Tennessee Deposit Account Rates and Deals

First Tennessee Bank has a new-account promotion in which you can earn $250. Here's the bank's promotions page link. The bank has a link to this page in its Life Event Resources page. The offer is scheduled to expire 11/30/2010. Here's what is required to earn the $250 in bonuses:

• $100 when you open a new checking account
• $100 when you open a Money Market Savings Account
• $50 when you start using Bill Pay Online

There's also a $100 Visa Gift Card when you open a Home Equity Line of Credit or Home Equity Loan. I didn't include this it the total bonus since it involves loans rather than deposit accounts. There's also a $50 Restaurant.com Gift Certificate when you speak with a Financial Services Representative at a First Tennessee branch. The real value of this gift certificate is less than $50 so I also didn't include this in the total bonus.

Below are the important sections of the small print:

Checking Account Bonus Details:

Offer expires 11/30/2010. New checking customers only. To receive bonus, you must open your account at a financial center and present this offer certificate. Minimum opening deposit to receive bonus is $300. Opening deposit cannot be transferred from existing First Tennessee accounts. If you meet the stated requirements of this promotional offer, the bonus will be credited to your account within 6 weeks and will be reported on Form 1099-INT. Limit one bonus per household. Cannot be combined with other checking offers. Customer agrees to maintain account in good standing for a minimum of six months. Subject to bank approval.

Money Market Savings Account Bonus Details:

Offer expires 11/30/2010. You must open your account at a First Tennessee financial center and present this offer certificate to receive bonus. Accounts opened online are not eligible. Minimum opening deposit is $10,000. Offer is available to new First Tennessee savings customers only. Opening deposit cannot be transferred from existing First Tennessee accounts. If you meet the stated requirements of this promotional offer, the bonus will be credited to your account within 6 weeks and will be reported as income on Form 1099-INT. Limit one bonus per household.

Bill Pay Online Bonus Details:

Bonus is for new or existing checking customers who have never used First Tennessee Bill Pay Online or who have not used Bill Pay Online since May 1, 2010. To be eligible for the bonus, the customer must present this offer certificate to our Financial Services Representative and pay a minimum of six (6) bills using First Tennessee Bill Pay Online between August 16, 2010 and December 31, 2010. Bills are considered "paid" as of the actual payment date, which is the date funds are withdrawn and sent to the payee. Failure to make at least six payments using Bill Pay Online by December 31, 2010 will cause full bonus to be forfeited. No partial amounts will be awarded. Customers receiving this offer who meet the requirements will receive a direct deposit of $50 into the account from which bills were paid, approximately 4-6 weeks after requirement is met. Health Savings Accounts are not eligible for bill pay incentive. Limit one Bill Pay Online bonus per household. Cannot be used in conjunction with any other First Tennessee Bill Pay Online offer.

Credit for this find goes to iBankDesign.

It looks like the Free Checking would qualify. However, the Money Market Savings requires a $5K balance to avoid a $9/month fee. You can also avoid the fee with a qualifying checking account, but that probably doesn't include the Free Checking.

Branch Locations

According to the small print, you must open your accounts at a First Tennessee financial center. The vast majority of the branches are located in Tennessee. Branches are located in several Tennessee cities including Cleveland, Nashville, Greeneville, Morristown, Chattanooga, Jackson and Knoxville.

First Tennessee Bank has been a FDIC member since 1934 (FDIC Certificate # 4977).

Other Bank Bonuses

Please refer to the Bank Bonus Page for all of my recent posts on checking account bonuses.

The Farmers Bank is offering a very competitive 15-month CD special with a 2.00% APY. Minimum deposit is $1,000. To receive this rate, interest must be automatically deposited into a checking or savings account. If interest is paid by check, the APY falls to 1.95%. This special is listed in the bank's CD specials page as of 8/06/10.

Last year a reader informed me that he was told by the branch manager at the bank's Portland office that they can accept out-of-state deposits. Please note that the availability policy can often change and depend on the specific bank official especially at small banks. So your miles may vary if you want to open an account by mail.

Branches are located in the Tennessee cities of Portland, Cross Plains, Millersville, Ridgetop, Springfield, Whitehouse and Westmoreland. Millersville is about 20 miles north of Nashville. If you are considering driving a long distance to a branch, make sure you call and verify that they accept deposits from outside their local area.

The bank's ratings for safety soundness are fair: 3½ stars (good) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 3 out of 5 at DepositAccounts.com (see our Farmers Bank reviews). These ratings are based on 3/31/10 financial data. The bank has been a FDIC member since 1934 (FDIC Certificate # 1696).

The Fort Sill National Bank is offering several competitive CD rates. The most competitive one is the 6-month CD with a 1.41% APY. Other ones include a 1.75% APY 18-month CD, a 2.00% APY 30-month CD and a 3.00% APY 60-month CD. Minimum deposit is $500. These rates are listed in the bank's rates page as of 8/04/2010.

It appears that a branch visit is required to open an account. As you might expect by the name, the bank is targeted to military communities, and many of its branches are on military bases. However, the bank also serves civilian communities, and it has many branches outside of bases (many are in Walmart). The states which have several branches outside of military bases include Oklahoma, Tennessee and North Carolina. The other states in which the branches are mostly inside military bases include California, Texas, South Carolina and Delaware.

The bank's ratings for safety and soundness are very strong: 5 stars (superior) at BauerFinancial, 5 stars (superior) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our FSNB reviews page). These ratings are based on 3/31/10 financial data. The bank has been a FDIC member since 1946 (FDIC Certificate # 16416).

Eastman Credit Union continues to offer competitive certificate rates. The two most competitive ones include a 1.75% APY 12-month CD and a 2.50% APY 3-year CD. The 6-month CD is also very competitive even though it may not seem that great with a 1.35% APY. Minimum deposit is $1,000. An extra 10 basis points are applied to Jumbo CDs with a $100,000 minimum deposit. These rates are listed in the credit union's deposit rates table as of 7/14/2010.

Membership is open to those who live, work or attend school in several counties in the northeast part of Tennessee. Counties in southwest Virginia and in Harrison and Gregg Counties in Texas are also included. In addition, there's a long list of Select Employer Groups. Please refer to the Who Can Join Page for the full details.

Branches are located in Tennessee, Virginia, Texas, South Carolina and Arkansas.

The credit union's ratings for safety and soundness remain strong: 4 stars (sound) at Bankrate.com, 5 stars (superior) at BauerFinancial and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview of Eastman Credit Union). 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 # 68095). It's a large credit union with $2.33 billion in assets.

Searching for the Best CD Rates

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.

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.

TriStar Bank is offering several competitive CD and IRA CD rates. The bank has three tiers for its CDs: $1K to under $50K, $50K to $95K and over $95K. Each tier has rates 0.10% higher than the lower tier. Below is a list of rates for the top tier CDs that require a minimum deposit over $95K. This is listed at the bank's deposit rates page as of the morning of 6/23/2010:

• 1.60% APY 12 months
• 1.85% APY 18 months
• 2.10% APY 2 years
• 2.85% APY 3 years
• 3.10% APY 4 years
• 3.35% APY 5 years

It appears that a branch visit is required to open an account. Branches are located in Dickson and Charlotte, Tennessee which are in the Nashville metro area. Before driving a long distance for a CD, it's advisable to call the bank and confirm rates and qualifications.

The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial, 4 stars (sound) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our TriStar Bank rates and reviews page). 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 2000 (FDIC Certificate # 35417).

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!

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 two current CD specials are indeed competitive: a 2.10% APY 2-year CD and a 2.50% APY 3-year CD. Minimum deposit is $2,500. These rates are listed in the bank's current specials page as of 5/13/2010.

I spoke with the CSR via the bank's new 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 both the 24- and 36-month terms. Finally, I confirmed the CDs continue to be available nationwide.

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 12/31/09 data, it has 91 employees, $1.37 billion in assets and $1.25 billion in deposits.

Its ratings for safety and soundness are fair: 2 stars (below peer group) at Bankrate.com, 3½ stars (good) at BauerFinancial and an overall health score of 4 out of 5 at DepositAccounts.com (see our TCB rates and reviews page). Ratings are based on 12/31/09 financial data. The bank has been a FDIC member since 2000 (FDIC Certificate # 35296).

Searching for the Best CD Rates

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!

Altra Federal Credit Union is offering a special 18-month CD with both a step-up and add-on feature. The top rate is 2.10% APY. This requires a checking account with direct deposit. Without this the rate is 1.70% APY. There's also an 8-month special CD. The rates are 1.50% APY with the checking and 1.10% without the checking. These rates are listed in the credit union's rates page as of the morning of 5/10/2010.

Here's how the small print describes the step-up and add-on features of these special CDs:

Step Up Certificate allows a one-time rate change based on the then advertised rate for same term. Along with one-time rate change, you may also make an additional deposit to the certificate up to the original certificate deposit, not to exceed $50,000.

In my opinion, the add-on feature can be more useful than the step-up feature since the step-up feature depends on the institution keeping its rates competitive. The add-on feature can come in handy if rates stay low or keep falling.

The credit union offers a high-yield reward checking account that currently pays 3.25% APY on balances up to $25K. I first reviewed this reward checking account in December 2007.

Membership is open to anyone who lives, works, studies or worships in parts of La Crosse, Wisconsin; Winona, Minnesota; Smith County, Texas; and Montgomery County, Tennessee. You can also be eligible if you have an immediate family member who meets the above qualifications. Please see the credit union's Membership page for the full details. Membership requires a minimum deposit of $5 in the basic saving account.

Branches are located in Clarksville, Tennessee; Fort Smith, Arkansas; Trenton, New Jersey; Tiffin, Ohio; Tyler, Texas; Pueblo, Colorado; Lexington and Paintsville, Kentucky; La Crescent and Winona, Minnesota; and La Crosse and Onalaska, Wisconsin.

The credit union's ratings for safety and soundness are a little weak: 3 stars (adequate) at BauerFinancial, 2 stars (below peer group) at Bankrate.com and 3 out of 5 overall health score at DepositAccounts.com (see our rates and reviews page for Altra FCU). The credit union is federally insured by the NCUA (Charter # 24077).

Searching for the Best CD Rates

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!