Update 10/15/09: This 11-month CD special has ended. I called today, and there are no more specials. The 12-month CD APY is 2.00% APY in Texas and 1.85% APY in Florida as of 10/15/09.
Colonial branches of BB&T are offering a very competitive CD special. It's a 2.25% APY 11-month CD. Minimum deposit is $500, and no checking is required. This isn't listed at the bank's website. Readers have commented on this deal, and I just called and confirmed that it's available for Texas and Central Florida branches. It appears to have just started today. The CSR didn't know how much longer it would last.
It may not be available at all Colonial branches. If you have Colonial branches in your area and you're interested in this CD, call Colonial (877-502-2265) to confirm it's available. There are also branches in Alabama, Georgia and Nevada.
Colonial Bank failed on August 14th, and the FDIC arranged for BB&T to take over the bank. As we've seen in the last two years, banks that fail and are taken over by other banks will often come out with attractive deals. Examples include IndyMac, BankUnited and Guaranty Bank. The nice aspect of these deals is that new accounts would be under the strong banks that took over the failed banks. So there's no more immediate concern about bank closures. Of course it's still advisable to keep under the FDIC limits.
BB&T is a member FDIC (FDIC Certificate # 9846).
Thanks to the readers who mentioned this special CD in the Bank Deals Hub post.
A Side Note on Colonial
There's an interesting Montgomery Advertiser article about lawsuits being filed by Colonial Bank employees accusing the bank's officials of investing most of the employees' retirement fund contributions in Colonial Stock. As is typical when a bank fails, the stock of the holding company of the failed bank becomes worthless. The article doesn't provide details about the retirement funds. The ones that I've experienced have many mutual funds to choose from including the company stock. Consumer advocates, such as Clark Howard, have long warned against owning company stock in your retirement plans.
Other Competitive Certificate of Deposit Rates