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Looking for the Best CD Rates - How I Found a Deal at Broadway Federal Bank in SoCal

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I received an email this morning from a reader who asked about the highest CD rate available in Southern California. The reader had a 5-year CD that was maturing, and she wanted to roll it over into another local CD. For those with CD ladders, it's depressing to have to roll over 5-year CDs in this interest rate environment. You might think it's unwise to go with a long-term CD these days, but if you believe in the CD ladder strategy, buying long-term CDs is still reasonable. Three years ago, 5-year CDs didn't seem to make much sense vs. short-term CDs. Those who stuck with their CD ladder strategy back then are probably glad they did.

One local option she had already found was OneWest Bank's 5-year CD that's currently paying 3.30% APY. The nice thing about OneWest's 5-year CD is that it has a reasonable 6-month early withdrawal penalty (some banks have much harsher penalties).

She preferred to bank locally, so PenFed's 3.50% APY 60-month CD and Ally Bank's long-term low-penalty CDs weren't options.

I took a look at the CD rates at DepositAccounts, and I was pleasantly surprised to find a SoCal CD rate higher than what OneWest was offering (banks listed without the US map are local deals). Most of the rates at DepositAccounts are updated automatically, so I'm often surprised by what I find. Each bank in the DepositAccounts tables links to the DepositAccounts' hub for the bank where you can find basic overview info, rates and links to related blog posts.

The CD that I found is at Broadway Federal Bank which is offering several CD specials. The highest rate of the CD specials is a 3.56% APY 72-month CD as of 1/27/2010. Here's the DepositAccounts hub for Broadway Federal.

Broadway Federal Bank has an online application, but the longest CD term it lists is the 24-month CD. A branch visit may be required for the longer terms. Branches are located in Los Angeles and Inglewood.

Broadway Federal's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 9/30/09 financial data. The bank has been a FDIC member since 1947 (FDIC Certificate # 30306).


Related Pages: Broadway Federal Bank, Los Angeles, CD rates

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Comments


Anonymous
Anonymous   |     |   Comment #2
Too bad OneWest aka OWB aka OneWorst bank is so bad when your CD matures. I had a couple of CDs mature at the end of June 2014 and found the only no-cost way to stop them from renewing at much lower rates was to call during grace period and transfer funds to their Green Saving accounts. Then you are limited to $2,000 external transfers three times a month to get funds out of OWB. I got tired of doing the transfers and ask for a check near the end of July even though it costs $7. They could not see the signature signature page the first three times I sent the scanned form and didn't even call me the second time to tell me there was a problem. When I did not see the funds leave my account, I called again and re-sent form (third time). They called to say they could not see signature page so I sent exact same attachment and copied my wife and then were able to see it and said they sent check. That was the first week delay. Then I had two week delay when check did not arrive and they wanted to wait 10 business days for check to arrive within same state. Then when I called, they said it would be 90 days to get a replacement. I talked to a supervisor who said they would replace check after I sent them form giving up all my rights to any recourse and replacement arrived in three days.

They demonstrated a lot of incompetency and attitude while taking more than three weeks to send me my money. I did file a complaint with the Comptroller of Currency, but they have not gotten back to me in 48 hrs. like they say they will. I can't wait for my last two OneWest bank CDs to mature so I never have to deal with them again.
Anonymous
Anonymous   |     |   Comment #3
Recalling the earlier exchange of comments about this Wild west bank at http://www.depositaccounts.com/blog/2014/07/onewest-bank-merge-cit-bank.html

One is reminded who does a bank serve...fiduciary duty is to the shareholders not the customers.  Thus unless the Comptroller steps up to the plate it will be business as usual.  From their perspective, "No harm, no foul/fowl"
Anonymous
Anonymous   |     |   Comment #4
file you complaints with the cfpb.