It’s been less than a week since I wrote about Crestmark Bank's (Crestmark) competitive 6-month CD (1.62% APY) and 9-month CD (1.65% APY). Don't worry, they're still available. Crestmark is ending the month on a high note by raising the rate on its 12-month CD to an impressive 1.80% APY. Like the 6- and 9-month CDs, the minimum opening deposit is $25k, with no stated balance cap.
In the past five months, the 12-month CD's APY has jumped by 70 bps in two rate increases. This latest increase has caused the yield curve to become even flatter, with only 35 bps separating the 12-month and 60-month CDs.
According to the CD Administrator, the Early Withdrawal Penalty for the 12-month CD is 6 months interest.
Crestmark’s Certificate of Deposit FAQ section is an excellent source of information, with an answer to almost any concern you may have, including,
How do I know if you are a real bank?
Headquartered in Troy, Michigan, Crestmark Bank is a nationally recognized business-to-business lender that “specializes in diverse financial solutions for small-to-medium sized businesses.” Crestmark does not always offer CDs, but when it does it is on a nationwide basis.
In the past, Crestmark offered its CDs intermittently based on the Bank's desire to fund certain projects. That strategy has changed recently, with Crestmark now offering CDs on a consistent basis.
Opening a CD can be done through the “CD New Account Request” form, which is available in an electronic format that can be returned via email, or as a PDF that can returned by either fax or snail-mail.
Crestmark’s sole branch location in Troy is not able to accommodate in-person CD transactions.
Crestmark Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.98% (excellent) based on June 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $46.6 million, an excellent annual growth rate of 8.51%. Please refer to our financial overview of Crestmark Bank (FDIC Certificate # 34353) for more details.
Crestmark Bank celebrating its 21st anniversary last month, having been founded by W. David Tull in October 1996. Tull recognized a niche market - “small-to-medium sized businesses that needed funding the more traditional banks could not provide” – and developed a solution. Crestmark has widened its original target market (manufacturing, service, and transportation industries) to include apparel, footwear, and home furnishings, while opening new offices in California, Florida, Louisiana, New York, and Tennessee. Crestmark is currently the 13th largest bank headquartered in Michigan, with assets in excess of $993 million.
How the CD Compares
When compared to the similar length-of-term CDs tracked by DepositAccounts.com, Crestmark Bank’s 12-month CD APY is the current rate leader for nationwide banks. If credit unions are included in the mix, only Advancial’s 1-year Jumbo Certificate has a higher rate.
The above rates are accurate as of 11/30/2017.