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Competitive CD Rates and Specials at Acacia Federal Savings Bank - Available Nationwide

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Acacia Federal Savings Bank

Acacia Federal Savings Bank is offering two competitive CD specials: a 3.50% APY 60-month IRA-only CD and a 2.15% APY 25-month CD. These rates are listed in the bank's promotions page as of 3/23/2010. The IRA CD has a $100 minimum deposit, and is scheduled to last until 4/15/2010. The regular CD has a $500 minimum, and is scheduled to last until 3/31/2010.

Acacia Federal also has some competitive standard CD rates as of 3/23/2010 which include a 3.00% APY 48-month CD and a 3.30% APY 60-month CD. Minimum deposit is $500.

Last Saturday I reviewed Acacia Federal's Top Choice Checking which offers a 1.50% APY on all balances without any reward checking requirements.

Details of the CDs are described in the bank's Truth-in-Savings document. One downside with the long-term CDs is a harsh early withdrawal penalty:

  • 3 months of interest for terms of up to 1 year
  • 6 months of interest for terms of over 1 year up to 2 years
  • 12 months of interest for terms of over 2 years up to 3 years
  • 18 months of interest for terms of over 3 years

One thing to note based on the disclosure is that the special 25-month CD would have a 1-year early withdrawal penalty. The standard 2-year CD has only a 6-month penalty. Since the standard 2-year CD rate is only 10 basis points lower (2.05% APY as of 3/23/10), it may actually be a better deal.

The bank has an online application and they allow people to open accounts from any state. Initial deposit can be done by check or wire transfer (incoming wires are free). I was told that at maturity, you can call to instruct them to close the CD. They can send you a check for free or do an outgoing wire transfer for $12. Unfortunately, they still don't have an ACH option to fund CDs.

According to the bank rep, if the CD application is being submitted online, the rate will be locked for seven days for Acacia Federal to receive the funds (wire or check). Anytime after that the funds will be placed in the CD at the new rate if the rate has changed.

Bank Overview

From the bank's About page

Acacia Federal is a thrift institution which has been operating in the Washington DC Metro area since it opened in March 1985. It is a subsidiary of the Acacia Life Insurance Company.

Acacia Federal runs its nationwide deposit operation and conducts regional loan production from one location in Falls Church, Virginia.

Based on FDIC data from 12/31/09, the bank has $1.387 billion in assets and $962 million in deposits.

Acacia Federal's ratings for safety and soundness are a little weak: 3 stars (adequate) at BauerFinancial (based on 12/31/09 data) and 1 star (lowest) at Bankrate.com (based on 9/30/09 data). The bank has been a FDIC member since 1985 (FDIC Certificate 32266).


  Tags: CD rates, IRA rates, Acacia Federal Savings Bank

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Comments
Comment #1 by Bankgal (anonymous) posted on
Bankgal
Does anyone know why the ratings from Bauer's and Bankrate can be so different on banks?  I notice Bauer's gives this bank 3 stars and Bankrate only 1 star.   Whenever I have checked Bauer's ratings and then gone to Bankrate, I usually find the Bankrate is quite a bit lower.  I have to check the  banks Performance Summary in order to get a better idea of what is going on with the bank I am interested in.

Is there an easier way to figure out what shape a bank is in without having to do so much research on each bank?  Thanks!

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