Yesterday, AloStar Bank of Commerce (AloStar) raised the rates on its 6-month CD (1.05% APY), 12-month CD (1.35% APY), 18-month CD (1.45% APY), and 24-month CD (1.55% APY).
The new rates for the 12-, 18-, and 24-month CDs are the highest APYs since the CDs were added to the Bank's product line in 2011. The 6-month CD's APY is with 7 basis points of the initial 2011 rate.
|0.35%||$500||-||AloStar Bank of Commerce||6 Month CD|
|0.30%||$500||-||AloStar Bank of Commerce||12 Month CD|
|0.30%||$500||-||AloStar Bank of Commerce||24 Month CD|
|0.30%||$500||-||AloStar Bank of Commerce||18 Month CD|
The minimum opening deposit for any of these CDs is $1K, with a maximum deposit of $250K. 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impose will equal one month's interest on the amount withdrawn subject to penalty.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the fee we may impose will equal three month's interest on the amount withdrawn subject to penalty.
Thanks to long-time DA reader, cumulus, for his continued contributions to the Forum.
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.
AloStar Bank of Commerce (FDIC Certificate # 59060) has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 6.81% (excellent) based on December 31, 2015 data. In the past year, AloStar has increased its total deposits by $16.22 Million, an above average growth rate of 2.56%. 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 $893 Million.
How the CDs Compare
When compared to the 124 similar length-of-term CDs tracked by DepositAccounts.com available nationally, AloStar Bank of Commerce’s 6-Month CD currently ranks first.
When compared to the 137 similar length-of-term CDs tracked by DepositAccounts.com available nationally, AloStar Bank of Commerce’s 12-Month CD currently shares the top spot with Colorado Federal Savings Bank’s 1-Year CD.
When compared to the 101 similar length-of-term CDs tracked by DepositAccounts.com available nationally, AloStar Bank of Commerce’s 18-Month CD currently ranks second.
When compared to the 131 similar length-of-term CDs tracked by DepositAccounts.com available nationally, AloStar Bank of Commerce’s 24-Month CD currently currently shares the top spot with iGObanking’s 24-month iGOCD.
The above rates are accurate as of 4/13/2016.