Mississippi Deposit Account Rates and Deals

Air Force FCU has come out with a very competitive 18-month CD special. Rates range from 2.25% APY for a $100K minimum deposit to 2.00% APY for a $1,000 minimum. The following is a full list of the rates as listed in the credit union's savings rates page as of 7/5/2010:

• 2.25% APY 18-month CD min $100,000
• 2.20% APY 18-month CD min $25,000
• 2.15% APY 18-month CD min $12,500
• 2.10% APY 18-month CD min $2,500
• 2.00% APY 18-month CD min $1,000

These same rates are also available for IRA certificates. The credit union's early withdrawal penalty is a little convoluted:

The early withdrawal penalty will be equal to one half of the dividends that would accrue from the date of the withdrawal to the maturity date applying the contracted rate on the certificate based to the amount withdrawn over and above any dividends credited to the certificate to date of withdrawal.

It has been a while since I last reported on Air Force FCU. My last post was in January 2009. The credit used to offer many competitive CD rates back in 2007 and 2008.

One thing that has changed at Air Force FCU since my previous posts is the field of membership (FOM). The credit union has reduced the size of the FOM. It used to be open to all US Armed Forces. If you click on the credit union's "join us" link and then click on "become a member" link, you can see the full details of the credit union's FOM. In summary, it's now limited to those connected to the military who are working in Texas, Oklahoma, Arkansas, Louisiana, or Mississippi.

Membership application is available online. For those who prefer to visit an office, branches are located in San Antonio, Texas. The credit union is also part of the CU Service Centers which allows you to make several banking transactions at shared branch offices around the nation.

The credit union's ratings for safety and soundness are mixed: 5 stars (superior) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 3 out of 5 at DepositAccounts.com (see our Air Force FCU financial overview). These ratings are based on March 2010 data except for Bankrate which is based on 12/31/09 data. The credit union is federally insured by the NCUA (Charter # 8169).

Membership Eligibility Change and the NCUA

This change in the FOM has an interesting history that could be relevant to other credit unions. Last year the NCUA cited Air Force FCU for improper membership. According to the NCUA's letter of understanding and agreement

The Credit Union previously took an overly expansive view of their field of membership that was inconsistent with Section 5 of its charter. As a result, it has accepted share accounts, and extended loans to, individuals otherwise unqualified for membership, which has had a direct effect on the Credit Union's rapid growth and accounts for a significant percentage of its shares and its loan portfolio. These actions have led to our present supervisory concerns about operations and management.

For those who joined the credit union when they had a broad FOM, they may be at risk of losing their membership. Here's the last agreed upon action in the letter of understanding:

The Credit Union, if so directed by NCUA after reviewing the Firm's audit results, shall divest itself of all loans and shares attributable to "unqualified members."

I've seen cases in the past in which people were angered when they were not allowed to join a credit union. This shows why credit unions enforce their field of membership. Also, it shows how members could be affected by credit unions which don't follow their own charters. Based on this example, it appears that members with long-term CDs could find their CDs closed early (I would guess they would get all accrued interest) if the credit union ends their memberships.

BancorpSouth is advertising three fairly competitive special CD rates. These include a 3.00% APY 59-month CD, a 2.50% APY 39-month CD and a 2.00% APY 23-month CD. A checking account is required. Minimum deposit is $1,000. These specials don't appear to be listed at the bank's website. They were advertised in yesterday's (6/06/10) Tyler Morning Telegraph newspaper. The ad is available online here.

The small print of the ad includes important info regarding where these specials are available and how long they are scheduled to last. Excerpts of the small print are shown below:

CD offer good at BancorpSouth locations in Huntsville and Mobile/Baldwin County, AL; Fayetteville and Rogers, AR area, Destin, FL area, Baton Rouge area, Lafayette, Alexandria, LA; Springfield, O'Fallon and Clayton, MO, Lufkin, Longview and Tyler, TX only and for funds not currently on deposit at any BancorpSouth office. Minimum deposit $1,000. Maximum deposit $250,000. Not good with any other offers. [...] BancorpSouth checking account with Debit Card required. Offer good through June 30, 2010.

As noted in the small print, a checking account is required. This BancorpSouth table provides a good overview of its checking accounts. The bank does offer a free reward checking account called Performance Checking (my review).

Most of BancorpSouth branches are located in Mississippi, Alabama, Tennessee, Arkansas and Louisiana. There are also a few in East Texas, the Florida Panhandle and in the Springfield and St. Louis metro areas of Missouri.

BancorpSouth's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial (based on 3/31/10 data), 4 stars (sound) at Bankrate.com (based on 12/31/09 data) and an overall health score of 3 out of 5 at DepositAccounts (see our BancorpSouth Bank rates and reviews page). The bank has been a FDIC member since 1934 (FDIC Certificate # 11813).

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!

Update 5/12/2010: The CD rates have fallen. Please check the credit union website for the latest rates.

I came across RiverLand Credit Union today. It's similar to Fort Knox FCU in that it offers very competitive CD rates and has made it easy to join via an association. The CD rates are currently no better than Fort Knox FCU, but in this low interest-rate environment, it never hurts to have more choices. One advantage over Fort Knox is that RiverLand CDs have a step-up option.

As you can see below, RiverLand's CD rates are very competitive. These rates are listed at the credit union's rates page as of 4/29/2010:

• 3.50% APY 60-month
• 2.75% APY 36-month
• 2.25% APY 24-month
• 2.00% APY 18-month
• 1.75% APY 12-month
• 1.50% APY 6-month
• 1.25% APY 3-month

Minimum deposit is $1,000, and these are also available in IRA and HSA accounts. The step-up option gives the member the choice to step up the CD rate any time after the half-way point through to the maturity date as long as credit union's rates for the like term CD are higher. There's only a one-time option to step-up the rate.

The credit union's website has a chat service, and I just used this to ask some questions. According to the CSR, they review rates every Wednesday. However, the rates have not changed very often. The last change was on 3/31/10, before that, the last time they changed was 8/06/09. I was also informed by the CSR that the early withdrawal penalty for the 60-month CD is 6 months of dividends.

Membership

According to the credit union's membership page:

In our support of the Arts in New Orleans, RiverLand Credit Union membership is extended to all members of the New Orleans Arts Council. If you would like to become a member of RiverLand you may join the Arts Council first, and then join RiverLand.

The link to join the association is below this paragraph on the membership page. Here are further details that I received from the CSR:

Once you are a member of the Arts Council of New Orleans, you may complete a membership application, available on our website, and send it in with two forms of ID (acceptable forms are listed on the application) for each signer on the account, proof of residence (if your driver's license does not show your current address), a copy of your donation receipt or membership letter from the Arts Council, and a $6.00 check or money order for your opening deposit. You may send a check or money order for the CD at the same time, just be sure to include instructions for how much to invest and which term you would like.

Note, $5 is for the share savings account and $1 is a one-time fee. You can also fund a CD with money in your share savings account. According to the CSR:

If the funds are already in your RiverLand account, you may set up the CD over the phone by calling 800-586-4728 option 3 for member services.

RiverLand is part of the CU Share Service Center Network. This can make it easier and quicker to deposit and withdrawal funds from your RiverLand savings account.

Credit Union Overview

RiverLand's main office is in New Orleans. Other branches are located in the Louisiana cities of Gretna, Jefferson, Killona and Amelia, in the Texas cities of Beaumont and The Woodlands, and in the Mississippi cities of Jackson and Port Gibson.

As I described above, RiverLand is part of the CU Share Service Center Network.

For those worried about another Hurricane Katrina, the credit union has a page covering their Business Continuity Plan.

The credit union's ratings for safety and soundness are average: 3 stars (adequate) at BauerFinancial (based on 12/31/09 data) and 3 stars (performing) at Bankrate.com (based on 9/30/09 data). The credit union is federally insured by the NCUA (Charter # 64534).

P.S. I just noticed that I had posted on RiverLand two years ago when it was offering a high-yield CD. However, at that time they did not have the association option for membership.

Gulf Coast Community Federal Credit Union is another institution offering Kasasa Accounts. These include a high-yield reward checking account and a savings account that is paired with the checking. The following is a list of the checking and savings account rates and features if certain monthly requirements are met (as of 4/09/2010):

Kasasa Cash Checking:

• 3.56% APY up to $25,000
• 0.75% APY for portion of balance over $25,000
• 0.25% base rate if requirements are not met
• ATM fee refunds up to $20 per statement cycle

Kasasa Saver Account:

• 1.51% APY up to $25,000
• 0.50% APY for portion of balance over $25,000
• 0.10% base rate if requirements are not met

Monthly requirements to receive the above rates for both accounts:

• 12 debit card purchases
• One direct deposit or ACH automatic payment
• Receive e-statements

Other features of the accounts:

• $100 minimum initial deposit for both accounts
• No minimum balance

Membership is open to anyone who lives, works, attends church, or goes to school in Harrison or Hancock County, MS. Please refer to the credit union's membership eligibility page for the full details.

Branches are located in Gulfport and Bay St. Louis, Mississippi.

The credit union's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 12/31/09 data) and 4 stars (sound) at Bankrate.com (based on 9/30/09 data). The credit union is federally insured by the NCUA (Charter # 242).

Other High-Yield Reward Checking & Savings Accounts

I'm seeing more banks and credit unions offering these Saver accounts with their reward checking accounts. This is a nice feature for those who have savings over the reward checking balance cap. The rate is much lower than the reward checking rate, but it's very competitive compared to internet savings account rates.

Refer to the reward checking section of DepositAccounts.com to find reward checking accounts in your state or that are available nationwide. To find institutions offering Saver accounts, please refer to the Savings Account section of DepositAccounts.com. Look for "Saver" and/or "Kasasa" in the Product column.

SunTrust Bank continues to offer a special CD package with a 3.00% APY. It's a bit unusual in that it requires that you open two CDs: one with a 26-month term and the other with a 49-month term. An equal amount must be deposited in each. Minimum deposit is $2,000 per CD. A checking account is required. I was told that the free checking qualifies. You can also open these special CDs in an IRA. This CD special is listed at the SunTrust CD page as of 3/12/2010.

I first reported on this CD special in February when it was only available in the Tampa metro area. I called SunTrust today (800.279.4824), and the CSR said it could be opened by phone from any state. The CSR said he could open it by phone and use ACH debits from your bank's checking or money market account to fund the CDs and checking account. Note, it would take 3 debits to fund the accounts which could cause you to go over your 6-per-month limit on savings and money market accounts. According to the CSR, the CD rate would lock on the day you apply by phone. The CD rate is subject to change on any day. The CSR didn't know how much longer it would last. I also asked the CSR about the early withdrawal penalty, but I didn't get a simple answer. It appears to be based on how close you are to maturity. If you have more details about this, please leave a comment.

$150 Checking Account Bonus

SunTrust's $150 checking account promotion is still available. I first mentioned this in my February bonus review. According to the CSR, one could open the checking account for this promotion and then open these CD specials at the same time by phone. Or if you don't want the CDs, you could just do this checking promotion. Make sure you register your SunTrust checking account in the promotion via suntrust.com/solid by April 30, 2010. Refer to my February bonus review for more promotion detailss.

No Hard Credit Pull

According to the CSR, 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.

Dow Jones reported on SunTrust's downgrading by Standard & Poor's Ratings Services on February 1st:

SunTrust, which serves areas of the southeast U.S. hit hard by the real estate crash, including Florida, has suffered from exposure to local construction and commercial real estate, as well as effects of high unemployment. The lender posted a string of losses last year.

As you may expect, SunTrust's ratings for safety and soundness are a little weak: 3 stars (adequate) at BauerFinancial (based on 12/31/09 data) and 1 star (lowest) at Bankrate.com (based on 9/30/09 data). SunTrust is a FDIC member (FDIC Certificate # 867).

PriorityOne Bank is offering a high-yield rewards checking account with the following rates and features if certain monthly requirements are met:

• 3.50% APY on balances up to $25,000
• 0.50% APY on portion of balance over $25,000
• 0.10% base rate if requirements are not met
• Nationwide ATM fee refunds

Monthly requirements include:

• 10 debit card purchases
• 1 direct deposit, automatic payment or bill pay post to your account
• Access online banking
• Receive electronic statements

Additional account features include:

• $50 minimum initial deposit
• No minimum balance requirement
• No monthly service charge
• Free online bill pay
• Up to a $25 new-account bonus when you turn over checks and debit cards from your old bank

It appears that a branch visit is required to open an account. Branches are located in the Mississippi cities of Collins, Seminary, Hattiesburg, Brandon, Pearl, Richland, Pelahatchie, Magee, Mendenhall and Morton.

The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 12/31/09 data) and 4 stars (sound) at Bankrate.com (based on 9/30/09 data). The bank has been a FDIC member since 1975 (FDIC Certificate # 21906).

Thanks to the reader who emailed me news of this reward checking account.

Other Reward Checking Accounts

If you live in the Southeast US, but you don't live near one of the above Mississippi cities, check out BancorpSouth Bank and its reward checking account (see my account review). It has branches throughout MS and in several other southern states.

To find nationally available reward checking accounts and reward checking accounts in your local area, please refer to the reward checking section of DepositAccounts.com.

BancorpSouth Bank continues to offer a high-yield reward checking account called Performance Checking. I first reported on this account in May 2008. The rates have fallen a bit, but it remains competitive, and it has a higher-than-average balance cap of $30K. Another thing nice about this bank is that it's large with 289 offices throughout the Southeast. So if you're looking for a local reward checking account, a BancorpSouth branch may be nearby.

The rates are not easy to find at the bank's website. The only place I found the rate was at the start the online application (link to application located at this BancorpSouth page). You first have to select the state and the city of your home branch. The next page has links for each account, and you can click on the link for the Performance Checking to see the rate. It does vary based on your city. I've checked a few cities, and here are the two rates as of 3/11/2010:

• 3.25% APY up to $30K for Baton Rouge, LA & Tyler, TX
• 3.00% APY up to $30K for Destin, FL & Huntsville, AL

Please leave a comment about the rate if you check your city. The Performance Checking account has the typical reward checking features such as debit card usage (12 per month). Refer to this BancorpSouth page or my BancorpSouth checking review for more details.

Performance Savings Account

One thing that has been added since my 2008 post is a high-yield savings account. This also has the Performance name. The Performance Savings has a 1.50% APY (as of 3/11/2010) for all balances if the following two requirements are met:

• Transfer at least $50 into your Performance Savings account each interest cycle electronically via ACH or Internet Banking Transfer.
• Combine your Performance Savings statement with your BancorpSouth Checking account statement (you will no longer receive a separate statement for your Performance Savings account).

If these requirements are not met, the rate falls to the standard rate of 0.15%. This does require the Performance Checking account, but unlike other reward checking/savings combos, you don't have to meet the reward checking requirements to qualify for the bonus rate.

The Performance Checking and Savings accounts provide a nice alternative to savings accounts at internet banks, many of which now have rates of 1.25% or less.

Online Application and Branch Locations

As I mentioned above, there's an online application for both these accounts at this BancorpSouth page. The application makes it appear that you have to live near a branch to qualify. Most of BancorpSouth branches are located in Mississippi, Alabama, Tennessee, Arkansas and Louisiana. There are also a few in East Texas, the Florida Panhandle and in the Springfield and St. Louis metro areas of Missouri.

Financial Overview

BancorpSouth's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial (based on 12/31/09 data) and 4 stars (sound) at Bankrate.com (based on 9/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 11813).

Thanks to the reader who emailed me news of this reward checking account.

Other Reward Checking Accounts

As I mentioned above, BancorpSouth is a large bank with 289 branches, $13.2 billion in assets and $10.6 billion in deposits. There are not many other large banks offering reward checking accounts. I recently reviewed a few large banks offering reward checking, but I forgot about BancorpSouth which happens to be larger than the ones I mentioned in that post.

To find nationally available reward checking accounts and reward checking accounts in your local area, please refer to the reward checking section of DepositAccounts.com.

• 4.00% APY on balances up to $25,000
• 1.00% on portion of balance over $25,000
• 0.10% base rate if requirements are not met
• ATM fee refunds up to $15 per month

• 12 debit card purchases
• 1 direct deposit, draft or internet bill payment
• Access Online Banking
• Receive e-statements

• $100 minimum initial deposit
• No Minimum Balance Requirement
• No Monthly Maintenance Fee
• Free Bill Pay

• CD rates at DepositAccounts.com (overview of DepositAccounts.com)
• My weekly list of hot nationwide and local CD deals