Dedicated to Deposits: Deals, Data, and Discussion

2.75% 15-Month CD at Banner Bank in WA, OR & ID

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Banner Bank
Banner Bank is offering a 15-month CD special with a rate of 2.75% APY. Minimum deposit is $2,500, and the maximum is $250,000. The CD has a bump feature that allows a one time bump up in the rate during the life of the CD. The new rate would be based on a similar account type excluding special offers. This typically makes the bump-up feature not a great deal. The rate is listed on the bank's promotion page as of 4/23/09.

The small print also states that "additional deposits allowed up to $250,000 - certain terms and conditions apply". Since I don't see any advertising of this add-on feature, I'm a little skeptical about it. In my opinion, I would prefer an add-on feature over a bump-up feature. Add-on features can be very useful for hedging against an extended low-rate environment. The bump-up feature can be useful in a rising-rate environment, but it highly depends on what the bank offers in the future.

There's an online application, however, the accounts only seem to show up for selection if you enter a zip code that's in their market area. So it doesn't appear to be a nationwide deal. Branches are located throughout Washington State, Oregon and Idaho.

Banner Bank's ratings for safety and soundness are weak: 2 stars (problematic) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1934 (FDIC Certificate # 28489).

Thanks to the reader rav who mentioned this special CD in the Daily News & Deals Post.

  Tags: Washington, Oregon, Idaho, CD rates, Banner Bank

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