Acacia Federal Savings Bank is offering some competitive CD rates. The rates were just updated today, and unfortunately, they did go down some, but they remain very competitive. Some of the most competitive CDs include a 4.50% APY 60-month CD, a 4.10% APY 48-month CD and a 3.40% APY 15-month special CD. Minimum deposit is $500. The standard CDs are also available in an IRA. These rates are listed in the bank's rate table which has an effective date of 1/05/09.
The bank has an online application (Apply Now Link on top left of rates page), and I confirmed with the bank today that they allow people to open accounts from any state. Initial deposit can be done by check or wire transfer (incoming wires are free). I was told that at maturity, you can call to instruct them to close the CD. They can send you a check for free or do an outgoing wire transfer for $12.
Details of the CDs are described in their Truth-in-Savings document. Long term CDs have higher-than-average early withdrawal penalties: For a term of more than three years, the penalty will be 18 month's interest on the amount withdrawn. For terms of over 1 year to up to 2 years, the penalty is 6 month's interest.
The bank has some fair ratings for soundness: 3.5 stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 9/30/08 data.
Acacia Federal Savings is based in Virginia. It has $1.56 billion in assets and $1.02 billion in deposits as of 9/30/08. It has been FDIC insured since 1985 (FDIC Certificate # 32266).
Other Top Certificate of Deposit Rates
A 4.50% APY for a 5-year term may sound low, but I'm afraid it's very competitive for banks in today's rate environment. Credit unions currently have the best long-term CD deals which include a 4.75% APY 60-month CD at Consumers CU and Mountain America CU. For more info on these and other nationwide CD rates, please refer to my weekly rate summary. To keep up-to-date on the latest deals for the day, please refer to my Deals & News of the Day.