2.78% 9-Month CD & 5.50% 3-Year Installment Savings Account at Metro City Bank in Georgia - Local Only


Metro City Bank is offering a special promotion with two top CD rates: 2.78% APY for a 9-month CD and a 2.88% APY for a 12-month CD. Minimum deposit is $1,000. These rates are listed on the bank's front page and in this promotions page as of 4/05/09.

The bank also is offering a competitive rate on its Installment Savings Account. The rate doesn't seem to be listed at the bank's website. A reader had seen it advertised in a local paper, and emailed me on Friday (4/03/09). The installment savings account has a rate of 5.50% and a term of 3 years. The maturity contract amount has a range of $5,000 to $100,000. The installment savings account requires that you make monthly deposits during the term. The deposits earn a guaranteed interest rate, and you'll receive the contract amount at maturity. These installment savings account appears to be popular among banks catering to the Asian community. I have more details on these installment savings account at this previous post.

It appears that a branch visit is required to open an account. Branches are located in the Georgia cities of Doraville, Duluth and Suwanee.

The bank's ratings for safety and soundness are solid: 4 stars (sound) at Bankrate.com (based on 9/30/08 data) and 4 stars (excellent) at BauerFinancial (based on 12/31/08 data). Metro City Bank is a fairly new bank that was established in 2006. It's a member FDIC (FDIC Certificate # 58181).

Thanks to the reader who emailed me the info on this promotion.
Related Pages: Metro City Bank, New York, Washington, Columbus, Atlanta, Tampa, Houston, Dallas, Montgomery, CD rates

Atlanta Wolf
  |     |   Comment #1
This was my first Installment Savings Account, so I learned a lot.

Upon opening, you make the first "payment", and the subsequent payments are same day every month for 36 months. If you fail to make two payments on schedule, the account is converted to savings and you only earn that rate. Penalty for closure is 3 months interest (paid or unpaid). The relatively benign early withdrawal penalty is comforting to those who fear rate hikes within the next 3 years. Interest is credited quarterly, compounded annually, and can be withdrawn at any time. At maturity account does not renew nor earn interest.

For the payments, you have three choices, in-person deposit to the account, automatic transfer if you also open a checking account, or by mail/attempt a billpay from another bank. Deposits may be done up to 5 days in advance.

I chose their "Personal checking" to reduce risk of missed payments. The checking has a $5 monthly fee + $0.25/check if you fail to maintain either $300 min balance or $750 avg daily balance. There's a measurable loss of interest there, but added flexibility of linking to a third party high-yield-savings to transfer money in (or direct deposit).

They pull chexsystems only, no credit check. She said they pull credit reports only for loans. (I wish more banks felt that way!)`

They offered first box of paper checks free, but I declined. (isn't earth day soon?)
Banking Guy
  |     |   Comment #2
Thanks for providing the details. The checking account should also make it easy when the installment savings account matures. I would think you should be able to instruct them to transfer to the checking, and then you can pull the money out using your linked online savings account.

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