4.08% 5-Year CD & 2.90% 7-Month CD at Arizona Bank & Trust in Phoenix


Arizona Bank & Trust is offering several competitive deposit products for local residents. One is a special Rising Rate CD which has a blended rate of 4.08% APY and a 5-year term. Minimum deposit is $5,000. There's also a competitive 7-month CD with a rate of 2.90% APY. This requires a minimum deposit of $50,000. A 2.80% APY is available for a $10,000 minimum and a 2.70% APY for a $5,000 minimum.

In addition to the CD specials, the bank is offering a competitive rate on its high yield savings account. The top rate is 3.04% APY for balances over $100,000. The rates stay close to this for lower balances: 2.99% APY for $50K, 2.94% APY for $25K and 2.89% APY for $10K.

These rates are listed on the bank's home page as of 3/02/09.

The Rising Rate CD starts at a rate of 2.75% and rises a quarter of a percent every 6 months until the last year when it rises a half a percent and a whole percent. The last six months, the rate is 6.00%. It's available for both personal and business accounts. If you let the interest get credited back into the CD, there are not many benefits of the rising rate feature in my opinion. I would think you would owe less tax in the early years when the rates are low. The downside is that if you need to make an early withdrawal, that money will miss out on the higher rates. Because of this, it's common for these types of CDs to not have early withdrawal penalties. However, I was told that there are early withdrawal penalties for this CD. The CSR did not go into details about the penalty amounts.

The bank also has a reward checking account that currently pays 5.01% APY on balances up to $20,000 (see post). Last year this rate had been 6.01% APY with a rate guarantee through 4/01/09.

I was told by the CSR that these accounts are available only to local residents and that a branch visit is required. Branches are located in the Phoenix metro area.

The bank's ratings for safety and soundness are a little weak: 2 stars (below peer group) at Bankrate.com and 3 stars (adequate) at BauerFinancial. Both ratings are based on 9/30/09 financial data. The bank has been FDIC insured since 2003 (Certificate # 57620).

Thanks to the reader who emailed me news of these specials.
Duck (anonymous)   |     |   Comment #1
Oh why did I move from Az to Tx wait now I remember I left at the right time with a #$^@ load of you know what. Of course now my $ is earning less. Phoenix nice place
vincent (anonymous)   |     |   Comment #2
For the High Yield savings account, you need an "operating" checking account. The CSR did not have a good definition of "operating", but the general idea is an acct that is used as your primary account...want lots of activity; otherwise you can't get the high rate...we were turned for the high rate.
Don't see the restriction on the Ad on their website though.
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The bank provides an online application, and people from any state can apply. According to the application, accounts other than CDs require a branch visit to sign paperwork.

I called the bank today for additional details. According to the CSR, the bank will guarantee the rate at the time of the application. After the application is submitted, they'll...

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Arizona Bank & Trust has a reward checking account called Cash Rewards Checking that pays 4.01% APY on balances up to $20,000 (1.01% for above) and refunds ATM fees (up to $20 per statement) if the following monthly requirements are met: 1) 15 signature-based debit card purchases, 2) one direct deposit, and 3) electronic statement delivery. If these are not met, the rate falls to 0.25%. There are no minimum...

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Branches are located in Phoenix, Chandler, Mesa and Tempe. Based on the online applications, it appears that deposits can be made from any state. Please contact the bank to verify customer requirements.

The bank has been FDIC insured since 2003. It has a safe and sound rating of 4 out of 5 stars (sound) at Bankrate.com.

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