the top of my front page.

  Tags: California, CD rates

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Comment #1 by Anonymous posted on
Thanks for the good work!