4.10% 12-Month CD & 3.90% 6-Month CD at Earthstar Bank in PA - Nationally Available


Earthstar Bank has two competitive CD specials: a 4.10% APY 12-month CD and a 3.90% APY 6-month CD. Minimum deposit is $500, and new money is required. These rates are listed in the bank's rate table as of 12/11/08.

According to their Q&A Page, you can apply for accounts in person, by phone/mail or over the internet. The online application allows for multiple beneficiaries and allows funding by check, ACH or wire transfer. When I contacted the bank before a previous post, I was told by the banking rep that people in any state can apply online. I was told that you'll need to mail in two copies of IDs.

The name is a little weird for a bank, but it's a real bank. Branches are located in Philadelphia, Southampton and Ambler, Pennsylvania.

The bank's financial ratings for soundness are weak: 2 stars (problematic) at BauerFinancial and 1 star (lowest) at Bankrate.com. BauerFinancial's rating is based on 9/30/08 data. Bankrate's rating is based on 6/30/08 data. The bank has been FDIC insured since 2001 (FDIC Certificate # 35561).

3.90% 6-Month CD Competitive?

I'm afraid so. Rates continue to fall. State Bank of India just dropped its 6-month CD yield from 4.32% to 3.70% APY. Imperial Capital Bank had been offering a 3.95% APY 6-month CD. It's now 3.75% APY. I have two credit unions on my weekly rate summary with a 6-month CD yield at or above 4%, but each has issues.