In August, Mercantil Commercebank began offering three Smart CDs: 10-month, 18-month, and 24-month. While the 18-month has been removed from the line-up completely, the 10-month has been replaced with a 7-month Smart CD (1.20% APY). The 24-month Smart CD (1.50% APY) is still available, with an additional 10 basis points tack onto the summer's APY. The minimum opening deposit for either of the Smart CDs is $10k of new money, with a balance cap of $500k.
While both Smart CDs are available in both market areas, the rates for Texas residents are lower: 7-month, 1.10% APY and 24-month, 1.30% APY.
According to CSR, the EWP for the 7-month Smart CD is 3 months interest and 6 months interest for the 24-month Smart CD.
When I first spoke to CSR in August about these CDs, I asked what was “smart” about the Smart CDs; CSR replied that it was smart to open one of these CDs. Either I spoke to the same CSR yesterday, or the “smart to open” response is part of Mercantil Commercebank’s marketing, as I received the same answer to my question.
Headquartered in Coral Gables, Florida, Mercantil Commercebank has two separate market areas - South Florida and Houston, Texas. The Bank's product line is available to U.S. citizens and resident aliens who have a valid U.S. taxpayer identification number.
Opening any type of account requires an in-person visit to any of 16 Florida branches located in Aventura, Coral Gables, Doral (2), Fort Lauderdale (2), Hialeah (2), Lake Worth, Miami (5), Parkland, and Weston. Mercantil Commercebank also has seven Houston area branches.
Mercantil Commercebank’s online banking platform is currently limited to account management and bill payment services.
Mercantil Commercebank (FDIC Certificate # 22953) has an overall health grade of "B+" at DepositAccounts.com, with a Texas ratio of 8.34% (excellent) based on September 30, 2016 data. In the past year, Mercantil Commercebank has increased its total deposits by $190.57 million, an average annual growth rate of 2.98%. Please refer to our financial overview of Mercantil Commercebank for more details.
Mercantil Commercebank was founded in 1979 as The Gold Coast National Bank, with a single branch located in North Miami. The Bank was acquired by Mercantil in 1987, becoming Commercebank, National Association. In 1990, two Florida banks were acquired, growing the market area and increasing assets to nearly $200 million. The Bank expanded its footprint to Houston in 2002. Today, Mercantil Commercebank is Florida’s fourth largest bank with assets in excess of $8.4 billion.
How the CDs Compare
When compared to the 222 similar length-of-term CDs tracked by DepositAccounts.com that are available to residents in South Florida, Mercantil Commercebank’s 7-month Smart CD APY currently ranks first, regardless of minimum deposit.
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available to residents in South Florida, Mercantil Commercebank’s 24-month Smart CD APY currently ranks third.
The above rates are accurate as of 12/13/2016.