Dedicated to Deposits: Deals, Data, and Discussion

2.15% 14-Month CD at Guaranty Bank (now part of BBVA Compass) in TX & CA - Local Only


Update 9/08/09: CD rates have fallen. Please check the bank's website for the latest rates.

It was just last Friday that federal regulators closed Guaranty Bank and the FDIC arranged for the bank to be acquired by BBVA Compass. So you might not expect any more deals from Guaranty Bank, but that's not the case. Guaranty Bank continues to operate pretty much as before, and the bank is offering a competitive 14- and 15-month special CD with a 2.15% APY. Minimum deposit is $1,000. It's available as both a regular and IRA CD. This rate is listed in the bank's rate sheets for both California and Texas as of 8/28/09.

I called Guaranty Bank's toll-free number (1-800-288-8822) and according to the CSR, this CD can be opened by phone. However, it's limited to those in California and Texas. On the phone they can take your personal information, and they'll send you a signature card in the mail. I was told the rate will lock at the time you apply by phone. You then have 2 weeks to send back the signature card. They can fund the CD with an ACH debit of your existing checking or savings account. They can also open the CD at one of their branches in Texas and California.

It's common to see good CD deals from a bank that has been recently closed and acquired by another bank. It usually takes several months before the bank's operations are merged into the acquiring institution. Before that occurs, the bank operates in a similar way it did before the closure. This happened last year at both IndyMac and WaMu.

These Guaranty Bank CDs are not available at Compass Bank branches. However, Compass Bank continues to offer a competitive 2-year CD with a 2.50% APY. This may vary by area. I confirmed this for Central Texas and for Florida as of 8/28/09. Refer to my July post for more details about this CD.

BBVA Compass used to be just Compass Bank. It was rebranded after Compass was acquired by Banco Bilbao Vizcaya Argentaria, the second largest bank in Spain. The bank is still called Compass Bank in the FDIC database with a FDIC certificate # 19048.

Compass Bank has fair ratings for safety and soundness: 3 stars (performing) at and 3½ stars at BauerFinancial. Both ratings are based on 3/31/09 financial data.

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  Tags: California, CD rates, Texas

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