In late September, Cleveland-based The Pioneer Savings Bank (PSB) brought back its competitive 3-year CD Special for the fourth time in six years. Even though the 3-year CD Special has been a limited-time offer with no rate changes in the past, this iteration has experienced four rate increases in the past four weeks, adding a total of 125 bps. The 3-year CD Special's new 4.75% APY is more than three times the rate currently offered on the PSB regular 3-year CD. The minimum opening deposit is $2.5k of new money, with no stated balance cap. CSR stated that new money is simply funds not currently on deposit in a PSB account.
There are two other CD Specials in the PSB product line, but the rates offered on the 1-year (3.75% APY) and 2-year (3.25% APY) aren’t very competitive.
Funding and Other Particulars
The following information was obtained in a conversation with CSR.
- Funding – ACH, wire transfer, or check.
- Maturing Funds – cashier’s check or transfer to a PSB savings account.
- Interest – compounded and credited quarterly, can be withdrawn any time during term.
- Grace Period – 10 calendar days before automatic renewal as a non-special CD.
- Beneficiaries – unlimited, equal shares, Social Security numbers required.
- Early Withdrawal Penalty – 180 days interest on the amount being withdrawn; partial withdrawals allowed.
Headquartered in the Detroit-Shoreway neighborhood on the West Side of Cleveland, The Pioneer Savings Bank has been "Serving the Greater Cleveland Area & Gordon Square Arts District Since 1922." In recent years, the Detroit-Shoreway neighborhood has become both a local and national model for responsible urban redevelopment.
Although PSB is a well-established financial institution (2022 is the centenary year), the Bank first added CDs and Money Market Accounts to the product line within the past six years.
Opening a CD Special (or any other type of account) can only be done in-person at the sole Ohio branch located on Detroit Avenue in Cleveland.
The Pioneer Savings Bank has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 10.08% (excellent) based on June 30, 2022 data. PSB has excellent capitalization level (13.38%), the result of holding $42.64 million in assets with $5.71 million in equity. Please refer to our financial overview of The Pioneer Savings Bank (FDIC Certificate # 27847) for more details.
The word "pioneer" brings covered wagons, the Great Plains, and Westward Expansion to mind; The Pioneer Savings Bank couldn’t be further from that description. Founded in 1922, the original name was Roumanian Savings and Loan (yes, Roumanian), created by and for immigrant Romanians, and was located in the heart of the West Side Romanian community in Cleveland. In 1951, the S&L became known as The Pioneer Savings and Loan when it relocated to its present location. The Pioneer Savings Bank rebrand occurred in 1990 and the Bank soon became known as “PSB” to the locals. PSB has continued to serve the West Side community as the neighborhood has transformed into a vibrant arts district.
How the 3-Year CD Special 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 Pioneer Savings Bank 3-Year CD Special. The following table compares the 3-Year CD Special to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
|APY||CD Term (Early Withdrawal Penalty)||Credit Union/Bank|
|4.75%||3-Year CD Special (EWP=180 days)||The Pioneer Savings Bank|
|4.61%||36-Month CD (EWP=180 days)||Pelican State Credit Union|
|4.60%||36-Month CD (EWP=180 days)||CFG Bank|
|4.57%||36-47 Month CD (EWP=180 days)||Department of Commerce Federal Credit Union|
|4.55%||36-Month CD (EWP=180 days)||Crescent Bank|
The above information and rates are accurate as of 11/19/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.