2.53% 24-Month CD at Commerce National Bank in Texas - Local Only
The CD is also available in an IRA. The bank also has an 18-month no-penalty CD, but this rate is much lower at 1.51% APY. The Bank does a good job at listing the CD features in their CD overview page. It would be better if they also included the rates.
The 90-day early withdrawal penalty is a nice feature for a 2-year CD. The typical penalty is 6 months of interest. If you held this for one year and then did an early withdrawal, you would lose 25% of the accrued interest for the year. This would approximately equal the return of a 1.90% 1-year CD.
In addition to competitive CD rates, the bank also has an attractive reward checking account that currently pays 4% APY on balances up to $25,000. It has the typical reward checking requirements (see post).
A branch visit is required to open an account. Branches are located in the Texas cities of Austin, Bryan/College Station and Lubbock.
The bank's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The bank has been a FDIC member since 1978 (FDIC Certificate # 22752). The bank's actual name is Lubbock National Bank. It looks like they're trying to appeal to those outside of Lubbock with the Commerce name and website.
Thanks to the reader who emailed me news of this 2-year CD.
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