Regions Bank just came out with a special 12-month CD rate of 2.00% APY. Also, the longer terms specials continue to be very competitive. The rates vary by state, so you'll have to enter your zip code at Regions CD page to see the rates available for your area. The 2% was available in zip codes in Texas, Illinois, Central Florida and Georgia. However, a lower 1.75% APY was listed for South Florida, Indiana and North Carolina. The longer term rates were the same for all of the above areas. The full list of special CD rates as of 10/28/09 include:
- 3.25% APY 42-month CD
- 2.50% APY 23-month CD
- 2.00% APY 12-month CD (1.75% APY in some areas)
- 1.25% APY 7-month CD
I last posted on these specials in September. Before today the 42-month CD rate had gone down to 3% APY in many areas.
When I had last checked with Regions on its special CDs, a branch visit was required to open an account. Branches are located in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Texas.
Regions Financial Overview
Regions Financial reported its third quarter results last week. According to this Reuters article, Regions' third-quarter loss was more than what analysts expected. However, the results were good enough to be encouraging to analysts.
One interesting thing to note in the earnings report is that Regions plans to close 121 branches to cut costs. Also, as you might expect with the CD specials that they have offered for many months, their deposits have grown with 270,000 new checking accounts. Average low cost deposits increased $1.3 billion versus the second quarter. These were highlights in the earnings report and show why they require a checking account with these special CDs.
Regions was one of the major banks that were required to raise capital based on the government's stress test last spring (see post).
Regions Bank's rating for safety and soundness at Bankrate.com has dropped from 2 stars to 1 star (lowest). It continues to be 3 stars (adequate) at BauerFinancial. Both ratings are based on 6/30/09 financial data. Regions Bank has been a FDIC member since 1934 (Regions' FDIC Certificate # 1368).
Thanks to the reader who mentioned this new 12-month CD special in the bank deals hub page.
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