It has been a while since 1st Source Bank has offered any competitive CD rates, but they currently have a good deal on one CD. It's a 3-year CD with a 2.02% APY. Minimum deposit is $500. This is listed in the bank's online CD page as of 5/12/2011.
This 3-year CD rate is so much higher than all of the other rates that I was a little worried that it might be a mistake. So I called and confirmed it is correct. I was told it's a special rate that should last at least until next Wednesday when rates are updated. When you submit the online application, you'll need to print out the forms and mail it in with your check. The rate will lock based on the postmark date.
At the bottom of the rate table the bank provides a fair number of details about the CD. Some of the important things to note include:
- Applications should be mailed and postmarked on the date that you apply. The postmark date will lock in the rate shown on our website
- Interest may be paid by check or credited to another 1st Source Bank deposit account for Certificates equal to or greater than $2,500.00
- This offer applies only to personal CDs with balances up to $100,000
- IRA/CDs are only available at 1st Source banking centers
The bank's CD Terms and Conditions provide some additional details
- Interest is compounded annually for terms longer than 12 months
- Early withdrawal penalty equals 6 months of interest on amount withdrawn for terms over 1 year through 6 years
- 10 day grace period at maturity
- No interest is earned during grace period if CD is redeemed
1st Source Bank Overview
1st Source Bank is a sizable bank with $4.43 billion in assets. It has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 12.17% (above average) based on December 2010. Please refer to our financial overview of 1st Source Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 9087).
How It Compares to the Best CD Rates
The only other bank that offers a nationally available 3-year CD rate that's over 2.00% is Tennessee Commerce Bank which has a 2.15% APY. The highest that's available at a credit union is 2.27% APY at Velocity Credit Union (as of 5/12/2011).
You can also get a 2.27% APY if you close an Ally Bank 5-year CD early after 3 years. This is based on Ally's very mild 60-day early withdrawal penalty and Ally's current 5-year CD APY of 2.40% (as of 5/12/2011). I have more details on this in my Ally Bank CD review.
To search for the best CD rates nationwide and in your state, please refer to our CD rates table.