The concept of a “bump up” CD is appealing – who wouldn’t want to be able to increase a CD’s rate during the term? The reality is unless you regularly monitor the CD, you might miss a rate increase, if a rate increase should actually occur. The FAB&T (formerly known as First Arkansas Bank and Trust) 10-month Bump Up CD Special is just a standard CD that receives a bump up in the rate with a deposit of at least $25k of new money. The 25-bps “bump” is not dependent on some future rate increase, but will be “effective on same date CD is opened” with at least $25k of new money included in the opening deposit. As stated on the landing page, new money is defined as funds “not originally in an existing FAB&T account.”
|5.78%||$25k||-||FAB&T||10 Month Bump Up CD Special - New Money|
|5.52%||$1k||-||FAB&T||10 Month CD Special|
If the opening deposit does not include at least $25k of new money, a 5.52% APY will be in effective and there is no current or future “bump up” option.
Availability and Account Opening
Headquartered in Jacksonville, Arkansas, FAB&T has a brick-and-mortar presence in four central Arkansas counties – Cleburne, Faulkner, Lonoke, Pulaski, and Van Buren. According to CSR, U.S. citizens and resident aliens (18 years or older with a valid Social Security number) who live in Arkansas and can come in to a branch location are eligible to open a 10-Month Bump Up CD Special.
While FAB&T has an online application for checking and savings account, the 10-Month Bump Up CD Special can only be opened in-branch at any of 21 full-service Arkansas branches located in Austin, Cabot (3), Clinton, Conway, Damascus, Gravel Ridge, Greenbrier (2), Greers Ferry, Heber Springs (2), Jacksonville (5), Quitman, and Sherwood (2).
Funding and Other Details
The following information is from a conversation with CSR.
- Funding – ACH, wire, or check.
- Ownership – Individual, joint, or trust.
- Early Withdrawal Penalty – Lesser of all earned interest or 90 days.
- Interest – Compounded quarterly and credited at maturity.
- Maturing Funds – Cashier’s check to the address on file or internal transfer.
- Beneficiaries – Unlimited and percentages can be assigned; Social Security numbers are required for all beneficiaries.
- Grace Period –7 calendar days before automatic renewal as a 6-month CD at the prevailing rate.
- Credit Check – ChexSystems.
FAB&T has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 12.34% (above average) based on March 31, 2023 data. In the past year, FAB&T has increased its total non-brokered deposits by $15.52 million, an above average annual growth rate of 1.9%. Please refer to our financial overview of FAB&T (FDIC Certificate # 16849) for more details.
Established in 1949 as the Jacksonville State Bank, FAB&T is a family-owned and operated community bank. Three generations of the Wilson family (Kenneth Pat, founder and originally Chairman of the Board; his youngest son, Larry T., current Chairman of the Board, President, and CEO; and Larry’s son, Mark, current Executive Vice President and COO) have been involved in the economic development of the local community. Currently the 19th largest bank headquartered in Arkansas, FAB&T has assets in excess of $1 billion and more than 38,000 customer accounts.
How the 10-Month Bump Up CD Special Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available within the market area and have minimum deposit requirements of $25k or less, only one credit union has a higher rate than currently offered on the FAB&T 10-Month Bump Up CD Special. The following table compares the 10-Month Bump Up CD Special to the two highest-rate CDs from credit unions and the two highest-rate CDs from other banks.
The above information and rates are accurate as of 9/22/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.