Missouri-based Paramount Bank is offering its limited product line on a nationwide basis. Rather than offering a variety of CD term lengths with different rates, Paramount Bank has one rate (2.25% APY) and single, but very flexible, term length (anywhere between 12 and 60 months). Obviously, the shorter the term chosen, the more competitive the rate. The minimum opening deposit is $1k, with no stated balance cap.
The 12-60 month CD is also available as an IRA (Traditional and Roth), earning the same APY with the same term-length options and funding requirements.
According to CSR, the Early Withdrawal Penalty is six months of interest, no matter how long (or short) the term is.
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 1.75% APY on all balances. While 1.75% APY may not seem like a competitive rate, it’s currently the 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 Hazelwood, Missouri, Paramount Bank may be one of the smallest banks in the St. Louis market area, but it now offers its product line on nationwide basis. 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.
Paramount Bank has an overall health rating of "B" at DepositAccounts.com, with a Texas Ratio of 20.09% (above average) based on September 30, 2019 data. In the past year, Paramount Bank has increased its total non-brokered deposits by $13.44 million, an excellent annual growth rate of 60.09%. Please refer to our financial overview of Paramount Bank (FDIC Certificate # 57884) for more details.
Paramount Bank came into being in 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 $127 million and deposits of $56.5 million.
How the CD Compares
When compared to 214 1-year CDs tracked by DepositAccounts.com that require a similar minimum deposit of $5k or less and are available nationwide, Paramount Bank’s 12-60 month CD APY currently ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.25% APY||12-60 Month CD ($1k min)||Paramount Bank|
|2.15% APY||14-Month CD ($2.00 min)||INOVA Federal Credit Union|
|2.11% APY||12-Month CD ($5k min)||CFSB|
The above rates are accurate as of 1/30/2020.
Looking for the best CD rates, either nationwide or state-specific? Please refer to our CD Rates Table page.