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2.87% 18-Month CD IRA & Other High Rates at Pacific Mercantile Bank in CA - Nationally Available

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Pacific Mercantile Bank
Pacific Mercantile Bank is offering a competitive rate on its IRA CD of 2.87% APY for terms of 18 months and 2 years. The 5-year rate is also 2.87% APY, but this isn't as competitive. Minimum deposit is $7,500. The rates are listed at the bank's IRA rate table as of 5/28/09. The effective date listed is 5/26/09, and I was told rates are usually only updated on Tuesdays. On Monday it had been 2.97% APY.

I called the bank yesterday, and according to the CSR, people in any state can apply for their CDs and IRA CDs. There's an online application, but this requires that you print and mail it in with a copy of your driver's license. Also, I was told for IRAs, they require additional forms. You can call and have them email you those. The online application allows for a formal trust and a payable-on-death trust account.

If you mail a check for your initial deposit, I was told that the rate that is locked is based on the postmark date of the envelope. They also accept wire transfers to fund the CDs (inbound wire transfers are free).

When the CD matures, you can request a wire transfer out ($35 fee). You can also request a free check or have it reinvested in another CD.

Pacific Mercantile Bank's regular CDs have lower rates, but they're fairly competitive. The most competitive is the 12-month CD with a 2.22% APY for a $10K minimum deposit. This is listed in the bank's CD rate table as of 5/28/09.

More CD details are listed in the truth-in-savings disclosure. One unique feature is that you're allowed to make 3 deposits into the account before maturity if your account has a term of six months or longer. Other CD details include: early withdrawal penalty of 90 days of interest for the 12-month CD, 10 days grace period at maturity, and interest compounded daily.

Branch-Only 2.75% Premium Interest Checking Account

On their home page they're listing a checking account with a 2.75% APY. I was told by the CSR that this requires a branch visit. At the bottom of the page, they have a table listing the blended APYs. It appears that the portion of the balance below $1,500 only earns 0.40%. Balances between $1,500 and $100,000 earn 2.75%. This is different than the typical tiered rate account in which the full balance earns the listed rate once you reach a specific tier.

Update: A reader received more info about this Premium Interest Checking account at a branch, and he was informed of several monthly requirements the must be met to qualify for the rate. These requirements don't seem to be listed on their website. Please check with the branch for the details.

Branches are located in the California cities of Beverly Hills, Costa Mesa, La Habra, La Jolla, Long Beach, Newport Beach, San Juan Capistrano and Ontario.

The bank's ratings for safety and soundness are a little weak: 2 stars (below peer group) at Bankrate.com and 3 stars (adequate) at BauerFinancial. Both ratings are based on 12/31/08 financial data. The bank is FDIC insured (Certificate # 34940).

Related Pages: California, Pacific Mercantile Bank, CD rates, IRA rates

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Comments
2 Comments.
Comment #1 by Anonymous posted on
Anonymous
Rats! I was hoping no one would notice the Premium Interest Checking Account so that the rate would stay up!

1
Comment #2 by Anonymous posted on
Anonymous
IRA CD rate at Pacific Mercantile is now (9/10/09) 2.53%.

1