This week, Home Savings Bank raised the rate on its nationally available 12-month Internet Only CD Special (1.45% APY). The minimum deposit is $5k, with a $250k maximum deposit.
In the past year, there have been six rate increases for the CD Special, with this latest increase resulting in its highest APY ever.
The 12-month Internet Only CD Special is also offered as an IRA (Traditional) earning the same APY, with the same funding requirements.
The fine print on the Rates page reads, “Additional disclosure applies to accounts opened online.” Some of the more important terms are,
Ownership available: Individual or Joint ownership (beneficiaries allowed). No Trust or business ownership available at this time. Interest will post to the account. No interest will be disbursed (by check or any other method) during the term of the account. There is no grace period. If you cash out your certificate at maturity, the transaction will occur on the maturity date and will be disbursed to an account of your choosing, which must be identified and confirmed in advance, using your online banking credentials.
As stated in the Truth-In-Savings disclosure, the Early Withdrawal Penalty reads as follows:
If your account has an original maturity of six months to 15 months: The fee we may
impose will equal three months interest on the amount withdrawn subject to penalty.
Headquartered in Salt Lake City, Home Savings Bank offers a portion of its product line through its online application to all U.S. citizens or resident aliens, 18 years or older, who have a U.S. address and a valid Social Security number.
As the name indicates, the 12-month Internet Only CD Special can be only be opened online.
Home Savings Bank has two Utah branches located in Salt Lake City and Draper to serve its local market area.
Note: Time for my disclaimer - even though a bank may say its products are available nationwide, smaller banks occasionally find that demand may outpace their online banking platform’s ability. Caveat emptor.
Home Savings Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 11.33% (above average) as of December 31, 2016 data. In the past year, the Bank has increased its total non-brokered deposits by $169k, an above average annual growth rate of 0.18%. Please refer to our financial overview of Home Savings Bank (FDIC Certificate # 26798) for more details.
Established in 1979 as the Home Credit Thrift and Loan, the Bank had three names changes in 15 years before it became Home Savings Bank. (Interesting fact – there are seven different companies in the country that operate as “Home Savings Bank.) Home Savings Bank is currently Utah’s 38th largest bank, with assets in excess of $122 million.
How the Internet Only CD Special Compares
When compared to the 203 similar length-of-term CDs tracked by DepositAccounts.com that require a similar deposit and are available nationwide, Home Savings Bank’s 12-month Internet Only CD Special APY currently ranks second.
The above rates are accurate as of 5/20/2017.