Dedicated to Deposits: Deals, Data, and Discussion

4.00% 12-Month CD at Regal Financial Bank - Nationally Available

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Regal Financial Bank
Update 3/02/09: The promotion page now states that the offer is open to Washington State residents only.

Regal Financial Bank is offering a special 12-month CD with a 4.00% APY. Minimum deposit is $2,500, and the maximum is $250,000. To qualify for this CD, you must also open a savings account and checking account. The special is listed at the bank's promotion page as of 2/25/09. This MVP CD promotion is scheduled to expire 3/15/09.

A reader mentioned seeing an ad for this special. I just called their toll-free number at 800-888-1955, and I was told this special is available to people in any state. They can email you the application. The finished application can be faxed or mailed to the bank. They accept check or wire transfer. BestCashCow also just did a post on this. Update 3/02/09: They changed their policy, and they are no longer accepting out-of-state applications.

The savings account has a $1,000 minimum requirement and the checking has a $500 minimum (waived if direct deposit is set up). The bank also has savings account with a 3.25% APY for balances between $2,500 and $250,000. This special savings account is listed in this savings account promotion page as of 2/25/09. The offer is scheduled to expire on 3/15/09. I forgot to ask the CSR about this savings account so I don't have any more details. I emailed the bank about this savings account last week, but I never received a reply.

Regal Financial is a small bank based in Seattle, Washington. As of 9/30/08 FDIC data, it has 33 employees, $154 million in assets and $128 million in deposits. Being this small, I don't see how they can offer such a high CD rate nationwide. So I would be surprised if this special does last to March 15th.

The bank has decent ratings for safety and soundness: 3 stars (performing) at Bankrate.com and 3.5 stars (good) at BauerFinancial. The bank has been FDIC insured since 2002 (FDIC Certificate # 57236).

Thanks to the reader who emailed me news of this special.
  Tags: Washington, Regal Financial Bank, CD rates

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Comments
16 comments.
Comment #1 by Anonymous posted on
Anonymous
The rating for Regal Bank by Bauer Financial is based on 9/30/08. I guarantee that bank is no better than a 2 now.

I thought about jumping on the deal however, because of the 3.25$ savings. If they drop it pull the money out, you slready have the 4% CD. Set up DD for a small amount thru your employer. Although opening all these accounts is more likely a hassle for a 4% CD, unless you have 100k.

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Comment #2 by Anonymous posted on
Anonymous
Emailed them 2 weeks ago, Regal Bank never replied, Emailed them, Regal Bank never replied, Emailed them, Regal Bank never replied, Emailed them.

Regal Bank never replies.

Wire transfer fees to fund. Went to Redneck Bank instead.

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Comment #3 by Anonymous posted on
Anonymous
With these conditions attached, i.e., mandatory opening of both a savings AND checking account, it would seem that we are seeing the advent of a new (and unwelcome) phenomenon for savers, namely, the "rewards CD." I suppose in exchange for a decent CD rate, this will be what we can increasingly expect to see.

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Comment #4 by Anonymous posted on
Anonymous
And don't forget, when their target for new funds is reached, the rates will go down to nothing.

No thanks, small banks are more hustle then the benefit extracted form.

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Comment #5 by Shane (anonymous) posted on
Shane
I spoke to them via email on 2/26 (they wouldn't answer the phone). You can open a savings acct, checking acct or apply for a credit card. The savings acct is $1,000 min and is currently 3.25% and the credit card has no annual fee - so I think that is the way to go and is worth 4% APY. This is avail in all states. You need to open the acct by faxing/mailing forms.

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Comment #6 by Anonymous posted on
Anonymous
I spoke with Regal Bank representative on 2/26/09. Very courteous. She said that she would have application Emailed, and it arrived about an hour later. She said that MVP 4.0% APY CD offer would remain until 3/15, since they had advertised it, and that they are getting very busy with the volume of applications they are receiving.

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Comment #7 by Anonymous posted on
Anonymous
I faxed them the app form today and mailed off my deposit checks as well. Hopefully it works out!

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Comment #8 by Anonymous posted on
Anonymous
I opened a mmk at Anchor bank in WA a week ago(3.8% until 8/2009). Was told that they will not accept new deposits after 2/28. I guess they are over whelmed.

1
Comment #9 by Anonymous posted on
Anonymous
I was very interested in taking advantage of the one year rate of 4%. I went to the Promotions page today (03/02) and it now reads that the offer is only open to residents of Washington State, who must also open two other products with the bank. I guess a good CD rate is very hard to find!

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Comment #10 by Anonymous posted on
Anonymous
i call them today,3/04/09 they told me cd is for washington residents only, because they were getting too many appl.

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Comment #11 by Anonymous posted on
Anonymous
Did they do a hard credit pull?

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Comment #12 by Andy (anonymous) posted on
Andy
03/10/09- I just opened the MVP CD in a branch. You need to maintain the minimum balance of $500 in checking (non-interest bearing), and $1000 in savings (approx 1% yield) for the duration of the CD. The 3.25% savings account is a different account from the one required to get the 4% CD.

I punched up some numbers for the actual yield on total money invested considering the checking/savings minimum balances.

If you open the CD with $1000 you still need $1500 more in capital ($2500 total). After a year you'll have $2550 between the three accounts. This is only 2% yield. However the more you put in the CD, the higher the total yield. At $5000 in the CD ($6500 total investment) your total yield is 3%. At $10000 your yield is 3.5%. At $25000 your yield is 3.8%.

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Comment #13 by Anonymous posted on
Anonymous
Just be sure to read the fine print before signing onto this one. At different places in the agreement I was sent, it says "You may not make withdrawals from your account until the maturity date" but also "We will consider requests for early withdrawal and, if granted, the penalty as specified above will apply." So who knows what the bottom line is?

There is also some funky legalese about odd topics (e.g., surrender of instrument, indemnity, pledging) that I have never seen before in a CD agreement.

This, on top of the hassle of having to open three accounts, made me decide against it. But it may be worth it for some folks. The people at the bank were very nice, responsive, and helpful.

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Comment #14 by Shane (anonymous) posted on
Shane
Re the Emerald Savings Acct (3.25% APY until 3/15), going down to 3% on 3/16 - the bank does not currently have online ACH. They will however set up an ACH transaction for you on demand. They are also super friendly. However, I'm going to pass on opening the Emerald Savings because at 3% and no ACH I can activate myself I think its a hassle.

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Comment #15 by Anonymous posted on
Anonymous
http://www.seattlepi.com/local/405529_fraud26.html?source=rss

Seattle bank accused in massive Ponzi scheme

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Comment #16 by Shane (anonymous) posted on
Shane
Bauer Financial & BankRate are rating Regal 1 star now. That, coupled with the above article about the CEO running a ponzi scheme make me very nervous. I have a CD with them that doesn't mature until March 2010.

At least the bank shows as FDIC insured on the FDIC website.

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