Dedicated to Deposits: Deals, Data, and Discussion

3.00% 3-Year CD & Other Competitive CD Rates Continue at Pinnacle Bank in Florida - Local Only


Pinnacle Bank (NE)
Pinnacle Bank continues to offer competitive rates on its mid-term and long-term bump-up CDs. The rates are the same as they were in September. These include:
  • 2.50% APY 2-year
  • 3.00% APY 3-year
  • 3.25% APY 4-year
  • 3.50% APY 5-year
The above rates are no longer listed at the bank's website. They were advertised yesterday (12/20/09) in the Orlando Sentinel. Minimum deposit is $5,000, and the maximum deposit is $99,000. Early withdrawal penalty is 6 months of interest.

The small print has the following details about the bump-up feature:
For 3, 4 and 5 year term- two times during the term of your account, at your election and upon our actual receipt of written notice from you, we will change the interest rate on your account to the interest rate we offer then on accounts of a similar term as the then remaining term of your account. 2 year term has the option to bump the interest rate once during the term of the account. The rate cannot increase more than two percentage points over the initial rate. No more than 1 bump permitted per 12 month time period beginning one year after the opening deposit date.

I consider the bump-up feature one of the least useful liquid CD features. If interest rates go up, the bank can offer higher rates on special terms. The new rates for the standard CDs can then be kept at low rates. So you may be disappointed in the bump-up opportunities. Nevertheless, the above rates are very competitive regardless of the bump-up feature.

It appears that a branch visit is required to open accounts. Branches are located in the Central Florida cities of Longwood and Orange City.

The bank's ratings for safety and soundness have gone down a bit since my last post. They're now a little weak: 2 stars (below peer group) at (based on 6/30/09 data) and 3 stars (adequate) at BauerFinancial (based on 9/30/09 data). I can't find any public enforcement actions from regulators. The bank has been a FDIC member since 1999 (FDIC Certificate # 34908).

Other Competitive Certificate of Deposit Rates

  Tags: Pinnacle Bank (NE), CD rates, Florida

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