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USA Bank, Re-Established Branch Of Customers Bank?

Sunday, January 23, 2011 - 4:02 PMCustomers Bank
Following Ken's usual excellent bank reports, I explored Customers Bank to open a CD and they showed an 11 month at 1.50 and a 24 month at 1.75% minimum $500 which Ken had reported.  

...but they referred me to their “NY branch” (I’m from NY) under the name of USA Bank.  I was delighted with their unbelievable rates: 1.75% for 11 months and 1.50% for 24 months, min. $500.  (Yes, a reverse from its parent company).  

I find a few things suspicious and wonder if anyone opened an account with them?:  

1.  USA Bank reversed the order of these 2 CD offers, but the manager assured me that this is correct.  

2.  A Google search on USA Bank showed it had failed in 2009 or 2010 (Ken also reported this) and Customers Bank bought it (this bank's previous name was New Century Bank... (quite a movement around this bank!).  

3.  I also read they have a staff of only 2 people and I believed it when it was the manager who answered my several calls.  

4.  I’d feel more secure if it had kept the same name as the parent company.  

5.  I wanted to invest $7,000.00 for the 11 month CD and I’m at the final stage but...I’m rather afraid.  

Hoping to hear from anyone who has opened accounts with the USA Bank in New York lately and how they feel about it. Thanks so much for any ideas!  :)       Rosedala        

P.S.  The URL I give is for the parent company as USA Bank doesn't even have a website; I called them them to get their rates.....
4
RosedalaRosedala7 posts since
May 3, 2010
Rep Points: 145
1. Monday, January 24, 2011 - 4:50 PM
For those concerned about USA Bank.

Here's my July 2010 bank failure summary which shows when USA Bank failed and was acquired by New Century Bank (which does business as Customers Bank). This July 9th FDIC press release has more details.
1
Ken TuminKen Tumin5,467 posts since
Nov 29, 2009
Rep Points: 124,996
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