At the end of December, Farmers State Bank (FSB) was offering three CD Specials. Four months later, those have expired, but FSB has two new CD Specials: 15-month (1.57% APY), and 29-month (2.00% APY).
The minimum opening deposit for either of the CD Specials is $2.5K, with no balance cap. Interest is compounded every six months for CDs with terms of 1 year and greater.
As stated on FSB’s Deposit Rates page, the Early Withdrawal Penalty reads as follows:
CDs with terms of 1 year and greater - 12 months interest penalty
Certificate Savings Account
I mentioned this account last December, and I think it deserves a second hearing because of the uniqueness of the account. The Certificate Savings (1.28% APY) account is essentially an "after-care" account for funds from maturing FSB CDs, which earns a higher-than-average savings APY, but with limited withdrawals. This is the first account I've seen that is designed exclusively as an alternative to re-investing maturing funds in another CD.
According to FSB’s Truth In Savings document,
You must deposit $2,000 to open this account. You may not make additional deposits into this account. You may make six (6) transfer from your account each four (4) weeks or similar period.
If your balance falls below $50 on any day in the month, your account will be subject to a $1 avings minimum balance fee for that month. An excess debit fee of $1 will be charged for each debit transaction in excess of six during a monthly statement cycle.
Headquartered in Waterloo, Iowa, Farmers State Bank’s market area includes the northeast Iowa counties of Blackhawk, Bremer, and Buchanan.
While the process of opening a CD (or any other account) with FSB can be initiated online, an in-person visit is required to complete the transaction.
Farmers State Bank has ten Iowa branches located in Cedar Falls (2), Dunkerton, Gilbertville, Jesup, La Porte City, Raymond, Waterloo (2), and Waverly.
Farmers State Bank (FDIC Certificate #12855) has an overall health rating of "A" at DepositAccounts.com, with a Texas Ratio of 1.10% (excellent), based on December 30, 2015 data. In the past year, Farmers State Bank has increased its total deposits by $80.33 million, an excellent annual growth rate of 17%. Please refer to our financial overview of Farmers State Bank for more details.
Farmers State Bank has been locally owned and operated with since 1879. It was originally organized as Farmers Bank of Jesup (a private bank) and in 1882 organized under a National Charter. The name was changed in 1903 to "Farmers State Bank, Jesup, Iowa," operating as a corporation under State of Iowa law with $25k in capital. Farmers State Bank has grown to become the 25th largest bank in Iowa, with assets in excess of $698 Million.
How the CDs Compare
When compared to the 184 similar length-of-term CDs tracked by DepositAccounts.com that require a similar deposit and are available to residents of the greater Waterloo metro area, Farmers State Bank’s 29-Month CD Special APY currently ranks first.
When compared to the 148 similar length-of-term CDs tracked by DepositAccounts.com that require a similar deposit and are available to residents of the greater Waterloo metro area, Farmers State Bank’s 15-Month CD Special currently ranks first.
The above rates are accurate as of 4/29/2016.