Northstar Bank of Texas continues to offer a good deal on a 7-month CD. The rate has gone down since my August review of this bank, but it's still competitive at 1.25% APY. Minimum deposit is $1,000. This rate is listed in the bank's rates page as of 12/20/2010.
As a comparison to internet banks on 12/20/2010, the best 6-month CD rate is 1.11% APY at Bank of Internet USA.
The bank continues to offer an attractive high-yield reward checking account called Velocity Checking that pays 3.51% on balances up to $50K as of 12/20/2010. I first reported on this account in March 2009 when the yield was 4.51%. It's one of the few reward checking accounts that continue to have a $50K balance cap. For more details please see my Velocity reward checking review.
A branch visit is required to open an account. Branches are located in the northern parts of the Dallas/Fort Worth metro area in the cities of Denton, Argyle, Colleyville, Corinth, Grapevine, Krum, Lake Dallas, Lewisville and Pilot Point.
The bank has an overall health score at DepositAccounts.com of 3 out of 5 with a Texas Ratio of 36.35% (above average) based on September 2010 data. Please refer to our financial overview of Northstar Bank of Texas for more details. The bank has been a FDIC member since 1973 (FDIC Certificate # 20935).