One of the “New to Summary” CDs in this week’s CD Rates Summary is a 6-month CD Special (2.00% APY) offered by California-based Luther Burbank Savings (LBS). The 6-month CD Special requires a $10k minimum opening deposit of new money; there is no stated balance cap.
The 6-month CD Special was added to the product line less than four months ago, with an initial 2.05% APY. The rate fell to 1.95% APY at the beginning of December and was raised to 2.00% APY less than two weeks ago.
According to CSR, the Early Withdrawal Penalty for the 6-month CD Special is 90 days interest.
Funding and Accessing Maturing Funds
According to the FAQs page,
How can I make my opening deposit?
You may choose to fund your account several ways: via ACH, wire transfer, paper check mailed to the address below, or in person at one of our branches.
What can I expect after my application has been submitted?
The application will be reviewed and you will be contacted at the phone number provided within three business days.
As usual, there is no mention of how maturing CD funds can be distributed. CSR stated there are only two options: cashier’s check or wire ($35 fee). While there is no ACH capability to access maturing funds, DA reader, CapitalClimate, provided an alternate solution in a comment he made on an earlier Luther Burbank Savings blog post:
The maturity distribution options are a bummer, but they
do offer a free checking account with 0 minimum balance.
Headquartered in Santa Rosa, Luther Burbank Savings’ market area has historically been northern and southern California, specifically the San Francisco and Los Angeles areas. Starting in the summer of 2018, LBS began offering some of its product line on a nationwide basis. All U.S. citizens and resident aliens, 18 years or older, are welcome to apply regardless of residency.
Opening a 6-month CD Special can be done online, or at any of six southern California branches located in Beverly Hills, Burbank, El Segundo, Encino, Long Beach, and Pasadena, and four northern California branches located in Los Altos, San Jose, San Rafael, and Santa Rosa. LBS also has one branch in Washington, located on 108th Avenue in Bellevue.
Luther Burbank Savings has an overall health rating of "A" at DepositAccounts.com, with a Texas Ratio of 1.66% (excellent), based on September 30, 2019 data. In the past year, the Bank has increased its total non-brokered deposits by $464.65 million, an excellent annual growth rate of 10.43%. Please refer to our financial overview of Luther Savings Bank (FDIC Certificate # 32178) for more details.
Established in 1982 as the Luther Burbank Savings and Loan Association, Luther Burbank Savings is a privately-owned bank with branches throughout California. Nearly two years ago, the market area expanded into Washington state, with the opening of a branch in Bellevue, outside of Seattle. The Bank was named in honor of Luther Burbank, a Santa Rosa resident and horticulturalist, who introduced over 800 varieties of flowers. He was also responsible for the Russet Burbank Potato, the most widely cultivated potato in the U.S. Using Mr. Burbank’s vision of growth and renewal, the Bank focuses on the needs of its customers, as opposed to its public stockholders. Luther Burbank Savings is currently the 18th largest bank in California, with assets in excess of $7.1 billion and more than 40,000 customer accounts.
How the CD Special Compares
When compared to 208 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and require a minimum deposit of $10k or less, Luther Burbank Savings’ 6-month CD Special APY currently ranks fourth.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.25% APY||6-Month CD ($200 min)||INOVA Federal Credit Union|
|2.15% APY||9-Month Share Certificate Special ($10k min)||NASA Federal Credit Union|
|2.05% APY||8-Month Certificate Special ($1k min)||Andrews Federal Credit Union|
|2.00% APY||6-Month CD Special ($10k min)||Luther Burbank Savings|
The above rates are accurate as of 2/12/2020.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.