Update 6/17/2011: The special rates are no longer available. Existing customers are seeing the savings account rate slashed. See this post for more details.
Tennessee Commerce Bank is offering some very competitive special rates on its savings account when you also have a checking relationship. The savings account has a tiered rate structure with a 1.50% APY on balances from $250 to $100K and 1.55% APY on balances from $100K to $250K. This is listed on the bank's specials page as of 3/29/2011.
According to the specials webpage, this is starting April 1, 2011, but according to my chat session with the bank rep, these rates are in effect now. On April 1st, these rates will require the customer to have the checking relationship.
Below are some additional details that I was told in the chat session with the bank rep.
The special applies to the Classic Savings Account and the TCB Personal Checking Account.
The savings and checking accounts are available nationwide. There's a link on the specials webpage that takes you to the online application. I was told funding can be done by check or wire transfer. ACH transfer can't be done for the first deposit.
They do have an ACH transfer service that can be used after the account is opened. However, there is a $10,000 per day transfer limit. You can call or fax in a request for a higher limit, but there's going to be a $10 charge for this request starting April 1st. Using another bank's ACH system would probably be the best approach for large deposits and withdrawals.
Past Savings Account
This bank used to offer a competitive savings account back in 2009 called the TCB Savings Account, but it stopped offering the account later that year.
Top CD Rates
The bank is still offering some competitive CDs with yields ranging from 2.15% APY for 3 years to 2.65% APY for 5 years as of 3/29/2011. I reviewed these CDs on March 3rd.
TCB is a one-office bank based in Franklin, Tennessee. The bank has long offered accounts nationwide so it's not the typical small bank. Based on the FDIC's December 2010 data, it has 99 employees, $1.44 billion in assets and $1.31 billion in deposits. The bank has an overall health score at DepositAccounts.com of 3 stars (out of 5) with a Texas Ratio of 40.34% (below average) based on December 2010 data. Please refer to our financial overview of Tennessee Commerce Bank for more details. The bank has been a FDIC member since 2000 (FDIC Certificate # 35296).
How It Compares and Will It Last?
Compared to other liquid accounts without a balance cap, this TCB savings account is very competitive. The only one that is close is the checking account from The Morrill and Janes Bank which has a 1.51% APY as of 3/29/2011.
One important question is how long will these special rates last. I did not receive an answer on this question from my chat session. TCB does have a history of offering top rates like it did on its TCB Savings account back in 2009. Instead of lowering the rate, they stopped offering the account to new customers. I'm not sure how the rate held up for existing customers. If you were a customer, please leave a comment about your experience.