Update 10/20/2010: These CD rates have fallen. Please contact the bank for the latest rates.
First American Bank is offering three competitive mid-term CD rates as of 10/5/2010: 2.10% APY 2-year, 1.85% APY 18-month and 1.65% APY 1-year. Minimum deposit is $10,000. These rates are not listed at the bank's website. A reader emailed me info on this bank, and I just called for additional details. According to the bank rep, Wednesday is the typical day they make rate changes but rates can change at any time. Regarding the early withdrawal penalty, I was told it's 12-months of interest. That's above average for even long-term CDs.
A branch visit appears to be required to open an account. The bank has branches in several Iowa cities including Ames, Des Moines and Sioux City. It also has branches in Southwest Florida in the cities of Naples, Fort Myers and Cape Coral. Rates could vary by branch so make sure to call before you drive to your local branch. I confirmed these rates in Fort Myers and in Des Moines as of 10/5/2010.
You may wonder why they have branches in both Iowa and Florida. According to the bank's About Us page, the bank purchased Pelican National Bank of Naples, Florida in 2005. There weren't any bank failures in 2005, so it wasn't a FDIC assisted acquisition.
The bank's overall health score is 3 out of 5 with a Texas Ratio of 39.96% (above average) based on 6/30/2010 data. Please refer to our financial overview of First American Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 14808).
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