Pennsylvania-based American Bank has added two new Promo Certificates: 60-month (3.00% APY) and 12-month (2.00% APY). Either Promo Certificate can be opened with a $500 minimum deposit of new money; according to CSR, there is no balance cap.
The Promo Certificates are also available as IRAs (Traditional, Roth, and CESA), earning the same APY, but the minimum opening deposit is only $250.
In November 2016, American Bank revised its Early Withdrawal Penalty (EWP), which had been 180 days for terms of more than one year. As stated in the Truth-In-Savings Disclosure, (TIS) the new EWP reads as follows:
Three (3) years or more:
You will be charged a penalty, in an amount equal to 365 days’ simple interest on the amount withdrawn. Penalties are calculated at the rate being paid on the deposit at the time of withdrawal, regardless of the length of time the funds have remained on deposit. Where necessary, any funds needed to complete the penalty shall be deducted from the principal remaining in the account.
The TIS also provides some information about the Bank’s renewal policy.
notify us during the grace period which is 10 days after maturity that you wish to redeem your CD; or notify us prior to the original or any subsequent maturity date that you wish to redeem your CD at maturity; or receive a written notice from us notifying you that we have decided to not renew your deposit at maturity.
Even though it’s an important element of any CD, there is no mention of how to access maturing funds in the TIS. In a Live Chat, I learned that there is no ACH option. Maturing funds can be paid out by check, by wire ($20 fee), or transferred to an existing American Bank checking, savings, or Money Market account.
Headquartered in Allentown, Pennsylvania, American Bank describes itself as a “nationwide community bank.” As such, it offers its services and product line, through its online application, to all legal U.S. residents (18 years or older) who have a valid Social Security.
American Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 0.00% (excellent and not a typo) based on December 31, 2017 data. In the past year, American Bank has increased its total non-brokered deposits by $17.81 million, an excellent annual growth rate of 4.36%. Please refer to our financial overview of American Bank (FDIC Certificate # 34422) for more details.
American Bank will soon be celebrating its 21st anniversary, having opened its doors in June 1997. This relatively young, but financially solid bank is the "child" of Founding Chairman, Fred Jaindl. Mr. Jaindl was a Lehigh Valley farmer, land developer, philanthropist, and banker, who was recognized for his unwavering honesty, integrity and loyalty. American Bank is currently Pennsylvania’s 63rd largest bank, with more than $579 million in assets.
How the Promo Certificate Compares
When compared to the 179 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, American Bank’s 60-month Promo Certificate APY currently shares the top spot with the 5-year CDs offered by Utah First Federal Credit Union, Quorum Federal Credit Union and Service Credit Union.
The above rates are accurate as of 3/28/2018.
To search for the best nationwide CD rates and the best CD rates in your state, please refer to our CD rates table.