BTH Bank's (TX) 30-Month Worry-Free CD Rate Increases
In April, BTH Bank added two Worry-Free CDs, which are indexed to the Treasury rate. In the past nine months, there have been seven rate increases for each CD, resulting in very competitive rates: 30-month (2.64% APY) and 60-month (2.84% APY). The minimum opening deposit is $10k, with no stated balance.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 1.84% | $10k | - | BTH Bank | 60 Month Worry-Free CD | |
| 1.80% | $10k | - | BTH Bank | 30 Month Worry-Free CD |
Although not listed on BTH Bank’s website, the Worry-Free CDs are also available as IRAs, earning the same Treasury-indexed APYs with the same funding requirements.
The rates are subject to change every three months after the account is opened. According to a sample Truth-In-Savings Disclosure sent by a very helpful CSR,
The adjusted interest rate will be the index existing on
the last business day of the previous month plus 0.85%.
The Worry-Free CDs also offer the option of unlimited additional deposits (at least $10k) that can be made through the term of the CD, with the exception of “within 30 days of final maturity.”
The Early Withdrawal Penalty for the 30-month Worry-Free CD is 180 days interest and 360 days interest for the 60-month Worry-Free CD.
Treasury Yields
I include current Treasury yields in my bi-weekly Best Bank Accounts Summary, citing the Daily Treasury Yield Curve Rates. In the past twelve months, the 1-year Treasury Rate has ranged from a low of 0.79 (February 2, 2017) to last week’s high of 1.80.
Availability
Headquartered in Quitman, Texas, BTH Bank’s market area covers the “Prairies & Lakes and Piney Woods” regions, stretching from the greater Dallas metropolitan area eastward to Carthage.
Opening a Worry-Free CD can be done online, over the phone (903.763.2264) or at any of twelve Texas branches located in Carthage, Dallas, Hawkins, Henderson, Kilgore, Lindale, Longview, Mineola, Plano, Quitman, Tyler, and Winnsboro.
Minors, resident aliens and non-resident aliens may apply by contacting BTH Bank directly.
Bank Overview
BTH Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.70% (excellent) based on September 30, 2017 data. In the past year, BTH Bank has increased its total non-brokered deposits by $397.75 million, an excellent annual growth rate of 49.25% APY. Please refer to our financial overview of BTH Bank (FDIC Certificate #3402) for more details.
BTH Bank is one of the few community banks operating in East Texas today, and has a history that stretches back more than 110 years. In 1905, W. M. Lloyd established a small, private bank in Quitman, which subsequently received a state charter in 1908, resulting in the First State Bank. A national charter was granted in 1914 and the First National Bank of Quitman took the stage. Almost 100 years later, the Bank had become BankTexas and,
In 2006, seven members of the bank's board of directors raised approximately $13 million from local investors to form BT Holdings, which purchased BankTexas from its then non-local owners. The transaction allowed BTH Bank to once again become a locally-owned financial institution.
BTH Bank is currently the 37th largest bank in Texas, with assets in excess of $1.5 billion and more than 21,400 customer accounts.
How the Worry-Free CD Compares
Since these Worry-Free CDs have variable rates, comparing them to standard fixed-rate CDs is not really fair. Nevertheless, for simplicity, the following comparisons were done to give readers an idea about how the rates compare with rates of standard fixed-rate CDs with similar terms.
When compared to the 250 similar length-of-term CDs tracked by DepositAccounts.com that are available within the Bank’s market area and require a minimum deposit of $10k or less, BTH Bank's 30-month Worry-Free CD currently ranks first.
When compared to the 221 similar length-of-term CDs tracked by DepositAccounts.com that are available within the Bank’s market area and require a minimum deposit of $10k or less, BTH Bank's 60-month Worry-Free CD currently ranks second.
The above rates are accurate as of 1/30/2018.
To look for the best CD rates, nationwide and state specific, please refer to our CD Rates Table page.
Yields are much lower for new money
I am intensely interested in any sort of indexed CD. While I do not qualify for this one, it is informative nevertheless just to be aware of this and to be able to study its structuring and terms.