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Tennessee Commerce Bank

Competitive Savings Account and CD Rates at Tennessee Commerce Bank - Nationally Available


Update 9/28/09: I received confirmation from the bank that they are no longer opening new TCB Savings Accounts. The account continues to pay 2.30% APY for existing customers. Refer to this post for more details.

Tennessee Commerce Bank is offering a good deal on its savings account, the TCB Savings. The rate is 2.30% APY on balances up to $100K. Over $100K, the rate falls to 1.50% APY. These rates are listed in the bank's rate page as of 6/04/09.

I remember when TCB used to offer competitive rates on its money market accounts a few years ago, but I don't remember this savings account. When I spoke with the CSR this morning, she said they've been offering 2% on this account for the last 9 years, and just recently increased the rate. I guess since 2% wasn't that great in previous years, I didn't pay much attention. I had noticed their money market rates which are index based on 6-month T-Bills. This was good in previous years, but not now with our current low Treasury yields. Both of their money market rates are under 1%.

One important issue with the TCB Savings account is that they limit the number of free withdrawals to only one per month. Additional withdrawals cost $2.50 each, and according to the CSR this includes any type of withdrawals including ACH transfers initiated at another bank. Below are some important details of the TCB Savings as described in the bank's savings overview webpage and from what I was told by the CSR today:
  • Available nationwide (CSR)
  • Requires mailing in forms and copies of ID
  • Funding can be done by ACH (from another bank), wire transfer or by check (web)
  • $250 minimum opening deposit and balance to avoid a $2.50 monthly fee (web)
  • ATM card if requested (web)
  • Trust accounts and POD accounts available (web)
  • No hard credit inquiry (CSR)
  • interest is credited monthly (CSR)
  • paper statements only (once per month), no online statements (CSR)
  • Online ACH transfer service available (see see comment for limitations)
  • $2.50 charge for more than one withdrawal per month (web)
  • Mail in form with voided check to link accounts (CSR)
  • No limit to the number of linked accounts (CSR)
  • No limit to the size of the ACH transfers (CSR)
Certificate of Deposit and Individual Retirement Accounts:

TCB also has a history of competitive CD rates, and they currently have some of the best bank CD rates in the nation. As of 6/04/09, the best rates listed at TCB's rate table include:
  • 2.40% APY 12 months
  • 2.45% APY 18 months
  • 2.87% APY 24 months
  • 3.27% APY 36 months
  • 3.45% APY 48 months
  • 3.65% APY 60 months
Minimum deposit is $2,500. Below are some important details of the TCB CDs and IRAs as described in the CD overview webpage, the Preliminary Terms Agreement and from what I was told by the CSR today:
  • Rate locks for 10 days from the day application is submitted (CSR)
  • Requires mailing in forms and copies of ID
  • Funding can be done by ACH (from another bank), wire transfer or by check (web)
  • At CD maturity, you can request to withdraw funds via ACH transfer, wire transer ($25) or by check (CSR)
  • Bank requires written instructions for closing CD. This can be faxed (CSR)
  • Interest can be paid by check, transferred to another account or added back into CD
  • CD also available in a Traditional or Roth IRA (web)
  • Trust accounts and POD accounts available (web)
  • Early withdrawal penalties: 90 days of interest for terms under 2 years, 180 days of interest for terms 2 years and over (Terms)
  • 10 day grace period at maturity (Terms)
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 3/31/09 data, it has 85 employees, $1.266 billion in assets and $1.108 billion in deposits.

Its ratings for safety and soundness are fair: 3 stars (performing) at Bankrate.com and 3.5 stars (good) at BauerFinancial. Both ratings are based on 12/31/08 financial data.

The bank has been FDIC insured since 2000 (FDIC Certificate # 35296).

Thanks to the reader who mentioned this savings account in the comments.

Other Top Savings Account and CD Rates

For top savings account and CD rates nationally available, refer to my weekly rate summary. Many of the best deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.

Edit 9/05/09: Updated statement frequency and added link to ACH comment.

Related Pages: CD rates, IRA rates, savings account

Related Posts

Anonymous   |     |   Comment #1
Charging for withdrawals! These folks do not deserve a right up on this site.
Anonymous   |     |   Comment #2
Sorry, should be write. Its just not right that banks are charging for withdrawals.
Anonymous   |     |   Comment #3
Does quarterly statements equal quarterly interest?
Banking Guy
Banking Guy (anonymous)   |     |   Comment #4
Yes, I don't like charges for withdrawals, but it could be worthwhile if they can hold the rate above 2.00%. We'll see.

About interest, I was told interest is credited monthly even though they only send out statements quarterly.
Anonymous   |     |   Comment #5
Sounds lousy. Charging for withdrawals!

Anonymous   |     |   Comment #6
Some monthly limit on permitted withdrawals is pretty common on money market accounts, as I gather there is some federal regulation on this.

But I can't say I ever recall seeing a bank that limited a savings account to ONE free withdrawal per month. That's getting pretty miserly (or misery). Take your choice...
Anonymous   |     |   Comment #7
As of today, they're still offering 2.3% APY on this savings account, which is very competitive in today's market.

Note that if you use their website for ACH transfers (either incoming or outgoing), it's subject to a $10,000 daily limit UNLESS you apply for a waiver every time you need to make such a transfer. This limit doesn't apply if the ACH originates at the other bank's website, apparently.
Anonymous   |     |   Comment #8
Looks like the statements are monthly according to their site:

Anonymous   |     |   Comment #9
Does anyone know: How long does it take for an incoming ACH transfer to be credited to the savings account (and when is it debited from the external account)?
Anonymous   |     |   Comment #10
The last ACH transaction I initiated was withdrawn from my external account the next business day and showed up in my TCB Savings account the day after that. I had various online bank accounts in the past so TCB’s ACH transaction was very fast in comparison to others.
Steven SF
Steven SF (anonymous)   |     |   Comment #11
I sent in an application to open an account earlier this week. I just checked the bank's website -- they no longer list TCB Savings in their list of current interest rates. Not sure what it means
multitouch (anonymous)   |     |   Comment #12
yes, i can't find rate for TCB Saving either.
Banking Guy
Banking Guy (anonymous)   |     |   Comment #13
In addition to the TCB Savings no longer being listed in the rate table, it's also no longer listed as an option in the online application. I looked at the application that had been cached by Google on 9/14, and it had a savings account option as one of the accounts to be selected. The new application excludes this.

So I'm afraid TCB Savings may no longer be available for new customers. I'll have to call on Monday to confirm, and I'll find out what the rate is for existing customers.
Anonymous   |     |   Comment #14
Does anyone know what rate TCB will be offerring to existing customers that alredy openend and put funds into the TCB Saving account, when they offerred it at 2.30% APY?
Thanks in advance.