Dedicated to Deposits: Deals, Data, and Discussion

2.50% 12-Month CD & 2.10% 6-Month CD at Colonial Bank (FL, TX, ...)

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Update 7/05/09: These special CD rates have fallen. July 5th newspaper ads are showing a 2.25% APY 12-month CD and a 2.00% APY 6-month CD.

Colonial Bank has started advertising some very competitive short-term CD rates. These include a 2.10% APY for 3- and 6-month terms, and a 2.50% APY for a 12-month term. Minimum deposit is $500. The 6- and 12-month promo CDs can also be opened in an IRA. One nice thing about this CD special is that there's no checking account requirement.

These rates are not listed at Colonial Bank's website. I had noticed these were advertised in Tampa and in Southeast Florida. I just called and verified that these rates are valid as of today (6/29/09). I also verified that they're available in Texas in addition to Florida. The rates may vary by location, so I recommend calling them at 877-502-2265 to verify the rates in your area. A branch visit is required to open an account. Branches are located in Florida, Texas, Nevada, Georgia and Alabama. A few of the major cities that have branches include Austin, Dallas, Panama City, Orlando, Fort Lauderdale, Miami, Tampa, Fort Myers, Las Vegas, Reno, Birmingham, Montgomery, Macon and Atlanta.

Financial Overview

Colonial Bank has been having financial troubles. Earlier this month it was reported that the FDIC had issued Colonial Bank a cease and desist order with various demands including for it to raise its risk-based capital ratio. More details are described in this Tampa Bay Business Journal article. Colonial Bank's ratings for safety and soundness have also fallen in the last few months. It now has a 1 star (troubled) at BauerFinancial (based on 3/31/09 data) and 1 star (lowest) at Bankrate.com (based on 12/31/08 data). As I recommend with any bank, it's best to stay under the FDIC limits. The bank has been a FDIC member since 1934 (FDIC Certificate # 9609).

Other High Certificate of Deposit Rates
  Tags: Nevada, Alabama, Georgia, CD rates, Texas, Florida

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Comments
2 comments.
Comment #1 by Future Are Here (anonymous) posted on
Future Are Here
good information and helpful content
thanks

1
Comment #2 by Anonymous posted on
Anonymous
July 5 paper has Colonial ad with lower rates - 12 mo is now 2.25 APY,
6 mo is now 2.00 APY.

1