First National Bank is offering two very competitive long-term CD rates: 2.75% APY for 5 years and 2.37% APY for 4 years. Minimum deposit is $1,000. The Jumbo CD rates for a $100K minimum are 2.86% APY for 5 years and 2.48% APY for 4 years. These rates are not listed on the bank's website. A reader emailed me news of these, and I just called two branches to verify. The rates appear the same for all branches, but they could vary. These rates are accurate as of 1/25/2011, and are subject to change at anytime.
The bank's rates for the shorter term CDs are not great deals, but they're still fairly competitive. The rates for a $100K minimum deposit are 1.40% APY for 18 months, 1.58% APY for 2 years and 1.82% APY for 3 years. Rates are around 10 basis points lower for a $1K minimum.
According to the bank rep, the early withdrawal penalty is 3% of the amount withdrawn for terms over 1 year and 1% of the amount withdrawn for terms of 1 year and under. This penalty for the long-term CDs is worse than the average 6-month penalty. For the 5-year CD and the current rate, the 3% penalty would be roughly equivalent to a 13-month penalty.
As compared to internet banks on 1/25/2011, the best 5-year CD rate is 2.75% APY at Salem Five and the best 4-year CD rate is 2.25% APY at OneWest Bank.
A branch visit is required to open an account. Make sure to call to verify rates and qualifications before visiting. Branches are located in several major Texas cities including Austin, Dallas, Fort Worth, El Paso, Houston, San Antonio, Corpus Christi, Laredo and Edinburg.
The bank isn't in the best financial shape. It has an overall health score at DepositAccounts.com of 2 out of 5 with a Texas Ratio 60.16% (below average) based on September 2010 data. It's a sizable bank with $3.89 billion in assets. Please refer to our financial overview of First National Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 14318).
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