I’m starting this blog post with a quote from this week’s CD Rates Summary.
The Vanishing 3% CDs
For CDs that are nationally available, no banks are offering them with yields of at least 3%.
I’m pleased to update that statement: Utah-based Prime Alliance Bank (Prime Alliance) is currently offering
3.15% 2.75% APY and 3.05% 2.70% APY on its nationally available 60- and 48-month CDs, respectively. Either CD can be opened with a $500 minimum deposit, with no stated balance caps.
|2.50%||$500||-||Prime Alliance Bank||60 Month CD|
|2.50%||$500||-||Prime Alliance Bank||60 Month IRA|
|2.40%||$500||-||Prime Alliance Bank||48 Month CD|
|2.40%||$500||-||Prime Alliance Bank||48 Month IRA|
All Prime Alliance CDs are also available as IRAs (Traditional), earning the same APYs with the same funding requirements.
I have to admit, I don’t know when Prime Alliance began to offer nationally available accounts. Banks and credit unions don’t normally inform DA of changes in their market area/field of membership, so learning about a change is usually fortuitous. One of my staff was checking out the 60-month CD, thinking it was probably a local deal. She saw the online application didn’t list any geographical limitations and Prime Alliance confirmed all of their product line is available on a nationwide basis.
As stated in the Certificates of Deposit disclosure, the Early Withdrawal Penalty for both the 48- and 60-month CDs reads as follows:
If you withdraw any of the principal before the maturity date, we may
impose a penalty of three months interest on the amount withdrawn.
If rates start to trend upward in the next four years, this very mild EWP could prove to be quite advantageous. Using DA’s Early Withdrawal Penalty Calculator, you can see what the effective yields would be on a month-by-month basis. For example,
- 2.65% APY – closed at 18 months
- 2.77% APY – closed at 2 years
- 2.91% APY – closed at 3 years
- 2.97% APY – closed at 4 years
Interest is compounded quarterly and credited quarterly, and may be withdrawn either by check or deposited into another account.
Funding and Accessing Maturing Funds
Funding a CD can be done by ACH, wire transfer, or check. Maturing funds will be distributed by ACH, wire, cashier’s check, or transferred into an existing Prime Alliance Bank checking or savings account. There is a 10-day grace period before a CD automatically renews.
Unlimited beneficiaries (assigned percentages) can be named, but the online application only allows for two names to be entered; additional beneficiaries can be named by phone after the CD is opened. Social Security numbers are required for all beneficiaries.
Headquartered in Woods Cross, Utah, Prime Alliance Bank offers its entire product line to all U.S. citizens and residents aliens (18 years or older, with a current U.S. address) through an online application.
Opening and funding a CD can be done online. If you live in the Salt Lake City area, a CD can be opened at the Bank’s sole Utah branch located at S 500 W in Cross Woods. Coincidentally, Prime Alliance Bank is across the street from Mountain America Credit Union.
Note: The online application requires that a username, password, and authentication phrase be created, allowing the applicant “to check the status of your application or complete an application.”
Prime Alliance Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 11.40% (average), based on March 31, 2019 data. In the past year, Prime Alliance Bank has increased its total non-brokered deposits by $73.59 million, an excellent annual growth rate of 34.56%. Please refer to our financial overview of Prime Alliance Bank (FDIC Certificate # 57920) for more details.
Established in 2004, Prime Alliance Bank is a community bank, which focuses on construction and development financing, in addition to small business loans. According to a 2018 press release,
Prime Alliance Bank, located in Woods Cross, UT, soared to the top of S&P Global Market Intelligence’s 2017 ranking of the best performing community banks under $1 billion in assets.
To compile this ranking, S&P Global Market Intelligence calculated scores for each company based on six metrics: pretax return on tangible common equity, net charge-offs as a percentage of average loans, efficiency ratio, adjusted Texas ratio, net interest margin and loan growth.
Based on the above metrics and other criteria in the report, 4,383 banks and thrifts were eligible for the ranking.
Prime Alliance ranked 15th on the list of national banks with $304.8 million in total assets, a 24.00 percent loan growth rate and overall efficiency ratio of 31.86 percent.
How the CDs Compare
When compared to 179 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, Prime Alliance Bank’s 60-month CD APY currently ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|3.15% APY||60-Month CD||Prime Alliance Bank|
|3.00% APY||60-Month CD||Hanscom Federal Credit Union|
|2.68% 9PY||60-Month Share Certificate||United States Senate Federal Credit Union|
When compared to 170 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, Prime Alliance Bank’s 48-month CD APY currently ranks second.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|3.10% APY||48-Month CD||MAC Federal Credit Union|
|3.05% APY||48-Month CD||Prime Alliance Bank|
|2.83% 9PY||48-Month Certificate||State Department Federal Credit Union|
The above rates are accurate as of 8/30/2019.
To search for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.