2.10% 12-Month CD at UmbrellaBank - Available Nationwide


Update 11/03/09: The 12-month CD rate has fallen back down to 2.10% APY.

Update 10/31/09: The 12-month CD rate has gone up! It's now 2.20% APY.

UmbrellaBank raised its 12-month CD rate today to 2.10% APY. Minimum deposit is $1,000. The bank's other CD rates are not quite as competitive. This 2.10% 12-month CD is listed at the bank's CD rates page as of 10/29/09.

UmbrellaBank has an online application that allows funding via an ACH transfer. When I last checked with the bank, I was told that the ACH transfer is not an option when the CD matures. I have the many details about UmbrellaBank CDs in my UmbrellaBank review.

Financial Overview

UmbrellaBank is the online banking division of New South Federal Savings Bank, a privately held company based in Alabama. New South FSB is a FDIC member (FDIC certificate # 32276).

New South FSB isn't doing well financially. According to the Birmingham Business Journal:
[New South FSB] got caught up in subprime lending and construction and land development, two of the hardest-hit sectors in the recession. The bank is struggling with more than $247 million in nonperforming loans. It is currently under a cease and desist order issued by the Office of Thrift Supervision, which demands it must raise its capital levels my the end of this month

You can read the OTS's cease and desist order here. As you might expect it has low ratings for safety and soundness: 0 star (lowest) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both ratings are based on 6/30/09 financial data.

Other Competitive Certificate of Deposit Rates
Lawrence (anonymous)   |     |   Comment #1
I hear that many online banking institutions have been offering much better rates but all should do their research to ensure they're not investing in a lost cause.
Anonymous   |     |   Comment #2
For the most part, online banks have consistently offered higher rates than the bricks and mortar banks. This is not heresay, but a fact that you can see in many of the rate charts on financial websites. What do you mean by a "lost cause"? Are you referring to people who lost money in online banks? Or are you referring to putting your money into a bad rated bank that eventually closes like Indymac? Well, as long as you put into the bank below the FDIC limit, you are reasonably safe with your money. Now, if you are referring to the "lost interest" that might occur on your account for closed banks, well even if the revised terms are not to your satisfaction, the takeover bank usually allows you to close the account.
UmbrellaBank Raises CD Rates & Update on its Money Market Account - Nationally Available
Update 10/24/2009: Latest MMA rate tiers include: 1.25% APY up to $50K, 1.60% APY $50K+. Please refer to the bank's website for the latest rates.

A bank actually raised CD rates today. UmbrellaBank raised its 12-month CD yield from 3.20% to 3.50% APY and its 24-month CD yield from 3.25% to 3.50% APY. The 3.50% APY for 1- and 2-year CDs is nothing to get excited about, but the rate is very competitive in this low-rate environment. UmbrellaBank just changed the CD rates today (1/15/09), so they should last for a...

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2.75% 14-Month CD at Charter Bank - Nationally Available
Charter Bank continues to offer a special 14-month CD. The rate has gone down from last month, but it remains very competitive at 2.75% APY. Minimum deposit is $5,000. This rate is listed at the bank's rate table as of 4/13/09.

On the left side of the rate table, you can launch the online application. When I called Charter Bank last month, I was told that people in any state can apply. The CSR said that the CD rate will lock when the application is submitted. They'll mail you the signature...

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3.00% 14-Month CD at Charter Bank - Nationally Available
Update 4/13/09: The 3% 7-month CD has ended, and the 14-month CD rate has fallen to 2.75% APY.

Charter Bank is offering a special CD with a 3.00% APY for terms of 7 and 14 months. Minimum deposit is $5,000. This rate is listed at the bank's rate table as of 3/16/09.

On the left side of the rate table, you can launch the online application. I just called, and I was told that people in any state can apply. The CSR did not know how much longer this rate would last...

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UmbrellaBank Raises CD Rates
UmbrellaBank has increased its CD rates. It's now offering a 4.00% APY 12-month CD. The following shows all the terms with yields 4% or higher:

Term APY
1 year 4.00%
1.5 year 4.10%
2 year 4.25%
2.5 year 4.25%
3 year 4.35%

A description of the basic CD features is available at UmbrellaBank's CD overview page. More details are in their Truth in Savings Disclosure. Some of the important features include:
  • $1,000 minimum deposit
  • Monthly or quarterly...

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6.00% for 90 Days in New Savings Account at UmbrellaBank
Update 1/16/08: The new promo yield is now 5.25% APY (5.12% interest rate). The previous promo yield was 5.50% APY (5.35% interest rate) and this had lasted since 8/29/07.

UmbrellaBank has started a new promotion on its Green Day Savings Account. It's offering an introductory rate of 5.83% for the first 90 days after the account is opened. After the 90 days, the rate returns to the standard tiered rates which are rather low for an online savings account (4.16% for under $25K, 4.40% for $25K to $75K and 4.64% for...

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