Dedicated to Deposits: Deals, Data, and Discussion

15-Month CD Special at First City Bank


First City Bank

First City Bank is offering a special 2.25% APY 15-month CD. Minimum deposit is $5,000, and the maximum is $250,000. According to the bank's promo page the special is scheduled to expire on 2/26/2010.

Update 6/17/10: The bank is no longer accepting accounts nationwide. This is now stated on the first page of the online application:

We currently accept applications from residents of Okaloosa, South Santa Rosa and South Walton counties.

There's an online application, and according to the CSR, this CD is available nationwide. One caveat is that you can't select the 15-month term in the application. According to the CSR, you can select a 12 or 18-month term and mention the 15-month term in the comments. According to the bank's instructions, one can open the CD by phone using their toll-free number (888-244-5151). However, a reader reported being told by the CSR that this is not an option.

They also offer a reward checking account which currently pays 3.01% APY for balances up to $25K. You can also apply online from any state to open this reward checking account (see post).

Branches are located in the Florida Panhandle cities of Fort Walton Beach, Destin and Mary Esther.

One thing that puts some cold water on this deal is that the bank isn't in the best financial shape. Its ratings for safety and soundness are very low: 0 star (lowest) at BauerFinancial and 1 star (lowest) at Both ratings are based on 9/30/09 financial data. The bank has also been operating under a FDIC Cease and Desist Order since 10/12/09. It's interesting to note that one of the restrictions the FDIC placed on the bank is on brokered deposits. As with any bank, make sure you keep under the FDIC limits. The bank has been a FDIC member since 1948 (FDIC Certificate # 16748).

Thanks to the reader me1004 who mentioned this special in the Open Discussion Thread.


Edit 2/03/10: Updated the phone option info for opening the CD.

  Tags: CD rates, Florida, First City Bank

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Comment #1 by me1004 posted on
I note, while the Web site indicates you can sign up for the account by phone, in fact, you cannot. I tried. I told them about the note on the Web site saying you can and suggested the fix the Web site.


As for the danger of the bank going under I guess that is only a danger if you go over the FDIC limits? Otherwise, the worst that could happen is that any new bank would not continue the rate but your account could be closed at that time. No loss, but have to take it elsewhere -- and maybe by then rates would be up.

Comment #2 by KenBDG posted on
Thanks for the note about the phone option. I updated the post with this info.

About the risk of the bank going under, as you mentioned, the main risk is if you have over the FDIC limit. If that's not the case, there's still a risk of the CD rate being reset by the acquiring bank. If the FDIC can't find a buyer, they'll mail checks.

Comment #3 by me1004 posted on
I note, their interest is simple interest. That means you do not earn anything more by leaving the interest in the account. They will send it out monthly if you want, and thus you could have that and invest elsewhere, getting yourself that much extra.


Also, they will NOT accept any beneficiaries unless you can provide the Social Security numbers of those beneficiaries. They are adamant about that, would not budge. As such, that nixed me opening this CD -- I don't have my beneficiaries' Social Security numbers and can't even ask (they are not my children). A stupid rule as it has no bearing on them being my beneficiaries and no other bank has ever failed to allow my beneficiaries because of that.

Comment #4 by Anonymous posted on
While filling out the online application it came to my attention that they ask for info on how to fund the checking account, which I'm not interested in opening, and nothing on funding a savings or CD acct.. Anyone who opened the CD, was a checking acct. required?