Tennessee Deposit Account Rates and Deals

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).

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.

First Jackson Bank is offering some competitive CD and IRA CD rates. The best ones include:

• 2.05% APY 12-month CD
• 2.10% APY 18-month CD
• 2.25% APY 24-month CD
• 2.75% APY 30-month CD
• 3.00% APY 36-month CD

The above rates are listed in the bank's CD rates page as of 3/09/2010. Similar rates are listed in the bank's IRA rates page. Minimum deposit is $1,000.

A reader mentioned that a bank representative was going to let him to open a CD by mail. As with any small bank, these policies can often change. So your miles may vary. Branches are located in the Alabama cities of Stevenson, Bridgeport, Scottsboro, Owens Crossroads and in the Tennessee city of South Pittsburg.

The bank'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). The bank has been a FDIC member since 1981 (FDIC Certificate # 23376).

First Citizens Bank is offering a special 2.15% APY 18-month CD. Minimum deposit is $1,000, and a checking account is required. There's also a 6-month CD special, but the rate is much less competitive at 1.15% APY. These specials are not listed at the bank's website. A reader mentioned them, and I just called this morning (3/08/2010) for additional details. According to the CSR, these specials could end at any time.

First Citizens Bank has branches in several states. However, not all are operating under the name First Citizens Bank. According to the CSR, these specials may not be available at these other branches. An example are some branches in California that are operating under the name IronStone Bank. Those branches have different promotions. The best one is much less competitive (2.25% APY 36-month CD).

A branch visit is required to open an account. Make sure to contact your local branch to ensure they are offering this promotion. Branches are located throughout North Carolina. It also has branches in Florida, Arizona, Maryland, Tennessee, Washington, California, Virginia and West Virginia.

First Citizens Bank has been expanding in the last few years with much of the expansion coming from the acquisition of failed banks. The latest acquisition was on Friday when it acquired Sun American Bank in South Florida.

First Citizens 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 1934 (FDIC Certificate # 11063).

Yesterday I reviewed First Citizen Bank's FreeMoney debit card reward program.

Firsts Citizens Bank has a check card reward program called FreeMoney in which you can earn close to 4% cash back on your debit card purchases with a maximum of $500 per year. Unlike other debit card and credit card cash back reward programs, this requires some work if you want to maximize the cash back reward.

First, you're required to open the First Citizens personal checking account and FreeMoney Bonus Savings Account. To earn cash back, the following debit card usage is required:

• Make 10 non-PIN check card purchases per month
• AFTER these 10 check card purchases are made, you'll earn $1 for every non-PIN check card purchase of $25 or more.
• The FreeMoney bonus is deposited into the FreeMoney Bonus Savings Account each month

According to the terms and conditions, the maximum bonus per checking account is $500 per calendar year.

As you can see, it won't be easy to get close to 4% cash back from this program. Your first 10 check card purchases would have to be small since there's no cash back associated with them. The additional check card purchases during the month would have to be $25 or just a little bit higher. Then you could get close to earning 4% cash back. Of course if it were too easy, everybody would earn the 4%, and the bank wouldn't be able to afford it.

A branch visit is required to open an account. Branches are located throughout North Carolina. It also has branches in Arizona, Maryland, Tennessee, Washington, California, Virginia and West Virginia.

You might be wondering why the branches are so scattered across the country. First Citizens Bank has been expanding in the last several months with much of the expansion coming from the acquisition of failed banks. The latest acquisition was on Friday when it acquired Sun American Bank in South Florida.

First Citizens 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 1934 (FDIC Certificate # 11063)

Other debit card and credit card reward programs

As I've mentioned in previous posts, banks make sizable profits from non-PIN debit card usage. This is one new type of program that encourages debit card use. PerkStreet Financial is one that's available nationwide which offers 1% cash back without any hoops to jump through. It also has a special 2% cash back promo (see review). For those with large savings, you'll probably do better with high-yield reward checking accounts (refer to the reward checking section of DepositAccounts.com).

If you prefer using credit cards, some of the best cash back programs are from PenFed, Charles Schwab and Fidelity.

Eastman Credit Union continues to offer competitive certificate rates. The two most competitive ones include a 2.00% APY 12-month CD and a 2.30% APY 2-year CD. 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 2/2/2010.

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. There's also 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 are strong: 4 stars (sound) at Bankrate.com and 5 stars (superior) at BauerFinancial. Both ratings are based on 9/30/09 financial data. The Bankrate rating is one star higher than what I reported in August when it was based on 3/31/09 data.

The credit union is federally insured by the NCUA (Charter # 68095). It's a large credit union with $2.1 billion in assets and 109,770 members based on 11/17/09 NCUA data.

First State Bank is offering a high-yield reward checking account called First Rewards Checking. It offers the following rates and features if certain monthly requirements are met:

• 4.25% APY on balances up to $25,000
• 1.01% on portion of balance over $25,000
• 0.15% base rate if requirements are not met
• Unlimited nationwide ATM fee refunds

The monthly requirements include:

• 12 Visa check card purchases
• 1 direct deposit or ACH auto debit
• Receive e-statements

Additional features of the account regardless of the monthly requirements include:

• $25 minimum initial deposit
• No minimum balance requirement
• No monthly maintenance fee

There's an online application link at the bank's micro-website. However, the application states "We are only currently accepting Rewards Checking applications from the state of Tennessee."

Branches are located in many Tennessee cities some of which include Nashville, Lexington, Jackson, Union City and Knoxville.

The bank's ratings for safety and soundness are a little mixed: 3½ stars (good) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 9/30/09 financial data. The bank has been a FDIC member since 1934 (FDIC Certificate # 1479).

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

4% Reward Checking Accounts

It's getting harder to find reward checking accounts with rates at or above 4%. Many popular ones have been cutting their rates, reducing balance caps and/or restricting availability. If you have a choice between a reward checking account that's only available in your area vs. one that is available nationwide, you may have better luck with the local one. Nationwide ones attract more rate chasers which can put a strain on these accounts.

• CD can be funded either by wire transfer or check by mail
• Rate is locked at the time of application

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

Update 1/21/2010: The special CD rates have fallen, but they remain competitive: 1.75% APY 9-month and 2.00% APY 13-month.

Commercial Bank is offering two very competitive CD rates: 2.10% APY for 9 months and 2.25% APY for 15 months. The 9-month CD is a special. Both have a $500 minimum deposit. These rates are listed in the bank's rates page as of 12/18/09. Note, on the front page they're listing the 15-month CD with a 2.15% APY. I've emailed the bank to find out which rate is correct.

The bank also offers a high-yield reward checking account with a 3.01% APY for balances up to $25K (see my review).

It appears that a branch visit is required to open an account. Branches are located in several cities in Tennessee and Kentucky. Some of the cities include Harrogate, Knoxville, Kingsport, Luttrell, Pineville, Cumberland and Barbourville.

The bank's ratings for safety and soundness are fair: 3½ stars (good) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1976 (FDIC Certificate 22354).

Other Competitive Certificate of Deposit Rates

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

• 3.01% APY on balances up to $25,000
• 0.51% APY for portion of balance over $25,000
• 0.05% base rate if requirements are not met
• Reimburses ATM fees nationwide per cycle

• 10 debit card purchases
• 1 Automatic Payment or Direct Deposit

• $100 minimum initial deposit
• No minimum balance requirement
• No monthly service charge
• Free Bill Pay