American Bank (PA) Offers Nationwide 60-Month Promo CD

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Deal Summary: Promo Certificates - 60-month (3.00% APY), 12-month (2.00% APY), $500 minimum deposit, new money.

Availability: Nationwide

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.50%$500-American Bank60 Month Promo CD (New Money)
2.50%$250-American Bank60 Month Promo IRA (New Money) (Traditional, Roth, CESA)
2.00%$500-American Bank12 Month Promo CD (New Money)
2.00%$250-American Bank12 Month Promo IRA (New Money) (Traditional, Roth, CESA)
Rates as of September 22, 2018.

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You will be charged a penalty, in an amount equal to 365 days’ simple interest on the amount withdrawn.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.

    Availability

    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.

    Opening a Promo Certificate can be done online, or through an in-person visit to the Bank’s sole Pennsylvania branch located in Allentown on West Tilghman Street.

    Bank Overview

    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.

    Related Pages: Philadelphia CD rates, 1-year CD rates, 5-year CD rates, nationwide deals

    Comments
    VIR
    VIR   |     |   Comment #1
    Tried to open the 60-Month Promo CD yesterday evening (03/28). Everything went smoothly 'till I reached the Funding page on which AB gives you three funding options with the minimum to open listed as $500 : 1) use an external account with the limit of $200; 2) use a credit card also with the limit of also $200; 3) Send a check. Waiting 8AM to call them to see how I can finish the application.
    VIR
    VIR   |     |   Comment #2
    Called AB RE: the CD funding. The only option they give for this CD funding is to mail them the check. Selected the option, answered some additional security questions and in the end of the session got the Signature card. Will mail it along with the check. They ask to do it within 7 business days. Not too convenient to say the least.
    Tightwad
    Tightwad   |     |   Comment #3
    Ridiculous in these days! I would advise them to upgrade....plenty of other options for 3% if you look. If I can't open and completely fund via ach then forget it.
    RJM
    RJM   |     |   Comment #4
    I had a checking account with them way back when. I thought they had went under or merged because I hadn't heard of them in so long.
    American Bank Ups Rate On 60-Month CD (Available Nationwide)
    Availability: Nationwide

    American Bank (Pennsylvania) raised the rate on its 60-month CD Promotion (2.27% APY) earlier this week. The minimum deposit is $500 of new money, with a maximum deposit of $1 Million per household.

    The 60-month CD Promotion is also available as an IRA (Traditional, Roth, and CESA), earning the same APY, but the minimum opening deposit is only $250.

    The 60-month CD Promotion was first added to American Bank’s product line in September 2014, with an APY of 2.25%. In the past 13 months, there...

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    American Bank's Competitive 60-month CD, Available Nationally

    Last week, American Bank (Pennsylvania) began offering a 60-month CD Promotion (2.25% APY). The minimum deposit is $500, with a maximum deposit of $1 Million per household. New money must be used to fund this 60-month CD. It is also available as an IRA (Traditional, Roth, and CESA), but the minimum opening deposit is only $250.

    As stated in American Bank’s Truth In Savings Disclosure, the Early Withdrawal Penalty is as follows:

    Availability

    American Bank is a locally-owned, community bank based in Allentown,...

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