Over the weekend, TCF National Bank (TCF Bank) ran an advertisement in the Chicago Tribune for two Promotional CDs and its Elite Savings account, all of which must be opened in-branch.
The 26-month (2.00% APY) and 13-month (1.50% APY) CDs require a $500 minimum deposit of new money, which is defined simply as funds “not currently on deposit with TCF Bank.” Of the two, the 26-month is the more competitive.
|2.00%||$500||-||TCF National Bank||26 Month Promotional CD - New Money, In Branch|
|1.50%||$500||-||TCF National Bank||13 Month Promotional CD - New Money, In Branch|
As stated in the Terms and Conditions brochure, the Early Withdrawal Penalty reads as follows:
The early withdrawal penalty for all automatically renewing Accounts (excludes Jumbo Certificate Accounts) is the greater of:
- $25; OR
- The amount calculated as: (1) an annual rate of 1% (0.0833333% monthly) multiplied by (2) the amount withdrawn multiplied by (3) the Term of your Certificate (in months), at the time of withdrawal, not to exceed 36 months.
The Elite Savings is a tiered-rate account, with balances between $10k and $999,999 earning 1.30% APY, which is guaranteed for one year following account opening. While the Elite Savings can be opened with a minimum of $50, a minimum deposit of $10k of new money is required to earn the 1.30% APY. Balances of $1m+ earn 0.25% APY, with balances below $10k earning 0.05% APY. Like the Promotional CDs, the Elite Savings must be opened in-branch. There is also a limit of one account per person.
|1.30*%||$10k||$1m||TCF National Bank||TCF Elite Savings - 1 Year Promo Rate, New Money|
|OTHER TIERS: 0.05% → $1k - $10k | 0.25% → $1mm+|
Thanks to the DA reader who emailed me about these Promotional CDs.
Headquartered in Sioux Falls, South Dakota, TCF National Bank has a presence in Arizona, Colorado, Illinois, Michigan, Minnesota, South Dakota, and Wisconsin, but, according to the Featured Product Deposit Rate Sheets, the Promotional CDs and Elite Savings are not available in Minnesota or South Dakota.
Opening a Promotional CD and/or an Elite Savings account must be done in person at any of the 233 full-service branches located in Arizona (7), Colorado (34), Illinois (123), Michigan (51), and Wisconsin (18).
TCF Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.76% (excellent) based on March 31, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $65.62 million, an above average annual growth rate of 0.39%. Please refer to our financial overview of TCF Bank (FDIC Certificate # 28330) for more details.
TCF Bank was originally established in 1923 as the Twin City Federal Savings and Loan Association (S&L) and headquartered in Minneapolis. The S&L’s market area remained concentrated in the Twin Cities area for nearly 60 years. Beginning in 1981, the S&L acquired seven other Minnesota Savings and Loans over a two-year period. Between 1986 and 2009, there were six more acquisitions, four name changes, two organization type changes, and two headquarters relocation. TCF Bank is currently the 65th largest bank in the nation, with assets in excess of $2.18 billion and more than 1.9 customer accounts.
How the Promotional CD Compares
When compared to the similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available within the Bank’s stated market area, TCF Bank's 26-month Promotional CD APY currently ranks second.
|Interest Rate||Length of Term||Credit Union/Bank|
|2.02% APY||24-Month Cooperative Rewards CD Special||USAlliance Financial|
|2.00% APY||26-Month Promotional CD||TCF Bank|
|1.81% APY||24-Months CD||First Internet Bank|
How the Elite Savings Compares
When compared to the Savings Accounts tracked by DepositAccounts.com that are available within the Bank’s stated market area, TCF Bank’s Elite Savings APY currently ranks third, regardless of minimum deposit. The one-year rate guarantee only enhances its value.
|Interest Rate||Account Name||Credit Union/Bank|
|1.40% APY||Savings Account (no min/$5m max)||Live Oak Bank|
|1.35% APY||eOne Savings (no min/$1m max)||Salem Five Direct|
|1.30% APY||Elite Savings ($10k min/$1m max)||TCF Bank|
The above rates are accurate as of 8/23/2017.