Jefferson Bank is again advertising two CD specials with bump-up and add-on options. The rates have fallen slightly since I last reported on these specials in January, but they're still good deals. One of the CD specials is an 18-month CD with a 1.31% APY. It allows one rate bump. The other special is a 30-month CD with a 1.59% APY. It allows two rate bumps. Both allow you to make one additional deposit during the term. Minimum deposit is $10,000. These specials don't seem to be listed at the bank's website. They were advertised in today's (7/3/2011) edition of the Dallas Morning News. The ad is available online here.
I wonder when you call to exercise your bump option, will they play "movin' on up"?. Hopefully, customers will have a chance to exercise the bump option. The interest rate environment will have to improve and the bank will have to keep these CDs competitive for new customers. With special CDs, it's easy for the bank to let the rates become uncompetitive.
It appears that a branch visit is required to open an account. Jefferson Bank branches are located in Dallas, Fort Worth, Mesquite and Rockwall.
The bank continues to be a little weak financially. However, it has improved a little since my January report. Its overall health score at DepositAccounts.com has improved from 1 to 2 stars (out of 5), and the Texas Ratio has improved from 104.52% to 90.84%. The January numbers were based on September 2010 data and these latest numbers are based on March 2011 data. The bank is still operating under an October 2009 FDIC Cease and Desist order as of 7/3/2011. The bank has been a FDIC member since 1996 (FDIC Certificate # 34196).
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