Dedicated to Deposits: Deals, Data, and Discussion
DETAILSINSTITUTIONAPYMINMAXPRODUCT
OmniAmerican Bank1.75%$1k-60 Month Certificate
OmniAmerican Bank1.75%$1k-60 Month IRA Certificate (Traditional,Roth,CESA)
Accounts mentioned in this post. Rates as of July 28, 2014

Higher 5-Year CD Rate at OmniAmerican Bank in the DFW Area

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OmniAmerican Bank

I wouldn’t call it a large wave, but there has been a small wave of institutions raising their long-term CD rates over the last month after the large rise in Treasury yields. The latest one is OmniAmerican Bank. Yesterday it increased its 5-year CD yield and IRA CD yield from 1.60% to 2.00%. An additional 10 bps is available for customers rate with Relationship Checking with Interest account. Minimum deposit is $1,000. The early withdrawal penalty is 365 days interest. This CD rate is listed in the bank’s rate schedule as of 8/6/2013. The CD details are listed in the bank’s CD page.

The bank also has a CD rate match special where they’ll match a local competitor’s CD rate. Here’s the small print of this special:

If you find a better rate from another bank with a physical branch in the DFW area where we have a branch, bring in a copy of the published Annual Percentage Yield (APY) and we’ll match it! This offer is only available for a limited time. $10,000 new money required. The APY for the same or closest terms and conditions offered by OmniAmerican will be matched. Offer is subject to change without notice.

It appears that a branch visit is required to open an account. OmniAmerican Bank branches are located throughout the Dallas/Forth Worth metro area.

One thing that's unique about OmniAmerican Bank is that it used to be a credit union. According to the bank's About page, OmniAmerican Credit Union members voted to become a mutual savings bank in 2005. It's also interesting to note the latest change at the bank:

In January 2010, the depositors of OmniAmerican Bank approved a plan of conversion from a mutual to stock form. As part of the conversion, OmniAmerican Bank became a wholly-owned subsidiary of OmniAmerican Bancorp and, as of January 21, 2010, was listed on the NASDAQ Exchange as OABC.

The bank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 6.62% (excellent) based on March 2013 data. Please refer to the financial overview of OmniAmerican Bank for more details. The bank has been a FDIC member since 2006 (FDIC Certificate # 58050).

How This CD Rate Compares

The highest 5-year CD rate that’s nationally available is 2.06% APY at EverBank as of 8/6/2013.

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.


  Tags: OmniAmerican Bank, Texas, CD rates, IRA rates

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Comments
2 Comments.
Comment #1 by Shorebreak posted on
Shorebreak
Why is the Interest Rate and APY for the 5-year CD both posted as 2.00 percent on their rate page? Doesn't this usually imply that the monthly interest cannot be left to compound within the account? In fact, all their CD offerings are like that.

5
Comment #2 by KenBDG posted on
KenBDG
That's a good point. According to their CD page, interest is compounded monthly. If that's the case, the interest rate should be 1.98% for a 2.00% APY unless interest isn't added back into the CD.

Note, when the APY is under 1% and interest is compounded monthly, the interest rate will look the same as the APY for two-decimal place accuracy.

3