Poppy Bank (CA) Offers 4.00% APY On Three Short-Term CDs
Following recent rate increases, Poppy Bank is currently offering three 4.00% APY CDs: 6-month, 9-month, and 12-month. The minimum opening deposit for any Poppy Bank CD is $1k, with no stated balance cap. According to CSR, only personal CDs can be opened; business account and trust account CDs are not allowed.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 5.00†% | $1k | - | Poppy Bank | 12 Month CD | |
| 5.00†% | $1k | - | Poppy Bank | 6 Month CD | |
| 5.00†% | $1k | - | Poppy Bank | 9 Month CD | |
| 5.00†% | $1k | - | Poppy Bank | 6 Month IRA | |
| 5.00†% | $1k | - | Poppy Bank | 12 Month IRA |
The 6-month and 12-month CDs are also available as IRA CDs (Traditional and Roth), earning the same 4.00% APY with the same $1k opening deposit requirement.
Last week’s rate hikes were definitely substantial, with 200, 150, and 100 bps added to the 6-month, 9-month, and 12-month CDs, respectively.
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, partial withdrawals are allowed, with the following Early Withdrawal Penalties applying:
- 30 days of interest – 6-month CD
- 90 days of interest – 9-month CD and 12-month CD
Interest is compounded daily and credited monthly and can be withdrawn penalty-free at any time.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 by cashier’s 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 (with equal shares) can be designated, with full legal name, DOB, and Social Security number required for each named beneficiary.
Availability
Headquartered in Santa Rosa, California, Poppy Bank currently offers its CD product line to U.S. citizens and residents aliens who live in California. For a short time, Poppy Bank offered CDs online to a nationwide market area, but that was discontinued in early 2022. (When I called Poppy Bank yesterday, I was hoping the CDs would again be available nationwide. I was disappointed.)
CDs can only be opened in-branch at any of 16 Northern California branches located in Alameda, Corte Madera, Menlo Park, Milpitas, Napa, Petaluma, Pleasanton, Roseville, San Francisco, San Rafael, Santa Rosa (4), Walnut Creek, and Windsor, or four Southern California branches located in Costa Mesa, La Jolla, Long Beach, and Los Angeles.
Bank Overview
Poppy Bank has an overall health rating of "A" at DepositAccounts.com, with a Texas Ratio of 10.85% (excellent), based on June 30, 2022 data. In the past year, the Bank has increased its total non-brokered deposits by $227.19 million, an excellent annual growth rate of 7.09%. 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 32st largest bank headquartered in California, Poppy Bank has deposits in excess of $3.6 billion and nearly 21,000 customer accounts.
How the 12-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the market area and have minimum deposit requirements of $10k or less, no banks or credit unions have higher rates than currently offered on the Poppy Bank 12-Month CD. The following table compares the 12-Month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from banks.
The above information and rates are accurate as of 10/6/2022.
To search for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.
Ran into this in December when they were offering 1% for a 12-month CD when leading rates at other institutions were around 0.75%. They will take 10+ business to open an account, and they're kind of brain dead when it comes to signature cards as they will require you send one in for every CD opened.
So, unless you can actually visit a B&M branch and get them to open a CD that day, best to stay away.
They dont allow it to open online also.
Its a successful promotion for a failure. Poooopy Experience.