Update 11/23/2010: The bank is currently not accepting new applications for its savings account and CDs.
Palladian Private Bank is an internet bank with some competitive rates. The best CD rate is 1.90% APY for a 12-month term. Minimum deposit is $10,000. The 3-month and 6-month CDs are not quite as competitive. The savings account rate is 1.70% APY for a minimum balance of $10K which is pretty good these days. These rates are listed on the bank's rates page as of 2/17/2010.
Palladian is a division of The PrivateBank and Trust Company. Both websites use the same online banking service at ibanking-services.com, and this is used for the online application at Palladian. According to the small print under the rate table, the CD APY is effective for 14 calendar days from the date on which they receive your completed application.
I couldn't find much documentation about the CD and savings account on the website, so I called the bank today at 877.564.8880. Here are some details that I was told applicable to all accounts:
- Available nationwide
- You can fund the account via an ACH transfer from an existing bank account
- CSR wasn't sure about a hard credit inquiry
- No POD beneficiaries can be included
Some details I was told specific to CD accounts:
- Early withdrawal penalty equal to 90 days of interest for terms of 1 year and under
- Grace period is 10 calendar days
- At maturity, they don't provide ACH or wire transfer to receive the funds. They may be able to transfer the money to your Palladian savings account
Some details I was told specific to the savings account:
- No bank-to-bank ACH transfer service
- Allows transfers initiated from another bank
- $10K minimum balance to earn interest
- No monthly fees
The internet banking features of this bank are weak. Only the above-average interest rates make this a so-so deal.
The PrivateBank and Trust Company is part of PrivateBancorp, Inc. It has 34 offices in 10 states serving major metro areas including Atlanta, Chicago, Cleveland and Denver.
The bank's ratings for safety and soundness are a little weak: 2 stars (below peer group) at Bankrate.com and 3½ stars (good) at BauerFinancial. Both ratings are based on 9/30/09 financial data. The bank has been a FDIC member since 1991 (FDIC Certificate # 33306).