Southern Commerce Bank Offering 12-Month CD at 2.30% APY

Southern Commerce Bank of offering a 12-month CD that pays 2.30% APY. That's the best 12-month CD rate according to the BestCashCow rate tables. In addition, the bank is offering other competitive CD terms including 15-month and 2-year CDs.

The has a $500 minimum balance and is nationally available.

The CD can be opened online. I called the bank and had some initial trouble getting through (tip, call a branch directly instead of the telebanking center). Although it says you need to visit a branch in order to verify your identify the CSR told me that it could be done by mailing back a copy of your license and other form of ID. Funding can be done via check or wire transfer.

Southern Commerce Bank is headquartered in Tampa, Florida and has 11 branches. The bank had $211 million in assets as of June 30, 2009. The bank was given 1 out of 5 stars (Troubled) by Bauer Financial for its safety and soundness. The bank itself has run into problems with its loan portfolio and has no doubt raised rates in order to bring in more deposit dollars to shore up its balance sheet. It's something we've seen with many financially distressed banks.

Southern Commerce is FDIC insured so your money is safe as long as you stay below FDIC insurance limits.

Please share any comments about opening a CD with Southern Commerce Bank below.