Dedicated to Deposits: Deals, Data, and Discussion

3.75% 10-Month Online Hybrid CD at 1st Mariner Bank - $50K Max


1st Mariner Bank
Update 2/18/09: The CD rate has fallen to 3.00% APY.

1st Mariner Bank continues to offer a Hybrid Savings/CD Account. The yield has dropped since I last reported on this in July 2008, but it's still very competitive. The current rate is 3.75% APY for a term of 10 months. Minimum initial deposit is $100, and the maximum is $50,000. It requires a checking account, and it requires that you set up automatic monthly transfers from the checking into the Hybrid CD. The transfers must be at least $25, but cannot be more than $500. The rate is listed at the bank's rate table as of 2/04/09.

The monthly automatic transfers are what makes this a hybrid of a CD and savings account. All other features are the same as a fixed-rate CD including the early withdrawal penalty (90 days of interest). In my July 2008 post, the maximum initial deposit was only $25,000. I did an online chat this morning with a banking rep, and I was told that the maximum is now $50,000 which makes this CD much more appealing for those with large savings. Some other features I was told today include:
  • Account can be opened online from any state. Signature cards will be mailed.
  • Online application accepts electronic ACH funding (up to $50K). You'll need your bank's routing and account number.
  • Rates are subject to change every Thursday
  • Rate locks at the time of the application
  • Their Absolutely Free Checking Qualifies
  • No hard credit inquiry is performed (just a soft credit hit for ID verification)

First Mariner Bank is based in Baltimore, Maryland. The bank is moderate in size with 26 branches in Maryland and Pennslyvania and with $1.2 billion in assets.

The bank's rating for safety and soundness are weak: 2 stars (problematic) at BauerFinancial and 1 star (lowest) at Both ratings are based on 9/30/08 financial data. As I recommend with any bank, it's best to stay below the FDIC limits. The bank has been FDIC insured since 1962 (FDIC Certificate # 31286).

Thanks to the reader who commented on this new rate in the Daily News & Deals post.

Related Pages: 1st Mariner Bank, Maryland, CD rates

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Comment #1 by Anonymous posted on
This particular bank also is having some financial difficulties at this time.

Comment #2 by Anonymous posted on
All banks are having financial difficulties!

Comment #3 by HomoSapiens (anonymous) posted on
Do they verify the funding account with trial deposits, or just withdraw funds immediately with no verification?
Also: is it possible to change monthly automatic transfer amount in the middle of CD term, or is it fixed at the time of application for the whole 10mo? Thanks

Comment #4 by HomoSapiens (anonymous) posted on
Applied for an account, $50 Free checking, +CD.

Answers to my previous questions:
1) There was nothing on trial deposits. Looks like they'll ACH the whole amount in right away, with no verification.

2) Monthly transfer amounts and dates are specified during application. Not sure if these can be changed afterwards. My impression based on how online acct opening is automated -- more likely 'no' than 'yes'.

and then some:
3) No back buttons. If you've made a mistake with deposit amount -- you'll have no way to correct. No page to review and confirm what you've entered, except for personal info page (going into Chex.)

4) On my signature card the rate is listed as 3.00% APY!
Are they insane? Just loaded their rate page on a new computer, where there can't be any cached pages -- shows 3.75% APY, as it does on my comp, as it did when I applied. During the application the rate is not shown anywhere. Let's see what they say. I obviously will not sign that, however I doubt they'll wait for my signature card before charging my external funding account.

Comment #5 by HomoSapiens (anonymous) posted on
1 more update:
no response received to my voicemail left yesterday.
Called them again today during their listed customer support hours -- to hear that noone responsible for online applications will appear before Tuesday.

Sent my grief online through support form on their website a few times (as the text entered just disappears without rest of the page reloading; no confirmation if it was sent) -- to get email response 'Undeliverable: Contact Information from FMB website.' an hour later.
Looks like this bank is having more difficulties than just 'some finacial'. It is a total mess, if not fraud (let's hope).

Comment #6 by Anonymous posted on
I noticed that once on the "online account application" page, the rate is 3% instead of the advertised 3.75% shown on their main "rate" page. Not proceeding with the application. Will call them to verify what's the real deal here. Maybe they're just trying to get everyone to "blindly" jump on the bandwagon???
Will call, and post an update.

Comment #7 by Anonymous posted on
Just called and confirmed that rate is now down to 3%.... oh well...