When Missouri-based Paramount Bank began offering products on a nationwide basis earlier this year, the CDs were uniquely structured: one rate (2.25% APY) and a single, but very flexible, term length (anywhere between 12 and 60 months). All that has changed. Paramount Bank now offers seven CDs with three different APYs. Of the seven, the 6-month CD (1.25% APY) is the most competitive. The minimum opening deposit is $1k, with no stated balance cap.
|0.50%||$1k||-||Paramount Bank (MO)||6 Month CD|
|0.50%||$1k||-||Paramount Bank (MO)||6 Month IRA|
The 6-month CD is also available as an IRA (Traditional and Roth), earning the same APY with the same deposit requirements.
According to CSR, the Early Withdrawal Penalty is three months of interest.
Funding a CD can be done by ACH or wire transfer. CSR stated that the online application provides detailed instructions as how to fund a new CD. Maturing funds can be distributed by check or wire, or be transferred to another Paramount account.
High Interest Checking
The High Interest Checking account, which is NOT a rewards checking account, earns 1.00% APY on all balances. While 1.00% APY may not seem like a competitive rate, it’s currently the second-highest APY available for a nationally available standard checking account with no minimum balance requirement.
There is no monthly service fee or minimum balance required to earn the stated APY. A High Interest Checking account can be opened with a $100 minimum deposit. There is unlimited check writing, with a free VISA debit card available. The online banking platform supports account management, mobile deposit, and bill payment services.
Headquartered in St. Louis, Missouri, Paramount Bank may be one of the smallest banks in the St. Louis market area, but it has been offering its product line on a nationwide basis for several months. U.S. citizens and resident aliens (18 years or older), with a valid Social Security number and a physical address in the United States, are eligible to apply.
Opening a CD can be done online. The lobby of the sole Missouri branch, located in the Village Square Shopping Center in Hazelwood, is open to the public with "preventative and containment measures to protect our employees, customers, visitors and community.“
Paramount Bank has an overall health rating of "B+" at DepositAccounts.com, with a Texas Ratio of 19.32% (above average) based on December 31, 2019 data. In the past year, Paramount Bank has increased its total non-brokered deposits by $13.62 million, an excellent annual growth rate of 53.57%. Please refer to our financial overview of Paramount Bank (FDIC Certificate # 57884) for more details.
Paramount Bank was established in December 2017, when Paramount Financial Group bought Superior Bank, a St. Louis area bank that first opened its doors in 2004. Superior Bank had struggled for years, starting with heavy losses from loans gone bad during the 2008 financial crisis. According to a January 2018 St. Louis Post-Dispatch article,
They plan to beef up online services, sell other banking products to Paramount’s mortgage customers and use the bank charter to significantly expand the mortgage company.
The eventual plan is to merge the mortgage company into the bank, Paramount Chief Executive David Griege said. A bank can lend in all 50 states, but an independent mortgage company must obtain a license in each state where it operates. Paramount is licensed in seven states.
Paramount Financial Group brought $5 million in new capital to the acquisition, in an effort to make the Bank profitable. Paramount Bank currently has assets in excess of $104 million and deposits of $59 million.
How the CD Compares
When compared to 196 similar length of term CDs tracked by DepositAccounts.com that require a similar minimum deposit of $10k or less and are available nationwide, Paramount Bank’s 6-month CD APY currently ranks third.
The above rates are accurate as of 6/4/2020.
Looking for the best CD rates, either nationwide or state-specific? Please refer to our CD Rates Table page.