Update 3/23/2010: The eCD rate is now 1.95% APY, but the term increased to 15 months. Please refer to the bank's website for the latest rates.
Franklin Synergy Bank increased the rate of its 12-month eCD last week from 2.05% to 2.25% APY. Minimum deposit is $1,000, and the maximum is $500,000. The 2.25% eCD is listed in the bank's eProducts page as of 12/28/09.
When I contacted the bank last summer, I was told that the account can be opened online by people from any state. The application link is at the bottom of the eProducts Page. Some details I received from the bank in July include:
- CD can be funded either by wire transfer or check by mail
- Rate is locked at the time of application
Update 1/14/10: Reader just commented that opening this CD was very fast without any problems. He also reported that the early withdrawal penalty is 30 days of interest.
The bank also has an E-Savings Account that's listed on the same eProducts page. The rate is also competitive: 1.75% APY for balances of $25K and up, 1.35% APY for smaller balances. One issue with this account is that it requires a checking account. Also, according to the account description, "Maximum of $500 accepted from external account." I'm trying to find out if this is through their ACH bank-to-bank transfer service.
The bank is a fairly new bank that was established in 2007 with headquarters in Franklin, Tennessee. It's a small bank with $237 million in assets and $197 million in deposits based on 9/30/09 FDIC data. Since it's new, BauerFinancial doesn't have a rating for it. Bankrate.com gives the bank 2 stars (below peer group) based on 6/30/09 financial data (down from 3 stars based on 12/31/08 data). The bank is a member FDIC (FDIC Certificate # 58714).
Other High Certificate of Deposit Rates
If you want a hassle-free competitive 1-year CD, ING Direct would be a good choice. They're still offering 2% APY (see my ING Direct review). For other good CD deals, please refer to:
- CD rates at DepositAccounts.com
- My weekly list of hot nationwide and local CD deals