Pacific City Bank

Pacific City Bank in Los Angeles and other places around Southern California is offering an 18-month CD at 2.50% APY, and a 12-month CD at 2.15% APY. The CDs are advertised in today’s Los Angeles Times — the bank does not post CD rates at its Website. I have posted the ad at: http://oi65.tinypic.com/qq8sc6.jpg The CD rates are for new money only. Minimum deposit requirement is $25,000, and maximum is $250,000. Pacific City Bank gives what is called simple interest — that is, interest is not compounded, thus the rate and the yield are the same thing. The interest on the 12-month CD will be paid at maturity. The interest on the 18-month CD will be paid at its one-year mark and the rest at maturity. Simple interest can have tax advantages (or disadvantages), as you are taxed for a year only for the amount of interest posted in that year; so if you start either of these CDs this month, you will not have any taxable interest from them to