AloStar Bank of Commerce Introduces Competitive 8-Month CD Special

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Deal Summary: 8-Month CD Special, 4.50% APY, $10k minimum deposit, new money.

Availability: 41 states

AloStar Bank of Commerce (a division of Cadence Bank, formerly BancorpSouth Bank) is currently offering an 8-month CD Special earning 4.50% APY. The minimum opening deposit is $10k of new money, which is defined as being “non-AloStar or non-Cadence Bank funds.”

APYMINMAXINSTITUTIONPRODUCTDETAILS
5.25%$10k-AloStar Bank of Commerce8 Month CD Special - New Money
Rates as of February 27, 2024.

Availability

As an online division of Cadence Bank (Tupelo, Mississippi), AloStar Bank of Commerce offers its very limited product line to all U.S. citizens and resident aliens, 18 years or older, who have a valid Social Security number and live in any of the following states.

Alaska, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

The fine print on the landing page states that the APY for the 8-month CD Special “may vary in other markets,” but CSR was unable to tell me what the other APYs are or where the other markets are located.

The nine states where AloStar's CD is not available are states where Cadence Bank has branches. The nine states include Alabama, Arkansas, Georgia, Florida, Louisiana, Mississippi, Missouri, Tennessee, and Texas.

Account Opening

Opening a CD must be done online, as AloStar does not have any brick-and-mortar branch locations. Only consumer accounts can be opened, with institutional and public funds accounts not allowed.

Funding and Other Details

As there is no Truth-in-Savings disclosure on AloStar’s website, the following information is from a conversation with CSR. AloStar and Cadence Bank share the same call center and the CSR wasn’t that familiar with AloStar, so I am not completely confident in the accuracy.

  • Early Withdrawal Penalty – Unknown. I couldn’t get a straight answer from CSR that made any sense. I explained I wasn’t looking for a dollar amount, but something like 60-90 days interest on the amount being withdrawn. CSR couldn’t grasp the concept and kept repeating the EWP depended on the amount on deposit.
  • Funding – Wire* or check. Funding must be received within 15 days of account approval.
  • Interest – Compounded/credited monthly and can be withdrawn penalty-free.
  • Maturing Funds – Wire* or cashier’s check.
  • Beneficiaries – Unlimited, percentages assigned, Social Security numbers required.
  • Grace Period – 10 calendar days before automatic renewal.
  • Credit Check – Soft pull.
  • *There are fees for incoming and outgoing wire transfers, but CSR could not provide a dollar amount, although he did say it was “a little fee.”

Bank Overview

As a division of Cadence Bank, AloStar Bank of Commerce operates under Cadence Bank’s FDIC Certificate and shares its financial history. Deposits held at AloStar are not separately insured from deposits held at Cadence Bank.

AloStar Bank of Commerce/Cadence Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 1.58% (excellent) based on June 30, 2022 data. In the past year, AloStar/Cadence Bank has increased its total deposits by $17.21 billion, an excellent annual growth rate of 76.44%. Please refer to our financial overview of AloStar Bank of Commerce/Cadence Bank (FDIC Certificate # 11813) for more details.

AloStar Bank of Commerce is a young bank, having been established in 2011 following the failure of Nexity Bank, with the newly-chartered AloStar assuming all of Nexity’s deposits. AloStar continued to operate in the same fashion as Nexity - an internet bank – until September 30, 2017 when AloStar merged and became part of State Bank and Trust Company (Macon, GA). Fifteen months later, State Bank and Trust Company merged into Cadence Bank, N.A. (Atlanta), bringing AloStar along. Finally, Cadence Bank merged with BancorpSouth Bank in October 2021, with the merged entity using the Cadence Bank name. As the largest bank headquartered in Mississippi, Cadence Bank has nearly $48 billion in assets with more than 944,000 customer accounts.

How the 8-Month CD Special Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the market area and have minimum deposit requirements of $10k or less, only one credit union has a higher rate than currently offered on the AloStar Bank of Commerce 8-Month CD Special. The following table compares the 8-Month CD Special to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.

The above information and rates are accurate as of 1/27/2023.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.

Related Pages: Atlanta CD rates, Dallas CD rates, 1-year CD rates, nationwide deals, Internet banks

Comments
AloStar Bank Of Commerce Ups 12-Month CD Rate (Very Mild EW Penalty)

Deal Summary: 12-month CD, 1.35% APY, $1k minimum, one month Early Withdrawal Penalty

Availability: Nationwide (internet bank)

Almost a year ago, I wrote about AloStar Bank of Commerce’s (AloStar) 12-month CD, which had reached an all-time rate high of 1.35% APY on April 12, 2016. The 1.35% APY lasted only 17 days and then dwindled down to 1.05% APY, where it remained until mid-January. While I was glad to see a rate increase for the 12-month CD yesterday, I was a bit disappointed that this new APY isn’t...

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