AloStar Bank Of Commerce Raises Mid-Term CD Rates

At the end of last week, Alostar Bank of Commerce raised the rates on its 12-month CD (1.26% APY), 18-month CD (1.31% APY), and 24-month CD (1.46% APY).

The new rates for the 18- and 24-month CDs are the highest APYs since the two CDs were introduce in 2011. The 12-month CD's APY, on the other hand, is 1 basis point lower than initial rate in 2011.

The minimum opening deposit for any of these CDs is $1K, with no balance cap. Interest earned can be paid in a variety of ways:

• Paid to CD at maturity, semi-annually or annually depending on term selected.
• Deposited to AloStar account monthly.
• Monthly interest check (CDs $10K+).
• Paid monthly to external account via ACH.

As stated in AloStar’s Truth In Savings Disclosure document, the Early Withdrawal Penalty reads as follows:

If your account has an original maturity of twelve months or less, the fee we may impose will equal one month's interest on the amount withdrawn subject to penalty.

If your account has an original maturity of more than twelve months, but less than thirty six months, the fee we may impose will equal three month's interest on the amount withdrawn subject to penalty.

Availability

Headquartered in Birmingham, Alabama, AloStar Bank of Commerce offers its services and product line to all U.S. citizens, 18 years or older, with a permanent U.S. address.

Opening a CD (or any other accounts) can done online. While AloStar does not have any traditional brick-and-mortar branch locations, it does maintain a commercial lending office in Atlanta, Georgia.

Bank Overview

AloStar Bank of Commerce (FDIC Certificate # 59060) has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 1.79% (excellent) based on September 30, 2015 data. In the past year, AloStar has increased its total deposits by $4 Million, an above average growth rate of 0.61%. Please refer to our financial overview of AloStar Bank of Commerce for more details.

AloStar Bank of Commerce is a young bank (although they describe themselves "as really a bunch of old hands in the financial industry"), having been established in 2011 following the failure of Nexity Bank. The FDIC arranged for the newly-chartered Alostar to assume all of Nexity’s deposits, and Alostar continued to operate in the same fashion as Nexity: as an internet bank. Today, AloStar has assets in excess of $919 Million.

How the CDs Compare

When compared to the 146 similar length-of-term CDs tracked by DepositAccounts.com available nationally, AloStar Bank of Commerce’s 12-Month CD currently ranks third.

When compared to the 109 similar length-of-term CDs tracked by DepositAccounts.com available nationally, AloStar Bank of Commerce’s 18-Month CD currently ranks fourth.

When compared to the 142 similar length-of-term CDs tracked by DepositAccounts.com available nationally, AloStar Bank of Commerce’s 24-Month CD currently ranks third.

The above rates are accurate as of 12/15/2015.

To search for nationwide CD rates and CD rates in your state, please refer to the CD rates section of DepositAccounts.com.