Seacoast Commerce Bank is offering some competitive rates on its Bank by Mail CDs. The most competitive is the 2-year CD with a 2.00% APY. Others include a 2.35% APY 3-year CD and a 2.65% 4-year CD. Minimum deposit is $10,000. You can find higher rates at other banks, but one nice feature of these CDs is a below-average early withdrawal penalty of 3 months of interest. Also, rates in California have been below average, so compared to rates at other CA banks and credit unions, these are competitive.
The above rates are listed in the bank's bank by mail account page as of 5/05/2010.
Some details I was told about the CDs include:
- Rate is locked at the time of application and/or postmark of application and deposit
- No fees for a wire transfer to open the account. Outgoing wire at time of close is $30 (can be waived however)
- Early withdrawal penalty is 3 months of interest
- When CD matures, mailed check is free, outgoing wire transfer is $30
- Written authorization at CD closure is required. They do have a secure email system that can be used.
I was told by a bank official that these accounts can be opened nationwide. There's an "Apply Now" link in the internet account page. This opens up a PDF application that must be filled out and mailed in along with a check. I was told that they can initiate or accept an ACH transfer for the initial deposit. The application provides a phone number to call for those details.
Seacoast Commerce Bank is headquartered in Chula Vista, California which is in southern San Diego County. The bank's ratings for safety and soundness are a little weak: 2 stars (problematic) at BauerFinancial (based on 3/31/09 data) and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 12/31/09 financial data. The bank has been a FDIC member since 2003 (FDIC Certificate # 57428).
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