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Financial Health Of Banks - Judgment Q

stcharles
  |     |   22 posts since 2018

Considering Colorado Federal Savings Bank for 12-month CD at 2.86% APY ($5,000 minimum) with an early withdrawal penalty of 3 months of interest. The Financial Health is rated A, however deposit growth is a D "In the past year, Colorado Federal Savings Bank has decreased its total non-brokered deposits by -$104.01 million, resulting in -9.5% growth for the year. A strong track record of growth is an indicator of consumer confidence and the bank's ability to strengthen its balance sheet."

I do not know how to judge if the deposit growth of D should be red flag to not purchase a CD at this bank?

Texas Ratio - A+ - Texas Ratio Trend - A and Capitalization A+

Thank you.

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Answers
CTM
  |     |   179 posts since 2010
If you are buying a CD and are below the FDIC limits, none of these metrics matter.
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