Poppy Bank Offers Market-Leading Rate On 12-Month CD
Earlier this week, California-based Poppy Bank raised the rates on about half of its CD product line, with the 12-month CD (1.00% APY) having the most competitive rate. When I wrote about Poppy Bank’s long-term CDs in March, the online market area had been expanded statewide; the online market area now includes all 50 states.
Poppy Bank is offering a “uni-rate” on a portion of the product line, with the 12-, 18-, 24-, 36-, and 48-month CDs all earning 1.00% APY. The minimum opening deposit for any Poppy Bank CD is $1k, with no stated balance cap.
The CD Truth-in-Savings (TIS) disclosure is not listed on Poppy Bank’s website. CSR stated a copy of the TIS would be provided after account opening, which really doesn’t help when trying to do due diligence before opening a CD. According to CSR, the Early Withdrawal Penalties are as follows:
- 90 days of interest – 9-month and 12-month CDs
- 180 days of interest – 24-month CD
- 365 days of interest – 36-month, 48-month, and 60-month CDs
Partial withdrawals are allowed, and earned dividends can be withdrawn penalty-free at any time.
Funding a CD can be done by ACH, wire transfer, or check. Maturing funds will be distributed through a check to the address on file, wire transfer, or deposited into a Poppy Bank savings or checking account. There is a seven day grace period before a CD automatically renews at the then-current rate.
Unlimited beneficiaries can be named (equal shares), with Social Security, date of birth, and full legal name required for each beneficiary.
Availability
Headquartered in Santa Rosa, California, Poppy Bank has expanded its market area and now offers its CDs to all US citizens and residents aliens through an online application. [ Update 1/11/2022: CDs now require a branch visit.] According to CSR, CDs cannot be opened as a business account or trust account.
CDs can also be opened at any of 18 California branches located in Alameda, Corte Madera, Costa Mesa, La Jolla, Los Angeles, Menlo Park, Milpitas, Napa, Petaluma, Pleasanton, Roseville, San Rafael, Santa Rosa (4), Walnut Creek, and Windsor.
Bank Overview
Poppy Bank has an overall health rating of "A" at DepositAccounts.com, with a Texas Ratio of 6.72% (excellent), based on September 30, 2021 data. In the past year, the Bank has increased its total non-brokered deposits by $684.33 million, an excellent annual growth rate of 25.45%. Please refer to our financial overview of Poppy Bank (FDIC Certificate # 57903) for more details.
Originally known as First Community Bank, Poppy Bank was founded in 2005 by nine prominent San Francisco area business leaders. The Bank re-branded as Poppy Bank in November 2017 to avoid marketplace confusion, although the parent company name (First Bank Community Holdings) has not changed. According to Poppy Bank CEO, Khalid Acheckzai,
There are thirteen banks named “First Community Bank” in the United States with 157 branch locations. As we expanded, we wanted to distinguish our excellent products and services from our competitors. Changing our name to “Poppy Bank” is unique and an exciting step forward on our road to continued success.
The Bank’s footprint expanded into Southern California with the 2018 acquisition of Blue Gate Bank (Costa Mesa). Currently the 32nd largest bank headquartered in California, Poppy Bank has deposits in excess of $3.5 billion and more than 20,000 customer accounts.
How the 12-month CD Compares
When compared to the nationally available similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit, Poppy Bank’s 12-month CD APY currently ranks first.
The above information and rates are accurate as of 12/16/2021.
To search for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
