Competitive 3-Year CD Rate at Tennessee Commerce Bank - Available Nationwide

Tennessee Commerce Bank has a long history of competitive CDs that are available nationwide. They now only list their CD specials on their new website. According to their FAQ, they're only listing rates that are competitive. Their three CD and IRA CD specials are indeed competitive: 2.15% APY for 3 years, 2.35% APY for 4 years and 2.60% APY for 5 years. Minimum deposit is $2,500. These rates are listed in the bank's current specials page as of 3/3/2011.

As a comparison to internet banks as of 3/3/2011, the best 3-year CD rate is 2.00% APY at OneWest Bank. The best 3-year CD rate at a credit union that's easy to join is 2.25% APY at Fort Knox FCU.

Last year I spoke with the CSR via the bank's online chat system. According to the CSR, rates are typically updated on Tuesdays so these special CD rates should last for at least a few more days. You shouldn't have to worry about the rates falling after you apply. According to the CSR, they lock it for 10 days from when you apply. Another feature I learned from the CSR is the early withdrawal penalty which is 6 months of interest for the 36-month term.

They used to have the account disclosure available online, but with the new website, this doesn't seem to be available. Their FAQs do provide some details. The Account Maintenance section is the most useful. Some noteworthy details include:

• You can fund a new account by wire transfer, ACH transfer or by mailing a check
• You may submit the application online or print it to either mail or fax it
• Two forms of ID and a signature are required to open an account
• Incoming wires are free. The fee for outgoing domestic wires is $25
• To close an account they require a request in writing with a signature for verification purposes (fax or mail)
• For the funds of a closed account, they can mail you a cashier's check, ACH the funds to another bank at no charge or send a wire for $25

TCB is a one-office bank based in Franklin, Tennessee. The bank has long offered accounts nationwide so it's not the typical small bank. Based on the FDIC's December 2010 data, it has 99 employees, $1.44 billion in assets and $1.31 billion in deposits. The bank has an overall health score at DepositAccounts.com of 3 stars (out of 5) with a Texas Ratio of 40.34% (below average) based on December 2010 data. Please refer to our financial overview of Tennessee Commerce Bank for more details. The bank has been a FDIC member since 2000 (FDIC Certificate # 35296).

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