Earlier this week, a long-time DA reader told me about two nationally available CDs at Tennessee-based INSBANK, which he saw advertised in the Tennessean. INSBANK is currently offering a 23-month CD (1.85% APY) and a 16-month CD (1.50% APY) nationwide. Of the two, the 23-month CD is the more competitive.
The minimum opening deposit for either CD is $25k, with a balance cap of $249k per CD. This is a limited-time offer, although no expiration date is stated.
As stated in the Tennessean ad,
Offers are good for consumer and business accounts only and are subject to terms and conditions of the new account agreement.
Offers are not available for IRAs, public entities, brokered deposits, or other financial institutions.
According to a very helpful CSR, the Early Withdrawal Penalty for the 23-month CD is 16 months interest and 12 months interest for the 16-month CD.
Many thanks to the DA reader who told me about this deal.
Headquartered in Nashville, Tennessee, INSBANK’s primary market area is Tennessee, but these limited-time CDs are being offered nationwide.
Out-of-state customers, as well as those in Tennessee, can initiate the opening of a CD by calling the Bank (866.866.2265). If you live in the Nashville area, opening a CD can also be done at either of InsBank's two branches, which are located in Nashville and Brentwood.
Following account approval, INSBANK will send a new account packet by mail, which will include documents to be executed to finalize and activate the new account.
INSBANK has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.51% (excellent), based on March 31, 2017 data. In the past year, INSBANK has increased its non-brokered total deposits by $74.49 million, an excellent annual growth rate of 38.91%. Please refer to our financial overview of INSBANK (FDIC Certificate # 35521) for more details.
INSBANK was founded in 2000 as the Insurors Bank of Tennessee, originally targeting independent insurance agents. In an interview in the Nashville Business Journal, INSBANK President and CEO, Jim Rieniets gave an overview of INSBANK.
Originally we were a pet-project of independent insurance agents. The Financial Services Modernization Act was going to allow banks get into the insurance business and insurance companies to get into banking. These independent agents were saying, "Great, we’re sort of caught in the middle’," … that’s how our company was born.
We slowly diversified over time, we stuck with a commercially focused business model but not just reliant on the insurance industry and referrals from it. We continue to have friends and clients in that group. But it’s not all we are today.
In 17 years, INSBANK has grown to become Tennessee’s 49th largest bank, with assets in excess of $407 million. (Point of interest - since I last wrote about INSBANK in March 2015, its assets have increased by $145+ million.)
How the CD Compares
When compared to the 203 similar length-of-term CDs tracked by DepositAccounts.com that available nationwide, INSBANK’s 23-month CD APY currently ranks first, regardless of minimum deposit.
The above rates are accurate as of 6/23/2017.