Urban Partnership Bank is offering competitive rates on three of its CD specials: 2.42% APY 5-year CD, 1.46% APY 30-month CD and 1.16% APY 18-month CD. Mimimum deposit is $1,000, and the maximum balance is $99,999. These rates are listed in the bank's featured products page as of 9/7/2011. Update 9/20/11: These specials are no longer listed in the featured products page, but they are still listed in the bank's deposit rates page.
CD Application Details
According to the bank's CSR, these CDs are available nationwide. However, you'll have to mail the application and check. Application details are described in the bank's "open a personal account" page. I was told rates are typically updated on Tuesday. According to the bank CSR, the CD rate should lock based on the postmark date of your CD application. They do require a letter to close the CD. When the CD closes, you can receive the funds by check or by wire transfer. And if you have Urban Partnership Bank's online savings account, you can have the funds transfered into that account.
Early Withdrawal Penalty and Customer Service
Based on my limited experience with this bank, the customer service isn't the best. After searching the website, I called twice to find out the early withdrawal penalties. In the first call the CSR tried to connect me with one of their CD account specialists, but it was just before 9:00am CDT and they weren't in yet. The CSR asked for my number so I could be called back. I didn't receive a call back so I called again. This time the CSR put me on hold while she tried to find the EWP. After about 5 minutes on hold, I was disconnected. If you find out about the EWP, please leave a comment.
Update: A reader was able to receive the truth-in-savings disclosure from the bank and was kind enough to post the following info in the comments:
the early withdrawal penalty is 90 days of interest for CDs with original maturities of less than three years and 6 months of interest for CDs with original maturities of three or more years.
The reader also noted that the disclosure states that if you close your CD account before your accrued interest is credited, you will not receive that accrued interest. Interest on all CDs is credited quarterly.
History of Urban Partnership Bank
Urban Partnership Bank is a newly-chartered bank that was formed by a consortium of major U.S. financial institutions and philanthropic groups to acquire the failed ShoreBank in August 2010. ShoreBank was a community development bank that served distressed and underserved urban communities in Chicago, Cleveland, and Detroit. Urban Partnership Bank has continued this mission.
Before its closure, ShoreBank had been offering a competitive online savings account. Urban Partnership Bank has continued this savings account, and it remains fairly competitive. As of 9/7/2011, it has a 1.00% APY for balances up to $100K and 1.05% APY on balances over $100K. The bank has a pretty good FAQ page describing several of the account features including the ACH transfer service.
Overview of Urban Partnership Bank
For those who prefer to open a CD at a branch, the bank has branches in several parts of Chicago and also in Detroit and Cleveland.
It appears Urban Partnership Bank hasn't shed all of the financial problems of ShoreBank. Its financial health isn't the best. The bank has an overall health score at DepositAccounts.com of 2 stars (out of 5) with a Texas Ratio of 133.74% (poor) based on June 2011 data. Please refer to our financial overview of Urban Partnership Bank for more details. The bank has been a FDIC member since August 2010 (FDIC Certificate # 59051).
How these CD Rates Compare
Urban Partnership Bank's 5-year CD rate is the most competitive of the three special CDs. The only internet bank with a higher 5-year CD rate is Airbanking which has a 2.50% APY. For all-access credit unions, the best 5-year CD rate is 2.68% APY at Melrose Credit Union. Rates are accurate as of 9/7/2011.
Searching for Top CD Rates
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.