Luther Burbank Savings Offers 18-Month Step Up CD


Deal Summary: 18-month Step Up CD, 2.83% APY (blended), $1k minimum deposit

Availability: Nationwide

At the beginning of the week, Luther Burbank Savings (LBS) added an 18-month Step Up CD, which earns a composite APY of 2.83%. According to the Personal Banking Products page, the interest rate for months 1-9 is 2.63%, rising to 2.88% for months 10-18. The minimum opening deposit is $1k, with no stated balance cap.

According to CSR, the Early Withdrawal Penalty (EWP) for the 18-month Step Up CD is 180 days interest.

Opening, Funding, and Accessing

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.

LBS has recently begun to offer some of its product line (including the Step Up CD) on a nationwide basis. All U.S. citizens and resident aliens, 18 years or older, are welcome to apply regardless of residency.

Opening an 18-month Step Up CD can be done online or by phone (888.201.1233). The Bank also has five southern California branches located in Beverly Hills, Burbank, Encino, Long Beach, and Pasadena, and four northern California branches located in Los Altos, San Jose, San Rafael, and Santa Rosa.

Bank Overview

Luther Burbank Savings has an overall health rating of "A+" at, with a Texas Ratio of 0.94% (excellent), based on March 31, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $468.02 million, an excellent annual growth rate of 13.84%. 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. This past spring, the market area expanded with the opening of a branch in Bellevue, Washington, 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 19th largest bank in California, with assets in excess of $6 billion and more than 32,000 customer accounts.

How the Step Up CD Compares

When compared to the 163 similar length-of-term CDs tracked by that require a similar minimum deposit and are available nationwide, Luther Burbank Savings’ 18-month Step Up CD APY (blended) currently ranks first.

The above rates are accurate as of 8/18/2018.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.

Related Pages: Los Angeles CD rates, San Francisco Bay CD rates, Seattle CD rates, 1-year CD rates, nationwide deals

me1004   |     |   Comment #1
That step-up interest approach would seem to make the EWP actually more than 6 months -- and I see no other reason for this change in interest rate in mid-term.

I expect they will calculate the EWP on the basis of the interest rate you are getting at the time you close. So, if you close after the 9-months mark (and to lose 6 months of interest at or before 9 months would be insane!), then I expect they would calculate the entire penalty on the basis of the post-9-month interest rate, which would amount to more than you might actually have earned in the previous 6 months. (To close after the 15-month mark or later, after which you will have been earning the higher rate for six months, would also almost certainly be a bad idea as that loss in the face of such a short time to go would almost certainly make it a loss to move to a better rate.)
Sinister   |     |   Comment #2
no way.
you are breaking the contract.
pay the piper
Luther Burbank Savings Offers 36-Month CD Nationwide
Deal Summary: CD Specials – 12-month (2.40% APY), 24-month (2.85% APY), and 36-month (3.00% APY), $1k minimum deposit, new money.

Availability: Nationwide

Earlier this week, a long-time DA reader sent me a Los Angeles Times advertisement placed by California-based Luther Burbank Savings (LBS). The current promotion is a trio of nationally available CD Specials: 12-month (2.40% APY), 24-month (2.85% APY), and 36-month (3.00% APY). The minimum opening deposit is $1k of new money, with no stated balance cap.

According to CSR, the Early Withdrawal Penalty...

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Luther Burbank Savings (CA) Offers Savings And Checking Combo
Availability: California

Luther Burbank Savings is currently marketing its More Savings (up to 1.40% APY) and High-End Checking (up to 0.40% APY) combination promotion. Both accounts offer tiered rates, broken down as follows:

    More Savings

  • 1.40% APY – balances of $250k+
  • 1.25% APY – balances of $100k+
  • 1.10% APY – balances of $50k+
  • 1.00% APY – balances of $1k+

    High-End Checking

  • 0.40% APY – balances of $50k+
  • 0.30% APY – balances of $25k+
  • 0.20% APY – balances of $10k+
  • 0.10% APY – balances of <$10k+

The minimum opening deposit for either account is $1k of new money, and...

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Luther Burbank Savings (CA) Offers 2 Competitive CD Specials
Availability: Southern California

Luther Burbank Savings' Southern California branches are currently offering two CD Specials: 7-month CD Special (1.25% APY, checking relationship required) and 30-month Bump Up CD Special (1.50% APY).

The minimum opening deposit for the 7-month CD Special is $1K, with no maximum balance cap. The 7-month CD Special also requires a minimum $5K balance in the associated checking account.

The 30-month Bump Up CD Special has the same $1K minimum deposit and no balance cap. The Bump Up feature is a one-time rate increase (should...

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Hot 30-Month CD Special at Luther Burbank Savings in California

Luther Burbank Savings is advertising a very good CD deal in California. It’s a 30-month CD with a 2.00% APY. Minimum deposit is $1,000, and new money is required. The CD isn’t listed on the bank’s website. DA member me1004 saw it advertised in the LA Times and was nice enough to post on it in the forum. He also scanned the ad. I posted the scan at this link. There’s also an 18-month CD special with a 1.10% APY.

The LA Times ad only lists the bank’s Southern California branches...

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3-Year CD Special at Luther Burbank Savings in SoCal - Local Only

Luther Burbank Savings is having a CD special at two of its Southern California branches. The bank is offering a 2.00% APY 3-year CD. Minimum deposit is $1,000, and there is no maximum deposit. No checking account is required. This is a limited time offer, and it could end at anytime. It’s not listed on the bank’s website. A reader emailed me news about this special (hat tip!), and I confirmed it with a branch manager today (10/04/2013).

According to the branch manager, the special CD is only available to Southern...

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