Center Bank is offering an installment savings account with rates up to 4.86% APY for a 5-year term. Below are the rates listed in the bank's advertisement page as of 9/03/09:
- 3.56% APY 12 & 18 months
- 3.82% APY 24 & 30 months
- 4.08% APY 36 months
- 4.60% APY 48 months
- 4.86% APY 60 months
Some important details of this account listed in the bank's small print include:
- Interest rate and APY in effect at account opening will be paid until maturity
- Any withdrawal before the end of the term will result in your account being closed.
- If you close your account before maturity, a penalty equal to the interest paid during the previous quarter will be imposed
- Interest will be compounded daily. Interest will be credited to your account quarterly.
Comparing an installment savings account to a CD requires some math. I described how this can be done in this post.
My last post on this bank was in March when they were offering a 3.40% 12-month liquid CD and a 3.30% money market account.
A branch visit is required to open an account. Branches are located in several Southern California cities including Los Angeles, Orange County and San Diego. It also has two branches in Washington State and one in Chicago, Illinois.
The bank's ratings for safety and soundness are fair: 3½ stars (good) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 3/31/09 financial data. Center Bank has been a FDIC member since 1986 (FDIC Certificate # 26610).
Thanks to the reader who emailed me info on this account.
Other Installment Savings Accounts
Installment savings accounts are common among Korean-American banks. Refer to my installment savings account page to find other banks offering these. One bank that offers its installments savings accounts nationwide is Wilshire State Bank (see post).