Last week, F&M Bank raised the rates on its 12-month (2.50% APY) and 24-month (3.00% APY) My Choice CDs. These limited-time CDs can be opened with a $1k minimum deposit (either new or renewal money) and are capped at $500k. The intrinsic value of these two CDs is enhanced by “one penalty free withdrawal allowed after 6 months, up to 50% of the principal balance” and one step-up option, any time after the first six months of the term.
|3.00%||$1k||$500k||F&M Bank (TN)||24 Month My Choice CD|
|2.50%||$1k||$500k||F&M Bank (TN)||12 Month My Choice CD|
As stated in the Fee Schedule, the Early Withdrawal Penalty reads as follows:
Penalty for early withdrawal equals 180 days interest on the outstanding principal balance. On CDs 6-12 months, penalty equals 90 days interest on the outstanding balance.
CSR explained the 180 days interest applies to CDs with terms greater than 12 months.
Performance Rewards Checking
In February, F&M Bank introduced its Performance Rewards Checking account, which earns 4.00% APY on qualifying balances up to $20k. Qualifying balances between $20k and $50k earn 1.00% APY, with qualifying balances of $50k+ earning 0.50% APY. Non-qualifying balances earn 0.05% APY.
|4.00*%||-||$20k||F&M Bank (TN)||Performance Rewards Checking|
|OTHER TIERS: 0.50% → $50k+ | 1.00% → $20k - $50k|
The monthly requirements are,
- Ten debit card transactions per statement cycle.
- Electronic monthly statements.
- One monthly direct deposit or automatic payment per statement cycle
- Sign into online banking at least once per statement cycle.
The Performance Rewards Checking account can be opened with a minimum $100 deposit, with no more than two accounts per household. This is a fee-free account with no minimum balance requirement. Unlimited nationwide ATM fees will be reimbursed if the monthly requirements are met. During the first statement cycle, all requirements are waived.
Headquartered in Clarksville, Tennessee, F&M Bank’s market area includes the middle Tennessee counties of Montgomery, Putnam, Robertson, Rutherford, Stewart, Sumner, and Wilson.
Opening a My Choice CD can be done at any of 15 full-service Tennessee branches located in Bumpus Mills, Clarksville (5), Cookeville, Dover, Greenbrier, Hendersonville, Lebanon, Mount Juliet, Murfreesboro, Springfield, and White House.
F&M Bank has an overall health rating of "A+" at DepositAccounts.com, with a Texas Ratio of 2.42% (excellent), based on June 30, 2018 data. In the past year, F&M Bank has increased its total non-brokered deposits by $61.6 million, an excellent annual growth rate of 9.05%. Please refer to our financial overview of F&M Bank (FDIC Certificate # 9936) for more details.
Founded in 1906 in Bumpus Mills (TN) as the Farmers & Merchants Bank, the Bank’s first 65 years were typical of a small rural bank. In 1972, the Bank’s new president and CEO, John R. Wallace, turned a local bank into a “financial, civic, and community leader.” Beginning in 1988, the Bank’s focus was the expansion of the market area, and over the next 20 years, 14 additional branch locations were opened. The F&M rebrand occurred in 2005 as the Bank positioned itself for “future growth and profitability.” F&M Bank is currently Tennessee’s 16th largest bank, with assets in excess of $1.07 billion and more than 30,300 customer accounts.
How the My Choice CD Compares
When compared to the 246 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available within the Bank’s market area, F&M Bank’s 24-month My Choice CD APY currently ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|3.00% APY||24-Month My Choice CD||F&M Bank|
|2.90% APY||24-Month Share Certificate||CommunityWide Federal Credit Union|
|2.85% APY||2-Year CD||KS StateBank|
The above rates are accurate as of 9/12/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.