In early February, Pinnacle Bank (Pinnacle) had become the fourth member of the 3 For 5 Club, when its 5-year CD reach an all-time high of 3.00% APY. Since I first coined the phrase in January, membership in the 3 For 5 Club has grown to more than 90 banks and credit unions. Pinnacle has separated from the APY peloton this week by raising the rate on its 5-year CD (3.25% APY) and 4-year CD (3.00% APY). Either CD can be opened with a minimum $1k deposit, with no stated balance cap.
The CDs are also available as IRAs (Traditional) earning the same APY, with the same funding requirements.
According to CSR, the Early Withdrawal Penalty for all Pinnacle CDs is 6 months interest, which is quite mild and advantageous for long-term CDs. DA’s Early Withdrawal Penalty Calculator shows what the effective yields would be on a month-by-month basis for the 5-year CD. For example,
- 2.88% APY – closed at 4 years
- 2.75% APY – closed at 3 years
- 2.47% APY – closed at 2 years
- 2.20% APY – closed at 18 months
Headquartered in Scottsdale, Pinnacle Bank is a business-oriented institution, primarily serving small businesses and the general community in the Phoenix and Scottsdale areas, including the Camelback corridor.
Since I last wrote about Pinnacle Bank, the Bank has begun offering its CDs to all Arizona residents. CDs can be opened at any of three Arizona branches located in Phoenix (2) and Scottsdale or by calling 480.609.0055.
CSR stated a preliminary worksheet that “captures the Account Signer’s Identifying Information," is available on request to facilitate opening a CD. This same identifying information can also be given over the phone, prior to an actual branch visit.
Pinnacle Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 3.27% (excellent) based on December 31, 2017 data. The Bank has an excellent annual capitalization level (14.80%), the resulting of holding $190.43 million in assets with $28.19 million in equity. Please refer to our financial overview of Pinnacle Bank (FDIC Certificate # 58186) for more details.
Established in 2005, Pinnacle Bank was formed by local business leaders who owned and managed their businesses in Arizona’s Valley of the Sun. Backed by over 275 shareholders (primarily local) that represent a cross section of the business community, Pinnacle Bank has grown in 13 years to become the eighth largest bank in Arizona, with deposits in excess of $167 million.
How the CDs Compare
When compared to the 232 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available within the Bank’s market area, Pinnacle Bank’s 5-Year CD APY currently shares the top spot with Connexus Credit Union’s 60-Month Certificate APY.
When compared to the 213 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available within the Bank’s market area, Pinnacle Bank’s 4-Year CD APY currently shares the top spot with Connexus Credit Union’s 42-Month Certificate APY.
The above rates are accurate as of 5/25/2018.
To look for the best nationwide CD rates and the best CD rates in your state, please refer to our CD Rates Table page.