Georgia Deposit Account Rates and Deals

Flagstar Bank continues to offer some competitive promotions on its S.M.A.R.T. products. I last reported on these deals in May, and the rates have stayed the same. In addition, another CD special has been added. The following deals are listed at Flagstar's front page as of 8/08/2010:

• $100 bonus to open the Express Checking Account. According to the small print, "Customer must open and maintain a new primary checking relationship at Flagstar Bank with a $50 minimum balance to receive the $100 bonus. $100 bonus will be deposited into the account within 30 days of meeting primary checking relationship requirements." I was told in May by a Flagstar CSR that a primary checking relationship requires a monthly direct deposit of at least $250. A reader who reported to have signed up in Texas commented that an ACH push can qualify, and the bonus will be deposited 30 days after first direct deposit hits the account. The account must remain open for six months to keep the bonus.
• 1.50% APY savings account with the rate guaranteed for 4 months. After promo period, the rate reverts back to the standard Express Savings Account. No minimum balance requirement.
• 1.50% APY 12-month CD with a partial no-penalty feature. In this SMART Choice CD you're allowed one penalty-free withdrawal during the term, however, it's limited to half the initial balance. Minimum deposit is $500.
• 1.76% APY 24-month Rising Rate CD with no-penalty feature In this SMART Choice CD you're allowed penalty-free withdrawals at the end of each 6-month period. The gotcha is that the interest rate starts off as 1% for the first six months and goes up 50 basis points after each 6-month period. So your money won't earn much until the last year. It's a stealth type of early withdrawal penalty.

To see the promo pages, you have to enter your zip code. In the past, Flagstar promos were limited to their market area (MI, GA & IN). However, this does not seem to be the case for these current promos. Any zip code appears to show the same promos. In May I was told by the CSR that any zip code can qualify. I also asked the CSR if they do a hard credit inquiry in the application process. According to the CSR, it's a "soft pull to just view banking history."

Flagstar Direct

Flagstar also offers CDs, money market accounts and checking accounts at Flagstar Direct which continues to offer two competitive short-term CD deals: 1.25% APY 6-month CD and 1.55% APY 12-month CD (as of 8/08/2010). The advantage of the SMART Choice 12-month CD is the partial early withdrawal penalty. Even though it's only a partial early withdrawal penalty, it seems to be worth 5 basis points. Please refer to my Flagstar Direct review for more details.

Flagstar Overview

Flagstar Bank currently operates around 165 branches in Michigan, Indiana and Georgia. The bank has been hit hard by mortgage problems that started during the financial crisis. It has made some improvements this year with an increase in its Tier 1 Capital Ratio. More details about Flagstar's financial health are available at our financial overview of Flagstar Bank. The bank has been a FDIC member since 1987 (FDIC Certificate # 32541).

Best CD Rates and Bank Bonuses

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com. To find other bonus deals at other banks, please refer to my bank bonus page which has all of my recent bank bonus blog posts.

Digital Credit Union recently increased the rates on its Jumbo certificates. Even though the credit union calls these Jumbo certificates, they only require a $25K minimum deposit. For the standard CDs, the best rates include a 3.01% APY 60-month CD, a 1.51% APY 12-month CD and a 1.35% APY 6-month CD. One nice perk for terms of 12 months and under is an add-on feature that allows you to make unlimited additional deposits of at least $100 during the term.

The credit union also has a good deal on its Jump-Up Certificate. The best one is the 15-month CD with a 1.55% APY. The 27-month CD is not quite as competitive with a 1.76% APY. If rates go up during the term, you can jump-up to the higher rate, one time, for the rest of the term. These are also jumbo rates.

The above rates are listed in DCU's rates page as of 8/05/2010.

Checking relationship required

One important note about the above rates is that they require a Loyalty Checking Plus relationship. Without Loyalty Checking Plus relationship you'll earn 0.25% less than rates shown above. Please refer to this DCU page for how to qualify for Loyalty Checking Plus.

Other Reasons to Join

The CD rates may not be high enough to make up for the hassles of Loyalty Checking Plus, but DCU has a few other reasons that can make a DCU relationship worthwhile:

• PC Deposit - This is a remote deposit capture service which allows members to make check deposits by using a home scanner.
• Free FICO Credit Scores - You can receive your Equifax FICO Credit Score once a month for free (see review)
• History of competitive CD specials - DCU has a history of offering very competitive CD specials with terms from 5 to 20 months. I first mentioned DCU in 2005 when they were offering a 5% 16-month CD (the good old days).

Credit Union Membership

Anyone can join DCU via membership in an association. Refer to this credit union page for the list of associations. The least expensive membership is $10 for joining Reach Out for Schools. You can be immediately eligible to join DCU if you live, work, worship or attend school in parts of Georgia and Massachusetts. Refer to the Join DCU page for the full details.

In the instructions for joining DCU there are links to an online membership application and a PDF application. A reader who commented on his experience with the online application in my DCU post from 2008 provided the instructions he received from DCU after he applied:

In order to continue processing your application, please mail a $5 check or money order payable to DCU to fund your membership.

If you have joined through a sponsoring organization, then please make sure to also include funds to cover that organization's membership fee.

Also, please mail a copy of your driver's license or passport. If sending a passport, or if your license does not show your current address, please also send either a utility bill in your name (electric, gas, home telephone) or a copy of your apartment lease agreement. If you have listed a Joint Owner on your application, that person must also send the required ID and address proof.

Please note, we do not accept cell phone bills, bank statements, credit card statements or pay statements as address verification.

Make sure to check with the credit union for the latest instructions. One downside to joining is a potential hard credit inquiry (which can temporarily ding your credit score). Here's what a commenter mentioned in my August 2008 DCU post:

I also have been a five-year DCU member, holding several jumbo CDs with them. Yet, when I added checking to my account this past January, they ran a check on me through Equifax!

Branches are located throughout Massachusetts, in Hudson, Merrimack and Nashua in New Hampshire, in Colorado Springs, Colorado and in Alpharetta, Georgia.

The credit union's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial and an overall health score of 3 out of 5 at DepositAccounts.com (see our Digital Credit Union review). Both ratings are based on March 2010 data. Note, Bankrate doesn't currently have a rating for DCU.

DCU is federally insured by the NCUA (Charter # 23521). It's a large credit union with $3.9 billion in assets.

Atlanta Business Bank is offering several competitive rates on its CDs and money market accounts. The online CD yields range from 1.66% APY for a 6-month term to 3.20% APY for a 60-month term. Minimum deposit is $1,000. The online money market account has tiered rates with yields ranging from 1.26% APY for a $2,500 minimum balance to 1.56% APY for a $100,000 minimum. These rates are listed in the online application as of 7/15/2010. Below is the full list of money market and CD rates:

Money Market Rate Tiers as of 7/15/2010:

• 1.26% APY $2.5K to $10K
• 1.36% APY $10K to $100K
• 1.56% APY $100K and above

Certificate of Deposit Rates as of 7/15/2010:

• 1.66% APY 6-month CD
• 2.02% APY 12-month CD
• 2.17% APY 18-month CD
• 2.38% APY 24-month CD
• 2.68% APY 36-month CD
• 2.89% APY 48-month CD
• 3.20% APY 60-month CD

You can open the accounts online via an Andera, which is a common service for online applications. The link to the online application is located on the bank's front page. The application only allows Georgia residents to apply. It provides a list of a hundred or so Georgia zip codes, and requires you to select one of them.

It's a small bank with one office located in Atlanta, Georgia.

The bank's ratings for safety and soundness are a little weak: 2 stars (problematic) at BauerFinancial, 1 star (lowest) at Bankrate.com and an overall health score of 2 out of 5 at DepositAccounts.com (see our financial overview of Atlanta Business Bank). These ratings are based on 3/31/10 data except for Bankrate which is based on 12/31/09 data. The bank has been a FDIC member since 2002 (FDIC Certificate # 57264).

Delta Community Credit Union has lowered its CD rates since my April post, but a few of the CDs remain competitive. The best one is currently their 2-year CD which has a 2.15% APY. Also competitive is the 3.00% APY 5-year CD. The same rates are also available as IRA CDs. Minimum deposit is $1,000. These rates are listed at the credit union's rates page as of 7/09/2010. Note, the credit union typically updates rates at the start of each month.

The credit union's money market account also continues to be competitive with a top rate of 1.45% APY on the $100K tier. This is down from 1.60% in April.

One nice feature of the credit union CDs is a mild early withdrawal penalty: 31-day interest penalty for maturities of 12-months or less and 90 days interest-penalty for maturities over 12 months. Please refer to the bottom of the rates page for more details.

Credit union membership is open to members of the GettingAhead Association. This appears open to people from any state who pay a $5 membership fee. You can be immediately eligible for credit union membership if you're a resident of one of several Georgia counties in the Atlanta metro area, work for one of their Select Employer Groups, or via family (not just immediate family). Please see the credit union's eligibility page for the full details. Membership requires a minimum $5 deposit into the savings account.

Joining the credit union and opening accounts are much quicker if you can visit a branch. Readers commented on their experience joining this credit union in my November 2008 post when the credit union was offering a 4.50% 12-month CD. The reader who joined with a branch visit reported a very easy process.

Branches are located throughout the Atlanta Metro area. There are also branches in Florence, Kentucky (Cincinnati Metro); Salt Lake City, Utah; and Southlake, Texas (Dallas Metro). The credit union is also part of the CU Service Center network which allows you to perform many basic banking transactions at a shared branch.

Delta Community Credit Union's rating for safety and soundness has gone down a bit at Bankrate.com. It's now 3 stars (performing) based on 12/31/09 data compared to 4 stars (sound) when it was based on 9/30/09 data. It continues to have the highest rating at BauerFinancial of 5 stars based on 3/31/10 data. It has an overall health score of 4 out of 5 at DepositAccounts.com (see our Delta Community Credit Union financial overview financial overview). The credit union is federally insured by the NCUA (Charter # 66357). It's a large credit union with $3.62 billion in assets.

BB&T continues to offer a $100 cash bonus for opening its free checking account. However, they have made it a little harder to get the full $100. Here are the steps required:

• Open a Free BB&T checking account online by 8/31/2010
• Register online at bbt.com/welcome100
• Get $50 for making 10 online bill payments ($25 minimum payment) within 90 days of account opening
• Get $50 for receiving two direct deposits of at least $50 from the same source within 90 days of account opening

Here's the direct link to the promotions page. It's also mentioned at BB&T's home page.

The old promo in March made it easier to qualify for the $100 bonus. It could be done with only 3 online bill payments. No direct deposit was required.

In my March post, several readers have reported that BB&T makes it difficult to close accounts. If you can't make it into a branch, you may be required to mail in a notarized letter requesting that the account to be closed. One reader commented that he wasn't required to mail a notarized letter, but instead he was required to mail a copy of his ID with the letter.

The free checking account has a minimum opening deposit of $50. There are no minimum balance requirements or monthly fees. Online Bill Payment is free.

I asked the CSR in March about a hard credit inquiry. According to the CSR, "it would be a hard hit if you are primary on the application." The credit check is done through Equifax. They also use ChexSystem in the application process.

I was also told that BB&T accounts can only be opened in states with BB&T branches. That now includes Texas (BB&T took over Colonial Bank and its Texas branches when it failed in August 2009).

It's an online promotion only. However, in the small print it states that it's available at the branches in AL, FL and TX. BB&T branches are located in Florida, Georgia, Alabama, North Carolina, South Carolina, Tennessee, Kentucky, Indiana, Texas, Virginia, West Virginia, Maryland and Washington DC.

BB&T is a member FDIC (FDIC Certificate # 9846).

Other Bank Bonuses

To find other bonus deals, please refer to my bank bonus page which has all of my recent bank bonus posts. Some additional bonus deals are also in the checking account discussion forum.

1st Choice Credit Union is offering a special 2.00% 12-month CD. This is listed on their home page, and it's called their Share Certificate Sale Celebration of CEO 20th Year Anniversary. Minimum deposit is $500.

Membership is primarily based on select employee groups. However, they list the Getting Ahead Association as one of the qualifying organizations. If you're interested in joining this credit union, please check with the credit union to ensure membership into this association will qualify you for credit union membership. Please refer to the credit union's who can join page for more details.

Branches are located in Atlanta, Georgia.

The credit union's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial (based on 3/31/10 data), 3 stars (performing) at Bankrate.com (based on 12/31/09 data) and an overall health score of 4 out of 5 at DepositAccounts (see our 1st Choice CU rates and reviews page). The credit union is federally insured by the NCUA (Charter # 67505).

Heritage Bank of the South is offering a high-yield reward checking account called Performance Plus Checking. The account has the following rates and features if certain monthly requirements are met:

• 3.50% APY on balances up to $25,000
• 0.51% APY on portion of balance over $25,000
• 0.10% base rate if requirements are not met
• Automatic refunds of ATM fees nationwide

The above rates are listed in the bank's checking page as of 5/27/2010. Monthly requirements include:

• 12 debit card purchases
• 1 direct deposit or ACH auto debit
• Receive electronic statements

Additional features of the account include:

• $100 minimum initial deposit
• No monthly service charge
• No minimum balance requirement
• If you do not meet the requirements in 3 consecutive qualifying cycles, your account will be converted to a Regular Checking account

It appears that a branch visit is required to open an account. Branches are located in the Georgia cities of Albany, Sylvester, Reidsville, Collins, Adel, Baxley, Hazlehurst and Statesboro. Branches are also located in the Florida cities of Ocala and Lake City.

The bank's ratings for safety and soundness are a little mixed: 4 stars (excellent) at BauerFinancial, 2 stars (below peer group) at Bankrate.com and an overall health score of 3 out of 5 at DepositAccounts.com (see our Heritage Bank of the South rates and reviews page). All ratings are based on 12/31/09 financial data. The bank has been a FDIC member since 2001 (FDIC Certificate # 50028).

Other High-Yield Reward Checking Accounts

Please refer to the reward checking section of DepositAccounts.com to find reward checking accounts in your state or that are available nationwide.

Flagstar Bank is offering some competitive promotions on its S.M.A.R.T. products. The following deals are listed at Flagstar's front page as of 5/25/2010:

• 1.50% APY savings account with the rate guaranteed for 4 months. After promo period, the rate reverts back to the standard Express Savings Account. No minimum balance requirement.
• $100 bonus to open the Express Checking Account. According to the small print, "Customer must open and maintain a new primary checking relationship at Flagstar Bank with a $50 minimum balance." The CSR told me this morning that a primary checking relationship requires a monthly direct deposit of at least $250.
• 1.50% APY 12-month CD with a partial no-penalty feature. In this SMART Choice CD you're allowed one penalty-free withdrawal during the term, however, it's limited to half the initial balance. Minimum deposit is $500.

According to the CSR, you can participate in all of the above promos. You are not limited to just one. The online application allows you to use ACH transfers to fund the accounts.

To see the promo pages, you have to enter your zip code. In the past, Flagstar promos were limited to their market area (MI, GA & IN). However, this does not seem to be the case for these current promos. Any zip code appears to show the same promos. In addition, I was told by the CSR that any zip code can qualify.

I also asked the CSR if they do a hard credit inquiry in the application process. According to the CSR, it's a "soft pull to just view banking history."

Finally, I asked about how long these promotions would last. He wasn't able to say, but he thought they would at least last through today. As is common, they're subject to change at anytime.

Flagstar's Express Money Market Account

Flagstar still has its internet bank at FlagstarDirect.com. Flagstar has been offering an internet money market account since July 2007. The rates had remained competitive until last December when the rate plummeted. Just recently the rates have become a little more competitive for an internet money market account although they're nothing to get excited about. As of 5/25/2010, the top rate is 1.20% APY, but this requires a $100K minimum balance. Under $100K, the rate drops to 1.06% APY. This low tier rate had been 0.60% in April. The Express Internet Checking has a 0.85% APY on all balances. These accounts do offer some perks like free checks and free identity theft protection.

Financial/FDIC Info

Flagstar has been hit hard by the mortgage crisis, and it has been losing money since 2007. Flagstar reported its 1st quarter earnings in April. Losses widened, but loan-losses went down and it succeeded in issuing additional shares to help shore up its capital reserves.

Bankrate.com continues to give Flagstar a 1-star rating (lowest) for safety and soundness. BauerFinancial gives Flagstar Bank 2 stars (problematic). Our DepositAccounts.com health score for Flagstar is 3 out of 5 (see our Flagstar rates and reviews page). All ratings are based on 12/31/09 financial data. Flagstar Bank is a member FDIC (FDIC Certificate # 32541).

There were reports that this 3.00% CD special at SunTrust was going to end Friday, but I'm happy to report that the special is still listed at SunTrust's website as of 5/15/2010. This promo started in February, and has continued to become a better deal as the interest rate environment has worsened. The unusual feature of this CD is that it's actually two CDs: one with a 26-month term and one with a 49-month term. You must open both CDs with a minimum deposit of $2K for each CD for a total of $4K. Each CD must be funded with an equal amount. The special also requires that you have a SunTrust checking account. This can be opened at the same time that you open the CDs.

I called SunTrust (800.279.4824) this afternoon with hopes that I could find out how long it's going to last. Unfortunately, the only thing the CSR could confirm is that it's available as of today (5/15/2010). The CSR said they'll be available today through 5:00pm EDT. The accounts can be opened by phone from any state, and they can fund it with an ACH transfer that will pull funds from your existing bank account. The CSR assured me that if the CD is opened this way today, you'll be locked into the 3.00% APY.

A reader in the Open Discussions Thread asked about the early withdrawal penalty. In my last call to SunTrust, I wasn't able to get a clear answer to this question. The reader reported that he wasn't able to get the answer either at the branch. In my call today, the CSR was able to explain it to me. It's not the typical straightforward penalty. However, it's not as bad as I had thought. Here are the details:

SunTrust's Special CD Early Withdrawal Penalty

According to the CSR, the penalty is based on the number of days before the CD matures. The closer to maturity, the smaller the penalty.

• If the CD has 91 days to under 1 year to maturity, the penalty is 3 months of interest
• If the CD has 1 year to under 3 years to maturity, the penalty is 8 months of interest
• If the CD has 3 years to under 7 years to maturity, the penalty is 12 months of interest

I was also told that each CD would be treated individually in terms of the early withdrawal penalty. If you have details of the penalty from the disclosure, please leave a comment. When details like this are communicated by phone, it's easy to make a mistake. I tried to use their online chat service, but the link didn't work for me. I always prefer using a chat service for detailed questions.

No Hard Credit Pull

According to the CSR (from a March call), there's no hard credit inquiry. It's only a soft pull. This is the same info that I received in 2008 and many have confirmed there's no hard pull in this FW thread. So you shouldn't have to worry about having this ding your credit score.

Bank Overview

SunTrust is a large regional bank with $125 billion in deposits. It has branches throughout the southeast in Alabama, Arkansas, Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia and Washington DC.

SunTrust reported its 1st quarter results in April. According to Reuters, they reported a much smaller first-quarter net loss that beat analysts' expectations. SunTrust's ratings for safety and soundness continue to be a little weak, but the rating went up at Bankrate.com from 1 star on 9/30/09 data to 2 stars on 12/31/09 data. It's still 3 stars (adequate) at BauerFinancial based on 12/31/09 data. We have an overall health score of 3 out of 5 at DepositAccounts.com (see our SunTrust rates and reviews page). SunTrust is a FDIC member (FDIC Certificate # 867).

Searching for the Best CD Rates

I'm afraid it's getting harder to find 3% CDs for terms under 60 months. A 3% 4-year CD is actually quite competitive these days. So this SunTrust CD is a good deal even though it does require half the money to be put into the 49-month CD.

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com. The tables now have a new & improved format!

United Central Bank has an installment savings accounts called the Super Saver Installment CD. It's an installment savings account in which you make equal monthly deposits during the term rather than one initial deposit like a CD. However, like a CD the rate is fixed during the term.

The Super Saver Installment CD currently has the same rate for all terms: 2.60% APY. Terms range from 12 months to 60 months. The minimum target balance is $1,000. A checking account is required, and it would be used for the automatic monthly transfers into the Installment CD. The rate and terms are listed at the bank's rates page as of 5/11/2010.

Last week I reviewed the installment accounts at Wilshire State Bank. The rates are a little higher at Wilshire. Readers noted in the comments other installment savings accounts at other banks.

Installment Savings Accounts are common at Korean American banks. They all have the same feature of equal monthly deposits, and they're intended to encourage people to save with regular deposits.

In my Wilshire post I described how you can compare the rate of an installment savings account with a regular CD. In a nutshell, you can estimate a CD-equivalent yield of the installments savings account by taking the average of the installment savings account rate with the rate of a liquid account that would hold the money before the monthly transfers occur. If you have a liquid account with a 1.25% APY, the average of this and 2.60% of the installment account would be 1.93%. The actual rate would be a little lower if the money needs to go into a low-yield checking account before the automatic transfers.

United Central Bank used to have some other competitive rates, but rates have fallen quite a bit. The Global Money Market now has rates under 1.00% for all tiers below $300K.

Some of United Central Banks are available online and can be opened by people in any state. However, the Super Saver Installment CD is not one of these, and I was told by the CSR that a branch visit is required.

United Central Bank has quite a few branches in several of the major US cities. Last year they acquired Mutual Bank after Mutual Bank was closed by regulators. So UCB now has branches in the Chicago metro area; in Staten Island, New York; Edison, New Jersey; and Houston, Texas. In addition to the old Mutual Bank branches, UCB has branches in other parts of Texas, in California, Georgia, Maryland and Virginia. Some of the major cities include Los Angeles, Austin and Dallas.

UCB's ratings are a little above average: 3 stars (adequate) at BauerFinancial, 4 stars (sound) at Bankrate.com and an overall health score of 3 out of 5 at DepositAccounts.com (see our United Central Bank rates and reviews page). Ratings are based on 12/31/09 financial data. The bank has been a FDIC member since 1984 (FDIC Certificate # 25330).