2.50% 13-Month CD at Cornerstone Bank in Georgia - Local Only

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Cornerstone Bank is offering a promotional 13-month CD with a rate of 2.50% APY. This rate is listed in a ticker-tape format on the bank's front page as of 11/16/09. It's scheduled to end on 11/30/09.

Based on past reports, this bank requires new customers to come into the branch to open accounts. Branches are located in Atlanta, Decatur and Sandy Springs, Georiga.

Financial/FDIC Info

The bank's ratings for safety and soundness are weak: 2 stars (problematic) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both ratings are based on 6/30/09 financial data.

On the plus side, I can't find any public enforcement actions from regulators that have been issued against this bank based on the list at Calculated Risk blog.

Cornerstone Bank has been a FDIC member since 2001 (FDIC Certificate # 35027).

Thanks to the reader who emailed me info on this special.

Problem with Georgia Banks?

With Georgia leading the nation this year with the number of failed banks (21 so far this year), consumers may be concerned with opening accounts at weak Georgia banks. Even though your insured deposits are safe, the CD interest rate (after a closure) is not. A reader recently asked me why Georgia has so many failed banks. This Atlanta Journal-Constitution article has a good review of the problems.

Other Competitive Certificate of Deposit Rates
Comments
Investing 101
Investing 101 (anonymous)   |     |   Comment #1
Well I think that FDIC insurance makes it a manageable risk. If the bank does go under, your only cost would be opportunity cost. What I mean is that the income you'd lose would be that which you would have earned if you had put it in a bank that actually paid you your interest earnings.
Anonymous
Anonymous   |     |   Comment #2
101 is right, lol.
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Update 1/19/09: The top yield has fallen to 2.50% APY. Refer to the bottom of the post for the rate history.

Cornerstone Bank is offering a reward checking account that pays 2.50% APY for balances up to $50,000 (1.50% for above) if any one of the following requirements are met each month:
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  • ACH auto debit
  • 3 debit card purchases
If these requirements are not met, the rate falls...




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Cornerstone Bank is offering a promotional one-year CD with a rate of 3.25% APY. Minimum deposit is $5,000, and the maximum is $100,000. It's also available for IRA and business accounts. This rate is listed at the bank's promotion page as of 5/06/09.

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Cornerstone Bank is offering a special 4.00% APY 9-month CD. The minimum deposit is $5,000, and the maximum deposit is $100,000. The offer is also available for IRA and business accounts.

The bank also has a special offer on a reward checking account that guarantees 3.50% APY through 2008 (see post).

Based on past reports, this bank requires new customers to come into the branch to open accounts. Branches are located in Atlanta and Sandy...





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