Dedicated to Deposits: Deals, Data, and Discussion

2.50% 24-Month CD & an Equity Index CD at BBVA Compass in Several States

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BBVA Compass continues to offer a competitive rate of 2.50% APY on its 2-year CD. Minimum deposit is $5,000. This rate is listed at the bank's rate table as of 9/08/09. Note, they have separate CD rate tables for the different regions. I've checked most of these, and they all have the 2.50% APY for the 24-month term. This is the only CD term with a competitive rate.

Guaranty Bank is also offering a 2.50% APY 24-month CD at its branches in California and Texas. This rate is listed at the bank's rate sheets as of 9/08/09. Guaranty Bank was closed by federal regulators on August 21st. BBVA Compass then took over the bank through an agreement with the FDIC. Guaranty Bank had been offering a very competitive 14-month CD a week after it was closed. Now the rates seem comparable to what BBVA Compass offers. When I called Guaranty Bank regarding that old 14-month CD, I was told CA and TX residents could apply by phone (see post).

Equity Index Power CD

BBVA Compass is once again offering a new equity indexed Power CD. It's a 4-year CD that has the potential to earn 4% APY each year. However, this only occurs if the S&P 500 Index is equal or higher on an anniversary date, than the S&P 50 Index on the issue date. Otherwise no interest payment will be made for that year, but your principal remains protected. The offer is only available through September 18, 2009.

Back in March I reviewed a previous Power CD offering from Compass. I discussed some issues to consider about these types of CDs, and commenters provided some additional issues.

Locations

To open an account at BBVA Compass, you must reside in one of Compass's market areas which include Alabama, Arizona, Colorado, Florida, New Mexico and Texas. Guaranty Bank (now part of Compass) has branches in California and Texas.

Financial/FDIC Overview

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.

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

Other Competitive Certificate of Deposit Rates
  Tags: Alabama, California, Colorado, Arizona, CD rates, New Mexico, Texas, Florida

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Comments
3 comments.
Comment #1 by Anonymous posted on
Anonymous
We opened a 24 month CD today, and it was painless. Only one form of ID required. No hidden qualifiers, such as checking or savings required.

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Comment #2 by Anonymous posted on
Anonymous
QUESTION: can one open a CD here if they do not have any other account at this bank?

I am having problems opening new CDs and bank accounts because Chexsystems is reporting 'number of recent inquiries' in my file. This week alone, two banks have denied me. Is this a new way of determining banking eligibility? I do not have any record of overdrafts in Chex. I have never bounced a check or defaulted on a bank account. I have excellent credit. I do open many CDs because I do not trust the stock market and almost every time I find an attractive CD rate, the bank requires I first open a checking account or a savings in their bank before I can buy the CD.

The FDIC will only insure up to a certain amount. I presume other people with lots of money have to open many accounts at many banks to insure funds in excess of the FDIC limit, right? Is Chexsystems trying to deny consumers FDIC protection? Shouldn't this be illegal? Can I report this activity to the FDIC? Any advice? Please help!! Thank you.

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Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
I don't believe they require you to open a checking account for this 2.50% CD.

That's a good point about the problem of banks rejecting applicants due to too many ChexSystem inquiries. In my opinion, this is an abuse of ChexSystem. Unfortunately, many banks do this, especially for opening checking accounts. I think it's less likely for savings accounts.

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