Bay Cities Bank is offering a 3.00% APY 5-year CD. It's also available in an IRA. Minimum deposit is $1,000. This rate is listed in the bank's rates sheet as of 8/16/2010.
The bank's shorter-term CDs are not quite as competitive. The only one that's noteworthy is the bank's 36-month Triple Feature CD. At 1.75% APY, the rate is low for a 3-year CD, but it allows one rate bump-up during the term, allows additional deposits (up to 50% of the initial deposit) and it allows a one-time penalty free early withdrawal (up to 50% of the initial deposit). The 50% limit on both the add-on deposits and the early withdrawal is a major downside. The low rate may be worthwhile if it had more generous add-on and/or early withdrawal conditions.
It appears that a branch visit is required to open an account. Branches are located in the Florida cities of Tampa, St. Petersburg and Lutz.
The bank's ratings for safety and soundness have improved considerably since my last post on this bank in August 2009. At that time it had low ratings at both BauerFinancial and Bankrate. Those ratings have improved to fair (3 stars at BauerFinancial and 3 stars at Bankrate.com). The overall health score is 5 out of 5 at DepositAccounts.com (see our financial overview of Bay cities Bank). These ratings are based on 3/31/10 data. The bank has been a FDIC member since 1999 (FDIC Certificate # 35066).
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